Universal Credit
Iain Duncan Smith Excerpts(6 years, 9 months ago)
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Mr Speaker
Order. First, I say with crystal clarity to the House that Members who arrived after the statement began should not be standing and will not be called, which is in conformity with long-established practice in this House. I have often said it; I do not know why it is so difficult for some people to grasp, but that is the reality of the matter.
Secondly, there is heavy business to follow, with a large number of colleagues wishing to participate in the continuation of the Budget debate, so I implore colleagues to be pithy in their questions. I know that the Secretary of State will be correspondingly succinct by way of reply. I am keen to move on at as close as possible to 12.30 pm.
Mr Iain Duncan Smith (Chingford and Woodford Green) (Con)
In support of my right hon. Friend the Secretary of State, may I say that the whole roll-out of universal credit was set up deliberately to allow the Government to respond to any problems and make the necessary changes? I will not rehearse my views about some of the previous Budget discussions, but I congratulate my right hon. Friend on having secured from the Chancellor what is nearly £1.5 billion to help the roll-out process, particularly the transferring of people who are on housing benefit and, of course, the waiting days, which will help enormously by giving flexibility to advisers.
Universal credit is not just about getting people into work. It was deliberately designed to find the people who have the greatest problems and, alongside universal support, to help change their lives. I urge my right hon. Friend to look carefully at universal support to ensure that it is rolling out alongside universal credit to make the roll-out a success. I give my congratulations again to a very good Secretary of State.
Mr Gauke
First, I thank my right hon. Friend for his kind words and once again acknowledge the tremendous work he did in driving universal credit forward. Its delivery will be a truly great achievement for the Government. On universal support, he is absolutely right. I will give one brief illustration, if I may, Mr Speaker. I recently visited a jobcentre where someone had got in contact and, because of the IT support they received in making a universal credit claim, they were much more confident and competent and had just made their first grocery order online. That might seem a small matter to some of us, but it was helping someone make progress in life, and that is what universal credit and universal support are delivering.
Mr Gauke
Steady.
The right hon. Member for Birkenhead (Frank Field) raises a serious point about Christmas, and it is worth bearing in mind that people who open a new claim in, for example, mid-December can get a 50% advance, knowing that they can come back and get the other 50% in the new year. DWP will continue to operate as usual over Christmas, and a lot of effort is put into ensuring that the payment system works over the Christmas period.
Universal Credit Roll-out
Iain Duncan Smith Excerpts(6 years, 10 months ago)
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Mr Iain Duncan Smith (Chingford and Woodford Green) (Con)
I rise to support my right hon. Friend the Secretary of State, who I thought made an excellent speech. I congratulate him on the courage and the spirit in which he produced his commentary against quite a lot of what is really scaremongering about the way in which the system has been designed.
First and foremost, the point I would make about universal credit is that it was designed to simplify the system, as well as to get more people into work. The second but very important element is that universal credit is about dealing with the very great difficulties of identifying those people—the minority, admittedly—who need universal support and then, with councils, providing them with help on debt counselling and getting them into the banking system in order, basically, to get them ready for work. Until now, those people have by and large been written off and forgotten about in a complex system—disjointed between councils and jobcentres—that did them no favours and provided them with no support. That is what we were trying to get rid of and believed we were actually getting rid of.
Michael Tomlinson (Mid Dorset and North Poole) (Con)
Will my right hon. Friend give way?
Mr Duncan Smith
I recognise that time is limited, so I will limit the number of times I give way.
Universal credit is not just about getting people into work; it is actually about changing lives so that those people are ready and better able to enter work. Why are there monthly payments? The very simple answer is that over 80% and rising of all work is paid monthly, and the figure will soon be close to 90%. That means that if people are not ready, able and prepared to pay bills and deal with their money in monthly periods, they will never survive in the world of work, as has happened to many people crashing out of work.
Neil Coyle (Bermondsey and Old Southwark) (Lab)
Will the right hon. Gentleman give way?
Mr Duncan Smith
I will give way to other Members in a minute, but let me make a second point. When it comes to housing, why do we want people to pay their rent, rather than always have it paid for them directly? There is a simple answer. All too often, housing associations and local authorities receive the money directly, but then do very little for the tenants. They often know very little about their tenants, and they quite often care even less about their lives. The result is that many tenants run up arrears because nobody bothers to get involved.
Several hon. Members rose—
Mr Duncan Smith
I will give way in a minute.
That is why universal support—now bringing in councils—will identify such people and help them. That is the purpose of universal credit.
Michael Tomlinson
Was my right hon. Friend as surprised and disappointed as I was, during Prime Minister’s questions, to hear this policy described and characterised as “calculated cruelty”? There is nothing cruel about getting more people into work. There is nothing cruel about encouraging more people to work more than a mere 16 hours. There is nothing cruel about simplifying an overly complex system. The cruelty is trapping people in a lifetime of benefits.
Stephen Timms
The right hon. Gentleman has explained the theory of the four-week delay, but does he accept that that theory simply does not work for the very large number of people who are still paid weekly?
Mr Duncan Smith
It is not a theory, but I will come on to that in a minute. The right hon. Gentleman and I have had plenty of conversations and discussions about the structure of this, and I want to take him up on that point.
I want to make the point, which is not often referred to by Labour Members, that the whole nature of the roll-out was deliberately set so as not to repeat the grave mistakes made when they rolled out tax credits and other benefit changes.
Mr Duncan Smith
No, because I am conscious that others want to speak, but I will come back to the hon. Gentleman in a minute.
I recall that my surgery was full of people who, under the tax credit changes, found they had no money at all. When Labour rolled out tax credits in a big bang, over 750,000 people ended up with no money at all. Since then, the thresholds have had to be raised dramatically to get money to those people.
Mr Duncan Smith
I will give way in one second.
The roll-out of universal credit has been deliberately designed—it is called “Test, learn and rectify”—so that, as it happens, we can identify where there are issues, rectify them and then carry on rolling it out. I want to give an example of why stopping the roll-out now will not work.
One area that we discovered early on is that landlords were simply unaware of who was on benefits. As a result of all that, arrears would be racked up, but they did not know they could get that stopped and have direct payments made. That will be changed in the next stage of the roll-out, because a portal between landlords and the service centre will allow them to establish that immediately. Unlike the local housing allowance, under which people ran up huge levels of debt, but reset slightly and carried on, universal credit allows them only a two-month period of debts before they go on to direct payments. That critical change will be one way of resolving the problem.
Mr Duncan Smith
I will come to that. The hon. Gentleman should not worry—I will not resile from why I resigned.
Too much of the debate has been based on evidence that is months old, when rectification has taken place and changes have been made. Let me give an example that has not been mentioned. The mistakes in tax credits and housing benefit mean that more than 60% of those coming on to universal credit already carry debt and rent arrears. Universal credit is identifying those people and having to clear up the errors. That is an important point. Before universal credit, too many people were left to get on with their lives and get deeper and deeper in debt.
Anna Soubry
My right hon. Friend and I are about the same age. Does he share my concern that anyone who is younger than us and listening to the debate might labour—no pun intended—under the misapprehension that, before the election of a Conservative Government in 2010, the previous system was perfect, when it has been bedevilled by flaws for decades? That is why this simplified system, when all the bumps have been ironed out, is welcome.
Mr Duncan Smith
I am grateful to my right hon. Friend, who has borne the years better than me. However, I will do anything for a kind look—[Laughter.] Particularly from my right hon. Friend.
It is interesting that, in the past 24 hours, the Joseph Rowntree Foundation has made the following statement:
“Universal credit has the potential to dramatically improve the welfare system, which is fragmented, difficult to navigate and can trap people in poverty.”
It went on to say that the system will help people
“transition into work and will respond better to people’s changing circumstances.”
I agree. It would have been nice if the Opposition had started their debate by being clear and positive about how and why universal credit can change lives.
The point about test, learn and rectify is that it does exactly that. My right hon. Friend the Secretary of State made many points in his excellent speech about the changes that are already beginning to happen. For example, some of the rent arrears are beginning to come down and the portal will help enormously with that.
However, I ask my right hon. Friend about universal support, which is the critical other bit of universal credit that no one has mentioned. It allows us to pick up the pieces around universal credit and deal with them on a human basis. Universal credit flags up when somebody has a debt problem and when they are running into arrears. Universal support is vital to work directly with them, using councils, jobcentres and all the other agencies, and hub up around them to help them change their lives on the basis of knowledge about how to pay their bills, their banking facilities and their debts. I ask for reassurance in the winding-up speech that Ministers will put in the extra effort, focus—and money, when necessary—to ensure that universal support rolls out successfully alongside universal credit. That is critical.
Neil Coyle
The right hon. Gentleman seems to acknowledge that universal credit has not worked for everyone, so does he agree that it has been almost as bad for some of those affected as online reviews of his novel, “The Devil’s Tune”? Comments include: “frighteningly bad”, “rubbish”, “utter drivel” and “hilariously awful—an outstanding compendium of bottomgravy”.
Mr Duncan Smith
I thought that was a reference to the hon. Gentleman’s speaking ability in the House.
Universal credit is a huge driver for positive change that, as the Joseph Rowntree Foundation said, will not just get people into work quicker, but help us identify those in deep difficulty and change their lives. That is the critical element that I hope will unite the House on what universal credit is all about.
We should not stall universal credit because doing so would damage it. Changes need to be made, and the problems that have been discovered need to be rectified as we move forward. The way that the system is being run is therefore right.
I direct my right hon. Friend the Secretary of State to some of my earlier comments. As I said, I hope that the Chancellor will look again the way in which financing for the work allowances has been reduced. I would like that to be changed. My right hon. Friend made a very good point when he said that we keep what needs changing constantly under review. The issue around waiting days is critical—I know that he will consider that and see if the evidence stacks up for whether changing that would make a major difference.
I congratulate my right hon. Friend on moving swiftly to ensure, as was always the intention, that jobcentre staff can pay out the advances on the day or within the week and, more than that, notify every would-be recipient of universal credit that they are eligible to receive them. That will dramatically change the position of many who have found themselves in difficulty because of the monthly wait.
Mr Duncan Smith
I apologise, but I am about to conclude.
Universal credit is the single biggest change to the welfare system. Those who care about it know that it is capable of dramatically changing lives for the better. My party should be proud of it. I will therefore not support the motion because it intends to stop the roll-out and damage universal credit for short-term political reasons. We should resist that, ask the Secretary of State to make the changes, but not stall the roll-out because universal credit changes lives and delivers an improved quality of life to thousands of people.
Caroline Lucas
On a point of order, Madam Deputy Speaker. I hear that political journalists are tweeting that the Government do not plan to take part in the vote later. That would be a show of contempt for the Chamber and our constituents throughout the country. Is there nothing you can do to prevent the Government from opting out of the Chamber’s democratic procedures?
Pensions
Iain Duncan Smith Excerpts(7 years, 1 month ago)
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Mr Gauke
Thank you, Mr Deputy Speaker. Even the last Labour Government, who were not known for their fiscal rectitude, legislated to increase the state pension age to 68. Yet on top of a long list of unaffordable spending pledges, the Labour party now happily makes pledges on the state pension that it must know will cause unsustainable damage to the public finances.
The facts are, based on the most up-to-date evidence, and clearly set out in the Government Actuary’s report and John Cridland’s report, that life expectancy is going up. Healthy life expectancy at the age of 65 is also going up. The Government have to face up to this long-term challenge and not pretend that it does not exist. We should celebrate increased life expectancy, but it has consequences for fiscal sustainability that cannot be ignored. The Cridland review is a serious piece of work with a clear recommendation on the pension age. In contrast with the Labour party, we will act responsibly and accept that recommendation.
Mr Iain Duncan Smith (Chingford and Woodford Green) (Con)
I commend my right hon. Friend for his statement. The Labour party used to work on a consensual basis, given the facts, but it has now departed from that. He is aware that we have a proud track record in reform, for example, in respect of automatic enrolment and the single tier. We also got rid of the default retirement age, where people were forced to retire when they did not want to do so. It is the Conservatives who have a proud record. The single figure that stands out starkly from this review is that if we do nothing about this, it will cost £250 billion more. That is not just a figure, as it will be borne by future generations, as they will have to pay excessive moneys. Given that the Labour party at the last election promised to get rid of the student debt and now reneges on that, does my right hon. Friend think that Labour will be doing the same very shortly on this one?
Mr Gauke
I thank my right hon. Friend for his question. He makes some good points about the work the Government have done over the past seven years in terms of fuller working lives and helping more people to work longer, and he has a proud personal record in what he did on that as Secretary of State. He is absolutely right to highlight the irresponsibility of the position Labour Members had at the last election. Just as they have walked away from a deeply irresponsible position on student debt, I hope they will walk away from a deeply irresponsible position on the state pension age.
