Women’s State Pension Age Communication: PHSO Report
Jim Shannon Excerpts(1 day, 7 hours ago)
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Liz Kendall
I would say that the ombudsman’s report itself says there would be a huge cost and administrative burden of going through 3.5 million women individually, but I am sure the hon. Member can read the ombudsman’s report and see that quote for himself. This is not about increases in the state pension age, which is what many of the women in the campaign have been very concerned about. It is about the communication, and for all the reasons I have set out, we have decided on this approach.
Jim Shannon (Strangford) (DUP)
It is with great sadness that I rise to ask a question, and I am very disappointed by the statement. As the right hon. Lady will know, I stood shoulder to shoulder with many Labour Members, including the Secretary of State, in calling on the Government to do the right thing by the WASPI women. However, here we stand, six months into the new Government, and these women are poorer than ever, given the removal of the fuel allowance. Pensioners are borrowing more and paying off less, and the statement implies that the Government will do nothing. Will the Secretary of State clarify exactly what has changed for Labour Members? Six months ago, they stood up for the pensioners. I say that with great respect; the right hon. Lady will know that I speak with respect in this House. After taking advice not relevant to the report’s findings, why will the Government suppress the rights of these women once again? More importantly, when can the 5,000 WASPI women in my constituency of Strangford expect their relief—not an apology, which will not heat their room by 1°? How sad it is that today, in this House, the ombudsman’s recommendations are being ignored, and right and justice have been denied.
Oral Answers to Questions
Jim Shannon Excerpts(2 days, 7 hours ago)
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Jim Shannon (Strangford) (DUP)
I thank the Minister very much for her answers. Both parties—the one now in opposition, and the one in government—have always encouraged people to buy pension contributions in every way they can. However, the fact is that for many people who are low earners, it is not possible to have a pension scheme and at the same time to live, given the age we are in and the cost of living. What can the Minister do to encourage people to do so in a way that does not impact on the money they have coming in?
Emma Reynolds
I thank the hon. Member for that question. A number of ideas have been put forward by think-tanks and research institutes. One such idea is a sidecar savings account, which could be used for a pension, but could also have some money set aside for a rainy day should somebody fall into debt. We are considering that. He raises a very important question, because some of those on low incomes sometimes cannot afford to put in those contributions, but there may be a way between opting out and remaining in the scheme, and we are looking at that.
Disability History Month
Jim Shannon Excerpts(6 days, 7 hours ago)
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Jim Shannon (Strangford) (DUP)
I thank the hon. Member for Thurrock (Jen Craft) for setting the scene so well on a subject that we all engage with every day in our constituencies. I believe, as I think we all do, that we should encourage those who wish to work, and might not have had the opportunity, to do so. This debate is an opportunity to highlight this issue, raise awareness and encourage my constituents back home. I always try to give a Northern Ireland perspective to debates relating to the United Kingdom of Great Britain and Northern Ireland. This is that sort of debate and hopefully the Minister will answer some of our questions.
The most recent census was in 2021—indeed, this is the season to talk about the census after all. It showed that one person in four in Northern Ireland——24.3%, or some 463,000 people—had a limiting long-term health problem or disability. Forty per cent of those, or some 185,300 people, were aged 65 or over. Statistics and figures sometimes go over our heads, but if we think of those 185,300 people, that is also 185,300 families, and that impact on a population of 1.9 million in Northern Ireland is great.
It was also interesting to note that the number of people with a limiting long-term health problem or disability increased from the 2011 census to the 2021 census. Unfortunately, this shows a worrying trend. The 23.6% increase from 374,600 people in 2011 to 463,000 people in 2021 is notable and the response to it must be, too. I will ask a question to the Minister that I always ask: has he had an opportunity yet—he is in a new role as Minister—to discuss these matters with the appropriate Minister back home in the Northern Ireland Assembly? We need to ensure that we co-operate better and that our policies, strategy and response are co-ordinated right across the whole United Kingdom.
Ards and North Down borough council in my local area recently had a motion to ensure that signage was visible in council facilities to remind people that not every disability is visible. I have seen on the tube whenever I travel here that, as well as seats for disabled people, there is always a wee poster that says, “Not every disability is visible”. In this age when everybody is hustling and bustling and rushing, it is interesting to see how many times people will give up their seat maybe unknowingly to someone who has a disability. Their pride sometimes prevents them from taking the seat, but the fact is that people are kind. In this fast world we live in, it is always good to remind ourselves that people do reach out and help. It is important that we do so.
I thank my local council for its motion and for ensuring that awareness is raised. I believe that has, in its own small way, had a real impact and changed the conversation around disability. The hon. Member for Thurrock is right that we need a change in the conversation. We want people to think and talk about this issue, so she deserves a lot of credit for bringing this matter forward. We must try to teach people to understand that while a person may seem healthy at first glance, they may also be someone who needs a little more help or assistance. Anxiety, depression and post-traumatic stress disorder crops up across my constituency all the time. Understanding that will help us to understand why the numbers are not what we expect. We need to ensure that every disability is acknowledged, and we must do all we can to ensure that every disabled person is heard.
This debate was in my mind during a debate we had the other day that was not specifically about this issue. We need to think about our veterans, some of whom have lost limbs, whether legs or arms, or have had terrific internal injuries. Through the Invictus games and the Paralympics, those with disabilities have been able to shine, and that should inspire us all. It should probably also humble us when we think of what those people can do with their disability. For me and for others in the House, the Invictus games and the Paralympics have become something we want to see even more, with great respect to those who are able-bodied. It is really important that we see the achievements they can reach.
I believe this is the main drive behind Disability History Month. We see where we started off, by removing the workhouses and those institutions. As the hon. Member for Thurrock said, we saw soldiers returning from war who could do more with more help. We acknowledged that there was a functioning place in society for these individuals, and the real discovery was that our society is the better for inclusivity.
I want to mention one last point about children. I have six grandchildren. Three of them have speech issues and require therapy. One of them is non-verbal, which is another disability in our children. The hon. Member for Thurrock referred to children, and it is important that we have the institutions in place, although this is a debate about disabilities, not SEND education, so I will focus on disabilities. As I say, one of my grandchildren is non-verbal, but he and children like him still have a smile and an interest in what happens around them. Education is very important to help those children to achieve their goals in life.
I have seen at first hand how many steps can be taken forward under the expert help and support that is available. The question for us in this place is this: is there enough help and support available for the massive spectrum of disability? My wife is obviously a very wise lady and a very sensible lady, given that she married me; she has been even more sensible to stay with me. She refers to disability as “difability”—a different kind of ability.
We can do more to support parents and help them to unlock their children’s potential; to ensure that mainstream schools have the capacity and finance to be a safe and engaging place to learn, with no child left behind; to help people into the workforce by supporting them and helping workplaces to afford the changes they need to make to become “difability” friendly; and to ensure that families can afford what they need and can grow. Lastly, we can do more with our ageing population, to ensure that they have the enhanced support and care required to remain at home for as long as they wish.
