Universal Credit Roll-out
Hannah Bardell Excerpts(6 years, 6 months ago)
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Damian Hinds
It is, of course, a reality of devolution that we will have different systems operating. There is a different approach in Northern Ireland and a different approach again in Scotland—they are not exactly the same. For clarity, the hon. Gentleman identifies three points: rent paid direct to landlords, which we have discussed; more frequent payments; and split payments, which came up a couple of times in the speech by the hon. Member for Oldham East and Saddleworth (Debbie Abrahams). They are all possible in England when appropriate for an individual claimant.
Mr Harper
I am going to make some progress. I have only a couple of minutes left.
The Minister has been very clear today, and, like the Secretary of State last week, he has listened carefully to the issues that have been raised and, I think, has dealt with them. If we just paused, we would not have the opportunity to deal with any of those issues.
Mr Harper
I have only a couple of minutes left.
The shadow Secretary of State had a number of asks, although I noticed that between last week and this week the list had become considerably longer. That is what happens when the asks are not included in the motion. In her speech last week, the hon. Lady specifically asked for waiting days to be removed completely. Waiting days have always been a factor in the welfare system. [Interruption.] I read the hon. Lady’s speech very carefully, and she said at the beginning that she wanted to get rid of the waiting period.
The reason for the waiting period is very simple. If someone falls out of work for a few days, for example, we do not want that person to submit a universal credit claim. There has always been a waiting period in the benefits system, and I think that that is sensible. The Minister has already dealt with the cases in which people need to be paid more frequently, and has accepted, as the Secretary of State did last week—
Mr Harper
I am not going to give way. I have only a minute left.
The Minister has accepted, as the Secretary of State did last week, that the system was not paying people fast enough initially, but also pointed out that the more recent figures showed that the Department had speeded up the payments, and that it has refreshed the guidance to ensure that people can receive advance payments, which I think is very sensible. [Hon. Members: “Loans.”] They are not loans; they are advance payments. Anyone who earns a salary is familiar with the concept of an advance.
I have looked at all the issues that the hon. Member for Oldham East and Saddleworth raised last week. The Secretary of State dealt with each and every one of those issues thoroughly during the debate, but the motion, which called for a pause, did not give a single reason why the Government should pause roll-out. The Secretary of State, the Minister and the Leader of the House have made it clear that as we develop changes in the policy, they will be reported to the House. That is why I do not find it surprising that after only three sitting days—as was pointed out by my hon. Friend the Member for North Dorset (Simon Hoare)—Ministers had not come to the House.
I think that the Minister set out the position very clearly today and that the House has debated it very clearly, and I therefore think that people should have confidence in a policy that will get more people into work.
Carolyn Harris
I certainly do. Such is the Government’s arrogance.
Coastal Housing, one of the leading social housing providers in my constituency, tells me that 90% of its tenants who are already on the pilot scheme are behind with their rent. In total, those tenants are over £73,000 in arrears, which means that, on average, each of them owes approximately £830. Coastal Housing and its tenants have told me of a series of problems with the scheme. The initial seven-day waiting period does not cover housing costs; the month-long assessment period, followed by a wait of up to seven days for the money to be paid into their banks, is putting too many people in debt before they even start on the scheme; and people are being forced to rely on food banks for the first time ever while they wait for their money. However, despite all those issues with the pilot scheme, the Government think that the best way forward is to plough on regardless.
I anticipate mayhem for far too many vulnerable people on 13 December, when the scheme is rolled out in Swansea. It does not take a mathematician to work out that if they transfer 12 days before Christmas and the payments take between 35 and 42 days to appear in bank accounts, a lot of Swansea residents will be in dire straits at the worst possible time.
Hannah Bardell
The hon. Lady is making a powerful speech. Does she agree that if the Government had a heart, they would put that pause on the roll-out of universal credit—and, indeed, on other benefit sanctions—before Christmas, so nobody goes without over the Christmas period?
Carolyn Harris
I certainly do agree. No money and no support services open over the festive period means that my most vulnerable constituents are going to be desperate. Where is this Government’s compassion?
Jobcentres and the DWP Estate
Hannah Bardell Excerpts(6 years, 10 months ago)
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Chris Stephens (Glasgow South West) (SNP)
I beg to move,
That this House has considered job centres and the Department for Work and Pensions estate.
It is a pleasure to see you in the Chair, Mr Evans. This is a very serious issue, and I will be unashamedly referring to the effects that the jobcentre closures will have on claimants in every single constituency in the city of Glasgow, but before I do, I will make some general remarks.
The closures are, of course, part of a wider Government strategy to review their property estate, but it is my contention that very little strategic thinking is being done centrally. Government Departments’ offices are closing in towns and cities, with potential job losses, alongside the closure of jobcentres in the same towns and cities across the United Kingdom. I hope the Minister will be able to tell us if one Department is considering office closures across all Government Departments, and whether there is a strategic overview.
I hope the Minister will finally admit not only that the starting point of this process was the 2015 spending review, which identified a 20% cut in the Department for Work and Pensions estate, but that that target also decided the endgame, as everything since has been an exercise in delivering those savings no matter what. It has been a question of identifying an outcome and working back from that, with a fig leaf of consultation and a token change not by closing six jobcentres across the UK, but by pushing ahead with halving the number of jobcentres in Glasgow, with the solitary exception of Castlemilk jobcentre. As we all know, Castlemilk is noted for its excellent transport links—not! Along with my hon. Friend the Member for Glasgow South (Stewart Malcolm McDonald), I acknowledge the reprieve but condemn the closure of Langside, which is a resource close to a major further education college. Talk about an opportunity lost for positive outcomes.
The suggestion that the closures will usher in an improved service, with fewer public access points combined with swingeing back-office cuts, is an insult to our intelligence. Ministers have had to admit that they expect at least 750 DWP staff to lose their jobs and have refused to rule out compulsory redundancies, although I invite the Minister to do so today. The knock-on effect on vulnerable users and the wider community through the cumulative effect of closures hitting local economies and businesses is hard to quantify, but one thing we can be sure of is that the Government have made no assessment of the impact of these cuts.
Hannah Bardell (Livingston) (SNP)
I congratulate my hon. Friend on securing this debate. I am so sorry to hear of the impact that these closures will have in his constituency. In my constituency, the jobcentre in Broxburn is going to close. The constituency has already faced significant economic challenges, with the closure of Hall’s, and people now have to travel more than six miles to the jobcentre. Does he agree that a global view of communities that have had such losses is vital in this process?
Chris Stephens
I do agree. The Government really have to publish a map of office closures in every single UK Government Department. Not only has my hon. Friend’s constituency seen the closure of Hall’s, but Her Majesty’s Revenue and Customs wants to close its office in Livingston, while jobcentres are being closed in the very same constituency. That really does not add up.