Autumn Statement Distributional Analysis, Universal Credit and ESA
Iain Duncan Smith Excerpts(7 years, 9 months ago)
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Mr David Burrowes (Enfield, Southgate) (Con)
I very much welcome the Green Paper, which many of us have been looking forward to for some time. It sets the direction of travel, providing a much more joined-up approach for this group of very vulnerable people. On the notional cash loss for new WRAG claimants, could there be support from the financial support grant in the Green Paper—
Mr Burrowes
Yes, the flexible support fund, which could provide some flexibility and relief for those particular needy groups.
Mr Iain Duncan Smith (Chingford and Woodford Green) (Con)
I shall be as brief as possible and certainly intend to be well under that limit. I shall not follow the hon. Member for Ross, Skye and Lochaber (Ian Blackford) down a memory-lane trip involving independence or leaving the single market. I will say, however, that I am a huge admirer of him. Many of my ancestors are buried in his constituency, so I like to claim a little bit of union with him, even though he would not want to admit it. I shall visit the area as often as possible to ensure that I give the hon. Gentleman the best support I can for him to stay up there as long as possible.
I rise for the first time in, I think, nearly seven years to speak from the Back Benches, and I do so to speak on an issue that is very close to my heart. I want to explain why that is the case to my colleagues. Let me start by welcoming both Ministers to their new roles on the Front Bench, and I congratulate them on continuing to commit to the changes and reforms necessary to improve the quality of life for so many people who would otherwise be left behind.
In passing, let me note one or two figures. The number of children in workless households has fallen to record levels—down to just under 11% from the 20% that we inherited. A child in a workless household is nearly three quarters more likely to be in poverty than a child in an in-work household. That is an important point, because that dynamic is critical—a point to which I shall return. The fall in income inequality has been mentioned, and it is falling because more people at the lower end are going back into work.
There is another important issue about disability. We have committed to, want to commit to and must stay with the position of wanting to see more people with disabilities in work. We want the gap to be at least halved, which I think is feasible. I shall explain in a few moments why I think that it is feasible.
Mr Duncan Smith
In a minute, but let me finish this point first.
A lot of the work of the Green Paper was done when I was in the Department. It was a White Paper at that stage, and I hope it gets speeded up and becomes a White Paper again fairly soon. After five reviews of the inherited employment and support allowance, I would be the first to acknowledge that although we have stabilised it and it is better than it was, it is a very difficult area, as we all know. If every Member was prepared to be reasonable, we would all recognise that these things need to change.
Let me clarify that the main single thing that I wanted to see change and I still want to see changed is this artificial idea that people are either too sick to work or unable to work. There should be a greater nuancing in people’s lives, and universal credit now opens the door to a much more flexible process that allows even those diagnosed and reasonably said to be “not capable of work” to be able to work—and if they wish to work, they should be allowed to do so as far as they possibly can, with the taper used to take benefit money away gradually. I think that might improve the quality of life for many people. I know that this is a submission in the Green Paper, and I hope the Minister will bear it in mind.
Let me return to the point that when universal credit was set up by my noble Friend Lord Freud, who worked very hard on it, and me, the idea was that it was not just about money, but about human interface. The people in jobcentres now stay with individuals as they go into work to help advise them and be with them. This will be a more human interface, so that people can be helped through to gain extra hours, which opens the door for people with limited capabilities to work to be helped in a way that would not have been possible if we had stayed with the original system. All this is very good and very positive.
There are two critical elements. First, when people step into work, the barrier must be reduced by improving the amount of money that can be held from benefit before it is tapered away. The second element is the taper itself, which is the simple process by which people have their income reduced. I say to the Minister that those two elements, notwithstanding all the other stuff such as improved childcare and everything else, are at the heart of what delivers.
The Institute for Fiscal Studies and others recently looked at what the dynamic effect of universal credit might be as it rolls out. The IFS was very clear: it said that the effect was a 13% improvement in all elements—going back to work, staying in work, taking more hours and earning more money. I know from my experience in the Department that every time one benefit has been substituted for another, it has almost always been worse on arrival than the previous benefit before people engage with it and improve it. This is the first time that a benefit being rolled out is a net improvement on a previous benefit.
I therefore make this recommendation. That figure of a 13% improvement was made on the basis of the original work allowances. In the spirit of general collective view and belief, I say that if we really want to see the right thing happen to people out there who try to get into work and stay in work, the allowances are critical. I recommend and hope that my colleagues in government will think very carefully again about the decision to reduce those allowances. I recognise the problem with the deficit, and we of course want to reduce it. I am not asking for more money; I am asking for wiser spending. I wonder whether we could revisit the idea of a tax threshold allowance and look to see whether getting the money to the lower five deciles would be better served by universal credit. Some 70% of those people will be on universal credit, whereas only 25p of a tax threshold allowance will actually go to the bottom five deciles.
I urge the Minister to speak to his right hon. Friends and say, “Look, we have a very good opportunity to do something that is really bold and right for those whose lives we really want to improve—those that the Prime Minister rightly said was her target group.” It is a very Conservative thing to do to help people who are doing the right thing to improve their lives. Even if the Government cannot do it all, they should look at two elements: lone parents and those with limited capability for work. This would answer the problems surrounding the WRAG, too. I urge Ministers to do just that. It is the right thing to do, and it will be the thing to do that changes lives and improves the quality of those lives.
Mr David Burrowes (Enfield, Southgate) (Con)
I am pleased to be able to take part in the debate. The shadow Chancellor talked about econometrics; I want, like the Prime Minister, to focus on human metrics. At the outset of her premiership, she rightly said that this would be a Government who wanted to
“stand up for the weak”
and reach out to the “just managing”.
Today’s debate, like the debate that we shall have tomorrow, is about seeking to fulfil those aims.
I intend to concentrate on cuts in the universal credit work allowance today and delay most of my comments about the ESA WRAG payments until tomorrow, although I will say now that I approve of the Green Paper’s direction of travel. Its vision of integrated and personalised employment and health support is overdue, but welcome. However, we need to look out for the disabled people—some 500,000, according to a House of Commons Library estimate—who worked in April as new WRAG claimants. They will still be affected. The flexible support fund—about which I look forward to hearing from my hon. Friend the Minister for Disabled People, Health and Work—is crucial. Along with other discretionary relief, it needs to meet the wider costs of job seeking for disabled people by April. We cannot deny that those wider costs exist, and we must ensure that we meet them. My support for the Government’s admirable reform agenda for disability depends on that.
Let me now say something about low-income families, who are the main subject of the debate and, in particular, about the first few lines of the Government amendment, which
“notes the role of universal credit in ensuring that work pays”.
That is what we want to happen. It is the very basis of our welfare reforms. We must commend the Government, and previous Governments, for the fact that some 764,000 children will not wake up in workless households today because of the opportunities for work that have been provided. That is extraordinarily important. Work is obviously a primary route out of poverty, and the income tax cuts, the national living wage and the 30 hours of free childcare are all extremely welcome.
What will drive all this through, however, is universal credit that does what it was designed to do, and makes work pay. In Enfield, which rolled the scheme out early, it has been a success. Work coaches have reached out to previously unreached individuals, helping them to find work. More people are working, obtaining work more quickly, staying in work longer, and earning more. The first nine months have been very successful. Universal credit claimants are now 13% more likely than jobseeker’s allowance claimants to be employed, work 12 days more, and are more than twice as likely to try to work for more hours.
That is all extremely welcome. However, there is a risk that the cuts in the universal credit work allowances will unpick the good work of the universal credit: the work coaches, the incentives, the living wage and the free childcare. It will be like a travellator in an airport. We want the travellator to help people—especially those on low incomes—to travel into work. It will now be switched in another direction; actually, it will be going in the opposite direction, which will mean that 2.7 million working families will on average be £1,500 worse off without the benefit of work allowances. It matters greatly to these families. It also does not make sense that these families who are claiming universal credit will be worse off than families protected under legacy tax credits payments living in the same town, the same neighbourhood or even the same street. That is not fair.
There is cross-party concern about this, and a shared concern among campaign groups, which are not always on the same wavelength. Gingerbread, focusing its concerns on single parents as well as couples with children, makes the point that working single parents in the poorest fifth of households are set to lose nearly 7% of their income. A home-owning single parent working full time will be over £3,000 a year worse off without the work allowances, and if a second earner enters work he or she will lose 65p in every pound earned. CARE also made this point in relation to recognising our support for marriage in the tax system, which it says could be undermined. In particular, single-earner married couples on median incomes with two children will lose significantly without the work allowances.
Mr Duncan Smith
My hon. Friend is rightly dealing with the levels and the amounts, but may I take him back to one point that came out of the dynamic study, which was that if we stayed with the purposes of the original universal credit with that allowance, it would amount to a minimum of an extra 300,000 people in work over and above existing forecasts? That is a positive reason for staying with those allowances.
Mr Burrowes
I agree, and it helps to revolutionise things for everyone—those on low incomes and those on median incomes. A one-earner married couple on a median income with two children—those with children are particularly impacted, given the costs—will lose some £2,211.04 per year without the allowances.
This Opposition debate is plainly timely as it comes ahead of the autumn statement. Before all the universal credit is rolled out and has its full impact, we want to make sure that that impact fulfils the first line of the amendment: to ensure that work pays. Welfare reform rises and falls on this basis, and that is why I commend my right hon. Friend the Member for Chingford and Woodford Green (Mr Duncan Smith) for all the work he has done. That is the basis of our welfare reform. We want this to rise to meet the aspirations of everyone who can work—families who have been put in poverty, and vulnerable disabled people who are the subject of this debate.
I urge Ministers to take back to the Chancellor the message coming from both sides of the House and from campaign groups, who are united in their concerns for these low-income families, and to ensure that universal credit, which is doing great work across our country, is given the boost it deserves and that work allowances are regenerating it to ensure that work pays.
Improving Lives: Work, Health and Disability Green Paper
Iain Duncan Smith Excerpts(7 years, 9 months ago)
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Damian Green
I am disappointed by the hon. Lady’s tone because she seems to be completely out of touch with those who represent disabled people. Let me read her the words of the chief executive of Scope, Mark Atkinson, who said today:
“Disabled people are twice as likely as the general public to be unemployed. It is right that the Government has recognised this is an injustice that needs to be tackled. We welcome
the Green Paper’s
“publication, which recognises the need for real change and sets out some bold ideas for reform.”
Dr Liam O’Toole of Arthritis Research UK said:
“Today’s Green Paper offers a vital opportunity to better understand and then meet the needs of people with arthritis.”
The Work Foundation said:
“We have consistently advocated that good work and the benefits it brings to individuals, employers and society at large should be recognised as a positive outcome from a health perspective.”
I am afraid that her carping is out of touch with the sector comprising those who most represent disabled people.
Let me deal with some of the detail. The hon. Lady repeated her promise to scrap any kind of assessment system at all for people getting benefits. Let me quote one of my predecessors who, when the work capability assessment was introduced, said, “We want to have a system where virtually everyone who is getting benefits is doing something to prepare for a return to work. The benefits system is not there for people to stay on benefits but to help them get back to work.” I completely agree with that. It was said by Labour Work and Pensions Secretary James Purnell in 2008 when introducing the WCA. I am afraid that, again, the hon. Lady is out of touch.
The hon. Lady said a lot about universal credit and described it as a failure. Let me give her the facts about universal credit. Under universal credit, people spend about 50% more time looking for work and move into work faster. For every 100 people who found work under the old jobseeker’s allowance system, 113 universal credit claimants have moved into a job. They are more likely to be looking to increase their hours—86% on universal credit compared with 38% on jobseeker’s allowance. They are more likely to be looking to increase their earnings—77% on universal credit compared with 51% on JSA. [Interruption.] I am afraid that despite all the shouting from a sedentary position, the hon. Lady is simply wrong about the effect of universal credit.
The hon. Lady asked me to make some commitments about Access to Work. Real-terms increases in funding under Access to Work will support an additional 25,000 people each year by 2021. Last year, more than 36,000 people were helped to take up or remain in employment, including 2,800 young people. Access to Work is doing very well for tens of thousands of people with disabilities.
The hon. Lady would also, I hope, welcome our personal support package, which includes the recruitment of about 200 community partners into Jobcentre Plus to bring in expertise from the voluntary sector. One of the key things about this Green Paper is that we will work closely with the voluntary sector and use its expertise to help people with a disability.
The hon. Lady talks about forcing people into work. I hope that underneath some of her rhetoric she recognises the fact—this is now recognised increasingly by medical practitioners and clinicians—that a good job is good for people’s health. Talking about forcing people into work demonstrates the wrong, old-fashioned mindset, and I genuinely hope she has moved on from that.