International Day of Persons with Disabilities
Jim Shannon Excerpts(2 weeks, 1 day ago)
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Debbie Abrahams (Oldham East and Saddleworth) (Lab)
Today marks International Day of Persons with Disabilities—or disabled people, as we often refer to that group. Language is important, so I will use both terms. “Persons with disabilities” is understood internationally, but “disabled people” is often the preferred term in the UK.
This year’s theme is “Amplifying the leadership of persons with disabilities for an inclusive and sustainable future,” recognising the important role that disabled people have to play in creating a more inclusive and sustainable world. The refrain “Nothing about me without me” emphasises the importance of disabled people not just passively participating in but actively leading decision-making processes that affect their lives. I implore the Government to commit to that.
Disabled people are defined not by their limitations but by their boundless potential, talents and aspirations. Across the globe, they are leading as innovators, creators, athletes, entrepreneurs, educators and advocates, inspiring us with their stories and showing us that a more inclusive world is not only possible but essential. Yet despite progress, significant barriers remain, and the number of disabled people reaching their full potential is still far too low. Many disabled people—children and adults—still face discrimination, inaccessible environments, unequal access to education, employment and healthcare, and worse.
Jim Shannon (Strangford) (DUP)
I commend the hon. Lady. The word “champion” is often used, but she has been a champion for disabled people. More work must be done to allow those with disabilities to live, work and travel independently, including through enhanced public transport with lifts and ramps for wheelchair users to get on to planes and the tube. Although this day rightly focuses on the tremendous impact of disabled people in our society, it also highlights failures in society that must be rectified. Does she agree?
Debbie Abrahams
The hon. Member will not be surprised to hear me say that I absolutely agree with him. I will come to the issues on which we need to provide challenge.
Since 2010, disability hate crime has increased almost sevenfold—that is absolutely shocking. Not only are such challenges obstacles for individuals but they limit society. As leaders, we need to demonstrate that we want an inclusive society in which we all thrive, not just a minority. The social model of disability views it as a result of societal barriers rather than a person’s impairment or difference, whether of mind or body. If we are truly serious about having an inclusive society, we need to address those barriers. Thirty years on from the Disability Discrimination Act 1995, that work is well overdue.
This year’s IDPD theme is particularly significant as it encourages the international community, including the UK, to consider how to remove barriers to enable disabled leaders to develop and thrive.
Blind and Partially Sighted People: Employment Support
Jim Shannon Excerpts(4 weeks ago)
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Jim Shannon (Strangford) (DUP)
It is a pleasure to serve under your chairship, Dr Huq; I always look forward to it. I commend the hon. Member for Battersea (Marsha De Cordova) for setting the scene so very well on a subject that is of great interest to all hon. Members present and to me personally. It is only fair to put on the record my thanks for her leadership of the APPG on eye health and visual impairment. In the time we have known each other, I have always supported her in these debates; she used to be on the Opposition side of the Chamber, but has now been elevated. We look forward to working strongly alongside her and others in the years ahead, if God spares us.
There are currently 57,500 people across Northern Ireland with sight loss, and the figure is expected to rise by over 25% by 2032. Today’s debate sets out the problem, but it also gives us an opportunity to think about what we can do to reduce that figure. Some 50% of sight loss is preventable, and it is that preventable 50% that I want to talk about.
The message must be clear that eye tests are as necessary as any other health check. I work very closely alongside the opticians in Newtownards in my constituency: they come to me regularly with their ideas, and I always convey those ideas to the Health Minister in Northern Ireland and to the Secretary of State or Minister at Westminster. I cannot remember the technical term for it, but the opticians in Newtownards have the most up-to-date machinery for checking people’s eyes—it is phenomenal.
My question to the Minister, if he does not mind my asking it at the very beginning, is what has been done to ensure more opticians’ tests, even for people who may think that they do not need one. I do not want to make them mandatory, because that would be wrong, but they should be made more accessible and available.
I will give two examples of the importance of opticians’ tests. A gentleman I know quite well once came to see me. I said that he did not look very well—he was very pale—and he said, “Jim, I have an absolutely splitting headache.” I said, “Have you been to the doctor?” He said, “I have, and the doctor gave me some headache tablets.” I said, “Where are you going now?” He said, “I’m going to the opticians.” I said, “You go to the optician and tell him about your headache.” The optician took that man’s details and sent him directly from Newtownards up to Ulster hospital in Dundonald. He had a tumour the size of an apple in his head. Immediate surgery saved that man’s life.
Another person I know quite well had been having headaches and blurred vision for some time. She would come to see me about benefits, and I would say, “Look, I think you should go and see your optician.” She did, and fortunately she had a tumour removed. It saved her sight and saved her life.
What more can we do? We—when I say “we”, I mean the Government—can prevent eye loss. If the Government can get people to make appointments early, I believe we can see great things happening for the 50% of sight loss that is preventable. Back in June, the Department of Health in Northern Ireland launched two new guides to support adults with sensory disabilities in Northern Ireland. As always, I will give some examples that I hope are helpful for the Minister to take on board.
The new resources, known as care pathways, map out the care and treatment that users can expect from professionals and support organisations to help them to manage their conditions. I welcome the excellent initiative to make a pathway to care and a future free from red tape and obstructions. My goodness! I know that there is red tape to get through—we understand that—but sometimes it becomes so burdensome that people just turn off.
The guides were released in tandem with the Royal National Institute of Blind People and other charitable groups. The support provided for blind and partially sighted people by those in the charitable sector is phenomenal. They should be thanked for stepping up and filling the breach, as they so often do.
I read recently on the RNIB’s website that it has a scheme called “SkillSET RNIB (2023)”, a Northern Ireland-based pre-employment initiative that offers opportunities for people who are seeking to gain employment for the first time or who are unable to continue in their current job because of sight loss. The hon. Member for Battersea has described the problems she experiences in coming to work and how technology lets her down; schemes such as these, in tandem with the Government Department back home and with the RNIB, can come up with ideas to address those issues directly and helpfully. They can enable people to find work and can encourage them in everyday life.
I am also aware that the Department for Work and Pensions has the Access to Work scheme, which is operated through the Department for Communities in Northern Ireland. Access to Work can contribute towards any supplementary employment costs that result from a disability. Sometimes we come and present cases, but there are things that Governments do, both back home at the Northern Ireland Assembly and here. I believe that the DWP’s Access to Work scheme is available for any paid job, part-time or full-time, permanent or temporary.
Mr Gregory Campbell (East Londonderry) (DUP)
My hon. Friend talks about what needs to be done on pathways to work. Does he agree that potential employers need to understand two things? First, they could be in breach of the law if they engage in activities that prevent partially sighted or blind people from getting employment. Secondly, they could be overlooking better-qualified candidates for employment. Either way, they will lose unless they take account of this very worthwhile debate and of the need to ensure that they comply.
