Social Security Advisory Committee: Winter Fuel Payment
Jim Shannon Excerpts(5 days, 14 hours 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(6 days, 14 hours 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 week, 4 days 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 week, 6 days 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?
Carer’s Allowance
Jim Shannon Excerpts(1 month ago)
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Jim Shannon (Strangford) (DUP)
I commend the right hon. Gentleman for his endeavours in the debate, which we support, and on his compassion for carers given his own experience. Someone who cares for their parents all day and then works a couple of hours in the evening is precluded from receiving carer’s allowance. Does the right hon. Gentleman agree that those people, who do not get carer’s allowance because they happen to work a few hours, should qualify?
Ed Davey
I am grateful to the hon. Gentleman for that point. That should certainly be part of the review, but one or two other issues, which I will talk about, are critical to reform probably even before that.
At just £81.90 a week, carer’s allowance is the lowest benefit of its kind. For someone doing 35 hours of caring a week—the minimum period for eligibility—that is just £2.34 an hour. It is not just the low rate of the carer’s allowance that worries me but the fact that the eligibility rules are inflexible and very badly designed, chief among them being the earnings limit of £151 a week. Even for someone on minimum wage, that is just 13 hours and 20 minutes a week. The earning limit operates like a cliff edge. As soon as someone makes £151.01 a week, they lose the whole carer’s allowance—every penny of the £81.90. It acts as a significant barrier and a major disincentive to work. It means carers on low incomes cannot work a bit more to help make ends meet, so it is bad for them, bad for the person they are caring for, bad for their employers and bad for the economy.
But here is where things get worse. There are tens of thousands of carers who go slightly over the earnings limit, mostly without realising it. Maybe they pick up an extra shift, happen to get an end-of-year bonus, or understandably do not realise the way carer’s allowance operates in such a daft way. Even though the Department for Work and Pensions gets regular alerts from His Majesty’s Revenue and Customs when people go over the earnings limit, it has not been telling carers and it keeps paying carer’s allowance until one day, out of the blue, the carer gets hit with demands to repay those overpayments, which may have built up over months and years due to the DWP’s own inaction.
Back in July, I told the Prime Minister about one of my constituents, Andrea, who lives in Chessington. She is a full-time carer for her mum. Back in 2019, Andrea decided to go back to work part-time in a charity shop—mainly for her mental health, she told me. She informed the DWP at the time and it continued her payments. Five years later, it wrote to her and said that no, she now had to repay £4,600. Andrea says she feels “harassed, bullied and overwhelmed.” She now does just six hours’ unpaid work a month to avoid going over the earnings limit and getting into more debt. She says the whole thing makes her “want to give up work and give up caring.”
Alison McGovern
I will come to the review that we will be conducting, but let me make the general point that we in the Government ought to be able to understand the realities of life and take that into account.
The position that I have described makes the dire situation we have inherited all the more shameful. Family carers are being pushed to breaking point. They have too often been forced to quit jobs that they want to keep and could keep with the right support, which isolates them and shrinks our workforce. With the right support, we could help carers and help our economy as well. To rub salt into the wound, we have inherited a system whereby busy carers, already struggling under a huge weight of responsibility, have been left having to repay large sums of overpaid carer’s allowance, sometimes amounting to thousands of pounds. It seems as though what is supposed to be a safety net designed to catch those in need was instead designed to catch them out.
Jim Shannon
For some time constituents of mine have found that they are due to repay an overpayment. I always ask them whether they remember when they made their complaint. All telephone conversations with the Department are recorded, so there is a way of making it clear that the fault lies not with the applicant but with the Department. Is there also a way of ensuring that those who have been penalised unfairly for following the Department’s advice should not have to pay that money?
Alison McGovern
As the hon. Member knows, the Department is not responsible for the delivery of social security benefits in Northern Ireland, but I am sure that Northern Ireland’s Department for Communities will be keeping a close eye on the debate and will want to take his points into account.
This problem is one of the numerous ways in which our social security system is failing the people of this country, with 2.8 million left out of work because they are unwell and more than 4 million children growing up poor, and we have therefore moved fast to fix the foundations of the DWP. That includes our setting up a taskforce to tackle child poverty, extending the household support fund for six months, and holding the first meeting of our new Labour Market Advisory Board. The board’s expertise and fresh thinking will help us break down barriers to work, such as an inability to balance paid work with family care.
Oral Answers to Questions
Jim Shannon Excerpts(1 month, 1 week ago)
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Sir Stephen Timms
My hon. Friend is absolutely right. Performance is reviewed regularly and there are customer satisfaction surveys, but unlike the previous Government, this Government want to publish performance data so that everybody can see what is going on.