This is a calculated, savings-driven, back-of-an-envelope, callous exercise in studied avoidance of the real issues at stake. The scale of job losses is severe because it is cumulative, coming as it does after years of erosion of DWP staff numbers. I note the careful use of semantics when any Minister replies to questions; they talk about no loss of frontline staff. However, the cuts programme includes large-scale back-office closures, with no clear commitment to no job losses, and as those of us with trade union experience know fine well, big budget savings are made on salaries rather than bricks and mortar, and not renewing a lease does not realise the savings that not paying wages and underwriting pensions does.
Before the Minister repeats the mantra that we have heard and memorised about Glasgow having the most jobcentres per head of population, may I strongly suggest there is a reason for that? It is not a numbers game. It is because historically and currently, Glasgow has the highest levels of deprivation in the country. The highest proportion of indices of multiple deprivation data zones in Scotland are in the city. We are talking about intergenerational poverty, rooted in the Scottish Office plan to encourage skilled workers to leave the city in the 1960s, followed by the systematic and planned destruction of the industrial base of Scotland in the 1980s. That was combined with the explicitly political reorganisation of local government in 1996, which abolished Strathclyde region, so that the ability to fund social work and education services by a broader tax base was destroyed. We remember how the Tories have dealt with Glasgow over the years, and we now see once again how they wilfully fail to recognise the scale of deprivation and poverty that people in our communities struggle with daily.
Carntyne West and Haghill data zone, ranked No. 2 in the list of the most deprived areas in Scotland, is currently within walking distance—if you are healthy—of Parkhead jobcentre. North Barlanark and Easterhouse South, ranked No. 3, is just about within walking distance of Easterhouse jobcentre. Both are marked for closure. If we take the time to look at the location of the most deprived communities in Glasgow, which has the highest percentage of deprivation in Scotland, and then overlay the map of closures, a bleak picture emerges. The people who are the furthest from being job-ready and require intensive support are now being pushed even further to the margins. The notion that they can and will use online services instead can only come from those who have no grasp of the realities of lives where women struggle to afford sanitary products, never mind broadband and tablets. Is this digital by default, or exclusion by design?
The Scottish index of multiple deprivation indicators identifies the 10 most employment-deprived zones in Scotland. With Possilpark ranked fourth and Wyndford ranked eighth, the closure of Maryhill jobcentre will do little to alter those statistics. Possilpark tops the list of zones with the poorest health indicators, and with the recent publicity surrounding a claimant who was forced to get out of her wheelchair and crawl up the steps of the building where her assessment was taking place, we can only wonder what levels of indignity will follow from these closures.
To know Glasgow’s geography and transport links is to understand the problems people will experience in the communities with the highest levels of deprivation and the poorest transport links. Glasgow is like a wheel, with the circular subway and linear spokes of bus routes radiating from the city centre, but not across communities. The east, north and north-east of the city, where the majority of closures are planned, are not well served by public transport. The 2014 report commissioned by Glasgow City Council on in-work poverty, “Hard Work, Hard Times”, identified transport as a major barrier to finding and sustaining work. In the consultation response on some of Glasgow’s jobcentres, a staggering 92% of respondents expressed concerns about the increase in travel time to attend the new jobcentres, and 79% expressed concern about the potential increase in travel costs.
It is clear that the industrial level of denial about the impact of these closures is accompanied by an expectation that other agencies will pick up the pieces and that, as per usual, local councils and third sector bodies such as citizens advice bureaux will carry the burden of mitigating these cuts. At Scottish questions yesterday, in answer to pointed questions about jobcentre closures, there was a glancing reference to “new outreach facilities”—provided and funded by whom, exactly?
Not only in Glasgow, but across Scotland and the UK, the way this cuts exercise has been conducted is riding roughshod over any partnership approach. Local community planning partnerships heard about the closures via the media, when many have been trying to address employment issues as a key outcome in their plans. Jobcentre Plus has been described as a claimant employment service rather than a public service, as those not claiming benefits do not receive support, and that is writ large in the way DWP and HMRC closures have been announced—I am not going to say “planned”, because that would imply a holistic approach with a strategic overview of the estate, rather than an incoherent, budget-driven approach.
People are rightly concerned and angry about the closures, and with the roll-out of the fiasco that is universal credit, we can only conclude that unacceptable burdens are about to fall on the people who are most vulnerable, furthest from the job market and least digitally connected, and that despite the best efforts of local councils, the third sector and local elected Members and their staff, real suffering will follow as people are sanctioned for not attending a jobcentre miles away because a costly, complicated journey has replaced the access to support that they once had.
I look forward to other hon. Members explaining how the closures will affect their constituents and, of course, to the Minister’s reply.
Ronnie Cowan
The hon. Lady is absolutely correct. It is the classic double whammy that people are put into an impossible situation by the Government and then look for support from them and find that it has been taken away. As we all know, the apprenticeship scheme is just an aberration at the moment.
Unfortunately, all levels of poverty are rising. In-work poverty is on the rise, yet the Minister continues to argue that jobcentre mergers are needed to ensure that the welfare state
“works for those who need it and those who pay for it.”
That kind of irresponsible language detracts from the reality that those who need the service and those who pay for it are in fact the same people. Ultimately, the whole of society benefits if poverty and inequality are reduced. Jobcentres are supposed to be part of the solution.
Aside from the £1 billion deal with the Democratic Unionist party, the UK Government have made the case over the past seven years that drastic public spending cuts are a financial necessity. The plan to close jobcentres across the UK is part of a wider plan to sell £4.5 billion-worth of Government land and property by 2021. While it is easy to cut services and demonstrate savings made in the short term, it is not so easy to quantify and predict the long-term impact of those changes.
Hannah Bardell
On the matter of property and quantifying decisions, does my hon. Friend agree that the decision to close an HMRC office in my Livingston constituency and an area of West Lothian that is significantly cheaper, and to move it to Edinburgh city centre in a record long-term contract of 20 to 25 years, is just sheer stupidity on the Government’s part and clearly a waste of public money?
Ronnie Cowan
I absolutely agree, and could not have put it better myself.
The UK Government have simply not made a convincing case that the proposed closures will benefit clients or society as a whole. Jobcentre staff have contacted me to say that the impact of the closures on disabled people has not been properly assessed. The Scottish Government have indicated that the closures are likely to push many vulnerable people into crisis. Will the Minister meet me in Inverclyde and show that the UK Government are actually listening to those concerns? We are about to set off into recess. I assure the Minister that I will clear my diary and cancel my holidays, and will be there whatever day he wishes to come and visit Inverclyde.
Jobcentre Plus: Closures
Hannah Bardell Excerpts(6 years, 10 months ago)
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Hannah Bardell (Livingston) (SNP)
My constituents in Broxburn are facing the closure of the DWP office. They faced the closure of Hall’s of Broxburn just a few years ago, losing 1,200 jobs. Like the constituents of other hon. Members, they are very reliant on the service, and the Government’s Google Maps approach does not reflect the true amount of travel they will have to undertake. Will the Secretary of State review the decision and undertake to carry out a full review of the vulnerable areas that are reliant on the vital services provided by these centres?