Jim Shannon
As always, my hon. Friend adds important evidence that takes the debate forward, and I thank him for it. Hopefully the Minister is listening as well.
Richard Baker (Glenrothes and Mid Fife) (Lab)
The hon. Member has rightly mentioned the importance of Access to Work and how it can make a real difference in supporting disabled people, including blind and partially sighted people, to secure and retain employment. One of the challenges is ensuring that there is enough provision and that enough employers are aware of Access to Work. Does the hon. Member agree that it is important to ensure greater awareness of Access to Work and more opportunities for that support?
Jim Shannon
The hon. Gentleman is absolutely right. I know that the Minister is an assiduous Minister who is here to help, and that the staff and civil servants behind him are taking notes on all these matters, so hopefully when he winds up the debate he will satisfy our requests. I also welcome the shadow Minister, the hon. Member for East Wiltshire (Danny Kruger), to his place; I wish him well in the role and look forward to his contribution.
The Access to Work scheme has no minimum number of hours for eligibility for support, although people are generally expected to reach the lower earnings limit. Access to Work aims to help if someone needs support or adaptations beyond the reasonable adjustments; it helps pay towards them. What we have in place is excellent, but as the hon. Member for Glenrothes and Mid Fife (Richard Baker) says, people need to know what is available. The scheme is a great one, but the onus is firmly on the employers’ shoulders. That is where we are we are failing. There needs to be a pathway for our young people throughout schooling and into employment. We need to tell people who have not worked before, “It is not impossible. It can be done. It is within your reach to use your talents, intelligence and abilities and work as your peers do.”
Debates like this one raise awareness, which is wonderful, but we need to ensure that any person who has a diagnosis of sight loss understands that they are not alone or expected to sit at home. They are part of this community, and there is a space for them and a role for them to play. The charities seek to hammer home that message and they do absolutely marvellous work, but we all need to do more. My hope is that this new Government will achieve that. I have known the Minister for years and he has always shown sympathy and compassion, so I know that he will be able to respond in a positive fashion and help people to do better. We have that opportunity, and the Government have that opportunity. Let’s do it.
The Minister for Social Security and Disability (Sir Stephen Timms)
I am delighted to serve under your chairmanship, Dr Huq. I too congratulate my hon. Friend the Member for Battersea (Marsha De Cordova) on securing this important and illuminating debate, and on the way she introduced it. She has a very deep commitment to this issue, as I know from her long-term work on the all-party parliamentary group. I commend her for that, and I also commend RNIB and the Thomas Pocklington Trust, which support that group by providing the secretariat.
It was welcome to hear hon. Members share their personal experiences. The hon. Member for Torbay (Steve Darling) was absolutely right to remind us of the continuing problem of discrimination in work. It has not gone away and still needs to be addressed. It was great to hear about Julie’s experience of skiing—my hon. Friend the Member for Doncaster East and the Isle of Axholme (Lee Pitcher) made his point very powerfully. I visited the Paralympics in Paris for a couple for a couple of days in the summer, and it was inspiring to see the accomplishments of people who are disabled and how much potential they have to contribute. My hon. Friend is absolutely right that we need to do more to realise that potential in our economy and our society.
We all know about RNIB, and I am also familiar with the work of the Thomas Pocklington Trust thanks to my former constituent Helen Mitchell, who is one of its trustees. She arranged for me to pay a very useful and informative visit to its headquarters last year. I pay tribute to it for its work.
As the hon. Member for East Wiltshire (Danny Kruger) said, the Secretary of State for Work and Pensions set out, in a speech in Barnsley in July, our plans to reform the Department for Work and Pensions: rather than being the Department for welfare, it will be the Department for work. Our ambition is an 80% rate of employment, which would be the highest we have ever achieved in the UK. The hon. Member for East Wiltshire is absolutely right to remind us that the current rate of economic activity is still less than it was before the pandemic, so we still have a good deal of ground to make up.
To achieve that ambition, we have to do much better at supporting disabled people, including blind and partially sighted people, into work. We will not achieve our ambition without that. We want people with visual impairments, who, as we have been reminded, have great skills and talents to offer, to have equal chances to enter and thrive in the labour market. We cannot continue with the 40% visual impairment employment gap, which my hon. Friend the Member for Battersea mentioned, and is spelled out in the APPG report. We will collaborate with visually impaired people and organisations advocating for them to work out how we can meet their needs and support them better.
We do not want people with visual impairments to have to give up work, as is too often the case. The hon. Member for Torbay helpfully told us about the experiences of people he was at college with in the 1980s. We want people to be able to stay in work and not have to give it up. If they lose their job, they should be able to get back into work. Having gone into work, they should be able to progress and do well.
As announced in the King’s Speech in July, in the Equality (Race and Disability) Bill we will fulfil our manifesto commitment to tackle the disability pay gap, which my hon. Friend the Member for Battersea highlighted and which other Members also referred to. Additionally, our “Get Britain Working” White Paper, which will indeed be published soon, will announce crucial reforms to employment support. We will change the way that we measure success. For example, we will focus not simply on getting people into a job, but on ensuring that they can stay in work and can progress to higher earnings in the future. We want to support people in the longer term.
We will also overhaul jobcentres. My hon. Friend the Member for Doncaster East and the Isle of Axholme made an interesting point about the importance of assistive technology in jobcentres. We will introduce a new youth guarantee, so that in future nobody will be left on the scrapheap when they are young.
My hon. Friend the Member for Battersea was absolutely right to point out that to achieve all that, we need healthy and inclusive workplaces. There are many employers who excel at creating inclusive workplaces in relation to health and disability, and it was very good to hear from my hon. Friend the Member for Doncaster East and the Isle of Axholme about his wife’s positive experiences with her employers. However, the APPG’s report points out that many other employers recognise the value of providing an inclusive workplace and would like to provide one, but they need support to do so; at the moment, they do not feel in a position to do so.
Consequently, we are considering what more we can do to help, because preventing people from leaving the workforce and enabling more people to return to work after absences is a good thing. It is definitely good for the individuals concerned; it is good for their mental health and their sense of fulfilment, as my hon. Friend the Member for Glenrothes and Mid Fife (Richard Baker), and the hon. Members for Torbay and for East Wiltshire, reminded us. However, it is also good for businesses and wider society.
My hon. Friend the Member for Glenrothes and Mid Fife referred to the work of Lord Shinkwin for the Institute for Directors. I agree with my hon. Friend about the importance of that work and I look forward to meeting Lord Shinkwin and discussing some of these issues with him in the near future.
The Disability Confident scheme, which has been referred to in the debate, is a very important resource that we already have. It featured in Lord Shinkwin’s report, my hon. Friend the Member for Glenrothes and Mid Fife mentioned it, and the hon. Member for Torbay dedicated a good part of his speech to it. That scheme provides a strong platform, with more than 19,000 employers participating in it. It promotes good, inclusive employment and recruitment practices. It supports employers to deliver them and to become able to attract, recruit, retain and develop disabled people.
