Employment and Support Allowance: Underpayments

Jim Shannon Excerpts

Monday 25th February 2019 Commons Chamber

[Sarah Newton]

I thank the hon. Lady for her question. I would of course be delighted to meet her and discuss Gillian. Clearly something is not right. It does not sound like it is related to what we are talking about today, but clearly something has gone wrong and I would be delighted to meet the hon. Lady as a matter of urgency.

[Jim Shannon (Strangford) (DUP)]

I thank the Minister for her response so far. Underpayments to my constituents have ranged from £3,000 to one massive sum of £22,000. The issue affects some of my constituents when it comes to housing benefit. Can the Minister assure me that none of my constituents will be disadvantaged by something that is not their fault?

[Sarah Newton]

I thank my hon. Friend for raising that question. This was an official error, so the income disregards do apply and his constituents should not be disadvantaged in the way he describes.

Pensions Dashboard

Jim Shannon Excerpts

Wednesday 6th February 2019 Westminster Hall

[Jim Shannon (Strangford) (DUP)]

It is a pleasure to speak in this debate, and I congratulate the hon. Member for Hendon (Dr Offord) on securing it. I am happy to make a comment within the timescale that you have set out, Mrs Ryan,

Pensions are a thorny issue; many people made their financial plans based on the promise of a pension that has not materialised. There are also those who invested, only to lose their money and get only 30p in the pound of their investment, but that is a debate for another day; in fact, we had a debate on that last Thursday in the main Chamber; it was on Equitable Life, and those who had paid into a pension but did not get their money. It is easy to understand the concerns that some of us have about people’s need for a pension; the hon. Gentleman referred to the need for a pensions dashboard.

I can well recall—although it was not yesterday—my mum taking me down to the Northern Bank, as it was, to open my first account when I was 16. I also remember that when I turned 18, she took me to fill in the policy with the insurance man and said, “Make sure you’re putting money aside every month for that purpose.” That was thriftiness, but it was also really good direction from my mum, as always, because it was important that we knew why we did those things. I am a wee bit older now, and I am glad that I signed up for those things many years ago, because I will benefit from them in the years ahead.

Today’s debate is an attempt to ensure that people are not left in the lurch in the way that women born in the 1950s and the Equitable Life savers have been. It is an issue that it is certainly worth people considering if they are working hard and seeking to invest, so that someday they do not have to work, but can enjoy life without having to miss out on the things that they have while working a nine-to-five job. It is my sincere hope and desire that the work that the Treasury Committee and others are doing to prevent another Equitable Life scandal will be successful, but irrespective of that, a dashboard with real-time information has to be useful for those who are planning their future, as the hon. Gentleman said.

I must say that the key decisions that came from the Government consultation give rise to some concern. One concern relates to data security. The fact that all financials are held and accessible by the industry independently raises concern. I hope the Minister can reassure me on that. My concern is heightened by the breach in Independent Parliamentary Standards Authority data security, which led to the addresses of my staff members being released. That shook our office and caused great concern, given that we hail from a political party in Northern Ireland, and given its history. Such data security breaches underline my concerns. The Government must ensure that there are guidelines in place to reassure people, including my constituents and me.

I also have grave concerns regarding proposals that would result in pension fund members being targeted by those who want their business. Although I agree that multiple dashboards would improve consumer choice, it is essential that alongside those—I think the hon. Gentleman referred to this—there be a non-commercial dashboard, hosted by the single financial guidance body, and offering an impartial service to those who prefer that, or who may not want to be targeted by the market. We must cover all choices and tastes.

Another essential issue for me is that the cost of this dashboard should not hit the pension or the consumers; there should rather be an obligation on the industry to bear the cost. Although the autumn Budget has made available funding for 2019-20 to facilitate the industry’s making dashboards a reality, it is clear that that is to get the dashboard on its feet, as opposed to making it a Government service. That is another consideration.

I am conscious of time, so I will conclude with this point. In principle, I support the idea of people having greater knowledge of their financial status. There are so many people who come into my office with their pension annual statement, not understanding what it means—not only older people, but young career people who have been made to sign up to a pension, but have no idea what the money that they pay, or their employer pays, is used for. It is surprising how many people do not know.

[Dr David Drew (Stroud) (Lab/Co-op)]

That is why we need proper enterprise education in schools. Does the hon. Gentleman agree that that is when it should start, and that it should not end until people enter the workplace?