Employment and Support Allowance
Hannah Bardell Excerpts(7 years, 1 month ago)
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Neil Gray
Absolutely. I thank my hon. Friend for that intervention, because that point has been made by the expert disability charities. They do not see this cut as an incentive for people to find work; rather, it hinders their opportunities for getting back into work, if they are able to do so as part of a timely process.
In November, in response to the debate on a cross-party motion on this subject that I introduced in this Chamber, the Minister committed to ensuring that a replacement system of support would be in place for ESA recipients in the WRAG before the cut was to take place, but we have no clarity over what that system is or will look like. She said that support would be provided and an additional £15 million invested in the flexible support fund, but, of course, the flexible support fund is a discretionary fund used by jobcentres to help those in receipt of unemployment benefits to find work. It can be used to help with the cost of travel to interviews, childcare, clothing or uniforms to start work. However, the flexible support fund has been heavily criticised by the National Audit Office, the Work and Pensions Committee and others, because of its complexity and under-utilisation.
There have been allegations that jobcentre staff have been pressured into not using the fund. It is also one of the best kept secrets in Whitehall as information about it is not available on the Government’s own website. What concerns me most is that there is no detail over how the flexible support fund, which will total only £83 million after the additional allocation, will directly support ESA WRAG recipients. Have jobcentre staff been told to target the flexible support fund on disabled people?
Another commitment made by the Minister was to secure better deals with service providers to help disabled people financially. She was going to broker deals with energy companies and telecoms suppliers to help sick and disabled people with their bills, but how many people will be able to afford a BT TV package or Sky broadband on even the higher rate of ESA WRAG? Even if she has managed to secure better deals on energy or insurance costs, we have not been told about them. How much will they aid disabled people? Will they make up the shortfall? Who are the deals with? When will they come into force? Will the Government promote them?
The Minister also committed to having personalised support packages in place by now—either a place on the Work and Health programme or Work Choice. Of course the Work and Health programme has yet to start and Work Choice is not new support. Additional places were also to be provided on the specialist employability support programme, which is a very small project, with only 1,700 members in 2015. Another idea was on job clubs, but we have not had any further detail on that. There is also the drive for work experience places with wrap-around support for young people, but again there have been no detail on whether this will be available for WRAG recipients.
Increased funding for the Access to Work mental health support service has also been mentioned. It has been launched, but is available only if a person is in work or signed off work sick, so it will not help those on ESA WRAG. All in all, we have had many different ideas. There have been different, tentative and ultimately detail-free announcements. In the end we have no detail and no way of knowing how the Government plan to live up to their promise of ensuring that ESA WRAG recipients are not punished financially or how they intend to halve the disability employment gap by 2020, as was promised.
Hannah Bardell (Livingston) (SNP)
I thank my hon. Friend for giving way and congratulate him on bringing this serious issue to the attention of the House. Does he agree that the Government are just piling on more pernicious cuts on top of—let us not forget—the closure of Remploy a few years ago, and a missed opportunity in the industrial strategy where there is very little talk of how they will close the disability employment gap? They need to be much more ambitious and much more helpful.
Neil Gray
I agree with my hon. Friend. Indeed I understand that submissions to that effect have been made to the Government’s consultation on the industrial strategy.
All of us—colleagues across this House, Members of the House of Lords, expert disability charities, which have opposed this cut, and disabled people themselves—are expecting detail from the Minister this evening. She has had two weeks’ notice of this debate. She will have known what I was going to raise because I have been asking the same questions for months. There can be no excuse for not being very clear and for not providing great detail on how her Government are honouring their many promises in debates past to placate their own Back Benchers.
Of course I can predict one thing the Minister will say. The Scottish Government now have limited powers over some aspects of social security and she will claim that the Scottish Government can therefore mitigate this cut for the people of Scotland. I hope that I can pre-empt her reading out that nonsense by telling her that I am standing here defending employment support not just for disabled people in Scotland, but for disabled people up and down these isles. Secondly, the Scottish Government have already spent almost £400 million since 2013 mitigating Conservative cuts to social security in Scotland. At a time of austerity, when Scotland’s budget is being cut back to the tune of £2.9 billion in this decade, and the Scottish Government are having to divert depleted funds to mitigate Tory social security cuts, I do not think that telling Scotland to pay twice for disability employment support would be the strongest position for the Minister to take, and it does nothing to help or answer the questions of disabled people elsewhere. So perhaps she will stick to finding a credible argument to justify this cut and outline what additional support she will provide rather than deflect responsibility for it.
The Disability Benefits Consortium brings together 70 different expert disability charities and they have opposed this cut from the start. On the same day as the cross-party motion presented to the Backbench Business Committee was debated in November, they signed an open letter to the Government calling for the cuts to be stopped. They have criticised in particular the Government’s idea that somehow disabled people are disincentivised to work by receiving an extra £30 per week. The Government completely ignore the fact that the majority of sick and disabled people are desperate to work but struggle to find a job. The Government ignore the fact that a third of ESA recipients sometimes cannot afford to eat on the old ESA WRAG rate. Almost seven in 10 say that this cut will cause their health to suffer. The Government have done nothing to assess how this cut will impact on the mental health of recipients. Nobody could suffer a one third cut in their income and not see their health deteriorate in some way as a result, especially when they are already struggling to get by.
The people we are talking about today are people with disabilities or mental health conditions. They want to work, but they cannot. They are faced with the double indignity of wanting to work but being unable to find a job, and then being told that the financial support they are struggling to live on is a disincentive to find work. I am aware—not just from the debate in November when a number of Tory MPs followed MPs from eight other parties through the Lobby to call on the Government at least to pause these cuts, but since then—that all is not well on the Government side of the House in relation to this policy. I understand that the Prime Minister attended a meeting with concerned Tory MPs a few weeks ago and was told directly by them that she needed to do more. Perhaps we will get some clarity tonight as a result.
We need to hear from the Minister what she is going to do to live up to that quote about liquidity. What is she doing to ensure that disabled people, who are already struggling to get by, will be financially supported in addition to any enhanced employment support that may be forthcoming?
This will be one of the final debates of this Parliament. So far the Government have failed to listen to the disability charities, Opposition parties, the Work and Pensions Committee or the will of the House, given the vote in November. Perhaps in the coming weeks, Government MPs will hear more from the electorate about this devastating cut and come back in the next Parliament with a more serious response.
The Minister for Disabled People, Health and Work (Penny Mordaunt)
I welcome the debate secured by the hon. Member for Airdrie and Shotts (Neil Gray) and thank all Members who have attended and intervened on his speech. I shall concentrate my comments on the work-related activity group issue, which is at the heart of the debate. The hon. Member for Livingston (Hannah Bardell) asked about measures to deal with the disability employment gap. Clearly, we are going through the Green Paper consultation responses, but we want to build on the momentum created on these issues and wish to bring forward a White Paper at the earliest opportunity. Additional working up of those ideas will be done with employers and the third sector, which will be able to continue the momentum.
Hannah Bardell
I thank the Minister for dealing with that point, but does she not think that that should have been done before the cuts were made? Would that have been a logical approach, rather than making the cuts, leaving people destitute and devastated, and then thinking about how they are going to be helped?
