(2 years, 5 months ago)
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I hear what the hon. Lady says. I have always said to her that I continue to keep eligibility under review for the reasons she has mentioned. We could have a separate debate on the root causes of poverty, and I could talk about the work undertaken in my previous role by the Department for Work and Pensions over the past two and a half years to support people and empower them into work, but that is a debate for another day.
I shall focus on free school meals in particular, although I will touch on universal credit because the protections in place as we roll it out are important. All children eligible for a free school meal at the point at which the threshold was introduced and all those who become eligible as universal credit is rolled out will continue to receive free school meals, even if their household circumstances change dramatically. For example, if those circumstances improve and move them above the earnings threshold, they will not lose that eligibility, which they otherwise would. Even after protections end, if they are still in school, those children will continue to be protected until the end of their phase of education, whether primary or secondary.
Let me turn specifically to the points that the hon. Member for South Shields made about the universal credit threshold. Free school meal eligibility has long been governed by an earnings threshold. That was the same under the legacy benefits system under the previous Government. In April 2018, we updated our eligibility criteria to include the earnings threshold of £7,400 for families on universal credit. That was forecast at the time to increase the number of eligible pupils when compared with the legacy benefits system. That was a direct comparison, and it was designed to increase the number.
It is absolutely right that our provision is aimed at supporting the most disadvantaged—those out of work or on the lowest incomes. The current household earnings threshold is a bit misleading: we put it at £7,400, but that does not include benefit receipt, which means that total household income could be considerably higher than that while someone is receiving a free meal.
Where are we now in society? Come September or October, we will see further rises in the cost of heating a home. We have seen exponential price rises, as prices have moved massively and become totally unaffordable. Is it not time for the Minister to acknowledge that so many people who are above the threshold for universal credit are struggling, and to look to other nations in Europe that have implemented universal free school meals for data on the advancement of and the benefits to those societies, both economic and educational? I name Norway and Portugal.
I hear what the hon. Gentleman says, and I will continue to look at European and other comparators, and at eligibility.
In relation to what the hon. Gentleman—and, indeed, the hon. Member for South Shields—proposes as an in-work and out-of-work benefit, it is important to reference the fact of those on universal credit having that £7,400 earnings threshold. There will be people whose income exceeds £40,000 a year. I know there are people struggling across the country, even on what many would consider a reasonable income, because there is an inflationary shock for many people, and they have outgoings that reflect their earnings.
I will come to that, but while it is right that those families continue to receive a small amount of universal credit, which tapers as their earnings increase, not least to encourage and incentivise work, we have to recognise more broadly—notwithstanding the current inflationary pressures and cost of living pressures—that these are not the most disadvantaged households, which we want to target, or arguably should target, with support in this specific way.
That does not mean we should not be helping those people with specific, targeted support in other ways, which I will come to, but extending free school meal eligibility to all families on universal credit would, without question, carry a significant financial cost—one that I think would be much higher than that which the hon. Member for South Shields has referenced, although we can discuss that another day. It would quickly run into billions of pounds over a spending review and result in around half of all pupils becoming eligible for a free meal, which would have substantial knock-on effects for the affordability of linked provision—for example, the pupil premium, which is linked to eligibility for free school meals.
Having said all that, I understand and appreciate—I have a constituency myself and I speak with people every weekend—that many families are finding it tough, given the global inflationary pressures that affect the cost of living. The question is whether a permanent change to the eligibility criteria for free school meals is the right thing to do now—whether it is affordable and sufficiently targeted, and whether it could be delivered quickly enough if we wanted to operationalise it. My answer to all those points at the moment is no. As I say, the Government understand the pressures people face with the cost of living. These are global challenges, and that is why the Government are providing over £15 billion of further support, targeted particularly at those with the greatest need. We should not forget that this package is in addition to the over £22 billion that was announced previously, with Government support for the cost of living over the course of this year totalling over £37 billion.
(4 years, 7 months ago)
Commons ChamberIn these uncertain times, we would like to be absolutely clear that no claimant has to wait five weeks for a payment. Advances are available, enabling claimants faster access to their entitlement. Since mid-March, we have issued more than 700,000 advances to claimants who felt that they could not wait for their first routine payment, with the majority receiving money within 72 hours.
Over the past seven weeks, the demand on Liverpool’s local welfare scheme for crisis payments for food and fuel has increased by 164% compared with this time last year. Will the Minister consider easing the plight of many living through this crisis by doubling child benefits and lifting the benefit cap, as requested by the Food Foundation?
I thank the hon. Gentleman for his question. We have increased the universal credit and working tax credit standard allowance by more than £1,000 a year, and we have increased local housing allowance rates, putting an average of £600 into people’s pockets. On the benefit cap, it is important to stress that those with sustained work records may benefit from a nine-month grace period in relation to the cap. Exemptions continue to apply, and I feel many people would agree that the equivalent of £24,000—or £28,000 in London—is fair and reasonable.