Devolution of Welfare

Ian Murray Excerpts

Tuesday 9th April 2019 Westminster Hall

[Ian Murray (Edinburgh South) (Lab)]

It is great to see you in the Chair, Mr Betts. If the hon. Member for Berwickshire, Roxburgh and Selkirk (John Lamont) will allow me to refer to him as the hon. Member for Berwickshire, that might save us a little time.

This is a strange debate, because we have two parties—the Conservatives and the SNP—arguing when they are both culpable for why we are here. Since 2010 the social security system has been completely and utterly discredited by a deliberate narrative from the then coalition Government that welfare was a bad thing. They completely changed the narrative in this place, and indeed in the country, from social security being a safety net to welfare being bad. That is part of the problem we have today.

Between 1997 and 2010, the previous Labour Government created a system that lifted millions of pensioners, and millions and millions of children, out of poverty. We should be incredibly proud of that. Since then, most of that has gone backwards in the name of austerity, which has been a political choice rather than a necessity. Before Conservative Members, if they wish, pop up and go on about the employment statistics, which are welcome, most of the decline in terms of poverty comes from in-work poverty—people actually in work.

[Stephen Kerr]

Will the hon. Gentleman give way?

[Ian Murray]

I am happy to do so just once.

[Stephen Kerr]

Surely it is a good thing that there are now fewer children in workless households than ever before. That is good, isn’t it?

[Ian Murray]

It is a fantastic thing, but it is bad that most of those children are in poverty when they were not before. Social security is a sensitive subject, and we must be careful about the language we use.

I want to reflect on what the Smith commission has done. In response to the 2014 independence referendum, a commission was put in place that allowed all the parties to come together to find consensus about what the next stage of devolution to the Scottish Parliament should be in the devolution journey.

I am glad that Members across the House now extol the virtues of sections 24, 25 and 26 of the Scotland Act 2016, because while the Conservatives and SNP argued about the minutiae of what was not in the Bill, Labour were promoting changes at the Dispatch Box. We proposed amendments to put stuff into the Bill that could have been there, such as my amendment 31. The amendments that went through in the House of Lords gave Scotland the power to create its own social security system. The Scottish Government can top up any reserved benefit and create a new benefit in any devolved area; that is incredibly important. That is why it is so frustrating that the devolved powers have been delayed. I am delighted that the hon. Member for Berwickshire mentioned the WASPI issue, because it is a key aspect of the way the whole issue has been dealt with.

[Neil Gray]

The hon. Gentleman will understand the difficulty and complexity of delivering a combined social security system—one that has to interact with a Department that is putting roadblocks in the way of some of the flexibilities and changes that the Scottish Government are looking to achieve. Can he outline an area where the Scottish Government could have gone more quickly, such as the passage of the Social Security (Scotland) Act 2018? Could that have been quicker? Is there any area where he thinks things could have moved more quickly than they have?

[Ian Murray]

That is an interesting intervention. I admit I am not an expert on social security, and I would not claim to be. I look forward to hearing the Minister’s response to the intervention. However, is it not interesting that, whereas the Scottish National party social security spokesperson was telling everyone in 2014 that an entirely new state could be set up in 18 months, the matters we are discussing have been delayed not twice but three times, in 2016, 2018 and 2019? That was with respect to benefits that the SNP claimed had to be in the Bill and had to be devolved immediately, and that it would be able to deal with.

[John Lamont]

Will the hon. Gentleman give way?

[Ian Murray]

I will not, because the Chair has said we have only five minutes.

I wanted to mention the WASPI issue. The WASPI women in my constituency are beside themselves that the issue has not been resolved. Both parties, and both the Scottish and UK Governments, are culpable of robbing WASPI women of the pensions they have worked hard for. Scotland could use the powers at its disposal to take a different course, but its Government refuse to do so, because they would rather create grievance than deal with the issue.