My hon. Friend the Member for Battersea was absolutely right to underline the importance of accessible recruitment processes in making sure that people are not barred from applying for jobs in the first place. In the Disability Confident scheme, there are many committed employers who are enthusiastic about making recruitment processes accessible and who are determined to do well in that regard. However, I agree with my hon. Friend and with the hon. Member for Torbay that the Disability Confident scheme can do more. I have had some encouraging recent conversations about that, for example, with the Business Disability Forum. Working with both employers and disabled people, we will examine how we can make the Disability Confident scheme more robust and how it can achieve more of its potential. I am convinced that potential is there, but we must realise more of it in future.
We also support employers with a digital information service and in increasing access to occupational health services, which the previous Government rightly recognised was important.
Jim Shannon
In my contribution, I outlined some of the things that we are doing in Northern Ireland. Obviously, that was to help the Minister with ideas that could be used here on the mainland. The Minister has outlined a number of things that are happening here. Does he intend to contact the relevant body in the Northern Ireland Assembly to ensure that we can work better together, share ideas, do things better and make life better for the people we are here for?
Sir Stephen Timms
I certainly welcome opportunities to do that. We need to learn from all the devolved Governments in the UK. There are interesting things happening in Scotland, for example, on social security, and in Northern Ireland, so I am grateful to the hon. Member for drawing my attention to a number of those. I am keen to pursue that further.
Disabled people and those with health conditions are a diverse group. The right work and health support in the right place at the right time is key. The contribution of Jobcentre Plus work coaches and disability employment advisers, who play an important role in jobcentres, is vital to this topic. I pay tribute to the dedication of those who are working on this at Jobcentre Plus. We will join up health and employment support around the individual. That will be through, for example, employment advisers in NHS talking therapies—seeing the NHS increasingly embrace the importance of supporting people into work—and individual placement and support in primary care.
My hon. Friends the Members for Battersea and for Glenrothes and Mid Fife, and the hon. Members for Torbay, for Strangford and for East Wiltshire, all spoke about Access to Work, rightly reflecting its crucial importance. The scheme provides grants for workplace adjustments beyond what is provided by the employer. Let us be clear that Access to Work does not replace an employer’s duty under the Equality Act to make reasonable adjustments, as the hon. Member for East Londonderry (Mr Campbell) pointed out in his intervention. There are clear statutory obligations here that need to be delivered. Access to Work, however, can provide funding for support workers, specialist aids and equipment, personalised support and workplace assessments, travel to or in work, and mental health support.
The hon. Member for Torbay referred to it as one of the best kept secrets, but demand for Access to Work has been growing fast. The hon. Member for East Wiltshire rightly reported that nearly 68,000 people had Access to Work support approved in the last financial year, an increase of almost a third on the previous year. It is now growing rapidly. As he said, it supported 3,850 people who reported their primary medical condition as difficulty in seeing. That is about 8% of the people who are supported by the scheme. Customers with difficulty seeing as their primary medical condition received a bigger proportion—13% or £33 million—of the total expenditure. Access to Work is making an important contribution.
We are committed to reducing the waiting times for Access to Work. Delivery of the support has been streamlined. We have more staff processing the claims. Customers starting a job within four weeks are prioritised to ensure that they get help in time. Since April, as the hon. Member for East Wiltshire pointed out, all the core parts of the scheme are now online. However, I agree that more needs to be done. I welcome the engagement of all Members who have taken part in the debate and their continuing pressure to ensure that Access to Work delivers on its potential.
As has been highlighted, the APPG report rightly referred to the importance of technology in enabling visually impaired people to be in work. The report specifically mentioned text-to-speech software. Last week I visited Sense College Loughborough, a facility originally developed by RNIB. A visually impaired student there showed me the ZoomText application—which I was not aware of previously—using it to magnify the text he was looking at on a screen, and to manage a document over two screens. He commended its helpfulness to me.
My hon. Friend the Member for Doncaster East and the Isle of Axholme is absolutely right to point out just how big a game changer AI can be. We must realise that opportunity.
Access to Work can help provide assistive tech, but as my hon. Friend the Member for Battersea pointed out in her intervention, suppliers such as Apple and Microsoft are increasingly bundling assistive tech with their standard products, partly because, as she said, it helps all users and makes the products easier to use for everybody. The technology is coming on in leaps and bounds. It is moving very fast, and we need to make sure that people have access to it. I am looking at what the Government can do in this area to make the technology better known, because a lot of people who have it on their devices do not know that it is there; to make assistive technology more readily available, where it is not bundled in with the standard product; and, maybe on occasion, to commission research to tackle a specific accessibility problem. We are thinking about this, and I welcome ideas and suggestions from Members about what more we can do.
My hon. Friend the Member for Doncaster East and the Isle of Axholme and others are absolutely right to point out how much more we need to do to support blind and partially sighted people into employment to enable them both to achieve their aspirations and to make their full contribution to our society and economy. That is in their interest and in all our interest. I am encouraged by what the shadow Minister, the hon. Member for East Wiltshire, said about this. I hope that, when hon. Members read the “Get Britain Working” White Paper, as they will soon be able to do, they will agree that we are taking the right steps towards reaching that goal.
Food Banks
Jim Shannon Excerpts(4 weeks, 1 day ago)
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Jim Shannon (Strangford) (DUP)
I commend the hon. Member for Aberdeenshire North and Moray East (Seamus Logan) for leading today’s debate and giving us all an opportunity discuss this issue. Christmas is the time of year when we think of those who are struggling and need support. I do not hesitate to say that, year after year, our food banks are pillars for such people in the local community, so it is really good to be here to discuss them.
I cannot continue without putting on the record my sincere thanks to the volunteers who go above and beyond to support people who are struggling across the United Kingdom. I have a fantastic relationship with the local food banks in my constituency of Strangford. The first Trussell Trust food bank in Northern Ireland was in Newtownards in my constituency—my hon. Friend the Member for East Londonderry (Mr Campbell) referred to it—and it has built up a marvellous relationship with the local churches. It brought all the churches together in the best ecumenical way. It fed into that process, and its volunteers have helped so many people.
If Members are free tomorrow between 9.30 am and 12 noon, Trussell Trust members will be in Parliament Square. There is another thing happening today that would have clashed with that event, so it will be put on tomorrow.
In my constituency of Strangford, 3,064 emergency food parcels were provided between April 2023 and March 2024—a 57% increase. That included 1,284 for children—a 52% increase. Some 79% of the UK public agree that poverty in this country is a massive problem and that it is the Government’s responsibility to change that. We look to the Minister and the Government to bring about those changes. Whether we are in government or not, it is important that we do that.
Food banks bring out the best in people. I see that in the people working in food banks who participate, contribute and help along the way. By April 2023, food inflation had risen by 19%, and it remained above 10% for much of the year. More than 200,000 people face hunger and hardship in Northern Ireland, including 130,000 working-age adults, 12,000 pensioners and 62,000 children. That gives an idea of what food banks do and how they reach out.