Penny Mordaunt
The WRAG issue was debated heavily last year and voted on in the House. The measures that were put in place to provide additional support to that group, which I will go into in detail, were debated at the time and confirmed in the Green Paper. So the issue was mentioned in the Green Paper, but it had been consulted on extensively beforehand.
On the point about the industrial strategy, we are very much engaged with the Department for Business, Energy and Industrial Strategy, and we are looking at what can be secured on this agenda from that strategy.
Help is available to enable people to live independent lives and ensure that those who can work have the opportunity to do so. This includes personal independence payments, the Access to Work scheme; local authority-provided social care support and aids and adaptations; NHS-provided aids; free prescriptions; free or discounted travel, for example to hospital appointments; the blue badge scheme; disabled students allowance; the disabled facilities grant; budgeting loans, cold weather payments through the social fund; and housing benefit. I shall not repeat the arguments that I made, as the hon. Member for Airdrie and Shotts has quoted me, but I will address some of the points on liquidity before moving on to his questions about the support package.
We have announced some additional funding for the flexible support fund in the coming years, which offers grants to support claimants with the associated costs of returning to work. Through the flexible support fund, Jobcentre Plus has a discretionary fund that is available to claimants. This includes barrier awards for individual claimants. Such awards could include travel and care costs to help people to attend training or the jobcentre itself. The funds can also be allocated to help claimants to move closer towards or into work—for example, for clothes to attend a job interview and start work, and much more. Each district manager is allocated a proportion of the national budget. There are very few national guidelines, and they have considerable freedom as to how to deploy the funds locally. This clearly helps with work and employment support-related costs.
As the hon. Gentleman will know, at Christmas we introduced a new procurement tool, which enables people quickly to purchase things, commission services and so on using the flexible support fund, so I take issue with the allegations he makes. Maybe the process has involved a lot of admin historically, but that is currently not the case.
Mining: Health and Safety
Hannah Bardell Excerpts(7 years, 1 month ago)
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Hannah Bardell (Livingston) (SNP)
Seventy years ago, the Burngrange mining disaster happened in my constituency. It was, and still stands as, the worst accident in Scottish shale mining history. Fifty three men went down on shift on 10 January 1947, but only 38 came out alive. One miner’s body was brought up with the survivors, but 14 men were trapped behind the debris and the fire. The heat and power of the fire were all consuming. Hopes of any survivors faded fast as the hours passed. A total of 15 men from my constituency died in this tragic accident.
Earlier this year, the towns of West Calder and Seafield paid homage to their lost miners in moving tributes. The names were read aloud and stories told of the events by local schoolchildren who had spent time in class learning about what those men and their families had endured. Standing in West Calder square on that chilly January day hearing the children of Parkhead primary recounting the stories of the men of Burngrange was a powerful and beautiful tribute. I also pay tribute to Alan Tuffs and his team from the local area who had worked so hard to put together tributes and to bring the community together in commemoration.
I am proud to have the opportunity today to read again the names of the men who lost their lives working for their families and communities in an industry that is now marked by the bings of West Lothian that surround my constituency: John McGarty, 30, Limefield Avenue, West Calder, single; John Lightbody, 39, Gloag Place, West Calder, married, two of a family; Anthony Gaughan, 44, Parkhead Crescent, West Calder, married, two of a family; David Muir, 32, Parkhead Crescent, West Calder, single; George Easton, 48, Northfield Cottages, West Calder, married, three of a family; Henry Cowie, 28, Parkhead Crescent, West Calder, single; William Ritchie, 38, Old Rows, Seafield, married, three of a family; William Greenock, 50, Cousland Terrace, Seafield, married, three of a family; John Fairlie, 21, Old Rows, Seafield, single; Thomas Heggie, 27, Cousland Crescent, Seafield, married, two of a family; William Finlay, 56, Polbeth, married, three of a family; James McAulay, 56, Polbeth, West Calder, married with a large family; Samuel Pake , 24, New Breich, married, one of a family; William Carroll, 31, Seafield, married, two of a family; and David Carroll, 37, Old Rows, Seafield, married, five of a family.
I cannot imagine how the local mining community felt when the pit sirens wailed to warn of disaster, with the families running to the pit to wait for news—a wait that lasted for days before the families could claim the bodies of their fathers, husbands, brothers and sons. Today I pay tribute to them and their sacrifice. My own grandfather went down the pit as a coalminer just a few miles along the road as a fitter in Easton colliery, Bathgate. He, his father and two brothers all had serious accidents during their time as miners. He told me as I was growing up that accidents were just part of the job. I grew up with stories of him hauling himself through tiny crevices. At 5 feet 5 inches, he was a wee mannie, and was sent down all the nooks and crannies that the bigger men could not fit into.
My grandfather often told me of one accident, when the tow rope broke and a tub loaded full of coal was sent careering down the shaft, knocking him unconscious and leaving a serious gash in the back of his head. The truth was that he should never have been where he was, but it was a path well trodden by the miners around him. He survived fine, but never went that same route again. The scar on his head was an indelible mark that he showed me many times when I was a child. He said that it was a reminder to him that he was one of the lucky ones.
Jim Shannon (Strangford) (DUP)
I congratulate the hon. Lady on securing this debate. There is a need for safety. Does she agree that it is essential that the Government work with the representatives of the Mining Industry Safety Leadership Group to provide a forum to develop, lead and implement a strategy for health and safety in the mining industry? Does she also agree that working with these groups is the best way to promote health and safety in mines throughout the whole United Kingdom of Great Britain and Northern Ireland?
Hannah Bardell
I completely agree with the hon. Gentleman. Working with members who work in that community is vital.
West Lothian Council’s local history library collected information about the disaster that became part of a community exhibition developed in conjunction with the Calder history group and Almond Valley Heritage Trust. Many communities across the UK do work like this, and it is vital that the young people in communities around us remember their industrial heritage.
Margaret Ferrier (Rutherglen and Hamilton West) (SNP)
I congratulate my hon. Friend on securing this Adjournment debate. May I take this opportunity to remember the 207 people who lost their lives at the High Blantyre colliery in what is now my constituency, on 22 October 1877? Many local women were suddenly widowed and children were left without a father in the worst mining disaster in Scotland’s history. Does my hon. Friend agree that, though historical, the tragedy provides a lesson from the past in why the health and safety of those working in mines should be paramount?
Hannah Bardell
I join my hon. Friend in her tributes. She is a doughty champion for her constituents, and I share in all that she says.
Alan Brown (Kilmarnock and Loudoun) (SNP)
I congratulate my hon. Friend on securing the debate. The keynote in her speech is that we must never forget the sacrifices that people made. It is important that children and others living in these communities in later years understand what happened before them. This year is the 60th anniversary of the Kames colliery disaster in my constituency, in which 17 men lost their lives in an underground explosion. I pay tribute to those guys and their families. It is very important that communities never forget.
Hannah Bardell
I join my hon. Friend in paying tribute to those lost in his constituency.