Jim Shannon (Strangford) (DUP)
I thank the Minister very much for his response. I think everyone wishes for claimants to be able to get job opportunities without finding themselves in a financial mess due to having to pay out for travel costs when they should be reimbursed. This is a big issue in my constituency in Northern Ireland. Will the Minister help directly those constituents who have been accordingly disadvantaged?
Sir Stephen Timms
I am grateful to the hon. Gentleman. I am not familiar with the arrangements in Northern Ireland, but certainly in the rest of the UK it is very clear that contractors ideally need to pay up-front, buy tickets and give them to the jobseeker before they embark on their journey, or, if not, reimburse them very quickly on production of a receipt.
Social Security
Jim Shannon Excerpts(2 months, 1 week ago)
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Mel Stride
The hon. Gentleman is entirely wrong. We went into the election promising the triple lock plus. Unlike his party, under which millions of pensioners are going to be dragged into income tax spend, many of them for the first time, we were prepared to stand up and say that we would not do that.
Jim Shannon
I commend the right hon. Gentleman and his party for bringing forward this issue, which is massive for my constituents and those across the whole United Kingdom. I say this with respect to the Labour party: this policy does not conform to any Labour party policies that I have seen in the past. Pensioners who have contacted me say that they are concerned because the threshold is too low, because pension credit will take nine weeks to process even if it gets to the 28% who are eligible in Northern Ireland, and because the £400 that the Labour Government have approved will not come until spring next year. Those are three reasons why the motion has to be supported.
Mel Stride
The hon. Gentleman is entirely right, as always, and I completely agree with every word that he has just said.
We are the party of the triple lock, and we were the party of the triple lock plus. We are the party that has raised the state pension by £3,700 since 2010, and we are the party that has seen 200,000 fewer pensioners in absolute poverty since we came to office. That is now going to go into reverse.
I will now, rather more gently and rather more quietly, make an impassioned plea to Government Members: look to your conscience. You know in your hearts that these measures are wrong, that the Labour party has broken its promises, and that these measures will lead to untold hardship for millions of elderly and vulnerable people right up and down the country. You now have an opportunity to join with us and put a stop to it.
Winter Fuel Payment
Jim Shannon Excerpts(2 months, 1 week ago)
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Rachael Maskell (York Central) (Lab/Co-op)
I beg to move,
That this House has considered the Winter Fuel Payment.
I am pleased to see you in the Chair, Dr Huq. Charities, medics, academics, economists and constituents have evidence showing why the Government must ensure that mitigation is in place to protect pensioners in fuel poverty this winter. Winter fuel payments have provided a layer of protection, with £300 for the over-80s, which is insufficient for some, but excessive for those who need no energy support. Housing costs, food prices and energy costs have exacerbated the situation, leading to the hardest of choices for the 2.1 million pensioners in poverty—a legacy of the last Government. However, once people secure their home, they have to ensure that they can eat and keep warm, and we need the Government to provide an assurance that pensioners will have the help they need to stay warm and well. I know that the Government are working hard, but in 20 days the energy price cap will rise, and people are looking for answers, as am I.
Governments do not choose their inheritance, but they can determine the future. On discovering a £21.9 billion legacy deficit, the Chancellor was right to protect the economy and to prevent interest rates and mortgage rates from soaring in the way they did during the Truss-Kwarteng experiment. However, the winter fuel payment is in a different league.
Jim Shannon (Strangford) (DUP)
I thank the hon. Lady for bringing this matter forward, and I suspect there is no one here who does not support what she has said. Does she agree that the way this change is being foisted on our constituents, with no time for them even to save towards winter fuel bills, is reminiscent of the Women Against State Pension Inequality Campaign scandal, which the ombudsman said was a failing? Does she agree that the Government must consider putting off any changes until winter 2025, and that any changes should be targeted at those who can afford to lose the winter fuel payment?
Rachael Maskell
A Labour Government must always protect the poorest in our society.
The total saving for this year—£1.3 billion—is 0.1% of the total Treasury spend. However, when only 1.6 million pensioners not on pension credit need energy support, that drops to 0.04% of the Government’s budget, assuming that all get the top rate of £300, although most will get less. If we add in additional health and care costs, the saving shrinks again.