In Northern Ireland, 25% of families in part-time work face hunger and hardship, as do 39% of people and families across the UK on universal credit. I imagine that the figure of 12,000 pensioners facing hunger and hardship will only increase this year. There are pensioners out there who depend on the winter fuel payment to keep them warm through the winter. All we can do is hope that they do not face the decision whether to heat their homes or put food on the table.
Lastly, social security changes can bring help at the bedrock level by supporting those in most need, including by supporting those on the breadline with essentials. I hope that our Government and our Minister will do what they can to ensure that families do not struggle. I ask the Minister to consider meeting representatives from Northern Ireland to understand the full scale of the issue and see what more we can do to support those on the brink of poverty. If she is free tomorrow, I will see her at half 9 in the square.
Social Security Advisory Committee: Winter Fuel Payment
Jim Shannon Excerpts(1 month ago)
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Emma Reynolds
We have written to all pensioners to tell them about the change in Government policy to ensure that those who are not in receipt of pension credit or other benefits know that they will not be getting the winter fuel payment this winter.
Jim Shannon (Strangford) (DUP)
Minister, it is always good to have the necessary answers. The report notes savings of £1.5 billion. The increase in pension credit take-up from 63% to 68% represents an additional 100,000 households. Any take-up negates savings made by the Government. The fact is that pensioners who would qualify have lost out this year and are struggling now. What can be done to expedite their applications and to deal with the long waiting list for decisions, which means that, for many, the potential for additional income to ease their situation and help in the winter months will be too little, too late? The reason I make the point is that the system is taking too long to make a decision and those people need the money right now.
Emma Reynolds
As I said, we have redeployed an additional 500 members of staff to process applications for pension credit and we are mostly hitting the target for processing times.
Oral Answers to Questions
Jim Shannon Excerpts(1 month, 1 week ago)
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Liz Kendall
I am afraid I will disappoint the hon. Gentleman: we will look at relative poverty after housing costs, but we will go further and look to alleviate the very deepest poverty. It is appalling that hundreds of thousands of families are forced to rely on food banks—something that I know only too well from my time chairing Feeding Leicester. We will look at relative poverty, deep poverty and what it will take to give every child the very best start in life, by bringing together support from public services, charities and other groups. That is the way to bring down poverty and make the changes sustainable.
Jim Shannon (Strangford) (DUP)
Northern Ireland has some of the highest child poverty figures in the whole of the United Kingdom of Great Britain and Northern Ireland. I am sure that the Secretary of State wants to help. We have had a 70% increase in food bank usage in my constituency in the past 12 months, which is an incredible indication. Will she kindly tell me what discussions she has had with her counterpart in the Northern Ireland Assembly on what more can be done to help?
Liz Kendall
The Minister from Northern Ireland is a member of our child poverty taskforce. I hope to visit soon and the co-chair of the taskforce, the Secretary of State for Education, my right hon. Friend the Member for Houghton and Sunderland South (Bridget Phillipson), also plans to visit. We have introduced the new fair repayment rate to slash the level of universal credit deductions because, as food banks in my constituency have told me, that really pushes people into poverty. That is not what the Government should be doing, and that is why we have taken action. I look forward to coming to Northern Ireland to talk to the hon. Gentleman, his constituents and the organisations fighting poverty to see what more we can do.
Furniture Poverty
Jim Shannon Excerpts(1 month, 1 week ago)
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Jim Shannon (Strangford) (DUP)
It is a pleasure to serve under your chairmanship again, Sir Roger. I congratulate the hon. Member for North West Cambridgeshire (Sam Carling) on securing and introducing this debate. I will give a Northern Ireland perspective, as I often do, and say what we are doing in my constituency.
End Furniture Poverty has stated that 9% of all UK adults over 18 are missing at least one essential furniture item. Furthermore, 1 million adults are in deep furniture poverty, meaning that they are missing more than three essential furniture items. Those items can include a bed, a wardrobe, a cooker, blinds or curtains, or indeed a fridge-freezer. Those things are absolute necessities for all homes.
End Furniture Poverty estimates that at least 6 million people in the UK are experiencing some sort of furniture poverty. In addition, in the year 2022-23 the number of people living in absolute poverty increased by half a million people before housing costs and by some 600,000 people after housing costs. Further analysis has revealed that at least 1.2 million children, or at least 9% of all children, are experiencing furniture poverty within those households. The average cost of an item is some £250, which means it would cost approximately £2.25 billion to end furniture poverty. That is quite a challenge.
We often forget about the different types of poverty and how they can affect families across the UK. The debate today on furniture policy is so apt and important for our constituents, as I will illustrate.
I am very fortunate to have a number of churches in my constituency that help with furniture poverty. I would like to mention one in particular that I deal with regularly simply because it is available and very attentive to any requests that we put forward. My office has a great relationship with the St Vincent de Paul organisation, a UK charity that supports those who are on the breadline and at risk of being plunged into absolute poverty, and which estimates that almost 1 million people—a massive figure—experience enforced deprivation. St Vincent de Paul has been fantastic, working with my office to provide direct support for household goods, and it does so regularly without any questions whatsoever. Each week in the office, we deal with people in desperate need.
It is also great to hear that other organisations in Northern Ireland have schemes to support people with household goods this winter. We are at that time of year again; Christmas time brings it home very clearly. Today’s debate comes at a time when many of us are focused upon this very issue, as so many people are struggling with rising energy bills, the cost of living, and cold weather on the horizon. We are often reminded that individuals and families out there are really struggling, and it is important that there is support for them out there.
I will conclude now and hopefully allow others a few minutes to participate. It is critical that provision is made to ensure that families have the best support. This debate gives that opportunity. We look forward to the Minister’s contribution and that of the shadow Minister. Furniture poverty has proven to be a real issue, which so many people are experiencing, given the dire statistics that I have mentioned. We must do more to support the charities. If the Minister does not mind my saying so, I think there is an opportunity for us to work hand in hand with charities. That should be done as a matter of course. Perhaps the Minister will comment on that point, and perhaps together we can provide support for the people who need it.
The Minister for Employment (Alison McGovern)
As ever, Sir Roger, it is a pleasure to serve under your chairship. I thank my hon. Friend the Member for North West Cambridgeshire (Sam Carling) for securing this debate and for the very important work that he has done to support the Renters’ Rights Bill, which will make a big difference to the experience of people living in privately rented homes.
On behalf of us all, may I congratulate the hon. Member for East Grinstead and Uckfield (Mims Davies) on her new appointment? She is right to say that she and I have debated these issues many times. I will miss doing so, and I know that many of my colleagues in the DWP miss her. We wish her all the very best in her new role.
The current level of poverty is unacceptable: 1.3 million more people are in poverty than in 2010. Poverty damages lives in so many ways, as we have heard this afternoon. People simply cannot fulfil their potential when struggling to pay for basic essentials, or in many cases going without them. I am determined that we will take steps to put that right.