It is important that the people of Scotland know we have an inhumane welfare system across the UK at the moment. Scotland can make a different choice and create its own welfare system. The UK Government have created a situation that means Scotland has the ability to do something different. The SNP Government of Scotland refuse to do so. They have delayed it until 2024—eight years after the passage of the 2016 Act. At the same time, disabled people and WASPI women in Scotland, in particular, are suffering. The SNP Government should hang their head in shame.

--- Later in debate ---

[Ian Murray]

The narrative from the SNP Scottish Government has always been, rightly, about generating a new system that is more respectful of its claimants. Can the hon. Gentleman lay out why the Scottish Government are completely refusing to do anything about the WASPI women?

[Neil Gray]

That is not actually true, and the hon. Gentleman knows it. We have been campaigning very hard in Westminster for the problem faced by the WASPI women to be sorted across the United Kingdom. He constantly talks about not having any differences between people in Livingston and people in Liverpool; we are in agreement on that. This issue should be sorted out for those women across the United Kingdom, and his ire should be directed at the Minister to resolve the situation.

The hon. Member for East Lothian (Martin Whitfield) asked why there was a delay. Again, we have been working hard to deliver the system as quickly and safely as possible, but sadly there has intransigence on the part of DWP Ministers. There has been good engagement—[Interruption.] No, it is not nonsense. There has been a good level of engagement at official level, but successive Secretaries of State have missed joint ministerial working group meetings and refused to allow the Scottish Government to utilise some of their powers, such as separate payments, which the hon. Gentleman mentioned. There are areas where we are looking to make changes and develop new policy, but sadly the DWP is putting roadblocks in the way of that progress.

The hon. Member for Stirling (Stephen Kerr), who to his credit has been critical of this Government on the roll-out of universal credit, has not quite taken his concerns in that area to their logical conclusion when it comes to the safe delivery of a new devolved system. We have learned from the shambles of the poverty-inducing roll-out of universal credit and the problems with personal independence payments, and we are determined to deliver the new system safely. It benefits and supports the people of Scotland.

--- Later in debate ---

[Neil Gray]

I thank my hon. Friend for his intervention. He serves on the Select Committee on Work and Pensions, so he knows these issues well. Of course, what the hon. Member for Berwickshire, Roxburgh and Selkirk and some others in the debate forgot to talk about was the fine work that the SNP Scottish Government, as a minority Government, have achieved by gaining cross-party consensus to protect the people of Scotland from the worst damage being inflicted by this poverty-inducing Tory Government. The hon. Gentleman’s constituents do not need to pay the bedroom tax and can still receive council tax benefit. If they are in receipt of carer’s allowance, they will have had a significant uplift in their payments. They can still get access to education maintenance allowance. Some 316,000 low-income households in crisis in Scotland have been helped to buy essential items, such as nappies, food and cookers, through the Scottish welfare fund—a local crisis grant system almost completely abolished elsewhere by the Tories. And we have set a clear path to deliver a new—sadly, it is limited to just 15% of spend—social security system based on dignity and respect. That is all with 55% of taxpayers in Scotland paying less than they would elsewhere in the UK. It is a more progressive tax system that sees those at the top paying a little more and those on the lowest incomes paying a little less.

[Ian Murray]

Will the hon. Gentleman give way?

[Neil Gray]

I am concluding.

The hon. Member for Berwickshire, Roxburgh and Selkirk also forgot to mention the catastrophic introduction of universal credit and PIP, which has literally ruined lives. He calls a debate to attack a responsible Government making responsible progress to deliver a fairer social security system, but ignores the tragedy of his own party’s disgusting attack on low-income families. He ignores disabled people having their Motability cars removed. He ignores people on universal credit left in poverty. He ignores a freeze on benefits that is predicted to plunge 400,000 more children into poverty. So forgive me, Mr Betts, but the Scottish Government, the Scottish Parliament and the people of Scotland will take no lessons from the hon. Gentleman or any other Tory party member preaching about how to deliver a social security system.