The hon. Lady asked about statutory sick pay. I assure her that there is nothing in this Green Paper about cutting statutory sick pay. We want to make it easier for people to move back into work, perhaps gradually, meaning that they take a few hours’ work in the early days and months of their getting back into work. The purpose of the useful changes to the fit note, which is given by a properly qualified medical practitioner, is so that the process does not simply write someone off work, but guides them into a system that will help them to get back to work, because in the long run that is the best way to improve their lives, which is what the Green Paper is about.
Mr Iain Duncan Smith (Chingford and Woodford Green) (Con)
May I unreservedly welcome my right hon. Friend’s statement, which builds on and elaborates previous work? I hope, however, that he will consider two issues during the Green Paper consultation. One of the greatest difficulties with the employment and support allowance is the binary choice that lies at the heart of its design, whereby it is deemed either that someone is too sick to work, or that they should work. We know that conditions can vary in many cases. Given that universal credit is now being rolled out, with this system forming part of that, would it be feasible to move away from that binary choice so that someone who moves into work can have that extra allowance before it tapers away? Given that universal credit is critical to this, will he look again at work allowances, particularly for those with limited capability for work, because they need to be increased to their original levels?
Damian Green
I am grateful to my right hon. Friend for his support. He is right about the binary choice that has obtained up to now under ESA and the fact that under the universal credit system, which he introduced, we have the capacity in the welfare system to make our approach much more flexible. That is precisely what the changes to the work capability assessment are designed to achieve—so that people are not simply put in one group or another and then left there. The much more personalised approach will mean that everyone should benefit from the assessment. We will be able to separate out the level of benefit that people should get from the level of support that they need to make the best of their lives. On the question of reversing previous changes in allowances, we have no plans to do so.
Oral Answers to Questions
Iain Duncan Smith Excerpts(8 years, 5 months ago)
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Peter Grant (Glenrothes) (SNP)
1. What assessment he has made of the effect of his Department’s welfare reforms on low and middle-income households since 2010.
The Secretary of State for Work and Pensions (Mr Iain Duncan Smith)
As a result of our reforms, the number of people in work is at a record high; income inequality is lower than it was in 2009-10; the number of workless households in the social rented sector is also at a record low; the number of children living in workless households is at a record low; youth unemployment is at the lowest level in a decade; and the employment rate for women is also at a record high.
Peter Grant
I am grateful to the Secretary of State for his answer, but the question was not about work—it was about low income. It is one thing being in work, but it is quite a different matter if people are in work that does not pay them enough to earn a living. Is he concerned about reports at the weekend that the latest changes to the personal independence payment system will adversely affect 640,000 people by 2020, making it difficult or impossible for them to live independent lives? Does he not accept that welfare changes that start with a target saving before any consideration is given to the impact on vulnerable people are always going to go wrong?
Mr Duncan Smith
The hon. Gentleman talks about my answers to him about low and middle-income people and work, but the point to make is that work is the best route out of poverty, and it is by getting people back to work that we are getting people out of poverty. It is worth reminding him that the poverty figures show that poverty has fallen, both for adults and for children, and that is the critical bit. The reforms we are making are helping people to help themselves to get beyond dependency and back into full-time work.
Andrew Bridgen (North West Leicestershire) (Con)
Will my right hon. Friend confirm that the latest low-income statistics show that the percentage of individuals and children in relatively low-income circumstances is at its lowest level since the 1980s?
Mr Duncan Smith
Yes, and it is also worth noting that income inequality is now lower than it was in 2009-10. It is worth reminding ourselves that, for all the complaining from the Opposition, income inequality rose under Labour to the highest levels it had ever been.
Andrew Gwynne (Denton and Reddish) (Lab)
But the Secretary of State will know that research analysis from the House of Commons Library shows that three in four people who are currently receiving tax credits will see that in-work support reduced when they are naturally migrated over to universal credit. What does he have to say to those millions of workers whose in-work support will be revised downwards?
Mr Duncan Smith
As we have made clear on a number of occasions, anybody migrating across from tax credits will see no change to their income—the Institute for Fiscal Studies has made that clear publicly and we also make it clear. It is also worth reminding the hon. Gentleman, because his party seems to have opposed the advent of universal credit, that in the latest IFS-supported research universal credit claimants are seen to be much more likely to go into work than they would be under jobseeker’s allowance, they move into work faster, they stay in work longer and they earn more money. Those are major positives for people who are trying hard and working, whereas the last Labour Government penalised anybody who wanted to go to work.
Neil Gray (Airdrie and Shotts) (SNP)
A report published yesterday by the Women’s Budget Group highlighted that this Tory Government’s policies are predicted to be more regressive even than those of their coalition predecessor. The report highlighted that single parent women and single female pensioners will see their standard of living reduced by an average of 23% by 2020. The Secretary of State’s Department’s policies are having a negative impact on gender equality. Will he go back to the drawing board to create a social security and pensions system that is fair and equitable?
Mr Duncan Smith
There have been many forecasts and most of them have been absolutely wrong—even the IFS forecast about child poverty has been wrong. It is worth reminding the hon. Gentleman of our reforms: the national living wage will give a boost of £900 to full-time workers who are currently on the national minimum wage; the personal tax allowance rising to £12,500 helps those on low income; and general childcare provision is available. That brings me to his point about lone parents, because universal credit, coupled with the incredibly generous childcare provision, now makes lone parents better off in work than they ever would have been before. That is why more people are going to work.
Neil Gray
That answer will not provide a crumb of comfort to those being hammered by social security cuts up and down this country. Today I have written to the Chancellor, highlighting the devastating impact that the cuts to employment and support allowance and to universal credit will have on disabled and sick recipients. These cuts are predicted to save £1.4 billion, yet just £100 million appears to be set aside for the long-awaited, much vaunted White Paper on health and work. Does the Secretary of State agree that the White Paper must be properly resourced in order to provide direct financial support to the sick and disabled people who are seeing their support cut? Will he today finally confirm when that White Paper will be published?
Mr Duncan Smith
The White Paper will be published well before the summer break. It is worth reminding the hon. Gentleman of two things. First, and really importantly, half the spending on welfare and public services still goes to the poorest 40%, as it did in 2009-10. Secondly, it is also important to note that we expect no change in the proportion of spending projected to be received by the lowest and middle quintiles between 2010-11 and 2020. I also say to him that it is a bit rich that the Scottish Nationalists, who are in Government in Scotland and who now face a £15 billion deficit, which would have racked them had they gone for independence, have not once referred to the tough choices that they might have to make to reduce that deficit.
Owen Smith (Pontypridd) (Lab)
Politics is always about choices, about priorities and about values. This past weekend, we saw the values and priorities of the current Government laid bare in their decision to implement a so-called welfare reform that will see £1.2 billion cut from the incomes of disabled people to pay for—we are told—a tax cut for top-rate taxpayers. Will the Secretary of State come back to the Dispatch Box and honestly describe that as a welfare reform, and then justify those choices?
Mr Duncan Smith
The changes that have been announced on personal independence payment are about changing, reforming and improving what goes to those who most need it in this disability allowance. The key point about this, which has been made by the Under-Secretary of State for Disabled People, my hon. Friend the Member for North Swindon (Justin Tomlinson), is that we put out a consultation long before the Christmas period. The Opposition had an opportunity to make their submissions, which they did, and we listened to all the submissions that came back. As a result, we are not implementing any of the first four options. It is right to continue to recognise aids and appliances and all the activities, as we previously did, but with a change to activities 5 and 6, changing the points numbers from two to one. That brings them into line with activity 3, in which one point has always been awarded for aids and appliances. Finally, activities 5 and 6 are less reliable indicators of additional cost. This all came on the back of an independent review published just after the last election, asking us to look again at the way those indicators are used. We have done that and, in fairness, this is the right way to go and will improve the lot of the worst off.
Owen Smith
For the benefit of the House, may I translate what the Secretary of State has just said? What he means is that he will take away £1.2 billion, completely eroding access to personal independence payment for 200,000 people, and cutting it by a third, from £70 to £50, for a further 450,000 people—people who are quite often unable to use the toilet or get dressed unaided. That comes on top of the cuts to ESA that went through the House last week. Before I came to the Chamber this afternoon, I asked disabled people what question they would like to put to the Secretary of State. One answer stood out. It was quite simply, “How does he sleep at night?”
Mr Duncan Smith
I remind the hon. Gentleman that, under this Government, spending on sickness and disability benefits has risen every year. We spend more than £50 billion, which is more than any other OECD country of equivalent size, such as Germany. I am proud of that, and, even with these changes, we will continue to see spending on PIP rise every year all the way to the end of this Parliament. As I have said, I am proud of that, because our reforms ensure that those most in need get full support and that the way that we do it is fair to everybody. I am also proud of the fact that this represents 6% of all Government spending, because, by reforming the economy and reforming welfare, we can get the money to those who most need it. By contrast, when Labour was in Government, we had a lot of promises, a broken economy and cuts all round.
Helen Whately (Faversham and Mid Kent) (Con)
2. What steps he is taking to support people with disabilities into employment.
Suella Fernandes (Fareham) (Con)
15. What assessment he has made of the effect of family stability on levels of poverty and on life chances.
The Secretary of State for Work and Pensions (Mr Iain Duncan Smith)
Our family stability review found that family instability is one of the main drivers of poverty, with unstable families more likely to have low incomes. That is why support for families is firmly at the heart of what we are doing in Government, such as doubling the funding for relationship support and doubling the amount of free childcare.
John Glen
I welcome the Government’s determination to tackle the root causes of poverty. With respect to the doubling of funding for the relationship support scheme, what steps is the Secretary of State taking to ensure that the scheme can be accessed across the country by those who find it hardest to reach Government support and those who most need it?
Mr Duncan Smith
My hon. Friend is absolutely right, and I pay tribute to the huge amount of work he has done in backing this up and supporting it, and to the work he is doing at present to make sure it gets across to everybody. We are clear that any new or extended support that we provide—and we do—will need to be accessible and effective for all families, no matter where they are, with additional, complex needs, and more will be said on that when we bring forward the life chances strategy, to be published this summer. However, I can guarantee to him that it is the No. 1 priority to make sure everybody who needs support gets it.
Suella Fernandes
Domestic violence is a stain on our society and often a cause of family instability. The Southern Domestic Abuse Service supports victims of domestic violence in Fareham, providing help in the community as an alternative to fleeing for refuge, which is often more costly and disruptive for the family. Will my right hon. Friend join me in congratulating the Southern Domestic Abuse Service on the vital work it does?
Mr Duncan Smith
I certainly will. I myself have been in the House on a ten-minute rule Bill to try to improve access to legal means to prosecute those who drive people to suicide, and I still believe this is something that could be done. I congratulate my hon. Friend and her remarkable charity. The Government have backed that work up, because we have now trebled the amount of money going to these organisations. I would be very happy, at some point, to meet them to congratulate them myself.
Frank Field (Birkenhead) (Lab)
Would the Secretary of State like to confirm that if we look at the current poverty data, we see that there are almost no poor children in households where there is a parent in work and one parent is available for part-time work? What lesson does he draw from that?
Mr Duncan Smith
I simply draw the lesson that we want more people to get back into work, because a household with work is a household that is more likely to be out of poverty. As usual, I pay tribute to the right hon. Gentleman, because he has done a huge amount of work on this issue. That lesson has been the drive behind everything that we have done—universal credit, our attempt to make sure that people get into work, and increased childcare to improve the possibility for more women to be in work to boost household income. However, universal credit also ensures that the first person into work is better off, and that therefore improves the likelihood of a household having more income and less chance of being in poverty.
Conor McGinn (St Helens North) (Lab)
If we are talking about cause and effect, I fear the question is the wrong way around. What I would like the Secretary of State to explain is how increasing levels of poverty under his Government are affecting family stability. Perhaps he might answer that question.
Mr Duncan Smith
I just wish the hon. Gentleman would check the figures. There are 800,000 fewer people in relative poverty, including 300,000 fewer children. [Interruption.] I know it is always awkward for the Opposition when the facts do not bear out the rhetoric, but the reality is that the proportion on a relative low income is the lowest since the 1980s, income inequality is lower than it was when his Government left office, and household disposable income is £1,500 higher than two years ago. It is improving, but it is not good enough—we want to go further and further. All I can say is that we are working to get people into work and make sure that work always pays, as it is the route out of poverty. I just wish that instead of carping, Labour Members would one day support that.