Good work will always be the foundation of our approach to tackling poverty. Hon. Members will know that we had a manifesto commitment to bring forward changes in this area. We will shortly publish the “Get Britain Working” White Paper, which will announce our reforms in that area. We will have a new service to support more people to enter, remain and do better in work, and a youth guarantee, with increased join-up of employment and health, which are causing so many challenges in this area. Through our plan to make work pay, we will ensure that we create opportunities for all by tackling low pay, poor working conditions and job security. This is a truly ambitious agenda to empower working people and grow our economy.
We want to protect living standards, and wages are important in doing that. The national wage introduced by the new Labour Government back in 1999 has had a transformative effect on the fortunes of working people. In last week’s Budget it was announced that the national living wage will rise to £12.21 an hour from next April, boosting the pay of 3 million workers. That is an increase of 6.7%, worth £1,400 a year for a full-time worker, helping us to make progress towards a genuine living wage.
Hon. Members have mentioned the child poverty taskforce. I will take today’s debate as a submission through the child poverty taskforce process, because we have shown how interconnected many of the issues are. It is shameful that in a rich country such as the UK, 4 million children were living in relative poverty last year, and that 800,000 children have used a food bank in the past 12 months. As has been said, the End Child Poverty campaign has suggested that 1.2 million children were in furniture poverty in 2022. That is just unacceptable. It scars children’s lives now and can damage their long-term health, education and employment outcomes. It holds our country back, and we are determined to see change.
I hope it is helpful to hon. Members if I give a brief update on the child poverty taskforce, which is working to publish a comprehensive and ambitious child poverty strategy in the spring. Last month, we published a framework to set out how we will develop the strategy, harnessing all available levers because, as so many Members have said, policy in one area affects another. We want to develop the strategy with exactly that in mind. We have four key themes: incomes, costs, increasing financial resilience and getting better local support. On that note, I recently visited Glasgow, where the city council is doing excellent work to join things up locally, as Members have suggested.
Later this month, the taskforce will meet employers, trade unions and think-tanks to discuss options to increase incomes and financial resilience in low-income households. We want to ensure that the strategy addresses poverty in every corner of the land and that we hear and learn from families in poverty as we shape it. We will be holding engagement events across the UK—I have already visited various constituencies myself—bringing together a diverse range of voices and setting up a new forum for parents and carers to ensure that the experiences of our kids are included at the heart of the strategy.
The Government believe that a wealthy country like the United Kingdom should have a social security system that meets the needs of people who are unable to fully support themselves through work. We know that for many, the system we inherited is not currently achieving that. We are determined to fix the fundamentals so that low-income families can afford the basics. We have inherited a number of policies and a challenging fiscal climate that have left us with difficult choices.
In response to the shadow Minister’s point about universal credit, it is fair to say that the policy has been on a long journey. Some of the points she made about the responsiveness of social security during the pandemic are important. We must learn from that and try to address the challenges we now face. That is why we have committed to reviewing universal credit and will listen to a full range of views on potential changes to make sure that it is doing its job now.
As a first step, the Chancellor announced in last week’s Budget that we will introduce a fair repayment rate. That will help households on universal credit who are having deductions made from their benefit, perhaps because they had a loan of some kind or moved into a new home and needed to buy furniture or other items. We will ensure that they can retain more of the money from their benefit to help them to budget for essentials like this. Over 1.2 million households on universal credit will benefit from the changing of the deduction cap from 25% to 15%. It will mean an average of £420 a year, which is a good down payment on a future plan.
I turn to the specific issue of furniture affordability. Most of us will experience large one-off costs or unexpected expenditure at some point. As hon. Members have explained fully, these costs can be difficult to budget for, and we do not want to drive people into debt.
Jim Shannon
I mentioned the significant work done by charities and particularly churches, including St Vincent de Paul. What are the Minister’s thoughts on that?
Alison McGovern
The hon. Gentleman makes his point very well. Let me respond briefly to questions that Members have raised. I will ask the relevant Minister to write to my hon. Friend the Member for North West Cambridgeshire about the regulatory changes arising from the Renters’ Rights Bill, on whose Public Bill Committee he served ably. I reassure him that the DWP will work across Departments, because these areas cover different departmental responsibilities. We will include all those points in the child poverty taskforce. The hon. Member for Strangford (Jim Shannon) is right about charities—Wirral Repair Café in my constituency does a fantastic job.
My hon. Friend the Member for Uxbridge and South Ruislip (Danny Beales) made an excellent speech on household support fund guidance. I encourage him to be part of that conversation. I will take away what he has said, but he might want to write to me with more detail. To other hon. Members, I say that we are looking at all the ways in which poverty is now affecting people, given the spikes in energy prices and other issues. The comments were about the construction of homes and how we can limit the cost of energy are very important. I encourage Members to keep bringing those points forward, because now is the time to address them.
Hon. Members will know that the social security system has always made provision to help people on low incomes without adequate savings, and we do consider the impact of budgeting loans, advances and other measures. I mentioned the change in deductions. We know that while there will always be people who struggle to meet unexpected costs, no one wants a system in which large numbers of people are relying on crisis support to help them to feed their families or pay for heating and other day-to-day essentials. We want the system to genuinely respond to this as a crisis, not a chronic problem.
To support the upcoming child poverty strategy and address the demand we face, as the hon. Member for East Grinstead and Uckfield mentioned, we are continuing to provide substantial funding for crisis support through the household support fund and discretionary housing payments. We will invest £1 billion, including the Barnett impact, to extend the household support fund in England for an additional year until 31 March 2026 and to maintain the discretionary housing payments fund for a further year. This will ensure that the current targeted support is available for the most vulnerable.
In the end, we know that there is no quick fix. The issues that we have in this country are deep rooted and complicated, but that can never be an excuse for not trying to tackle them. We have taken the first steps, and there is more to come in the child poverty strategy and the “Get Britain Working” White Paper. I look forward to working with all Members here to get this right.
Question put and agreed to.
Resolved,
That this House has considered furniture poverty.
Income Tax (Charge)
Jim Shannon Excerpts(1 month, 2 weeks ago)
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The Secretary of State for Work and Pensions (Liz Kendall)
The first Labour Budget in 14 years—the first ever Budget delivered by a woman Chancellor—shows the difference that this Labour Government are already making. We are fixing the foundations of the public finances to bring the stability that our economy needs, putting more money into people’s pockets after the worst Parliament for living standards on record, beginning to turn the corner on our vital public services, with more appointments in the NHS and more teachers in our schools, and making the long-term investments in infrastructure and skills that our country needs in order to grow our economy and seize the jobs and opportunities of the future.