Disabled People on Benefits: EHRC Investigation
Jim Shannon Excerpts(5 months, 4 weeks ago)
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Mims Davies
I agree with the hon. Gentleman that the nature of disability and need has changed, which is what I was trying to draw out earlier. Different types of needs are coming our way. We all know from our own constituency casework about the support that disabled people need in any realm, and it is about understanding the different needs and appreciating that needs change. I can assure him that the Department works closely with healthcare assessors, and has put in a new process to allow personal independence payments to be paused when an appointment has already been scheduled—for example, if we need to have additional information. We are very aware that claimants’ needs are different—hence the Buckland review of autism. We know that a huge number of autistic people are very keen to work, but not enough of them do, and this is at the heart of our understanding. I think the hon. Gentleman and I share the same view on this issue. The Department will need to make changes and develop its understanding, and I want to reassure the House that we come in the spirit of learning.
Jim Shannon (Strangford) (DUP)
The Minister is always compassionate and understands the issues, as we can tell from the way she responds. As I often say, however, the benefits system leads to incredible frustration. When those who are disabled have their applications refused, they go to appeal. The biggest issue in my office is benefits, including appeals; we have one staff member who does nothing else during the five-and-a-half-day week that she works. Although we recognise that DWP staff do a good job, there needs to be a better understanding of how the system works. When someone fills in their application, there needs to be a better understanding of what it means to have chronic obstructive pulmonary disease, osteoarthritis, diabetes, blood pressure problems, back pain, chronic pain. Those are the issues. When we win 85% of appeals, it indicates that perhaps the first decision was not right.
Mims Davies
I thank the hon. Gentleman for the way he approaches this matter. It also gives a chance for all of us to thank our casework teams who do so much, and indeed all the staff across DWP. They know that our customers vary. They know that, at times in their lives, they need additional support. That is why we have those specialist services, roles and procedures in place, from the DWP visiting service to the advanced customer support senior leaders. We have the serious case panel review, and we have the customer experience survey. We are always listening and learning, and there is a continuous need to do that. On fluctuating conditions, which other Members have mentioned, we have put a better understanding of needs and diagnoses at the heart of our engagement on reforms, and that is what disabled people have told me as well.
Women’s State Pension Age: Ombudsman Report
Jim Shannon Excerpts(6 months ago)
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Jim Shannon (Strangford) (DUP)
It is a pleasure to speak today on behalf of the WASPI women. Every right hon. and hon. Member who has spoken in this debate has done so with a heartfelt desire on behalf of their constituents, and I wish to do the same. A lot has been said, but I want to offer a Northern Ireland perspective in the debate. It unites the voices of those in this Chamber when we speak on behalf of all our constituents within the United Kingdom of Great Britain and Northern Ireland.
In Northern Ireland there are some 77,000 WASPI women—ladies who deserve to have their pension but have been denied it. Tragically, many have passed away. In my Strangford constituency we have approximately 5,000 who should qualify as WASPI women. Although I am the only Northern Ireland MP in the Chamber now, I know that many of my colleagues from other parties have spoken on this issue. I had a well-attended debate on 12 March; it was unfortunate that in that debate Members only had about three minutes. In today’s debate at least Members have had at least 10 or perhaps even 15 minutes, depending on when they came in. I asked a question on the same issue on 25 March in this Chamber and again on 2 May.
This debate is vital, but—and I say this almost as a question—is it necessary? Hon. Members will say, “What do you mean, is it necessary? That’s almost a contradiction.” But it is not. The debate is not necessary: the problem is crystal clear and undisputed, at least by every person who has spoken. That being the case, we should recognise this and grant the compensation in a timely manner. That is what the debate is about. That is what we are asking for, and everyone from all political parties is united on that. We have the ombudsman’s report. Why, then, do we need to debate this issue again today, if the problem and the solution are clear and expected? That is the way I see it.
I congratulate the hon. Member for North Ayrshire and Arran (Patricia Gibson), as I often do, on setting the scene; I know this issue has been a passion of hers in this House. I also congratulate the hon. Member for Kilmarnock and Loudoun (Alan Brown), who will sum up for the SNP at the end of the debate, on his Bill, which I have signed, along with others. The Government could grasp that Bill, push it through and have it all done by July. I also did not know until this debate, when the right hon. Member for Hayes and Harlington (John McDonnell) spoke, that he and the right hon. Member for Islington North (Jeremy Corbyn), who is not in his place, had a Bill or a process ready to bring forward. Would it be onerous or unrighteous of me to say that perhaps that is something that could be used as a text to move it forward? Right hon. and hon. Members have brought lots of ideas forward.