Rachael Maskell (York Central) (Lab/Co-op)
4. What steps he has taken to review the system of assessments for disabled people seeking welfare support.
Neil Coyle (Bermondsey and Old Southwark) (Lab)
6. How many people his Department expects to be naturally migrated on to universal credit during this Parliament.
The Secretary of State for Work and Pensions (Mr Iain Duncan Smith)
Universal credit is rolling out, with the live service available in over 90% of jobcentres, and full roll-out will continue according to the published plan. It is worth reminding everybody that it is complete in London, and very shortly—probably by the end of this month or the beginning of next—universal credit will be in pretty much every single jobcentre in the country.
Neil Coyle
The Secretary of State made reference earlier to unreliable predictions. He predicted that by today’s date 8 million people would be on universal credit, but the DWP confirmed last week that fewer than 365,000 people are on universal credit—a staggeringly pathetic success rate of 4.4%. The only reason why the Government are pushing out universal credit now is to deliver the tax credit cut that will hit thousands of working families in my constituency, so is it not time the quiet man went silent on pretending that universal credit is a success?
Mr Duncan Smith
I bet that looked good when the hon. Gentleman wrote it down. It is utter rubbish.
Mr Barry Sheerman (Huddersfield) (Lab/Co-op)
I hope that the Secretary of State does not think that this is a load of rubbish. I visited this morning, with Dame Steve Shirley, a wonderful place where young people with autism are prepared for work. They are very concerned about how universal credit is going to affect them, because they have already seen education not being allowed in their personal plans. Remember that autism costs this country £34 billion a year. If we do not get those young people into employment, the sum will increase and the misery of the families will also increase.
Mr Duncan Smith
The hon. Gentleman is right. Autism is a real problem, and we want to help the young people and adults who have that problem as much as we can. Universal credit lends itself hugely to that. Unlike in the past, when those people would have gone from jobseeker’s allowance to working tax credits by themselves and had no advice, help or support once in work, under universal credit the adviser will stay with them all the way.
Importantly, we have now committed £100 million to train advisers to be specialists in helping people who have medical conditions such as autism, and that should help enormously. I would be very happy for the hon. Gentleman to come and discuss with me and the Minister for Disabled People what more we can do, because we are determined to make sure that universal credit helps those in the deepest need as much as it possibly can.
Nick Thomas-Symonds (Torfaen) (Lab)
The Secretary of State told “The Andrew Marr Show” show on 6 December:
“Nobody will lose any money on arrival on universal credit from tax credits because they’re cash protected, which means there’s transitional protection. They won’t be losing any money.”
If there were any doubt about that reassurance, the Secretary of State repeated it earlier to my hon. Friend the Member for Denton and Reddish (Andrew Gwynne). But according to the Library, only 27% of the final case load for universal credit will have got there through managed migration, so 73% of them will not have received transitional protection. Apply that to the current tax credit claimants in work, and 2.3 million families will be worse off as a result of moving from tax credits to universal credit. [Interruption.] Oh, I will give you the question. Will the Secretary of State apologise to those families for giving such nonsensical reassurances?
Mr Duncan Smith
I say to the hon. Gentleman that he is completely wrong on all that. The Institute for Fiscal Studies has made it absolutely clear that
“no family will take an immediate…hit”
when transferred to universal credit. That is a reality. They are cash protected. Therefore, as they move across, their income levels at the time will remain exactly the same. As we said earlier, we are transitionally protecting them. I just wish that the Opposition, unless they want to stay forever in opposition, would get with it and support universal credit instead of attacking it all the time.
Christian Matheson (City of Chester) (Lab)
7. What estimate his Department has made of the likely average change in income for a disabled worker as a result of changes to the universal credit work allowance.
Chris Green (Bolton West) (Con)
19. What progress his Department has made on reducing the number of workless households.
The Secretary of State for Work and Pensions (Mr Iain Duncan Smith)
When we took office almost one in five households had no one in work and about 1.4 million people had been on benefits for most of the previous decade. Since 2010, the number of workless households has fallen by more than 680,000 to its lowest level since records began. The number of children in workless households is at a record low, down nearly 480,000 since 2010.
Chris Green
Does my right hon. Friend agree that making progress in reducing the number of people in workless households is key to improving the life chances of millions of children?
Mr Duncan Smith
I do agree with my hon. Friend. From all the evidence, we know that children in workless households grow up without the aspiration to achieve, something they might have if they grow up in driven families who are in work. They are almost certain to repeat the difficult lives of their parents and we want to turn those lives around. Since 2010, the number of workless households in the social rented sector has fallen by more than 280,000 to a record low. It is worth remembering that when we took office in 2010 the number of households where no one had ever worked had nearly doubled under the previous Labour Government.
Mr Speaker
I call Angus Brendan MacNeil. He is not here. Where is the fellow? I call Naz Shah.
Naz Shah (Bradford West) (Lab)
21. What assessment his Department has made of the effect of recent changes to benefits on levels of child poverty.
The Secretary of State for Work and Pensions (Mr Iain Duncan Smith)
I congratulate the hon. Lady on getting her question in.
We have seen relative child poverty fall by 300,000 since we came to office. The number of children living in workless households is also down 480,000 to a record low. Living standards are up 3.3% and income inequality, which rose under the previous Labour Government, is down since 2010.
Naz Shah
In the light of research published by the Children’s Society, which shows that 104,000 children in Bradford are adversely affected by the benefit freeze and that in my constituency alone 29,500 children are living in poverty, does the Minister not think he would be better off arguing with his Chancellor about his Budget rather than needlessly pushing more families and children into poverty?
Mr Duncan Smith
I simply do not agree with the hon. Lady, because the figures do not bear it out. It is worth remembering that in-work and out-of-work poverty rose under the last Labour Government. Under this Government, out-of-work poverty, which affected 71% of households with children in 2009-10, has fallen to 61% and is still falling. As we know, three quarters of poor children living in families that move into employment leave poverty altogether. A child poverty transitions report made that very clear. I think we should all celebrate getting people and families back to work, as we have been doing, and giving them a real chance to earn and have aspiration.
Daniel Zeichner (Cambridge) (Lab)
T1. If he will make a statement on his departmental responsibilities.
The Secretary of State for Work and Pensions (Mr Iain Duncan Smith)
As agreed with the Work and Pensions Select Committee when I was last in front of it, I can now inform the House that today we are launching the sanctions early warning trial for claimants. From April, early warning letters will begin to be issued to claimants within the trial site. The trial is being run in Scotland and gives jobseekers an extra 14 days to provide further evidence of their reasons for not complying before a sanction is applied.
Daniel Zeichner
My constituent Nick Dale is 36 years old and has a complex range of disabilities. His care package has just been reduced by Cambridgeshire County Council from 17 hours a week to 6.5 hours. The council told him he should see this not negatively but as a way
“of utilizing the strengths and resources that he may not realise he has within himself.”
His mother is appalled by his loss and the patronising tone—borrowed from the Government. If I lift the Secretary of State’s wallet in the Lobby tonight, would it help him utilise hidden strengths he did not realise he had, or is he as furious as I am about the way Nick Dale has been treated?
Mr Duncan Smith
Universal credit is now pretty much rolled out all over the country. The Institute for Fiscal Studies made it clear in respect of anybody transitioning from tax credits that
“no family will take an immediate…hit”
because they are “transitionally protected”. I said at the time that we would do our level best, working with the advisers and through the flexible support fund, to make sure that people’s situations continued and actually improved. That is exactly what universal credit will do. That is why I wonder why the Opposition do not support it. More people go into work quicker; they get into work faster; they actually earn more money; and they stay and work longer.
Michelle Donelan (Chippenham) (Con)
The Minister will be aware that almost 15% of the working population are self-employed, and that in five years’ time, about 40,000 of them will be living in Wiltshire. Does he agree that something needs to be done and that a self-employed auto-enrolment scheme could be looked at? Would he welcome the inclusion of such a thing in this week’s Budget?
Stephen Metcalfe (South Basildon and East Thurrock) (Con)
One of the welcome provisions of the Pensions Act 2014 was the lifting of the Pension Protection Fund cap; yet, nearly two years on, this clause is still to be implemented. Will the Secretary of State agree to meet me and a cross-party delegation to discuss how we might move the issue forward and bring security in retirement to those who have found their pensions seriously curtailed through no fault of their own?
Mr Duncan Smith
I am very happy to meet my hon. Friend and any others he wants to bring with him. This Government have a proud record on reforming pensions. The single tier will mean that pension incomes improve dramatically, particularly for those who have broken care. We also have auto-enrolment, which is massively increasing savings among those who have never saved before. Finally, the freedom to take an annuity or not, as and when a pension comes due, is enormous. I am very happy to make sure that reform programme continues, and I will happily meet my hon. Friend.
Alison Thewliss (Glasgow Central) (SNP)
Can the Secretary of State tell me how many jobseeker’s allowance claimants have been sanctioned in the period between being offered work and taking up work?
Mr Duncan Smith
I do not have the figures to hand, but I am very happy to write to the hon. Lady about that. I have to say, the number of people who have been sanctioned has fallen dramatically in the last 12 months, and I am sure she will be very happy to see the figures.
Peter Heaton-Jones (North Devon) (Con)
I thank my hon. Friend the Minister for Disabled People for attending a highly successful Disability Confident event in my constituency on Friday 10 days ago. Does he agree that such events are vital to ensuring that employers get the help they need and, crucially, that people with disabilities are moved closer to the world of employment?
State Pension Age
Iain Duncan Smith Excerpts(8 years, 5 months ago)
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Owen Smith (Pontypridd) (Lab)
(Urgent Question): To ask the Secretary of State for Work and Pensions to make a statement on the Government’s review of the state pension age.
The Secretary of State for Work and Pensions (Mr Iain Duncan Smith)
Yesterday we announced the appointment of John Cridland to lead an independent review of the state pension age. The review will make recommendations for the Government to consider, to ensure the future state pension age is fair and affordable in the long term.
The review will report by May 2017. I want to stress that the review is independently led and evidence led. Evidence will be put forward for Sir John to consider in his important considerations about the future of the state pension. The review will consider changes in life expectancy, as well as wider changes in society.
It is useful at this point to remind the House why this kind of review is necessary. In 1945, a man expecting to retire at 65 had a life expectancy of between 60 and 63. Men’s life expectancy rose from 14.27 years in retirement after their pension age to 27 years under the present forecast and existing timescales. Women have gone from 18 years in retirement after their pensionable age to 29.5 years in retirement.
Future generations, therefore, would rightly expect that we reflect those changes in how we set the pension. They would not thank us—we very rarely hear anybody talk about future generations—if we did not take the right decisions at the right time and did not have the courage to ensure pensions are sustainable, to avoid people having to pick up an increasing bill, which would make their lives even more difficult.
I want to make clear what this review is not about. It does not cover the existing state pension age timetable—it picks up from April 2028. We have already provided legislation for this, and the review will not look to change the state pension age up to that point.
It is worth reminding the Opposition at this point that when the Labour Government were last in power, they first legislated for state pension age rises beyond 65, but without any commitment to a special independent review, which we have undertaken. When we brought forward the Pensions Bill in 2013, the then Opposition seemed to have had a change of heart, and they—quite legitimately and reasonably, I thought at the time—agreed with us on the need for a regular independent review of the state pension age. Let me quote what the then shadow Secretary of State, the right hon. Member for Birmingham, Hodge Hill (Liam Byrne), said during the course of the Bill’s passage:
“The Secretary of State and I have no difference of opinion on the need regularly to review the state pension age.”—[Official Report, 17 June 2013; Vol. 564, c. 661.]
It is worth reminding everybody that in that Bill was a statutory provision for a regular set of reviews of the pension age. Yesterday’s announcement is simply in line with that statutory requirement. That is what we are now doing, and that is what the then shadow Secretary of State said in agreement. I also remind the hon. Member for Pontypridd (Owen Smith) that at the time Labour made no amendment to change the nature or scope of the review; nor, I recall, did it have anything in its manifesto to do with that.
Under the legislation, we are required to appoint an independent reviewer who will make recommendations on future state pension age requirements. We have appointed Sir John Cridland to lead this work. The legislation also requires us to report on this in 2017. I can assure the House that we will report back to the House in an oral statement and a written statement on whatever comes forward from that review.
This review is part of the Government’s reforms to pensions to ensure that they are affordable for the long term. It is right that we recognise those who have reached their pension age and who have worked hard, done the right thing, and provided for their families. I believe that this Government are delivering for those very people. As a result of our triple lock, pensioners will receive a basic state pension over £1,000 a year higher than at the start of the previous Parliament and under the previous Government. We have provided greater security and more choice and dignity for people in retirement, while also ensuring that the system is sustainable for future generations.
Owen Smith
May I start by welcoming the Secretary of State back to the Dispatch Box? We have missed him in recent months and are grateful that he is gracing us with his rare presence today.
