Social Security (Additional Payments) Bill

Debate between Hywel Williams and Thérèse Coffey

2nd reading
Wednesday 22nd June 2022 Commons Chamber

[Dr Coffey]

Yes, that is the case. I was planning to cover that later. For the record, I will still make that point.

Our household support fund administered through local authorities in England and the money given to devolved Administrations are further avenues for people to seek help with the cost of essentials. From October, the Government are adding an additional £500 million to the fund, extending support through the winter. That equates to an additional £421 million in England and £79 million for the devolved Administrations, and that will take total funding for this UK-wide household support to £1.5 billion.

[Hywel Williams (Arfon) (PC)]

One group of people who receive universal credit and are in some difficulty are those who lose some of their universal credit because they received a universal credit advance for the first five weeks. Some 92,000 households in that situation in Wales are getting about £60 a month less, and that comes to a total of about £5 million being denied to them. I hope that the Secretary of State is prepared to reconsider her position on that. Obviously, that is not in the Bill, so she has taken a decision in the short term, but I press her to reconsider.

[Dr Coffey]

The hon. Gentleman is incorrect in saying that money is denied to people. The whole point of receiving an advance is that there is phasing and, instead of receiving 12 payments in a typical calendar year, 13 payments are made. We extended that recently so that people can choose whether to have 25 payments over 24 months. It is not a case of people being denied.

The Social Security (Additional Payments) Bill before the House is a short Bill of 11 clauses that gives us the powers necessary to administer payments to families on means-tested and disability benefits. As one-off new benefit payments, they will be delivered by the UK Government to eligible households right across the United Kingdom in England, Wales, Scotland and Northern Ireland. The timing of such payments will vary, starting with the first payment of £326 for DWP means-tested benefit claimants from 14 July. The second payment will arrive in the autumn for those eligible. Those on tax credits who do not receive DWP means-tested benefits will get each instalment later to avoid duplicate payments.

People not eligible in time for the first £326 payment because they were not getting a qualifying benefit in the month before the announcement may get the second £324 payment if they have a qualifying entitlement to a benefit in the month before the next eligibility date. We have deliberately not included the next eligibility date in the Bill to try not to change claimant behaviour. Instead, there is the power to set a date through regulations.

Those on qualifying disability benefits will get their £150 as a single payment from September. Where eligibility for any of these cost of living payments is found retrospectively—for example, someone who had applied for personal independence payment but not yet been awarded it—people will still receive that disability cost of living payment; it will just be at a later date.

Universal Credit and Working Tax Credits

Debate between Hywel Williams and Thérèse Coffey

Wednesday 15th September 2021 Commons Chamber

[Dr Coffey]

We have communicated once already with recipients of the universal credit temporary uplift. That has already gone through. The second message is under way, and the third message will be done. I think that we have taken responsible action to make sure that people realise that this change is coming, but of course the hon. Gentleman’s constituent will still be engaging with their work coach about how we can perhaps help them into better-paid work than they had before.

[Hywel Williams (Arfon) (PC)]

The Secretary of State started by listing the support that this Government have given to businesses, and specifically small businesses, which are very important in my constituency. How can she justify taking £5 million out of the local economy in Arfon?

[Dr Coffey]

I would expect the hon. Gentleman to be welcoming the investment that we will be making in getting people not only into work but into better-paid work. I am sure that will have a direct impact on supporting the economy in his area.

Kickstart Scheme

Debate between Hywel Williams and Thérèse Coffey

Thursday 3rd September 2020 Commons Chamber

[Dr Coffey]

My hon. Friend is right to talk about existing workers. We have been clear in our guidance, and will continue to be so in our assessment of applications, that this is not simply displacing existing roles. I am confident that, in particular on small businesses, with the involvement of the intermediaries, that extra quality assurance will be there. I am sure that when he is out and about in his lovely constituency, he will be able to champion the scheme and show how people can get that link.

[Hywel Williams (Arfon) (PC) [V]]

As our economy reopens following many challenging months, now is the time to build a recovery that will work for young people and the planet they will inherit by investing in green jobs. How will the kickstart scheme contribute specifically to our green recovery from covid-19?