I welcome such fitting tributes to men and to the families they leave behind, as they will remain a sober reminder to us all for generations to come of the sacrifices that those men made on that day in January 70 years ago. The five shale bings—or the five sisters, as they are famously known locally my constituency—and the bings of Broxburn were recently serialised by BBC Scotland, and are the indelible marks on the West Lothian landscape that remind us of our industrial past. In constituencies across the UK there are reminders in museums and galleries, such as Mill Farm in West Lothian and the Lady Victoria colliery in Newtongrange, which I visited as a youngster when my grandfather was terminally ill with a tumour. I remember going home to ask my mum whether she thought he would be well enough to visit. He was not, but the stories that I brought home meant a great deal to him.
There have been thousands of deaths in mines over the centuries, but fortunately safety has improved. It has been 50 years since the last UK mining accident happened at the Cambrian colliery in south Wales on 17 May 1965, where 31 tragically lost their lives. However, as recently as May 2014, the worst mining accident in the 21st century killed 301 people in Soma, Turkey. I am sure many hon. Members remember the 29 men killed underground four years previously at the Pike River mine disaster in New Zealand. In November 2010, just seven months earlier than that, 29 of 31 miners on site at the Upper Big Branch mine in West Virginia, USA, were killed in an explosion. On 30 January 2000, the Baia Mare cyanide spill took place in Romania: 100,000 tonnes of cyanide-contaminated water broke into the River Somes, the River Tisza and the River Danube. Although no human fatalities were reported, the leak killed up to 80% of aquatic life in some of the affected rivers, which meant that the accident was hailed as the worst environmental disaster in Europe since Chernobyl.
Although our UK mining industry has had health and safety problems, we have learned a huge amount from accidents such as the one in Burngrange in my constituency. From the pit closures and attacks on the trade unions in the Thatcher era, and the year-long miners strike—it was strikes in Lanarkshire that eventually drove my grandmother’s family to Glasgow so that her parents could seek other work—we remember the miners today and always. As a direct result of that strike, mining is no longer as much a part of the industrial landscape, but health and safety is crucial for those left working in the industry, wherever they are in the world. We have come a long way in health and safety improvements, but much more needs to be done, not just in mining but in other dangerous industries such as the oil and gas industry.
Many went from our pits into other industrial work such as oil and gas. It is important to remember that men and women in those industries work in some of the most challenging environments in the world. Health and safety is paramount. In fact, one such worker who followed that path was Mike McTighe, the father of my office manager, Stephanie. He worked in the Bilston Glen pit in Edinburgh for many years and was the last of a famous breed of coalminers in Scotland who moved on to work in oil and gas. He retired only a few months ago. He told me recently how he was once caught in a roof fall in a pit. He said that, as terrifying as that was, going down the leg of an oil platform, when he was often alone, responsible for his own air supply and surrounded by many toxic gases, was possibly the scariest and most hostile environment he had ever been in.
I had my own experience of the importance of health and safety when I became involved in the emergency response to a helicopter going down off the coast of Shetland in 2013. The company I worked for in the oil and gas industry lost a colleague. I spent a lot of time with his family, and working with many people in other companies to review health and safety practices and emergency response, to do our best to ensure that such an accident could never happen again. The work and continued improvement of our Health and Safety Executive is vital. Piper Alpha stands as the worst accident in the North sea and in the oil and gas industry. Many lessons were learned, including by the HSE, which has continued its work.
We owe a huge debt of gratitude to the men and women, and indeed children, who have worked in the pits, in some of the most challenging environments on earth. Their work and legacy leave a mark on our landscape, in our lives and in our history. We must remember them.
What will the Minister and the Government do to ensure that UK communities blighted by the loss of those industries get greater investment and support to embrace an environmentally friendly and low-carbon future? It is a fact that, despite goals to become a low-carbon economy, our dependence on imported fuels is now at a level not seen since the 1970s. The UK is the only one of Europe’s five biggest energy users to be increasing its reliance on imported energy. Britain now imports four times as much coal as it produces. Coal and other solid fuels made up 10% of the UK’s energy imports in 2015, from countries such as Colombia, Australia and the USA, with Russia being our biggest import partner. We have to consider some of the health and safety practices in those countries and raise concerns about them. Some of those countries are subject to international sanctions. Ukraine, for example, provides close to half the coal we import, and Colombia has an ugly track record on human rights.
The company responsible for the bulk of our Russian imported coal is the Siberian Coal Energy Company, which exports 31 million tonnes of coal a year, according to its website, and nearly a quarter of that comes to the UK—its biggest single market, well ahead of China. Russia’s safety record is not without blemish, and several major mining accidents have happened there. Notably, the Ulyanovskaya—I hope Members will excuse my pronunciation—mine disaster of 2007 killed 106 miners. Just last year, a methane leak triggered two explosions in a mine near Vorkuta, where 26 people ultimately lost their lives. Over 60% of Russian coal is extracted in the Kuzbass region of Siberia, and the human rights of mine workers and villagers are violated daily, according to reports.
In Colombia, the health and safety track record is appalling. An explosion at the La Preciosa mine in Sardinata in January 2011 killed 21 people; another explosion at the same mine in February 2007 killed more than 30 workers. During the decades-long civil war, the Colombian coal industry has grown to the point where it now ranks as the fourth-largest exporter of power station coal in the world, behind Indonesia, Australia and Russia. According to the London Mining Network, the growth of the Colombian coal industry has come at a terrible cost, including the dispossession of communities and widespread human rights abuses against members of the mining workforce and residents. Coal has polluted not only the air and the water but the country’s politics, with credible reports of at least one coal company providing support for militias involved in human rights abuses.
We should not condone the dereliction of duty to the human rights of workers and families living in mining communities. While we still import coal, we should do it from responsible sources, and I ask the Minister to review our coal imports and the human rights and health and safety records of the countries those imports come from.
In addition, we should do much more to develop and support our renewables sector to meet our power needs. The Banks Group in my constituency is a surface mining, renewable energy and property firm. It is truly diverse, and it has a clear vision on the future of renewables. It does pioneering work on reclaiming and redeveloping land that has been used for mining, and it was responsible for the Northumberlandia restoration, which is also known as “The Lady of the North”. In partnership with North Lanarkshire Council, the innovative Connect2Renewables project will ensure a minimum of £69 million of local economic benefit for the area, while a £1.74 million jobs and training fund will support 400 to 450 local unemployed people into work, further education or workplace training. This sort of ambitious, forward-thinking and environmentally friendly initiative is essential as we work towards our low-carbon goals.
My final request of the Minister—I know I am asking a lot of her—is that she set up specific funds for communities in former coal and shale mining areas to help them adapt and provide for the future. A specific fund could help with the kind of work that has been done in my constituency to engage with local schools. Economically, a fund could and should support areas that have never recovered from having had their heavy industries taken away or damaged irreparably, and that got little or no support at the time from the then Conservative Government.
These communities have sacrificed more than they should have, and they have provided for the whole country. We owe them our gratitude and support, and I call on the Government to do all they can to make sure that those former mining communities thrive and develop new industries where the old ones once stood so valiantly.