In the Department for Work and Pensions, the message from this Budget is clear: we will tackle the unacceptable levels of fraud that we have inherited, because every pound of taxpayers’ money must be wisely spent and go to those who need help the most. We will drive up opportunity in every corner of the country with our plan to get Britain working, because this Labour Government believe that work is the key to building a better life and to growing our economy. We have made a start on driving down poverty too, because, unlike Conservative Members, we know that children cannot fulfil their potential without food in their bellies and a roof over their heads, and our country cannot fulfil its potential when the talents of so many bright children and young people are being denied.
Getting a grip on the public finances is the first step in delivering all these changes. Without strong foundations, we cannot deliver a thriving economy, decent public services or sustainable increases in living standards for families and pensioners. We did not choose to inherit the mess that we found in the public finances and our public services, but we have chosen to level with the public about the scale of the challenges and how we intend to deal with them.
Conservative Members have still not faced up to their responsibility for the state in which they left the country. There is a £22 billion black hole in the public finances this year, with billions of pounds overspent on a failing asylum hotel system. New hospitals, roads and train stations were announced, without the money to pay for them. Vital compensation schemes for infected blood and the Horizon scandal were set up, without the funds to deliver them. The country’s reserves were spent three times over.
That is before we even get to the state of our public services. Millions of patients have been left waiting for NHS treatment, often in agony and pain. Victims have been left waiting months or even years for justice in our courts. Our prisons are overflowing, and our schools literally crumbling. As my right hon. Friend the Chancellor of the Duchy of Lancaster has said, this could have been a Budget where we looked at the state of the country but ducked the difficult decisions. We could have tried to kid the voters, paper over the cracks and then hope that something better somehow comes along. But we chose not to do that, because that is precisely the approach that got us into this mess in the first place, and because in politics, as in life, you do not deal with a problem by ignoring it, ducking it or pandering to it; you deal with problems by facing them head on.
We have chosen to get the public finances back on track, to protect the payslips of working people, to start turning the corner on our public services and to invest in the long-term infrastructure our country needs. In order to deliver that, we have made tax changes, which is never easy to do, and asked some businesses and wealthier people to pay some more. Hand in hand with this balanced approach, however, the Chancellor has set out tough new productivity, efficiency and savings targets of 2% this year for every single Department. Under this Labour Government, investment in our public services will always go hand in hand with reform, because we cannot keep spending taxpayers’ money on the same problems without changing the way we tackle them, and because public expectations and developments in AI and new technologies are transforming the way people interact in many aspects of their lives, and the public sector must respond to those changes, too.
The need for reform in our system of employment support and social security is urgent and it is real. I want to spell out clearly and honestly for the House the facts of the previous Government’s legacy of failure. Some £35 billion of taxpayers’ money has been lost to fraud and error since the pandemic—now standing at £10 billion a year. Our employment rate is still not back to pre-pandemic levels, making us unique in the G7 group of wealthy countries, and not in a good way. We have near-record levels of people trapped out of work due to long-term sickness—a staggering 2.8 million people, with rates far higher in some parts of the country such as the midlands and the north—and 420,000 more households are predicted to claim universal credit health benefits over the next five years, increasing from a third to a half of all universal credit claims. That is the legacy of the Conservatives. One in eight of all our young people are not in education, employment or training, with all the terrible long-term consequences we know that brings.
It is not just the economic cost of this failure that is unacceptable, with a predicted £26 billion increase in sickness and disability benefits over the next five years. Above all, there is the human cost to individuals and communities when millions of people are denied the opportunity to work and earn a decent standard of living, to make connections, to get skills and to build chances for a better life, with all the benefits that that brings. We do not accept that as the future for our country or our fellow citizens.
Instead, we choose a different path. It starts with our determination to deliver value for money for every pound of taxpayers’ money, so we will bring forward a new plan to drive down fraud and error in the welfare system. Our new Fraud, Error and Debt Bill will update the Department for Work and Pensions’ powers for the first time in 20 years, so that we can keep up with the new ways that fraudsters, including organised criminal gangs, are using to take public money, and so that our powers are brought into line with other public bodies such as His Majesty’s Revenue and Customs.
We will use technology to alert us to people trying to scam the system, and to prevent errors from happening in the first place. We will recruit 3,000 more staff to crack down on fraudsters, with a focus on serious case reviews, and we will bring in new powers to recover debt, all with independent oversight and a guarantee that a human being will always take the final decision in any fraud case, to give everyone confidence in the system—something that the Conservatives utterly failed to do.
Jim Shannon (Strangford) (DUP)
Many of us understand the need to have a more focused fraud law, and that is very important, but every other week people I represent come along to me and say that they have been overpaid for their employment and support allowance, their personal independence payments or their disability living allowance. They find themselves in an incredibly difficult position, not because they are trying to defraud or take money away from anyone; it is just a simple issue of their getting it wrong. What will be done to protect those people? This is really important. We are going to have a new fraud law, but let us make sure that we protect the innocent people who make a mistake.
Liz Kendall
I absolutely agree with the hon. Gentleman. The technology we will put in place will be precisely so that we drive down not only fraud but errors in the system. He will know, for example, that we are trialling a new system for carers in which we text them if they are about to go over their allowance, so that we do not have the scandalous overpayments that caused such a problem under the previous Government.
The second major reform that we will bring in is our plan to get Britain working again. Our White Paper, which will be published in the coming weeks, will bring forward the biggest reforms to employment support in a generation, backed by an additional £240 million of investment. This will help us meet our ambition to achieve an 80% employment rate and to turn what is in reality a Department for welfare into a genuine Department for work. First, we will create a new jobs and careers service, overhauling our jobcentres so that they no longer focus predominantly on monitoring and assessing benefits but are a genuine employment service working with employers, colleges, public services and local leaders to help people to get work and get on in work.
Secondly, we will devolve powers to Mayors and local areas to join up the fragmented patchwork system of employment, skills and, crucially, health support to drive down economic inactivity and drive up employment, boosting jobs and growth in every corner of the country—because the man, or even woman, in Whitehall does not know what is best in Leicester, Liverpool or Leeds. Last, but by no means least, we will bring forward our new youth guarantee, so that every young person is earning or learning—no ifs, no buts—because we do not accept having a generation of young people without the skills or jobs they need to succeed, and we will never write off young people before they have even begun.
Our determination to help people get work and keep work does not stop there. I know only too well from my constituents and my friends how often women in their 50s and beyond are now caring for elderly and disabled relatives but wanting to work at the same time. I am proud that we are giving family carers the biggest ever boost to the amounts they can earn while still receiving carer’s allowance. That will allow them to increase their hours to the equivalent of 16 hours at the national living wage, so that they can balance work and family life. This comes on top of the independent review into the scandalous overpayment of carer’s allowance that I have already announced, led by the former chief executive of Disability Rights UK, Liz Sayce, to ensure that we learn the lessons from what happened so that it never happens again. As a lifelong champion of family carers, I am proud that we have made that announcement. Our plan to get Britain working is crucial to driving up opportunity and driving down poverty—a key priority of this Labour Government.