[Dr Coffey]

The hon. Gentleman is right that part of building back better is about building back greener. In several of the sectors where we have been encouraging ways to get involved in kickstart as well as apprenticeships, it will be about that green recovery. As I said earlier, it is not that we can create in every individual job. That is why we are working with organisations and businesses to try to do that. I believe that this boost of paying wages for 25 hours a week for a young person who is bursting with potential and wanting to get into the world of work will be a boost to those companies in and around his constituency who want to have that green recovery.

Childcare Payments Bill

Debate between Hywel Williams and Thérèse Coffey

Monday 14th July 2014 Commons Chamber

[Dr Thérèse Coffey (Suffolk Coastal) (Con)]

I had assumed that my hon. Friend the Member for Norwich North (Chloe Smith) would speak ahead of me, but it is a great pleasure to be called today. You are right to looked puzzled, Madam Deputy Speaker. Why is there nobody on the Opposition Benches? We all know that the hon. Member for Newcastle upon Tyne North (Catherine McKinnell) spoke for 52 minutes to mask the fact that no one else on the Opposition Benches would be speaking. That contrasts with 19 and 20 November 2013, when we debated child care in the Chamber. I am slightly disappointed, because I had a good exchange with the hon. Member for Houghton and Sunderland South (Bridget Phillipson) and I am sure that we could have had a similar debate about statistics and measures. Nevertheless, it is great news that we are finally getting to the Childcare Payments Bill and I am pleased to support it today.

One of the big things about the Bill is that it puts matters into the hands of parents. Instead of having to rely on employers setting up schemes, which I believe only 5% of employers actually set up, we will have a system that is effectively direct. Families with two working parents who earn at least £50 a week will benefit in one way or another from Government help towards child care, recognising that we will not double-subsidise those who receive tax credits or universal credit.

On that note, it is my understanding that we will provide an extra £200 million to support those families claiming universal credit, so instead of having 70% of their child care costs paid, as they do today, they will receive 85%. I am sure that will be very welcome to all working families.

Of course, the very richest in our society—those who earn more than £150,000—will not benefit, but I am sure that they will recognise that we must target a welfare system at the broadest number of people.

[Hywel Williams]

Is the hon. Lady confident that when parents in deprived and rural areas are enabled as proposed, the market will deliver the places?

[Dr Coffey]

I do not pretend to know much about Welsh schools, although my cousin goes to school in Wales and I have many relatives there. I am not necessarily aware of the provision that exists, but I know that this Government are keen to work with schools in England to increase the number of schools choosing to make provision for young children. I do not know what the Welsh Assembly Government are considering, but the Under-Secretary of State for Education, my hon. Friend the Member for South West Norfolk (Elizabeth Truss), has consistently tried to introduce reforms that will make child care provision an attractive career. We are right to press ahead with some of the childminder agencies we are introducing, not through this Bill but separately, to remove some of the administrative burdens that might be deterring people from entering that career. I hope that the hon. Gentleman will encourage such agencies to set up in his area of Arfon, bringing new employment opportunities for both men and women and making provision for working parents.

It is great news that under this Government more women are working than ever before, yet we would like to see even more women—and even more parents—going into work. This scheme is part of our long-term economic plan. We recognise that the cost of our child care is the second highest in the OECD as a percentage of family income; only Switzerland’s is higher. I think that it is fair to say that under Labour the number of childminders decreased significantly and costs went up. Before the hon. Member for Newcastle upon Tyne North springs to her feet—if she is not following the latest reshuffle news on Twitter—let me say that I recognise that that trend has continued, but it is not going on at the same level. [Interruption.] I thank the hon. Member for Manchester Central (Lucy Powell) for referring to my haircut. It was nothing to do with the events that seem to be unfolding on Twitter. I merely got a phone call from my own mother complaining that my hair was too long and, as we know, in these situations mothers know best. I am not a mother, so I have to stick with what my mother tells me.