Despite the statement we have just heard, I think that people travelling to work this morning will have been shocked to learn that the Government are planning yet another review of the retirement age and, in the immediate future, of when they can claim their state pension, with a clear implication that, as was the case with the women’s state pension, they intend to increase it further and faster than we, or the people of Britain, were expecting. People will also have been shocked to read this morning the Pensions Minister’s statement in another place, in response to the news of this review, that under the Tories the state pension age should no longer be considered as “a retirement age”. In other words, people will be able to retire only if they are rich enough or have a fat private pension; otherwise they will have to keep working—working until they drop, as one pensions professor warns this morning.
So could the Secretary of State try to clarify exactly what his Government’s long-term economic plan is for pensioners? Is it, as was the case with the botched reforms of women’s pensions, and as was implied in the terms of reference for this review, that people can expect the Government to ratchet up the retirement age much faster than expected? Can he guarantee that even if this review is not considering the planned increase to 67 by 2028, his Government will not bring forward that change? If that promise is not ratted on, can he confirm that his Government are considering speeding up subsequent rises, with increases to 69 or 70 being considered for people currently in their mid-40s? Could he also confirm that this will be a double whammy for those pension savers, as under his reforms everyone aged under 43 will have a worse state pension? Does he agree with his pensions colleague in the Lords that in the light of his reforms, the state pension age should no longer be considered as the retirement age, and so in future only the wealthy will have the luxury of retiring, while the rest will just have to keep on working?
Finally, what does the Secretary of State think is the upper limit for the state pension age? Is it 75, 76 or 77—or is it 80, as his former Pensions Minister colleague warned today? Is not the truth that the new pension promise is not the 75p that the Tories are always banging on about, but the 75 years that people will have to work and wait under this Tory Government before they get their state pension?
Mr Duncan Smith
Well, all I can assume from that rather pathetic response is that the hon. Member for Pontypridd (Owen Smith) did not think that his urgent question would be granted and that, after he heard that it had been granted, he scribbled away massively, because it was utter idiocy. I want to be kind to him, because he has made a career out of being Mr Angry at the drop of a hat. I remind him—[Interruption.] Labour Members do not want to hear this, but I am going to answer the hon. Gentleman’s question. Let me remind him of exactly what his party was about before he took over as the Opposition spokesman. Let me—[Interruption.]
Mr Speaker
Order. I apologise for interrupting the Secretary of State—[Interruption.] Order. The right hon. Member for Gordon (Alex Salmond) ought to know better, because he is a statesman—or, at any rate, a statesman of sorts—and should not conduct himself in an unseemly manner. As for the hon. Member for Blyth Valley (Mr Campbell), I have told him before to be careful: if you have that hot curry too often, it tends to have an effect upon your demeanour in the Chamber.
Mr Duncan Smith
I am also worried about the hon. Member for Blyth Valley (Mr Campbell). He has been here a long time and I want him to have a very good retirement, but he needs to calm down or he will not make it at this rate.
I remind the Opposition that the questions that the hon. Member for Pontypridd asked were all answered by his party when it was in government. It was the Labour Government who raised the state pension age—[Interruption.] Labour Members do not like being reminded of that. They did not have an independent review before they did it. They did it arbitrarily and set a set of dates, but they did not ask an independent reviewer to look at them. We are doing that now. That is what we were asked to do, and I think we are being reasonable about it.
It is also worth reminding the hon. Gentleman of what the then shadow Pensions Minister, Gregg McClymont, said when this statutory review—it is, I repeat, statutory—was passed by the Pensions Act 2014. He said—
Mr Duncan Smith
Yes, I am doing it, but the hon. Gentleman’s party agreed with it. He should calm down, or he will never make it to state pension age. Gregg McClymont, the then Opposition spokesman, said at the time,
“we do not oppose the Bill”.—[Official Report, 29 October 2013; Vol. 569, c. 870.]
That was Labour’s position on the statutory requirement to review the state pension age. Baroness Sherlock said:
“It is vital that the way the state pension age is reviewed is…seen to be fair”.—[Official Report, House of Lords, 3 December 2013; Vol. 750, c. 146.]
That is exactly what we are doing.
It is Labour that instituted the rises in the state pension, raised women’s state pension age and went for the equalisation of state pension age. In government, it started to do the responsible things, but in opposition it is utterly irresponsible and pointless.
I have one final comment to make to the hon. Member for Pontypridd. As I stood up, somebody said to me—[Interruption.]
Mr Speaker
Order. The shadow Secretary of State and the hon. Member for Torfaen (Nick Thomas-Symonds) are both rather cerebral academics. I cannot believe that they would conduct themselves in this manner in a university seminar. If they would not do so there, they should not misbehave here. Whatever they think of what the Secretary of State is saying, they must hear it.
Mr Duncan Smith
Exactly, Mr Speaker, thank you. I say to the hon. Member for Pontypridd that, as I stood up, somebody told me—rather unfairly, I thought at the time—that he is shallow. Sadly, I now think that he gives shallow people a bad name. His response was pathetic and the urgent question was asked by an Opposition who have no policy and who jump around opposing everything and racking up spending commitments. No wonder they haven’t a hope in hell of being in government.
Richard Graham (Gloucester) (Con)
Every western democracy surely has a responsibility to review its state pension age on a regular basis and in a totally non-tribal, non-party political way so that its people know, a long time ahead, what changes will be made to the state pension age. If, in the past, we took too long to change the state pension age and then moved too quickly, surely now the cross-party consensus that was reached shows us that the right thing for the House to do is to set up the review, and that it should report back next year.
Mr Duncan Smith
My hon. Friend, who has spoken about the matter on a number of occasions, is right, and I thought that we had that consensus. We certainly had it during the last Parliament, because the Liberal Democrats in the coalition agreed with us. The hon. Member for Pontypridd has mentioned the former Pensions Minister, who was keen to get a state pension age review. The Pensions Commission has said that increases in the state pension age are essential and that an independent body should be established to review them. We are doing exactly that.
Dr Eilidh Whiteford (Banff and Buchan) (SNP)
Life expectancy in Scotland still lags around two years behind that in the rest of the UK. That gap persists across all social demographics and costs the average Scottish pensioner around £10,000. However, I am just as concerned about healthy life expectancy, which determines the age at which people start to experience illness and disability that limit their capacity for work. Healthy life expectancy is not rising at the same speed as life expectancy; in fact, the gap between the two is widening. Given the Government’s reductions in support for sick and disabled people of working age—we are due to discuss those changes later today—can we have any confidence that further increases in state pension age will not simply condemn thousands of older people with serious health conditions to an impoverished old age on state benefits prior to their official retirement?
Mr Duncan Smith
I congratulate the hon. Lady on her tone, and she has asked a legitimate question. The whole reason why we have instituted an independent review is so that people can raise such questions. I encourage her and her party to submit to the review and to Sir John Cridland their concerns about the different demographic issues in Scotland. They are well known, and it is quite legitimate for the hon. Lady to raise them with him. The point is that because Sir John is independent, he can look at the whole question—including aspects such as demographic changes or changes in the work that people do—and take a view about it. He may recommend that we make no changes, or he may come back to us with recommendations for change. I do not prejudge that, but I recommend that the hon. Lady make all those points to him.
Mr Kenneth Clarke (Rushcliffe) (Con)
In 1995, when I was Chancellor, I was among those who recognised that the old system was unaffordable. We thought that we were being courageous in giving 20 years’ notice of our intention to raise the retirement age. Does my right hon. Friend agree that, in hindsight, we underestimated the remarkably welcome improvements in life expectancy and in the number of women who qualify for a full pension, and that we should have gone faster? Does he also agree that, inevitably, there will be loud complaints from those who are unlucky enough to be born at a time when they are just affected by the change, but that a Government have a duty to proceed in the interests of the country and in the interests of future generations of working taxpayers, who will not be able to afford to sustain our system unless we respond to reality?
Mr Duncan Smith
My right hon. and learned Friend is correct. I thought that the position of successive Governments was to take that as a non-party political point and agree on the need to make those changes, the pace of which should be decided independently. We have done that. It was brave of the Government of whom he was a part to start the process of change, but it was always going to be necessary to review the matter in line with demographics. Recent demographic shifts have been rapid, so we are carrying out such a review now. I regret the fact that the Opposition have chosen to play political games rather than supporting this necessary change.
Andrew Gwynne (Denton and Reddish) (Lab)
Does the Secretary of State accept that millions of people, having seen what the Government did in respect of the equalisation of the state pension age for women born in the 1950s, will look at the proposal and be worried that they are about to repeat those mistakes? Will he set out what transitional arrangements he expects for the changes, and whether that opens up the opportunity to look again at the injustice that has been done to those represented by the Women Against State Pension Inequality campaign?
Mr Duncan Smith
It is a legitimate concern to ensure that we give people plenty of notice, and Sir John Cridland will be looking at that carefully. If the hon. Gentleman wants to make a submission to the review about transitional arrangements, it is absolutely possible for him to do so, and I encourage him to do just that. This Government did not introduce those changes, but we introduced a transitional change for those who were affected to improve the lot of a large majority of those who would otherwise have been adversely affected.
Dr Liam Fox (North Somerset) (Con)
At the moment, there are three people paying national insurance for every person who receives a state pension; by 2040, if nothing changes, there will be only two people paying national insurance for every person who receives a state pension. There are more people in higher education than there have been in the past, and life expectancy has increased. Surely, in the long term, it is only common sense to match the retirement age to life expectancy in some way. We cannot enter the labour market later, leave it earlier, live longer and expect the state to pick up the bill.
Mr Duncan Smith
I agree with my right hon. Friend. It is worth putting that into the context of what we have already done to sustain and support pensioners in the longer term. First, we have introduced more saving through automatic enrolment. More than 6 million people are saving for a pension. Secondly, the introduction of the single tier puts pension payments above the means test, allowing people to save in the knowledge that they will always hold their savings. Thirdly, the state pension is more than £1,000 higher than it was when we came into office. That is why we need to get the demographic changes right. We are going to be fairer to pensioners and support them as other Governments have never done.
Greg Mulholland (Leeds North West) (LD)
I am not going to get angry, but I gently point out to the Secretary of State that he is quite wrong to say that there is a consensus on the matter. Indeed, he has broken the consensus that he established with the excellent former Pensions Minister, Steve Webb. The agreement was that independent reviews would look every five years at life expectancy and fairness for those who were paying in, but the Secretary of State is introducing affordability, which was not part of the original proposal, as well as bringing the review forward. Will he acknowledge that that is a change from what he agreed with Steve Webb and what the coalition Government delivered?
Mr Duncan Smith
I am sorry that the hon. Gentleman chooses to find a difference, because I do not think that there is one. No one has more respect for the former Pensions Minister than I do; he is a good personal friend and I thought he did a brilliant job as Pensions Minister. As coalition partners, we worked well together. He and I agreed to introduce the independent review in the Pensions Act 2014. Sir John is quite capable of looking at the matter in the round, as we have asked him to do, and making a decision on the basis of “robust, evidence-based analysis”, as set out in the terms of reference. He may yet say, “I see no need to make any change,” but I am prepared to back him on that.
Mrs Anne Main (St Albans) (Con)
Our population is growing year on year, principally through immigration, so it is right that we look to the future. Will the independent review look at two scenarios, in which Britain either can or cannot control its immigration, depending on whether we remain in Europe? Will my right hon. Friend be able to see any of the information that comes through on both those scenarios?
Mr Duncan Smith
Tempting though it is to involve the review in other areas, it is focused on the need to figure out whether, given the circumstances, demographics and affordability, the state pension age should rise and what it should be in years to come. I am happy for the review to be limited to that.
Cat Smith (Lancaster and Fleetwood) (Lab)
There are 2.6 million women who feel that they have not been given enough notice of changes to their pensions. I implore the Secretary of State to be straight with young people today about the fact that those of them who are born in areas of low life expectancy will be dead before they receive a pension.
Mr Duncan Smith
I am not sure that the hon. Lady came into politics to decide that the future for people is so bleak that nothing can be done. Our role in this House is to make the changes necessary to improve people’s life chances and lengthen their life expectancy, so that they may enjoy the fruits of that life expectancy, having worked hard and saved hard, in a decent time of retirement. I am an optimist about Britain; she is a pessimist about Britain.
Bob Blackman (Harrow East) (Con)
Will my right hon. Friend confirm that the Government intend to review the pension age every five years and to give people the opportunity to know their retirement age with a long lead-in time, so that they can plan for a secure future for themselves and their families?
Mr Duncan Smith
My hon. Friend is absolutely right. Essentially, the commitment made in the 2014 Act was to have a review in every Parliament. That will allow every Parliament to make decisions, and I hope that any changes, by the time we make them, can be done on a non-party basis. That would be the way to do it, and that is what we are engaged in.