The fact that over 4 million children are now growing up poor, with more than 800,000 living in households forced to rely on food banks, is a stain on our society. My right hon. Friend the Education Secretary and I have already set out the framework for our bold, ambitious, cross-Government strategy to tackle child poverty. We will publish the results in the spring, but we will not wait to act, particularly for those facing the deepest poverty.
We have extended the household support fund and discretionary housing payments, with an additional £1 billion this year, so that local authorities can help families and pensioners who face the greatest hardship. Furthermore, we have introduced our new fair repayment rate to cap the level of debt repayments that can be taken from universal credit, putting an average of £420 a year into the pockets of 1.2 million of the poorest households, which will lift thousands of children and families out of poverty. When I was chair of Feeding Leicester, food banks told me that debt driven by universal credit deductions was one of the biggest reasons why people had to use food banks, which is why I know this is such an important change.
We are also substantially increasing the income of pensioners who have worked hard all their lives and who deserve security in retirement. Our commitment to the pension triple lock throughout this Parliament means that spending on the state pension is forecast to rise by over £31 billion. This includes a more than £470 rise in the new state pension from next April.
Unlike the previous Government, who left over 800,000 pensioners missing out on the pension credit to which they are entitled, we are delivering the biggest-ever drive to increase uptake. For the first time, we are contacting 120,000 people on housing benefit who may be eligible for pension credit and, to guarantee even greater uptake, we will merge pension credit and housing benefit for new claimants from 2026. The Conservatives first promised this in 2011, but they never delivered. That is the difference a Labour Government make.
There is still much more to do, but this Budget starts to turn the corner: fixing the foundations of our economy and public services, driving up opportunity and driving down poverty in every corner of the land. We are honest about the challenges we face and optimistic about the opportunities ahead. This is a real plan for real change. I commend this Budget to the House.
Greg Smith (Mid Buckinghamshire) (Con)
I congratulate the hon. Member for North Somerset (Sadik Al-Hassan) on a powerfully delivered maiden speech and wish him well in this House. I thank him for his kind words about his predecessor, Dr Liam Fox, who was a true champion of this House.
The Budget of broken promises came as a hammer blow to communities up and down the land, but before I get into the detail of that, and in the interest of balance and fairness, I would like to thank the Chancellor for one of the measures in it. Following FairFuelUK’s campaign, The Sun’s “Keep It Down” campaign, and indeed, the campaign led by my hon. Friend the Member for Meriden and Solihull East (Saqib Bhatti), the freeze on fuel duty, which the last Conservative Government implemented for so many years, will continue. It is very apparent to me that petrol and diesel are overtaxed as it is, and working people up and down the land absolutely depend on being able to afford a tank of fuel to get the kids to school, go to work and go about their daily lives. As a request ahead of next year’s Budget, I ask the Chancellor to consider fixing a double taxation in the system: the point at which VAT is applied to petrol and diesel. At the moment, it is applied after fuel duty, rather than before; we therefore pay VAT not just on the petrol and diesel itself, but on the fuel duty that has been put on top of it.
There is so much to dislike in this Budget of broken promises, beginning with the increase in employers’ national insurance contributions, which is a direct tax on jobs. It is a tax on small and large businesses alike, and it is a tax on our general practitioners—I am sure I am not alone in this House in already having correspondence on this issue with many of the GPs in my constituency. There is the perversity of putting bus fares up to £3, scrapping the Conservatives’ £2 bus fare cap. Working people up and down the land rely on buses; it is only in Labour’s world that putting the bus fare up means getting more people to work. The £40 billion tax hike is going to lead to higher inflation, lower wages and increased Government debt.
For my constituency of Mid Buckinghamshire, though, the very worst part of this Budget was the full-frontal attack on our farmers and agricultural communities. The changes to agricultural property relief will cause family farms up and down the land to have to sell such a huge proportion of their farm in order to meet that tax bill that those farms themselves may well become unviable.
Jim Shannon
I commend the hon. Gentleman on that comment. Every farmer in Northern Ireland will be impacted by this change. The Ulster Farmers’ Union—I declare an interest as a member—has said that the change is universally discredited and universally opposed. The threshold for agricultural relief for farms should have been higher—perhaps £4 million or £5 million, not £1 million, which brings everybody into the equation.
Greg Smith
As ever, the hon. Gentleman has hit the nail exactly on the head. In its briefing, which I am sure all Members have received, the National Farmers Union points out that the Treasury’s own figures on who will get caught up in the APR changes are fundamentally wrong, because they include a lot of very small-scale areas—perhaps a private residence with one or two fields or a very small number of livestock. That is not what any of us would define as a working farm. In reality, when all those family farms are brought into the numbers, the vast majority of our food producers who contribute to food supply chains will get caught up in those changes.
When the Chancellor was on the BBC on Sunday morning, she said that the individual claim for agricultural property relief is now £1 million, but if a farm is owned by two people, that allowance could be transferred to the other person. Some confusion needs to be ironed out here, because unlike the nil-rate band and residential nil-rate band, the policy paper entitled “Summary of reforms to agricultural property relief and business property relief” published on 30 October this year states that
“any unused allowance will not be transferable between spouses and civil partners.”
Perhaps in summing up the Minister can clear up that confusion caused by the Chancellor on the Kuenssberg show.
The APR changes are not the only changes that will hammer our farming families and agricultural communities. I am sure there is a joke somewhere along the lines of “When is a pick-up truck not a pick-up truck?”, but it is no laughing matter for farmers. For them, it is just a basic bit of equipment that they need to operate, but this Government are hammering them on the cost of that equipment if it happens to have rear seats. As I raised earlier today in this House during the urgent question, the Government’s carbon tax will put up the price of fertiliser by between £50 and £75 a tonne. Either that is going to have a direct impact on the cost of food, or the Government are asking farmers—already operating on incredibly tight margins, often with no profit at all—just to swallow that extra cost. I urge them to reconsider.
Other measures in the Budget that are clearly wrong and the Government must U-turn on include VAT on private school fees. The vast majority of parents I talk to in my constituency who choose to send their children to independent schools scrimp and save and make sacrifices in order to give their children that opportunity. An additional 20% in fees makes that unaffordable for those parents, and when I talk to representatives of independent schools in my constituency some are saying that they can see a path to having to close their doors. I know that a lot of Labour Members would probably quite like that outcome, but the reality is that it will be denying children opportunity and denying parents choice, and it will have the knock-on impact of class sizes in my kids’ school—and, I am sure, every other hon. Member’s kids’ school in the state sector—going up. That will cause overcrowding and put pressure on our state schools. This is all before I come on to the other problems in this Budget, not least the cruel attack on our pensioners through the withdrawal of the winter fuel payment.
Lastly, just to prove how bizarre and simply unserious the Government are about value for money, they have chosen someone as their new value-for-money tsar who is inextricably linked to one of the most inefficient and wasteful projects ever to come out of the British state: HS2. How on earth can someone so linked to that project be considered an arbiter of value for money?