Let me give a few of the reasons why these things matter. A couple of years ago, the Conservative Women’s Forum undertook an inquiry, in which I think you might have participated, Madam Deputy Speaker, into the executive pipeline of talent. It focused not only on the number of women on boards, but on how we encourage women to get up the executive ladder and, more importantly, on what women can do for themselves, what Government can do and what companies can do. The issue of child care was a running theme throughout the inquiry, particularly for those in junior management. Once people are at a certain level, they probably receive a salary that means they do not have to think about the issue; they can pay for a nanny and even though it might be painful, the costs are not quite so prohibitive. We consistently received evidence that the voucher system was inadequate. It did not cover enough of the cost, it was very limited or, as my hon. Friend the Member for Tiverton and Honiton (Neil Parish) mentioned earlier, it did not help people such as the self-employed. I am pleased that the Bill extends the provision to almost anyone in work and it is right that we should do that.

It is also fair to say that no one magic bullet emerged as a result of the inquiry to solve some of the challenges in the pipeline of talent or in how we tackle child care, but nevertheless the discussions before the Budget announcements on how to help with tax relief were exactly the issues being brought up by senior executives. I was glad that the subsequent announcement was made in Budget 2013.

The proposals in Budget 2013 were limited to £6,000 of child care costs, which would have meant a maximum benefit of £1,200. I was pleased that after the consultation, to which significant contributions were made, we were able to change the age limit to 12 and, as my hon. Friend the Member for South Swindon (Mr Buckland) has pointed out, to change the age limit for children with disabilities. We also increased the limit to £10,000, with a maximum of £2,000 support. That was the right thing to do, because it recognised the costs of child care. Nevertheless, it is important that we have retained the choice for parents who are in employer-supported child care schemes to stay in that system while recognising that we will close it to new entrants, so to speak. I support that because, understandably, companies have gone to some expense to set up these schemes and they are popular. We should not withdraw one thing simply for the sake of simplicity for the Government.

The hon. Lady from Northern Ireland—I have forgotten her constituency—

[Dr Coffey]

Thank you. The hon. Member for South Down (Ms Ritchie) referred to the situation in which one parent was not working and asked why they would not get support with child care costs. As my hon. Friend the Member for Truro and Falmouth (Sarah Newton) has accurately pointed out, the consultation raised those points and we have extended the provision when there is a working person and somebody on carer’s allowance or employment and support allowance. When people are enjoying parental leave after having children, they should not be penalised if they have children in child care. We do not want any unintended consequences.

I am a strong supporter of the traditional family. I am sure that I am not the only person whose mother did not work initially after having me, although she did start to go back to work as a supply teacher. It is fair to say that although the Government have scarce resources, they are offering both parents the choice to get back into the workplace, as opposed to one person having to choose, for perfectly good reasons, not to return to the workplace. I therefore support the gist of what the Government are saying about restricting support to cases in which both parents are working or the other cases that have been alluded to.

I am surprised that there are no Members in the Chamber from the Scottish constituencies, because, of course, this is a United Kingdom measure, although I am delighted that we have had contributions and interventions from Members from Wales and Northern Ireland. Much has been made of the fact that National Savings & Investments will initially be providing the child care account. You may have read in the weekend press, Madam Deputy Speaker, that if the people of Scotland choose to go ahead with separation, NS&I will not be able to provide accounts to people living in Scotland, as they will effectively become foreign nationals. They might wish to consider that as another element of the question. I am sure that if somebody from the Scottish National party were here, they would leap up and say, “We will have an even better scheme and it will cost less than yours.” Nevertheless, I am sure that the good people of Scotland recognise that that is unlikely to be the case. The Minister might want to consider the issue in her regulations for this provision, but let us not prejudge the outcome of the referendum. I strongly believe that the people of Scotland will recognise that staying together is better for us all.

[Hywel Williams]

Shall I indulge in some karaoke and repeat the words that the hon. Lady used herself? I am sure that Scotland will provide a much better scheme when it is independent.

[Dr Coffey]

The hon. Gentleman would say that, and he has been very loyal to his nationalist friends. I recognise that.