Penny Mordaunt
The hon. Gentleman refers to the trust, which was closed and wound up. However, other sources of funding were made available through the usual growth funding channels, and much of that funding has been directed into the communities that we are discussing. I know that, because I was at the Department looking at how those funds had been allocated. Whether we are talking about mining or other industries that are not providing the necessary support to communities across the UK, we need to have a strong plan and vision for those communities and what will replace those industries. We should not leave people without that.
Hannah Bardell
The hon. Lady has made some very encouraging and positive points, and I look forward to receiving those responses. On the distribution of funds, does she consider it appropriate for the former mining communities to be considered alongside other communities for the city growth plans and deals? That seems to me to be an ideal criterion to apply in considering the distribution of funds, because the areas of worst deprivation and challenge are often outside city centres, such as those in my constituency and that of my hon. Friend the Member for Kilmarnock and Loudoun (Alan Brown).
Penny Mordaunt
The hon. Lady makes a very good point. If one aspect of what makes a community strong and economically viable is removed, other aspects—the education system, the ability to attract teachers and all sorts of things—start to become harder. It is absolutely vital, as I know from my own constituency, to have a clear vision for and proposition on how the economy will not only grow, but be stable. That may mean diversification, or a different approach to the strengths and assets a particular community has had, but that is the key to success. It is what attracts not only public money and investment, but private investment, which is what some of these communities need.
Jobcentre Plus Offices: Closure
Hannah Bardell Excerpts(7 years, 3 months ago)
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Caroline Nokes
This is not about squashing anything; it is about making sure that we have full desks in buildings, not empty desks. In some instances, we have jobcentres where more than 20% of the desks are unused. The hon. Lady will be aware that unemployment is down nearly 5% across London since 2015, and it is very important that we make the best use of the facilities we have and get the best value for taxpayers.
Hannah Bardell (Livingston) (SNP)
The DWP guidance says that it is a reasonable expectation that claimants should have access to an office within 3 miles or 20 minutes’ travelling time. The Minister is planning to close the Broxburn centre in my constituency, which will result in claimants travelling 6 miles or 30 minutes. Given that that closure is in breach of her own guidelines, will she reverse the decision? If not, will she put on a free, accessible bus for my constituents and others so that they will not be left out in the cold?
Caroline Nokes
The circumstances that the hon. Lady has outlined are outside the ministerial criteria, and that is exactly why we are having a consultation with the public on the matter.
Oral Answers to Questions
Hannah Bardell Excerpts(7 years, 4 months ago)
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Damian Green
The main function of the child poverty unit was to support Ministers in meeting the Child Poverty Act 2010, which has now been superseded by the Welfare Reform and Work Act 2016, whereby the response specifically to poverty is being led by my Department, so the unit is now working inside the Department for Work and Pensions. That is the straightforward answer to the hon. Gentleman’s question.
Hannah Bardell (Livingston) (SNP)
Does the Secretary of State have any new year’s resolutions? If not, perhaps I can help him out: he could resolve to make sure that no one is sanctioned at Christmas. Will he review the operations of his Department, as I asked him before Christmas, to make sure that nobody goes without over the festive period?
Damian Green
My new year’s resolution is, as ever, to make sure that my Department continues its successful work in getting ever more people into work, and to make sure that we have a benefits system that helps people to get into work and a pensions system that provides security and dignity in old age.
Benefit Claimants Sanctions (Required Assessment) Bill
Hannah Bardell ExcerptsFriday 2nd December 2016
(7 years, 5 months ago)
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Helen Whately
It is impossible to know how many people do not go to their MP, but I make my best efforts to be as accessible as possible to my constituents so that people know that they can come to me for help. What I find when following up on individual cases with the DWP, whether relating to sanctions or other problems with the benefit system, is that it is extraordinarily responsive and willing to review cases and reverse decisions that turn out to be flawed. I am reasonably confident that the DWP steps up and corrects mistakes when they are made.
Hannah Bardell
I cannot help but notice a deep irony in the hon. Lady’s comments. She cites examples of where the system has failed and of when her constituents have not been served well, and my hon. Friend the Member for Paisley and Renfrewshire South is bringing forward a Bill that will help all our constituents and help the system to be fairer. How can she not see that irony and not support the Bill?
Helen Whately
I wonder whether the hon. Lady has been listening to what I have been saying. I think I have recognised that the system has problems. Mistakes will be made in any system of such a scale, but that does not mean that the answer is to impose some more top-down legislation. It is better to try to improve how the system works and to support jobcentres that might not be doing so well to come up to the level of those that are doing best.
Hannah Bardell
I thank my hon. Friend for deeming me worthy to be given way to. On contrasting lifestyles, does she share my disappointment and alarm about the fact that we can have legislation that targets some of the poorest people in society, but we cannot find the legislative means to tackle people such as Philip Green who have stolen workers’ pensions but who are happy to keep their own yachts and who are taking away from people at the bottom of our society?
Anne McLaughlin
Absolutely. Without wanting to put words in my hon. Friend’s mouth, I wonder whether she is suggesting that there is a bit of political ideology behind all this.
The Bill does the best that we can do, working within the system. The Government cannot really argue with what is proposed, because they claim that they do it anyway. They claim that they already take people’s circumstances into account. If that is the case, they should just agree to the Bill. The hon. Member for Bournemouth West said that he would not support the Bill because my hon. Friend the Member for Paisley and Renfrewshire South had said that she was opposed to sanctions, full stop. I want to know how supporting the Bill is going to end the sanctions regime. It is not; it is going to make the regime a little bit more humane, but there is, sadly, nothing in the Bill that will end the sanctions regime.
Anne McLaughlin
Absolutely. As I said at the start, I feel as though I am banging my head off a brick wall. In fact, I think that that might be a better use of my time.
If we are already doing this, the requirement in the Bill for someone’s caring responsibilities to be taken into account when considering a sanction happens already, does it? Tell that to my constituent Claire, a single parent who was summoned to an interview with the jobcentre on a day the following week at 3 pm, the exact time that her six-year-old gets out of school. She asked whether the meeting could be changed to 3.30. No. Could it be changed to earlier in the day? No. Could it be changed to another day? No, it had to be on that day at 3 o’clock, the time that she needed to pick up her child from school. She said, “Should I leave my child there, or should I take my child out early?” She was told, “We don’t care, as long as you get here, and if you do not get here at 3 o’clock on that day, we are sanctioning you.” Were her caring responsibilities taken into account? No. I do not want to hear that that was an incorrect decision or an isolated case. I am sick of hearing that. It was not an isolated case, because we hear about this all the time. I could talk about it until midnight and I would not get through, such is the number of times I have heard about it.
Hannah Bardell
I thank my hon. Friend for being so generous in giving way. When it comes to the system not working, does she agree that we have heard about very many cases and it is quite clear that Conservative Members are not listening? A constituent of mine, who had Parkinson’s and who fell twice coming to my office, had been sanctioned—against the DWP’s own recommendations that people with degenerative diseases should be treated through a paper process and not be subjected to interviews. Twice I wrote to the DWP, but only when I brought his case to this Chamber was it properly dealt with. That is not how the system should work, and the Bill would address that.