[Jim Shannon]

I thank the hon. Gentleman; just as the hon. Member for Hendon thought that someone had read his script, my next words are on the very subject to which the hon. Gentleman refers. The subject is not covered in school, but it clearly should be, because these young people literally have no idea what their pension means. He is absolutely right, and his intervention underlines the responsibilities that we have a duty to perform. I sincerely believe that a pension dashboard can help this generation, but the safety and security of financial information is paramount.

I look forward to the Minister’s response; I feel that some of the assurances I have sought in this small contribution are assurances that he can provide, and if he does, he will set a lot of minds at rest.

State Pension Age: Women

Jim Shannon Excerpts

Thursday 31st January 2019 Commons Chamber

[Tonia Antoniazzi]

That is exactly the situation we are in, and it is really sad—it upsets me, and it is frustrating. My constituents ask me what is being done, where we are and what we are doing, and this debate is an opportunity for the Government to respond to those questions.

[Jim Shannon (Strangford) (DUP)]

I congratulate the hon. Lady on bringing the issue to the House for consideration. She has been proficient and active on this case. With 5,800 women in my constituency being out of pocket, many of whom are in manual labour jobs, my concern is that we are seeing a generation of women discriminated against and we seem to be achieving nothing for them. These women were told to expect something and they prepared their future financing around that. I am left wondering just what they did to warrant this treatment. Does she agree that this is nothing short of a disgrace?

--- Later in debate ---

[Tonia Antoniazzi]

I thank my hon. Friend for her comments. That is exactly where we are, and it is just wrong. The Women and Equalities Committee commissioned—

[Jim Shannon]

Will the hon. Lady give way?

[Tonia Antoniazzi]

It would be a pleasure.

[Jim Shannon]

The hon. Lady is most gracious and kind in giving way. This is a very important point. Many people in my constituency are employed in manual labour, which means that, as they get older, they have disabilities, arthritis and other such issues. Does she agree that it is not realistic to expect those people to retrain? What they really need is their pension—and probably in many cases some sort of disability living allowance or an attendance allowance because of their disabilities.

[Tonia Antoniazzi]

The hon. Gentleman makes a very valid point. When the Women and Equalities Committee took evidence from people about the difficulties they face in finding work, we found that employers need to make sensible adjustments in order to keep older workers. Can the Government guarantee that that is being done? It is recognised that ageism remains—

Widowed Parent’s Allowance

Jim Shannon Excerpts

Wednesday 23rd January 2019 Westminster Hall

[Liz Saville Roberts]

Indeed. It interests me that the Supreme Court judgment makes reference to article 2 of the UN convention on the rights of the child, which decrees non-discrimination in relation to children, and to article 3, which endorses Governments’ working for the best interests of the child first and foremost. Those principles apply not just to the matter we are debating but to other issues.

[Jim Shannon (Strangford) (DUP)]

I thank the hon. Lady for bringing forward this important matter. She outlined clearly a case in Northern Ireland. Does she agree that going from having a wage coming into the house to receiving £117 a week is a massive step, and that that help needs to continue for more than a year for homes with children? That needs to be reviewed. A year is not long enough for someone to sort out how to cope financially in the long term without their spouse and how to raise their children alone. This matter is highly important, and I congratulate the hon. Lady on bringing it forward.

[Liz Saville Roberts]

I thank the hon. Gentleman for his intervention. It is evident that this matter raises a whole number of questions over and above the one I am specifically addressing.

I reiterate—I hope I say this regularly during the debate—that I say “children” quite intentionally. The great majority of EU member states make children themselves directly eligible for bereavement benefits up to a certain age. Essentially, bereavement benefits function as a sort of topped-up child benefit for children who have lost a parent and therefore require additional support. It is not, however, within the remit of the Supreme Court to correct primary legislation; that duty lies with us in Parliament.

Let me make it clear that despite the title of the debate, I believe the principle established by the Supreme Court ruling extends beyond the widowed parent’s allowance. We have heard that families in which a spouse has passed away since April 2017 are entitled to bereavement support payment, which replaced widowed parent’s allowance. It is therefore implicit in the Court’s ruling that bereavement support payment, too, ought to be extended to children regardless of their parents’ marital status. After all—I wish to impress this upon everyone present, including the Minister—the key takeaway of that ruling is that refusing to extend payments to the children of unmarried couples is of material detriment to those children and is discriminatory against those children.