This review was always known about. For those who are suddenly complaining that they had not noticed it, today’s written ministerial statement was down to be made yesterday. I do not recall their doing a single thing to bring it to anyone’s attention until a couple of newspapers wrote articles, after which a request for an urgent question was suddenly sent in.
Sammy Wilson (East Antrim) (DUP)
I think everyone recognises that we need to review pension arrangements, especially given the demographics in the United Kingdom, but all such reviews throw up difficult cases and anomalies, not least in relation to differences in life expectancy across the regions of the United Kingdom. Will the Secretary of State ensure that the review looks at such discrepancies, and that things are properly built in to make sure that information is given out when changes are made?
Mr Duncan Smith
Much as I said to the spokesman for the Scottish nationalists, I say to the hon. Gentleman that, yes, it is recognised that there are issues about such areas. The point is that it is within scope of the review for him or anyone in his party to raise such issues with Sir John Cridland, and it is certainly within its scope for him, or anybody else he wants, to give evidence to the review.
Craig Mackinlay (South Thanet) (Con)
My right hon. Friend has given some very cogent figures to the House, particularly the change in the number of years people can expect to spend in retirement from 14 to 27. Will he confirm that the independent review will be conducted in an impartial manner? Is not what we are hearing from Opposition Front Benchers and their friends in the SNP simply scaremongering?
Mr Duncan Smith
I will repeat the figures. They are backed by what our right hon. and learned Friend the Member for Rushcliffe (Mr Clarke), the Chancellor in a previous Conservative Government, once said with great foresight. The fact is that life expectancy for a man who retired in 1945, when the pensionable age was 65, was between 60 and 63. With the same retirement age, the expected period in retirement has risen to about 27 years. We must take that into consideration. I want more people to be able to work longer, and it was me and the then Pensions Minister who raised the default retirement age to stop companies telling people that they could not work past 65. Such people can now carry on working. We have done a lot, and this review is all part of that process.
Helen Jones (Warrington North) (Lab)
The Secretary of State said that he wanted to reward those who work hard and do the right thing. He did not do that for women born in the 1950s, many of whom were given only three years’ notice of the acceleration in their state pension age. Will he now give the House a commitment that he will not, as he did in the Pensions Act 2011, further accelerate the changes in the state pension age that are due to come in up to 2046?
Mr Duncan Smith
I accept that the hon. Lady raises a legitimate point but I wish that, in doing so, she would encompass the fact that she sat on the Labour Benches under a Government who raised the pensionable age and that accusations of “no notice” can very much be lodged at the door of the previous Labour Government. I simply say to her that, during the last Government, we made changes to improve the lot of many of those affected. As I have said, the independent review will look at all of that post-2028 and make recommendations about the best way forward. I hope that she will give evidence to the review if she has such concerns.
Andrew Bridgen (North West Leicestershire) (Con)
Will my right hon. Friend confirm that countries around the globe are being forced to confront the impact of rapidly rising life expectancy levels, and it appears that only Opposition parties are in complete denial about the need for a sustainable state pension age?
Mr Duncan Smith
That is a fact. Many of our neighbours have already equalised pensionable ages and are accelerating the move to a later pensionable age ahead of us. Germany, Norway and various other countries around the world have done so, and it is only right that we should do so as well. Otherwise, we will place a burden on our children and our children’s children, who will not thank us for not taking the brave decisions that are necessary.
Alison Thewliss (Glasgow Central) (SNP)
I am 33. Will the Secretary of State tell me and others in my age cohort the age at which we will be entitled to retire?
Mr Duncan Smith
I can tell the hon. Lady that it is very clear when she and those her age will retire. It is very clear that the independent review will make recommendations. If she wants to make her position clear and give her view, she should give evidence to the independent review. We will have a review in every Parliament. I do not understand why her party is against having a review. Surely we want an independent review so that it can be fair and balanced. I would have hoped that she welcomed that.
Nigel Mills (Amber Valley) (Con)
Does the Secretary of State agree that the advantage of an independent review in every Parliament is that we should be able to give greater visibility to when changes will happen? Will he commit to not having a change with less than 10 years’ notice for those affected?
Mr Duncan Smith
That is exactly the flow of timings at the moment. Sir John Cridland has to consider that, and we want him to look at making sure that such a process happens. We want people to have plenty of notice, and I know recommendations have been made about that. As I said earlier, he will look at that under his terms of reference, as will the next review and so on. I would simply say to my hon. Friend that if he has an issue, he should put it to the review.
Liz McInnes (Heywood and Middleton) (Lab)
The Secretary of State claims to be an optimist, but I see precious little to be optimistic about. We have had the stock Government response that, in raising any concerns, we are scaremongering. Does the Secretary of State agree that many of my constituents will, because of regional variations in life expectancy, die before they receive their state pension and have an absolute right to be scared?
Mr Duncan Smith
I am sorry that the hon. Lady takes that view. We have rising life expectancy. We have people earning more in jobs. We have more people in work. We have more people saving, and preparing for their retirement, than ever before. We have a pension coming in that means they will not get means-tested. I have to say that I am optimistic on those grounds. I do not, however, blame her for being pessimistic because if I was sitting on the Labour Benches today, I would be really pessimistic.
Mr David Nuttall (Bury North) (Con)
Will my right hon. Friend reassure my constituents approaching retirement age that the headlines splashed across this morning’s papers—in one case, saying that people will be required to work until they are 81—have no basis in fact whatever, given that this is just the start of the review and that no conclusions have been made, let alone agreed by the House?
Mr Duncan Smith
I agree with my hon. Friend. The reality is that this independent review will look at all of that. The papers have to make their own decisions—I will not be critical of them—but I would simply say that they cannot extrapolate from the announcement of a statutory independent review and say that it will somehow have certain implications for the retirement age going forward. All I would say is that it is necessary to get the balance right between people who are paying for those who have retired and people who have retired and are saving. It is the job of the Government to get that right, and I hoped it would be approached more consensually across the Floor of the House.
Ms Margaret Ritchie (South Down) (SDLP)
I want to raise another anomaly with the Secretary of State. People who worked in Northern Ireland when they were 14 and 15 paid national insurance contributions between 1947 and 1957, but those contributions did not count towards their pension entitlement because the school leaving age in Britain was a little higher. Can that anomaly be raised with Sir John Cridland and addressed so that it can finally be rectified?
Mr Duncan Smith
As I understand it, that specific issue is not within the scope of the review, but I am certainly happy to talk to the hon. Lady about it. In general, the point about the review is that it is the first time—I would have hoped this would therefore be welcomed—that someone has asked an independent body to review such anomalies. I am very happy to speak to her if she wants to come and see me.
Michael Tomlinson (Mid Dorset and North Poole) (Con)
This is a policy on which there should be consensus and cross-party support. The evidence is that we are living longer and healthier lives, and not just in Mid Dorset and North Poole, so there should be optimism across the country. Does the Secretary of State agree that the responsible thing to do is to have an independent review, follow the statutory regime and examine the evidence and all the options, rather than scaremongering and using phrases such as “working until they drop”?
Mr Duncan Smith
I must say that I was slightly surprised earlier today when I saw the Opposition spokesman tweeting the most inflammatory comments about people retiring. I can understand that those in opposition need to try to get attention, but to start worrying and scaring people without foundation or reality is nothing short of appalling. I wish the hon. Gentleman would get up and apologise for that.
Tom Blenkinsop (Middlesbrough South and East Cleveland) (Lab)
The review will consider variations in pension arrangements between “different groups”. Will the Secretary of State give more detail on whether “different groups” refers to occupations, such as shift workers or, to give an example from my constituency, bus drivers, who get chronic bladder conditions? The life expectancy and health of those groups deteriorates as a result of their occupation. Will those issues be raised in the review?
Mr Duncan Smith
It is certainly within scope for that matter to be raised with the reviewer. He and his team have the power to review it. I recommend that the hon. Gentleman raises that concern. It is up to the reviewer to what degree he looks at it.
Simon Hoare (North Dorset) (Con)
Notwithstanding the antics of the Labour party, my right hon. Friend is absolutely right to underscore the national importance of this issue and I commend the approach that his Department has set out. Despite the depressing and dispiriting response from the Opposition parties, will he undertake to continue to try to build a national consensus and a consensus across the House on this issue, as it affects all our constituents and should be above party politics?
Mr Duncan Smith
I agree with my hon. Friend. My door is always open and I am always ready to see somebody, even if they then change their mind. I have found the tweet that the shadow Secretary of State sent this morning—strangely, not after he had seen the statement, but only after he had seen the newspapers. It states:
“Pensions Minister scraps retirement for all but the rich and those lucky enough to have a good private pension!!!”
How ridiculous is that? This is the announcement of a statutory review that his party agreed with in 2014. He really needs to apologise.
Tommy Sheppard (Edinburgh East) (SNP)
The Secretary of State and all of us here are fortunate to have satisfying, well-paid jobs, but many of our countrymen and women work just to survive. Will the review look at whether it should always be the presumption that living longer means working longer, or might we look at alternative ways of funding the basic state pension so that people are able to benefit and live fulfilled lives in retirement as a result of better healthcare and the fact that we are living longer?
Mr Duncan Smith
Again, that is a wholly legitimate question for the hon. Gentleman to raise. As I said to his party’s spokesman, that matter is within scope for the reviewer, if he wishes to raise it. The reviewer and his team will have to decide how to get the balance right. It is certainly within scope for the hon. Gentleman and his party to ask the reviewer to look at that balance and to see whether some of the presumptions are necessary, and I urge him to do so.
Andrew Stephenson (Pendle) (Con)
The Secretary of State has been a champion of pensioners with the triple lock, the single-tier pension and automatic enrolment, which is now benefiting more than 6 million people. Does he agree that, in the light of the cross-party support for an independent review in 2014, it is rank hypocrisy for Labour Front Benchers to try to make political capital out of it today?
Mr Duncan Smith
I genuinely regret that the consensus that was achieved for the 2014 legislation has been tossed aside in a matter of hours by the Opposition, apparently over breakfast this morning. [Interruption.] I urge them, instead of chuntering away on the Front Bench, to remember what their spokesman said in 2014. He said categorically:
“we do not oppose the Bill”.—[Official Report, 29 October 2013; Vol. 569, c. 870.]
They agreed with the regular review. I urge the Opposition to get back to the sensible position of wanting to co-operate over changes to the pension age.
Yasmin Qureshi (Bolton South East) (Lab)
May I ask the Secretary of State about different occupations? Certain professions, such as those who serve in the armed services, the fire brigade and the police, require a lot of physical strength. We should even think about surgeons, who will have to operate on people later on in life. Has Sir John Cridland been asked to look at those people’s retirement ages?
Mr Duncan Smith
That is another legitimate question. It is within scope for the hon. Lady to raise it with John Cridland and I urge her to do so. A number of similar points have been made. Of course, he will have to make the final decision about the balance of his review within the terms of reference, but this matter is certainly within the terms of reference. I wish those on the Front Bench of the hon. Lady’s party had taken such a positive view.
Robert Jenrick (Newark) (Con)
I have listened to this discussion for 45 minutes and, setting aside the bluster from some of the Opposition parties, the only point of divergence that I can see is on whether the Government have included a requirement for this five-yearly statutory inquiry to consider affordability. If that is the case, does my right hon. Friend agree that affordability should definitely be part of any inquiry into our pensions system?
Given that we have a national debt of £1.7 trillion or £24,000 for every man, woman and child in this country, it would be a crime for the Government not to consider whether our pension age is affordable. I hope that the other parties will reconsider, particularly Labour and the Lib Dems, given that this was the only point of difference that their spokesmen could raise.
Mr Duncan Smith
I agree with my hon. Friend. I thought that there was consensus on this matter, but it has apparently been torn up. I urge those on the Opposition Front Bench to change their minds and engage with the review. Of course affordability will be considered. I do not know of any Government that would genuinely say, “We will make some change and not think about whether it is affordable.” Hang on a second—the last Labour Government did that, actually. I am sad to hear that the Opposition are following their usual trend, which is to shout a lot and make commitments they could never possibly meet if they were in government.
Ruth Cadbury (Brentford and Isleworth) (Lab)
Will the Secretary of State rule out the prospect of the retirement age being increased to 84 as a result of the review, as was predicted by the previous Pensions Minister, Steve Webb? Are the Government prepared to set any upper limit on the state retirement age?