Anne McLaughlin
Absolutely. I congratulate my hon. Friend the Member for Paisley and Renfrewshire South on proposing this Bill, and I thank her on behalf of many of my constituents. If the Bill is successful, it will provide some protection. If not, it will at least have raised the issue again, and people out there will know that somebody in here cares about what happens to them.
I will start—I say “start,” but I have been going on for quite a while—by offering the treat that the hon. Member for Bournemouth West is looking for by arguing against the entire sanctions regime. I challenge him to respond to my arguments. I saw Government Members being given a sheet of paper with a list of suggested interventions, but I have experience, and lots of it, on my side, so challenge away.
I will argue on three levels. First, there is the financial argument. I will use only factual arguments, and the sanctions regime costs us more to run than it saves—that is before we look at the long-term hidden costs. Secondly, there are the academic arguments. Conditionality in the welfare system does not work. It is not me making that argument; it is academics. I will share their findings, and let us see whether Government Members have actual evidence to the contrary—not opinions, but evidence. Thirdly, I will make the moral argument, and here Government Members can make a counter-argument because we all have a different moral compass—morality can be subjective, a matter of opinion. My opinion, for what it is worth, is that anybody who thinks it is right that we sanction the benefits of people who are already in poverty needs their compass reprogrammed pronto.
Anne McLaughlin
That is absolutely correct, and what does that say about the democracy of this place?
The fact is that most of the respondents in the research were already keen to find work—most people are—and even the practitioners who are imposing the sanctions regime are sceptical about its benefits. As we have already heard, DWP staff are under incredible pressure. When I spoke about the aspirations they have to reach, the hon. Member for Bournemouth West challenged me to provide the name of the whistleblower who told me all about this, and then just hope that they stay in employment. I will not do that, but I will point him to an article on a journalist’s website called “Common Space”, in which Fraser Stewart talks about how he gave up his job and became unemployed because he could not bear to keep up with the targets or aspirations that were set for him. The hon. Gentleman can have a look at that, although I am surprised he does not know about it already.
I was glad to read the research to back up what I have always known, which is that conditionality does not work. I do not think people have to be that bright to see why it does not work to have somebody standing over them telling them, “You must do it”. I wonder how many of the Conservative Members who have spoken today require a stick to be wielded over them for them to go out to find work. [Interruption.] They have the Whips—that is a very good point—but how many of them went out into the world of work and said, “I’m not going to bother doing this”. What makes them so special, because they will all say, “No, no, I always wanted to work”? I was always keen to work, but so are most people. Most people have aspirations.
Hannah Bardell
I promise my hon. Friend that I am intervening on her for one last time. Is she aware of this year’s “Welfare Conditionality: Sanctions, support and behaviour change” project report? It states that
“the impacts of benefit sanctions are universally reported by welfare service users as profoundly negative.”
It also found that sanctions have pushed some people into committing survival crime. Is not the fact that people in our society are pushed into committing crimes just so that they can survive a shame and a stain on our society?
Anne McLaughlin
That is an absolute shame on our society, and it costs more money, because when people commit crimes, we have to detect them and punish criminals.
I want to talk about a friend—[Interruption.] Wheesht! If an hon. Member wants to intervene, they can do so.
Autumn Statement Distributional Analysis, Universal Credit and ESA
Hannah Bardell Excerpts(7 years, 6 months ago)
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Ian Blackford
I expected this issue to be raised, given press speculation. Let me tell the hon. Gentleman the facts of the matter: with the powers coming to us, we will control 15% of welfare spending in Scotland. We have to put in place the mechanisms for us to deliver fairness with the revenues we have at our disposal. We certainly would not punish the poorest in our society in the way that this Government have, and we certainly would not be punishing the Women Against State Pension Inequality Campaign women, who are not getting their just rights when they have had only a year’s notice. What I would be saying to this Government is, “Give us the powers over welfare so that we can protect the people in Scotland.” When we have put in place the mechanisms to allow us to look after people, we will certainly be doing a better job than the Government are doing today.
Hannah Bardell (Livingston) (SNP)
Does my hon. Friend agree that the point about powers is that, unlike this Tory Government, we are able to help and support people properly? We should not have to fill the black hole they have created in our budget. When we get those powers and have that agency, they will be set up properly. We will protect the people in Scotland properly.
Ian Blackford
My hon. Friend makes a very valuable point, because this is about powers and responsibilities. For us to protect people in Scotland in the way that we want to, we need powers. We were promised—since this has been raised—devo to the max. We were promised home rule for Scotland. How on earth can we have home rule for Scotland when we control 30% of our revenues and 15% of social security? I am afraid that the UK Government’s failure to protect the disabled and pensioners demonstrates that if we want to do what is necessary in Scotland, we will ultimately have to have the independent powers to do so. I am sure we will get to that point.
Let me return to what I want to address. [Interruption.] I am only responding to the Conservatives’ uninformed distractions, with which we are all too familiar.
The IFS stated:
“Normally, working-age benefit recipients would also be at least partly protected as benefits usually rise in line with prices, but, as we have discussed before, their benefits have been largely frozen in cash terms, meaning that their income from this source is fully exposed to future inflation. Those in work will, unless they are able to negotiate a bigger pay rise, find that their earnings will stretch less far than they otherwise would have done.”
Why should the most disadvantaged pay the price for Brexit and its consequences? That is what the Conservative Back Benchers should be addressing today rather than making an undisguised attack on the Scottish Government. What we need to address this afternoon is why working people will suffer from rising inflation. The weakest in our society deserve to be protected and their benefits ought to be inflation-proofed. Why are the UK Government not doing that? Why are they not seeking to protect the vulnerable in our society?
Hannah Bardell
Does my hon. Friend agree that while the tax gap in the UK sits at £36 billion, this Government should be focusing on closing that gap, and not marginalising and targeting some of the most vulnerable people in our society?
Ian Blackford
I fundamentally agree. There is a £36 billion tax gap, so let us fix that hole. I listened to the Minister talk earlier about the challenges the Government face in fixing the deficit. What they fail to recognise is the interaction between fiscal and monetary policy. It is the richest who have benefited most from quantitative easing. We should have had a fiscal stimulus package. That would have driven investment and productivity into the economy, and got more people back into work. That is what we should be doing.
Ian Blackford
I will take your guidance, Mr Deputy Speaker. I only say to the hon. Member for Wirral South (Alison McGovern) that she has demonstrated once again that Better Together is still alive and well—and how did that work out for the Labour party in Scotland?
I will return to the issue we are dealing with. We have inflation created by Brexit and a falling the pound, and the result of this failure will be a fall in living standards for many of our poorest—falling living standards brought to you by this Government. On top of the benefit cuts next year, the Prime Minister is sleepwalking into a perfect storm for low-income families, rather than living up to her promise of delivering for just-managing families. The UK Government must use the autumn statement to end their austerity obsession and instead bring forward an inclusive programme that will truly support low-income families and their children.