I say this with great respect to the Minister, who is an honest man and a gentleman, and who does his job well: the Government are dragging their heels. As we have said on multiple occasions, each day that passes means that another lady has been wronged. My constituents and others are missing out not simply on justice—that is reason enough—but on the quality of life that should have been theirs. Parties across the Chamber have come together to reiterate that, but the power for change—and the reason change is not coming forward—lies with the Government. That is the way I see it.
On the many occasions I have spoken about the WASPI ladies, I have given the example of a constituent of mine who was a school cleaner—everybody’s constituencies had school cleaners like her. That lady cleaned the school toilets until she was 60, with arthritis and pain. She spent most of her time on her knees. It is always good to spend time on your knees, as long as it is in prayer, but that lady spent her time on her knees on a floor with cold tiles, and she ended up with arthritis and pains. That is the issue. She focused on the end date when she could stop putting herself in pain and start enjoying her retirement without having to worry about turning her heating on because she could rely on her pension. That lady never had a sick day in 30 years—boy, what a record! She turned up every day for 30 years to clean the toilets at the school. She deserves credit for that.
We know that lady’s generation well. There is no shame in it, but she felt shame about taking benefits, and she worked hard for the entitlement to a well-earned pension, which she thought she was getting. That pension was about nine months or a year ahead of her, when suddenly it turned out to be six years ahead of her. What—really? There needs to be action. That was done to her without so much as a by your leave or a financial plan. I hear people saying, “Well, they knew about the plan,” but many of my WASPI women did not know at all. I cannot remember which Member said that 60% of people did not know about their financial options. My constituent’s option was to continue working on her knees, scrubbing, with tears in her eyes and in pain, which meant that she had to apply for sick pay.
This Government did that to her—and I say that with respect to the Minister. That is the reason why it happened. The ombudsman said that it was not right to do that to my constituent, and that we should compensate that honourable lady and the 5,000 other WASPI women in my constituency, as well as all those across this great United Kingdom. We are no further forward in giving her that entitlement. Meanwhile, those extra years of hard labour have taken their toll physically and emotionally. I genuinely have no words to say to that lady other than: “I am sorry. I continually ask for compensation for you and the others. I am sorry that the Government got it wrong. And I am sorry that it still is not rectified.”
I do not want to heap coals of fire upon the shoulders or the head of the Minister, but the responsibility for this lies with the Government. My words to the Government are clear and direct, and I have plenty of them, but they can all be summed up in a few words: do the right thing, and do it now. That is my request. The Government know their obligation, understand their duty, and accept the rationale behind that, so all we need now is the action to make this happen.
We have seen how quickly compensation can be sorted, so why are we in this position where we are no further forward and doing the right thing seems not to be a priority? It needs to be a priority—it needs to be a priority today, following this debate. It needs to be a priority before the summer recess, whenever that comes. That is the target date that I am asking the Minister to aim for, because we need to give hope to our constituents and those WASPI women who have resolutely, courageously, and in many cases physically, withstood the test of time.
I believe that compensation should be granted in the form of a lump sum to help pay off any outstanding loans or debts, and there should then be an enhanced payment for a clear and set period of time. We have heard stories today of people who made their plans on the grounds of the pension plan that they had, only to find out that they had been disempowered, and all the plans they had made had to be scrapped. They lost their houses, their jobs and their health. What are we doing to help those people?
Margaret Greenwood
The hon. Gentleman is making a sensitive and excellent speech. Does he agree that this is not only about the loss of a pension from the age of 60, the fact that people have not been able to plan and so forth? For many women, their occupational pension will have been tied to the date of their retirement or their state pension—it varies a lot, depending on what the pension scheme is. Some women have lost thousands upon thousands of pounds as a result of this decision.
Jim Shannon
I thank the hon. Lady for that intervention. The occupational pension is another factor; it is incorporated in the plan that these people have made for their future. It is wonderful how you make a plan for the future and then the Government scupper it on you! All of a sudden, these ladies have found themselves in difficult circumstances, so I believe it is necessary to have a compensation scheme in place to help all of those ladies.
I will conclude with one more comment, ever mindful of the time limit that we all indicated we would keep to. I understand the magnitude of such a scheme, but we were able to get support quickly to households across the UK for cost of living and energy payments—something that I commend the Government on. That can be done on many occasions; we just need the commitment to make it happen. I know that the Government have the ability and the capacity to roll out all these schemes, so along with almost every other colleague in this House today, I sincerely ask that we prioritise finding a compensation formula and rolling it out. These women, our constituents—brave, courageous women—deserve no less, and we must ensure that we give them no less.