On the timing, I am sure that my hon. Friend the Minister agrees that if we could bring in the scheme tomorrow, we would do so. However, we do not want to repeat—[Interruption.] Does the hon. Member for Manchester Central want to intervene? I think she said that we have been in power for four years, and I recognise that we are bringing this into play rather late in our parliamentary term, but she will know some of the challenges of government from her previous experience. Nevertheless, I would rather we got this right than end up with the fiasco we had over tax credits, which were brought in in quite a rush, with all the accompanying problems. The hon. Member for Manchester Central might be slightly bemused by that, but overpayment of tax credits and trying to reconcile figures and help people out with that is one of the biggest issues in my constituency casework. She will, I think, recognise some of the challenges of bringing in a new system.

The Bill rightly provides that the connections between the different agencies will be updated quarterly. We are not going to get into penalties and going back and forth, but provision is made for recovery. It is important that parents recognise that they should anticipate the potential impact if their conditions change. To be frank, I think the biggest change will occur when people move from one salary bracket to another, or decide to stop claiming universal credit and simply to claim this instead. At least the hurdle or cliff edge when people have to change is fairly black and white.

[Dr Coffey]

My expectation is that that would happen naturally. I do not want to overplay it, but I think it would be a natural consequence when people say, “I’m coming off universal credit to get this.” It will be a straightforward calculation, which should be readily understandable.

[Hywel Williams]

I wish I could share the hon. Lady’s confidence. I remember when the tax credit was brought in warning the Government at the time that it was complicated. It was to be administered by HMRC, which was not good at giving people money instead of taking money off them. Despite the confidence displayed at the time, HMRC included in its letters such sentences as, “Even though we told you your assessment was correct, it was not reasonable for you to believe this.” That is a direct quote from a tax credit letter. I am afraid I do not share her confidence that HMRC or any agency of Government is completely competent to administer this scheme.

[Dr Coffey]

I understand what the hon. Gentleman is saying, based on the experience of tax credits. That is why I think the Bill deals with it rather well: the period of entitlement is three months. As it is split up quite well into quarters, it should be quite straightforward for parents to make that assessment of what is better for them to get support. Of course, I am sure we all share the aspiration of reaching a stage where everybody is earning over a certain threshold and does not need to make those calculations.

I will not repeat everything my hon. Friends have said about the excellent work being done through nurseries for three and four-year-olds. I will simply reiterate my view that the Bill brings the balance back into the hands of parents and recognises that child care is normally needed all year round. Something that will need to be tackled with child care provided through primary schools by extending their playgroup is how to ensure that continues through the school holidays, but instead of trying to devise a perfect scheme that meets the demands of every single scenario, which is rather difficult when dealing with millions of children and parents, the Bill simplifies and gives people, through the child care account, the ability to build up balances and use the money as and when they need it. What is important is that parents will not pay fees for the accounts. I heard what the hon. Member for Arfon (Hywel Williams) said about online access, but there will be assisted approaches available for those who cannot access the internet. Internet access is the general default in our efforts to get people on to digital services.

I have not been able to speak for quite as long as the hon. Member for Newcastle upon Tyne North (Catherine McKinnell), but I am delighted to say that there are other Conservative Members here, and I did not spend 27 minutes talking about stuff that is not connected to the Bill. It gives me great pleasure to support the Bill. Today is an historic day in Parliament, as we embark upon a piece of legislation that will affect many working families. I hope the Bill has the unanimous support of the House.

Housing Benefit

Debate between Hywel Williams and Thérèse Coffey

Tuesday 12th November 2013 Commons Chamber

[Dr Coffey]

The beauty of Government Members is that we think we can achieve both. We believe we can save the taxpayer money and put it towards the affordable homes programme. Our estimate—I appreciate that it is only an estimate and that we will have to wait and see—is that it will save £500 million a year. Meanwhile, we have set aside £4.5 billion for the affordable homes programme to build houses in this Parliament and are already arranging the programme for the next Parliament.

[Hywel Williams]

rose—