In the eyes of the Supreme Court, a policy may offer special treatment to married couples when children are not involved, but it may not do so in relation to a benefit targeted at the needs and wellbeing of children. That is directly relevant to both widowed parent’s allowance and bereavement support payment, as in both instances the wellbeing of the children is the primary purpose of the benefit. That is expressed very convincingly in the Supreme Court judgment. It is not acceptable for the state to discriminate against children who happen to hail from unmarried households—to confer stigmatising status on families as either legitimate or illegitimate in the eyes of their own Government. If the support is there, it must be there for all children.

The Minister may well argue that there are bureaucratic barriers to extending widowed parent’s allowance to the children of unmarried couples. He may suggest that the requirement of a legal union protects widowed parent’s allowance from abuse. In reply, I would highlight the armed forces pension scheme, which successfully utilises a definition of “eligible partner” that is not narrowly restricted to the confines of marriage and civil partnership. Of course, the Department for Work and Pensions routinely assesses whether individuals are cohabiting, in pursuit of rolling back their means-tested social security benefits. In many such cases, there is considerably less evidence of cohabitation on display than the existence of living, breathing children. In fact, widowed parent’s allowance itself can be withdrawn if a parent later cohabits with a new partner. It is striking that Governments past and present have been willing to recognise the validity of cohabiting couples in life but not in death.

The Minister may highlight that discrimination against the children of unwed couples was debated during the passage of the Pensions Act 2014. I would reply that the legality of the Government’s standpoint is now informed by the Supreme Court’s ruling from last summer. Where Parliament previously debated in a fog of unknown quantities, we now know that the legal union requirement violates the human rights of children born to parents who are neither married nor in a civil partnership. Defenders of restricting payments to married households typically concern themselves with spousal rights, but the crux of this issue can no longer be allowed to rest solely on the rights of a bereaved spouse. Today’s debate is about whether the Government can continue to materially disadvantage children born to unmarried parents.

Household compositions have changed visibly since the widowed mother’s allowance of 1946, and the Supreme Court ruling is a reminder that our social security system must evolve to keep up. According to the Office for National Statistics, cohabiting couple families have been the fastest-growing family demographic across the UK for two decades, and in the past few years, families headed by cohabitating couples have been more prevalent than lone-parent families in the UK. By 2017, 17% of all households with dependent children were headed by a cohabitating couple.

We also know that there is a socioeconomic and geographical element to family composition, and 49% of cohabitating households in Wales are home to dependent children—the highest proportion throughout the UK. Poorer families are more likely to be headed by unmarried parents, and both mothers and fathers in married couples are more than twice as likely to have a degree as their counterparts in cohabiting couples. Children in lower socioeconomic households are therefore disproportionately exposed to bereavement support discrimination of this type, compared with their wealthier counterparts. That is deeply ironic given the Government’s approach to non-means-tested benefits: to those who can afford to marry, they give more, but to those who have less, they seek to justify denying them at the most traumatic time.

When will the Government formally respond to the issues raised in the Supreme Court ruling and in this debate? The Minister said on 5 September last year that there would be a response anon, but a number of months have since passed. If he will not provide a set timetable today for a response, will he explain why? Could the Government use legislative vehicles to make such a change? I think particularly of the Civil Partnerships, Marriages and Deaths (Registration Etc.) Bill promoted by the hon. Member for East Worthing and Shoreham (Tim Loughton). A private Member’s Bill might well be a vehicle through which to make such a change.

Extending widowed parent’s allowance as well as bereavement support payments was recommended back in March 2016 in a report by the Select Committee on Work and Pensions, “Support for the bereaved”. It outlined, as I have done today and as the Supreme Court did last year, that excluding the children of unmarried couples from bereavement support in the 21st century is both unjust and unjustifiable.

Mental Health: Assessment

Jim Shannon Excerpts

Tuesday 22nd January 2019 Westminster Hall

[Jim Shannon (Strangford) (DUP)]

It is a pleasure to speak in the debate, and to follow those who set the scene. The hon. Member for Lanark and Hamilton East (Angela Crawley) made a significant contribution, as did my colleagues and friends left and right. We may not agree on the constitutional position of Northern Ireland or the United Kingdom, or Scotland and Wales, but we agree on the important issue we are debating.

The Minister attending this debate is one who responds. Her comments to me in the Chamber, and whenever we meet, are soft-spoken words, which are always taken in the light in which they are meant. I thank her for her help and the interest she shows in the issues I bring to her attention. My comments today are not meant to be aggressive or harsh, but they are factual. Before I go on with those comments, I want to say how much I appreciate the Minister’s compassion and her interest in a job that she does extremely well.