Mr Duncan Smith
The hon. Lady should not grab on to and believe everything that is printed in the newspapers. They have their own legitimate reasons for publishing stuff. There is nothing in the review that talks about that. I have said categorically that John Cridland will review, within the terms of reference, where we should go with state pension ages and look at other aspects, such as affordability, within the context of what people have done and what their details are. If the hon. Lady has a particular issue she wants to raise, she should raise it with him.
What is untenable is that the hon. Lady’s party opposes an independent and regular review of state pensions. Why would anybody do that? [Interruption.] I hear the shadow Secretary of State shouting, “Rigged.” The only thing that was rigged was the way that he got on to the Front Bench to be the Opposition spokesman.
Kevin Foster (Torbay) (Con)
As someone who accepted the rise in his own pension age to 68 in 2007 on the basis of the evidence presented by the Labour party, it has been disappointing to hear the tenor of the Opposition’s comments today. Will the Secretary of State reassure me that the review will be independent and that it will take into account factors across the country, not just in London and the south-east, that affect life expectancy? Will he assure me that we will seek to have constructive engagement with the Opposition? If we cannot get it with the shadow Secretary of State, perhaps we should try to get it with the shadow Pensions Minister instead.
Mr Duncan Smith
I agree. My hon. Friend is absolutely right. The important thing is that there is an independent review and that we own up to the decisions that we have to take. I wish the Opposition would accept that they took decisions about the state pension age. They have collective amnesia about anything that happened not just pre-2010, but apparently pre-2015. I expect that they will shortly forget everything pre-2016 and that it will go on like that. They should wake up, smell the coffee and get on with being an Opposition in the hope of being in government, not perpetually in opposition.
Patrick Grady (Glasgow North) (SNP)
It is concerning and disappointing that further changes are being considered, given that the Government have not even fixed the botched mess they made of the transition for women born in the 1950s. Several of those women have come to my constituency surgery and some of them face losses of up to £30,000 as a result of the unfair transition. I wonder how many of the WASPI women have gone to the Secretary of State’s surgeries or those of his Ministers and what message he has had for them.
Mr Duncan Smith
The terms of this urgent question and the review are to look beyond 2028. I accept that there are demographic issues in Scotland, such as a faster ageing population, that cause particular issues. I would therefore hope that the hon. Gentleman and his party welcomed an independent review by an independent individual that can look at any aspects and problems in Scotland that they wish to raise. I urge them to do that. I take it from the nodding of his head that he welcomes the independent review, unlike the Labour Front Benchers.
Rachael Maskell (York Central) (Lab/Co-op)
Will the Secretary of State ensure that the Cridland review moves the indicator from life expectancy to health—mental as well as physical health—particularly for post-menopausal women, and that people can have quality of life post-retirement, so that we can gain from that social capital and people can look forward to their retirement?
Mr Duncan Smith
The hon. Lady raises a wholly legitimate set of issues and concerns. We must consider how we deal with people who retire and their quality of life in retirement. I therefore agree with her, and urge her to talk to the review and ask that it finds some way to look at those issues, which we need to consider anyway.
Universal Credit
Iain Duncan Smith Excerpts(8 years, 6 months ago)
Written StatementsRead Full debate Read Hansard Text Read Debate Ministerial Extracts
The Secretary of State for Work and Pensions (Mr Iain Duncan Smith)
The full universal credit service for new claims remains on track to be delivered nationally for all types of claimants from May 2016, completing in summer 2018.
Today, I can announce the jobcentres which will be go live with the full service from May through to the end of 2016. Details of the sites can be found in the table below and on the gov.uk website.
October 2016 | November 2016 | December 2016 |
|---|---|---|
Rugby | Harrogate | Frome |
Lowestoft | Richmond | Wells |
Bath | Ryedale | Lancaster |
Bridgwater | Hammersmith | Morecombe |
Newcastle Cathedral Square | Inverness | Widnes |
Runcorn | ||
Peckham | Whitehaven | Hartlepool |
Kennington Park | Workington | Fulham |
Taunton | Melton Mowbray | Shepherds Bush |
Northallerton | Daventry | Stratford-Upon-Avon |
Skipton | Market Harborough | Swindon |
Minehead | Dingwall | Hastings |
Fort William | ||
Invergordon | ||
Portree | ||
Wick |
This roll-out plan continues the successful delivery approach we have used to date, expanding steadily, safely and securely to ensure the system is resilient and we have the opportunity to learn as we go.
In agreeing this plan my Department has engaged with the local authorities. We will continue to work closely together to finalise and announce the plans for 2017 by July. Details for 2018 and the completion of the roll-out of the full service will be announced by September.
As each jobcentre rolls out all new claims will be on universal credit and it will no longer be possible, in that location, to make a new claim to income-based jobseekers allowance and employment and support allowance, income support, housing benefit or tax credits. By the middle of 2018 this transition will be complete and it will no longer be possible to make a claim for these legacy benefits or tax credits anywhere in Great Britain.
My Department will bring forward the relevant legislation for these sites in due course.
Attachments can be viewed online at: http://www. parliament.uk/business/publications/written-questions-answers-statements/written-statement/Commons/2016-02-11/HCWS525
[HCWS525]
Oral Answers to Questions
Iain Duncan Smith Excerpts(8 years, 6 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
James Cartlidge (South Suffolk) (Con)
12. What assessment he has made of trends in the level of private sector jobs.
The Secretary of State for Work and Pensions (Mr Iain Duncan Smith)
A record 26 million people are working in the private sector, up over 500,000 in the past year and by 2.7 million since 2010.
Damian Collins
Will the Secretary of State join me in welcoming the fact that the unemployment rate in my constituency has fallen by 48% since 2010? Does he agree that the roll-out of universal credit, which came to my constituency on 25 January, is a further fundamental part of our welfare reforms to make sure that everyone can benefit from work?
Mr Duncan Smith
My hon. Friend is right that universal credit provides the support and incentives that people need to get back into work. Evidence released a few weeks ago shows that universal credit claimants are more likely to have been in employment, spent a longer time in employment, done more job-search activity and earned more than those on jobseeker’s allowance. It is also important to note that, as part of the national roll-out, universal credit has now been rolled out across the whole county of Kent, which includes my hon. Friend’s constituency.
James Cartlidge
I very much welcome the fact that youth unemployment has halved in South Suffolk in the past 12 months and that long-term unemployment is down by over a third. Does my right hon. Friend agree that we cannot be complacent, and that there is an important role for community initiatives? Such an initiative is In2BK2, run by Kingfisher HR in Long Melford in South Suffolk, which takes local small business volunteers to help even more young people and the long-term unemployed back into work.
Mr Duncan Smith
I commend my hon. Friend for working for such organisations, about which he has spoken to me in the past. A huge amount of progress has taken place in this area, as he maintains. It is worth noting that, as a result of what we have been doing with the reforms and in working with organisations such as the one he mentions, the youth claimant count is at its lowest level since the mid-1970s, the number of those unemployed is down nearly 300,000 since 2010 and, most importantly, the unemployment rate for those not in education is 5.8%—pretty near the lowest it has ever been. We will carry on trying to get this right, but this is good evidence that welfare reform is working.
Stephen Timms (East Ham) (Lab)
On 1 November 2011, the Secretary of State issued a press release saying that
“the Universal Credit IT programme is…progressing well with 30% of the new technology required to deliver it now complete”.
Will the Secretary of State tell the House what proportion of universal credit IT has now been completed?
Mr Duncan Smith
The roll-out of IT across the country is nearly complete. The roll-out nationally will be complete before April, as I said to the right hon. Gentleman last time he asked exactly the same question. It is always good to have old questions: the old ones are always the best. The roll-out is progressing well. As he knows, he has an invitation to come and visit the final digital development, which will start to roll all the other benefits into universal credit in May.
Mr Robin Walker (Worcester) (Con)
23. In Worcester, unemployment overall is down two thirds and youth unemployment is down three quarters since it peaked under the previous Labour Government. How can we go further and achieve the Prime Minister’s aim of eliminating youth unemployment over the long term, and what role can apprenticeships play in delivering that goal?
Mr Duncan Smith
There are two elements. The first is that, as my hon. Friend knows, we have introduced a work experience programme, which has been hugely successful in getting young people back into work. When we came into office, people could take work experience through a jobcentre for only two weeks, but we have now increased that to two months—or three months for people who get the chance to have an apprenticeship. Over 50% of those who do work experience have gone back to work.
My hon. Friend is absolutely right that the huge increase in apprenticeships we are now planning will reskill our young people and ensure that the work they do is high skilled, high value and well paid.
Paul Maynard (Blackpool North and Cleveleys) (Con)
4. What contribution his Department plans to make to the strategy announced by the Prime Minister in January 2016 to ensure that people from all parts of society have equal life chances.
Luke Hall (Thornbury and Yate) (Con)
11. What contribution his Department plans to make to the strategy announced by the Prime Minister in January 2016 to ensure that people from all parts of society have equal life chances.
The Secretary of State for Work and Pensions (Mr Iain Duncan Smith)
My Department is leading the development of the life chances strategy. The strategy marks our commitment to transforming children’s lives by tackling the root causes of poverty—worklessness, poor educational attainment, family breakdown, problem debt and addiction.
Paul Maynard
Improving life chances is very important in my constituency, given the high levels of deprivation, which are often linked to ill health. What more can the Department do to help people stay in work when they experience ill health, rather than dropping out and having to engage with the benefits system?
Mr Duncan Smith
I commend my hon. Friend on the huge amount of work that he does so tirelessly in his constituency, which I have seen at first hand when visiting projects with him. He is a huge champion for those who have difficulties getting back into work. As he knows, we have introduced the “Fit for Work” programme, which helps employees facing long-term sickness to get back into work sooner and helps employers to get people assessed properly, rather than allowing them to fall away and have difficulties, so that occupational health can look at them as well as their having a health assessment. That will introduce a new way of looking at people to keep them in work because, as the Department of Health now agrees, work is part of a health treatment and should not be seen as separate. The White Paper that I will bring forward shortly will talk about that.
Mr Duncan Smith
I fully agree with my hon. Friend. In the last Parliament, the Department did a huge amount to get better advice and support for those who are thinking about breaking up. We invested over £30 million in relationship support over the last Parliament, which meant that about 160,000 people had access to preventive support. As the Prime Minister announced recently, we are doubling the funding available over the next five years to £70 million. The life chances strategy includes the important aim of strengthening and stabilising family life.
Frank Field (Birkenhead) (Lab)
I welcome the Secretary of State’s approach on this issue. Given that he has taught the House the fundamental point that life chances for most children are determined before they are five, will he bring forward a debate in Government time on how the policy of life chances is developing so that the views of Members can be taken into account before the Government publish the White Paper in the spring or summer?
Mr Duncan Smith
I will certainly look at that request. The door is open to the Chairman of the Select Committee on Work and Pensions. He has had a huge part to play. One of his recommendations, which is quite legitimate, is that we look at how we incorporate early years into the life chances measures. We are looking at that and would be happy to discuss it further with him.
Mrs Madeleine Moon (Bridgend) (Lab)
22. There is increasing inequality across society for those who are disabled and need access to aids and adaptations. Those who can afford to buy them are fine, but there is a postcode lottery of availability. Is it not unfair, therefore, to look at aids and adaptations in assessments for the personal independence payment? Will the Secretary of State withdraw them from the PIP assessment?
Mr Duncan Smith
I say to the hon. Lady, whom I respect enormously, that we are consulting on what changes are necessary to aids and adaptations to ensure that the support, which was always bound into the personal independence payment, gets to those who need it most. That is the critical point. All of us should want to ensure that people get the support they need for the things they need most to get by. The door is always open to her, as it always has been, and I would be happy to discuss this matter further in light of the consultation.
Chloe Smith (Norwich North) (Con)
My right hon. Friend will be aware of the index published by the Social Mobility and Child Poverty Commission over the weekend and will share my concern that children growing up in the Norwich City Council area have some of the lowest chances of doing well in life. Does he agree that we should have the highest possible ambition for Norwich children? What does he suggest could be done locally to target that?
Mr Duncan Smith
A huge amount can be done locally. Universal support, which is now part of universal credit, is being trialled with a lot of councils to look at the families with the greatest difficulties. It involves councils in getting financial support to those families and in helping them to sort out drug and alcohol abuse. As they receive the special payments, we expect councils to work with us to ensure that their problems are put right, rather than ignored and left to one side.
Neil Coyle (Bermondsey and Old Southwark) (Lab)
The Department is responsible for providing support to some people who, sadly, are at the end of their lives and have a prognosis of six months or less to live. Will the Minister update the House on progress to remove the 28-day waiting rule for terminally ill people who are transferring from the disability living allowance to the personal independence payment?
Mr Duncan Smith
May I write to the hon. Gentleman about that? We are considering that issue but have not quite made a decision, so I will provide a full answer in due course.