The UK Government’s U-turn on tax credits last year was simply a delaying tactic that kicked cuts to universal credit further down the line. The Government should take the opportunity to reverse the cuts to universal credit work allowance in their autumn statement. The original intention of universal credit was to increase work incentives and make sure that, as the Government put it, work paid. On top of damning economic forecasts, however, which will push up the cost of living, the work allowance cut will simply push more working people into poverty. It has slashed the income of working universal credit claimants. The IFS has calculated that in the long term more than 3 million working families will lose an average of more than £1,000 a year as a result of the work allowance cut.
Ian Blackford
As my hon. Friend says, it is shameful. The Child Poverty Action Group estimates that the resulting cut in income will mean that many low-income parents cannot protect the income levels they had before April 2016.
House of Commons Library analysis from February 2016 calculates that lone parents without housing costs will experience the largest reduction in their work allowance, from £8,800 in 2015-16 to £4,764 in 2016-17—a loss of over £4,000. Is that what the Government want to defend? A person or couple without housing costs who claim universal credit where one or both are disabled will see their allowance reduced from £7,764 in 2015-16 to £4,764—a loss of £3,000. The U-turn on tax credits in the short term saved families and working people from having their benefits cut, but in the long term the work allowance cut will have a similar impact.
The House of Commons Library analysis also states that the work allowance reductions announced in the summer Budget
“will ultimately have a similar impact to the changes to tax credits which are not now going ahead, though the impact of changes to UC work allowances will not be fully felt until the roll out of Universal Credit is complete.”
By cutting the work allowance, the Government will impose an eye-watering level of marginal taxation on people in low-paid jobs and make it harder than ever for those in low-income households to break out of the poverty trap.
That point is well understood by many, including the right hon. Member for Chingford and Woodford Green (Mr Duncan Smith), the previous Secretary of State for Work and Pensions, who said:
“At present, the 2016 Budget’s plan to reduce Universal Credit work allowances will not be the most effective way of controlling welfare expenditure and, moreover, it goes against the key principles. The planned reduction will affect more than three million people, reducing their income by an average of over £1,000 per year. This will reduce people’s incentive to move into work. Moreover, in November 2015 the previous Chancellor decided to reverse the reduction in working tax credits, increasing the pressure on Universal Credit as it created an artificial disincentive to move to Universal Credit from Tax Credits.”
I do not say this too often, but I fully agree with him. I would even say that, for the Government, the game is up when even the architect of much of the landscape on this issue can see the fatal flaws in what they are doing. When will they start to listen and begin to act?
We are having this debate today, and welcome though it is, it is important that we achieve a cross-party consensus on the substantive motion we are debating tomorrow, on the cuts to employment and support allowance. The House will have an opportunity to send a very clear signal to the Chancellor ahead of the autumn statement next week. It is a scandal that proposed cuts to ESA WRAG are still going ahead. The Chancellor must halt these planned cuts until the UK Government can deliver the long-awaited support promised for disabled people in and out of work. Almost 500,000 disabled people in the UK rely on ESA WRAG. This £30 cut will make the cost of living more expensive for many people—even more so in the context of the devalued pound and a possible inflation increase.
The UK Government said that these changes were introduced to
“remove the financial incentives that could otherwise discourage claimants from taking steps back to work”.
But Mencap’s review of this policy found
“no relevant evidence setting out a convincing case that the ESA WRAG payment acts as a financial disincentive to claimants work, or that reducing the payment would incentivise people to seek work”.
It is a positive step that the new Secretary of State has announced the Green Paper on support for disabled people in and out of work, and we look forward to assessing the detail of the Department’s proposals in due course. However, until the detail in the Green Paper comes to fruition, storming ahead with these cuts is simply putting the cart before the horse. The autumn statement is a key opportunity for the new Cabinet to prove it is true to its rhetoric about delivering for just-managing families. That can be achieved only by abandoning austerity by reversing these cuts and delivering an inclusive Budget fit for the post-referendum economic turmoil.
A failure to act will drive more people into poverty and the use of food banks. Recent data show that the Tories’ austerity agenda continues to push people into poverty across the UK. A survey for the End Child Poverty coalition suggested that 3.5 million children were living in poverty in the UK, with 220,000 of them in Scotland. A separate study by the Trussell Trust found that in the first half of this year there was an increase in food bank usage that included 500,000 three-day emergency food supplies distributed across the UK, of which 188,500 were for children.
A recent Resolution Foundation report has highlighted the need for the urgent delivery of support for families who are just managing. It also noted:
“Average incomes in the low to middle income group were no higher in 2014-15 than in 2004-05, reflecting not just the turmoil of the post-crisis period but also a sharp pre-crisis slowdown in income growth.”
It also points out that the projections for unemployment have been revised up since the March Budget following the referendum in June, and real pay growth is now projected to be lower than previously thought.
In conclusion, with this autumn statement, the Chancellor has the ability to re-prioritise the spending agenda to reflect the very real danger of economic turmoil resulting from the June referendum and ongoing negotiations with the EU. The Chancellor must use the autumn statement to propose measures that reverse benefit cuts and mitigate the impact of economic uncertainty on disadvantaged people.
Oral Answers to Questions
Hannah Bardell Excerpts(8 years ago)
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Priti Patel
My right hon. Friend raises an important point. I would like to assure her that, in designing the new provision, we are working at local level on harnessing expertise as well as engaging with a wide range of stakeholders. By doing that, we shall be taking on board important lessons from the overall Work programme and Work Choice as well as looking at how we can achieve sustained long-term employment outcomes.
Hannah Bardell (Livingston) (SNP)
8. What assessment he has made of the effect of state pension reform on gender inequality.
Patricia Gibson (North Ayrshire and Arran) (SNP)
20. What assessment he has made of the effect of state pension reform on gender inequality.
The Secretary of State for Work and Pensions (Stephen Crabb)
Last month, we introduced a new simpler state pension as part of our wider package of pension reform. The combination of the new state pension, automatic enrolment, the triple lock, the protection of benefits and giving people power over their pension pots will ensure that pensioners, male and female, will have greater protection, security and choice in retirement.
Hannah Bardell
Protection is all very well, but introducing the new state pension in 2016 means that 350,000 women who were born between 1951 and 1953 will retire on the old system just before the new provisions come into force, whereas a man born on exactly the same day will retire slightly later but receive a pension under the new arrangements. Will the Minister please heed the Scottish National party’s calls to establish a pensions commission in order to end these inequalities?
Stephen Crabb
The hon. Lady was not here in the last Parliament when we debated and voted on these changes. We debated them at enormous length and a clear decision was made by Parliament. As part of that, a concession of more than £1.1 billion was introduced to limit the impact of the rising state pension age on those women who would be most affected. Let us be clear: there is no party in this Chamber that has a clear and coherent proposal for unwinding the changes that have been made since 1995 to equalise the state pension ages. I therefore have no plans to bring forward further concessions or changes.