Debbie Abrahams (Oldham East and Saddleworth) (Lab)
My hon. Friend the Member for Bridgend (Mrs Moon) is right. Poverty affects people’s life chances, and disabled people are twice as likely to be living in poverty as the non-disabled population. We know from the Government’s own figures that disabled people on incapacity benefit or the employment and support allowance are between two and six times more likely to die than the population as a whole. As my hon. Friend said, the recent consultation to review eligibility for the personal independence payment, just two years after it was introduced, will mean even more cuts for disabled people. That comes on top of the proposed cuts to ESA, the work-related activity group, and the £23.8 billion that has been taken from disabled people as part of the Welfare Reform Act 2012. With 5.1 million disabled people living in poverty, what is the Government’s estimate of how many more disabled people will be living in poverty as a result of those measures?
Mr Duncan Smith
Even though we have created a new benefit—I believe that PIP is a better benefit than the DLA, and it is far better for those with mental health problems, as many charities and support groups have admitted—we must constantly keep it under review to ensure that the money allocated for it goes to those who need it most. As the hon. Lady knows, a recent court case widened the whole element of aids and adaptations, which would mean that fewer people got the kind of money that they needed. We believe that the personal independence payment is far better, and that it will deliver exactly what we expect to those who need it most. Our job is to support those who need it. The Government that the hon. Lady was part of did absolutely nothing to sort out the mess of the disability living allowance in the whole time they were in power.
Chi Onwurah (Newcastle upon Tyne Central) (Lab)
9. What assessment he has made of the effect on the income of working households of changes to the universal credit work allowance.
The Secretary of State for Work and Pensions (Mr Iain Duncan Smith)
The changes to universal credit work allowances form part of a broader package of measures, including the introduction of the new national living wage, the increase in the personal tax allowance and the enhanced package of childcare support. Importantly, the single taper rate of 65% ensures that the benefits of work are clear and that support is withdrawn at a predictable and consistent rate, unlike under the existing tax credits arrangement.
Chi Onwurah
The Government were forced into a climbdown over tax credit cuts, but it was only a temporary reprieve, because cuts to the working allowance mean that 2.5 million families will be £1,600 per year worse off by 2020. How can the Secretary of State say that he is making work pay, when low-paid working families are paying the price for his cuts?
Mr Duncan Smith
I disagree with the hon. Lady. An independent study has already shown that with universal credit people get into work faster, stay in work longer and progress faster in earnings. She cannot take this in isolation, however; it is worth remembering that the national minimum wage is rising to some £9, and that under universal credit women will get 85% of their childcare costs, instead of 70%. There will be free childcare for poorer people with two-year-olds, and childcare support for people with three and four-year-olds. The total package is hugely beneficial to people who want to work, which is why, as we get more people back to work, our record will only improve. That compares with the last Government’s shocking record: one in five households with nobody in work.
Nick Thomas-Symonds (Torfaen) (Lab)
It is good to see that the Secretary of State has screwed up the courage to come back to the Dispatch Box to answer some questions.
According to the Government’s own advisers, some working families in this country will be £210 a week worse off as a result of cuts to universal credit. That means that someone on the minimum wage working full time will have to work an extra 30 hours a week to make up the difference. The Chancellor of the Exchequer claims that the Conservative party is the party of work. Did he forget to mention there would be 70 hours a week of it for the lowest-paid?
Mr Duncan Smith
I do not need any lessons on courage from the hon. Gentleman. What takes no courage is to sit there with a leader who talks about getting into bed with all sorts of extremists. I find that takes no courage whatever. [Interruption.] I note that the shadow Secretary of State is shouting, but he has already declared his interest in being the leader of the Labour party when the current leader fails.
The reality is very simple. Even under tax credits right now—this is why the figures of the hon. Member for Torfaen (Nick Thomas-Symonds) do not add up—when circumstances change, people actually have lower payments. The difference between us and the Labour party when in government is that we have cash-protected people through transitional protection so that when they move off tax credits on to universal credit, they will suffer no loss.
Lucy Frazer (South East Cambridgeshire) (Con)
13. What progress he has made on increasing the number of women in employment.
Henry Smith (Crawley) (Con)
21. What progress his Department has made on reducing the number of workless households.
The Secretary of State for Work and Pensions (Mr Iain Duncan Smith)
The number of workless households is now at its lowest-ever level, having fallen by over 680,000 since 2010.
Andrew Bridgen
I welcome that encouraging figure, which means that fewer children are growing up in workless households. Does my right hon. Friend agree that, while ensuring that every family includes a member in work is the best way out of poverty, it also offers a great role model to any children in the household, increasing family stability and thus giving children the stability and security they need to have the best possible life chances?
Mr Duncan Smith
I do agree with my hon. Friend. We know that unemployment is one of the causes of family breakdown. Having a family member in work helps to create strong and stable families, which are crucial to giving children the best possible start in life. It is therefore very welcome that the number of workless households in the east midlands—a huge part of which my hon. Friend represents—has fallen by 68,000 since we came to power. I remind my hon. Friend and the House that, notwithstanding all the nonsense that we hear from Labour Members, some 2.5 million children were growing up in workless households when they left office. That is not much of a record.
Henry Smith
Will my right hon. Friend join me in welcoming the fact that the number of workless households in the south-east has fallen by more than 50,000 since 2010? Does he share my dismay that Labour Members are still set against welfare reform, and want a high tax, high spending economy to take us back to the pre-2010 days?
Mr Duncan Smith
My hon. Friend’s question is a strong endorsement of the reforms that have reduced the number of workless households in the south-east by such a large number. Since 2010, the claimant count in Crawley has fallen by 60%, and the youth claimant count has fallen by 75%. Getting people into work clearly has a huge effect. However, my hon. Friend should not be too unkind to the Opposition. I know that many Labour Members who are not now on the Front Bench think that they should be engaging with us on welfare reform, but their new leadership does not believe in that; it believes only in opposition.
Dr Lisa Cameron (East Kilbride, Strathaven and Lesmahagow) (SNP)
What assessment has the Department made of the barriers that prevent members of households with disabilities from accessing work, and what steps will the Secretary of State take to address them?
Mr Duncan Smith
We are increasing the number of advisers in jobcentres, and we are giving advisers much better training. A huge amount of money—more than £100 million—is being invested in training them to look at a wider perspective and a bigger picture, so that they can help those who have difficulties to get into work and support them when they are in work.
It is also important to note that universal credit opens the door to a much better package of support and care, because the advisers do not leave these people. When people receive tax credits they see no one, but from now on, when they go into work, they will be able to come back and see the same adviser. If they have a problem, they will be able to pick up the phone.
This is a hugely positive step, and I congratulate the hon. Lady on her question.
Dr Rupa Huq (Ealing Central and Acton) (Lab)
T1. If he will make a statement on his departmental responsibilities.
The Secretary of State for Work and Pensions (Mr Iain Duncan Smith)
We are trialling a new feature of the access to work scheme From today we shall be testing the use of personal budgets, which will allow disabled people who have received grants to decide exactly how and when the money can best be used to support their individual needs. That gives them more choice and more control over the support they receive to help them to start work, to stay in work, or even to start a business.
Dr Huq
Last week the bedroom tax was declared unlawful in the Court of Appeal because it discriminated against domestic violence victims and disabled children. However, the Government are set to spend more on appealing against the decision than they would spend on abiding by the ruling. Surely the Secretary of State agrees that that means poor value for the taxpayer, and that this despicable and discredited policy needs to go.
Mr Duncan Smith
The hon. Lady ought to check her lines before making statements like that. The truth is that that is not what the Court of Appeal said last week. The debate in the Court of Appeal was about whether we should isolate individual groups and rule them out of the benefit system, or leave it to local authorities to handle the matter with extra money. We believe that, with the extra money that we are giving them for discretionary housing payments, local authorities are quite capable of allowing people to stay when they think that that is necessary, without limitation.
What I really wonder about—and this applies to the Front Bench as well—is the fact that Labour Members never, ever talk about those whom they left in overcrowded homes, on waiting lists, and unable to get decent homes. It was they who introduced this policy; we have merely followed through.
Tim Loughton (East Worthing and Shoreham) (Con)
T2. Can the Secretary of State give me some indication of when he will publish the draft regulations on housing benefits for 18 to 21-year-olds? Will he also look sympathetically at exempting from those regulations those who cannot live safely in their neighbourhood where their family home is because of sexual abuse, gang-related activity or overcrowded housing?
Mr Duncan Smith
We will publish the draft regulations shortly, although the Welfare Reform and Work Bill has to be passed first. I am very happy to discuss those elements. Of course, there are always exemptions for those who are most in need, and I am very happy to discuss that matter with my hon. Friend if he would like to come and see me.
Luciana Berger (Liverpool, Wavertree) (Lab/Co-op)
Last week, the Government were significantly defeated in the House of Lords over their plans to cut the benefits of sick and disabled people. More than half the people in the work-related activity group have a mental health condition. They face barriers getting into work as a result of their condition as well as stigma from employers. Will the Secretary of State now accept how utterly unfair and ineffective this proposed cut is, and abandon it?
Mr Jim Cunningham (Coventry South) (Lab)
T7. May I ask the Minister to speed up the review process for benefit claimants who have been sanctioned or whose claims are being investigated? Over the Christmas period, a number of my constituents, despite having done everything right, ended up having to borrow money to get through that period because of delays. In some cases, this has happened after the Christmas period as well.
Mr Duncan Smith
None of that should actually happen. There are now loans available immediately, so if someone has been sanctioned they are immediately told about hardship loans, which are advertised inside jobcentres. Delay times have fallen to their lowest level ever; they are far lower than they were under the previous Government. If the hon. Gentleman has an individual case in mind, he should write to us immediately or give us a call and we will help to solve the matter straight away.
Christopher Pincher (Tamworth) (Con)
T6. Will my right hon. Friend congratulate Tame Plastics and other manufacturing firms in Tamworth that are creating new jobs and apprenticeships? What can he do in areas of low unemployment to turn jobcentres into recruitment agencies for more and better-skilled roles?
Mark Durkan (Foyle) (SDLP)
We have already heard that the Department has changes afoot in relation to benefits for people with disabilities, not least with the narrowing of the personal independence payment. Are Ministers hoping to extend that to Northern Ireland as well, using the direct rule powers that exist until the end of this calendar year?
Mr Duncan Smith
We have no plans to do that, but I am happy to see the hon. Gentleman if he wishes to encourage us.
Heidi Allen (South Cambridgeshire) (Con)
Following on from the comments about the ESA WRAG changes and the Lords having passed the matter back to us, I welcome the opportunity to look at this again and am excited to see the content of the White Paper. Can the Minister give us any feel at all about the cost recognition for claimants in the future? This is not just about support; it is also about the additional costs that they face to live.
Alison Thewliss (Glasgow Central) (SNP)
Does the Secretary of State believe that the two-child policy and the rape clause are consistent with his Government’s obligations under the UN convention on the rights of the child?
Mr Duncan Smith
I am quite convinced that the proposals that we bring forward will make it absolutely certain that all those who suffer rape will not be put upon in any way by this proposal.
William Wragg (Hazel Grove) (Con)
What steps are the Government taking to ensure that all employees are fully informed of the new auto-enrolment pensions?
Dr Julian Lewis (New Forest East) (Con)
Will Department for Work and Pensions Ministers hold discussions quite urgently with civil service and Treasury Ministers about the Conservative manifesto commitment to cap very large redundancy payments? Are they aware of serious concerns that, by including early retirement awards in the capping scheme, we may penalise long-serving but low-paid public employees by a measure rightly intended to limit undeserved golden goodbyes to the very highly paid?
Mr Duncan Smith
As my hon. Friend knows, that is really a matter for the Treasury, but I am very happy to undertake such discussions. If he would like to add his extra information on this, I would be very happy to take it.
Joanna Cherry (Edinburgh South West) (SNP)
Half of those receiving employment and support allowance in Scotland qualify through a mental health problem. A report from the Scottish Association for Mental Health, which has a base in my constituency at Redhall Walled Garden, has found that people who are placed in the work-related activity group report “inappropriate expectations” being put on them, making their mental illness worse. Does the Minister agree that that will be exacerbated by the Government’s proposed changes?
Universal Credit Work Allowance
Iain Duncan Smith Excerpts(8 years, 7 months ago)
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The Secretary of State for Work and Pensions (Mr Iain Duncan Smith)
You said it was cut.
Owen Smith
No I did not. I referred to the original document commissioned and chaired by the Secretary of State, in which it was recommended that there be a 55% taper rate. I might also refer to the social mobility commission, which is telling him to go into reverse. It argues that he needs to get back to a 55% taper rate.