We set up this social state to enable those in genuine difficulty to live, and not simply survive in poorhouses and the like. We determined that it was fair to ask those who could to help others, through tax and national insurance contributions. That has set us apart from many countries. I believe we are here to help the ill and the most vulnerable in society. Those suffering from mental health issues are more in need of our help today than ever before. The hon. Member for Glenrothes (Peter Grant) mentioned staff, and I have staff in my office who work on nothing but benefits—reviews, appeals, applications and advice. They work on those issues full time, to give the correct advice and assistance that it is our job to give as elected representatives. All my other staff are trained and, in fairness, the Government have set up training classes for our staff so that they can be versed in universal credit issues. I thank the Minister for that. We take advantage of it, and make sure our staff are trained.

In the UK, 20.3 million families receive a form of benefit, and 8.7 million of those are pensioners, which is about 30% of the population. For some families, the benefits they receive make up more than half their income. If an individual suffers with a mental health condition that has a long-term effect on their normal day-to-day life, it is considered a disability as defined under the Equality Act 2010. People with mental health conditions are less likely to receive any form of universal credit.

Between October 2013 and October 2016, 193,000 people with mental health conditions were reassessed, and of those 39% were awarded more money. However, 14% were given the same amount, 22% were awarded less money and 25% no longer received the benefits they once had. I say it very gently, but the benefits assessment process needs to be amended, as it is clearly not fitting for those who suffer with serious mental health problems that result in an inability to work. There was a debate in the Chamber on Thursday about mental health first aid in the workplace, with a good level of participation. In Northern Ireland, the legacy of the troubles is a considerably higher frequency of mental health problems than here on the mainland. The figures are extreme: 25% higher than on the mainland. That is the legacy of a 30-year terrorist campaign that affects not just those involved but the families—wives, daughters, sons, mums and dads.

[Dr Cameron]

The hon. Gentleman is making an excellent speech. Will he join me in commending the excellent work of psychologists in Northern Ireland who hosted a successful international trauma conference last year that is putting Northern Ireland on the map as a leader in international expertise on trauma?

[Jim Shannon]

I thank the hon. Lady for that intervention, and congratulate her on all she does, and on her interest in the issue.

Mental health issues have caused 300,000 people to lose their jobs because they cannot cope with the stress of their career. In Northern Ireland, one in five adults show signs of mental illnesses in their lifetime. We can see clearly that more funding needs to go towards helping those who cannot work because of mental health problems. People who cannot hold down a job owing to such problems must be treated with compassion and understanding. I have had several meetings with Capita. As the hon. Member for Glenrothes said, the staff are excellent and work hard. Frances, the manageress of the social security office in Newtownards, is extremely supportive and helpful, as are all the staff when anyone phones about an issue. However, that does not stop the problems that we are having. In my meeting with Capita, I outlined some cases where benefits were withdrawn, but in conjunction with its staff, we were able to overturn the decisions. I was glad that those constituents had come to see me and my staff, and that we could use medical evidence, supplied by doctors, to persuade Capita of the adverse effect on their mental health, wellbeing and, at times, physical safety. Things must change.

[Paul Girvan (South Antrim) (DUP)]

The point that my hon. Friend is making relates to the fact that some people are so depressed that they do not want to contact anyone who could help them. They fall through the gaps. When people are willing to go forward, we have a high success rate for overturning decisions on appeal, but unfortunately some of the neediest bury their heads in the sand, as they do not have the will or drive to go ahead, or the support behind them.

[Jim Shannon]

I agree wholeheartedly. What my hon. Friend described is the reason why we are charged, as elected representatives, with delivering our views, in debates such as this and in offices.

People suffering long-term mental health issues should be supported financially because of the challenges that they bring in their career. Those with severe and enduring mental illnesses are exposed to premature mortality of up to 15 to 20 years; the situation affects their health, wellbeing and the length of time they will be in this world. Those people need support. We should not assume their health will improve over time, as it will improve only with rest and coping mechanisms, and the ability to work in a place where there is understanding of the needs of people with mental health issues, and a preparedness to work with them. Such jobs are few and far between. The question is how to achieve that, which is why the debate has been brought forward today.

Changes are needed in society, and I do not think anyone in the House would deny that. However, they must begin with a recognition that mental health issues are not an excuse not to work. They are a tunnel of darkness. What my hon. Friend the Member for South Antrim (Paul Girvan) and the hon. Member for East Kilbride, Strathaven and Lesmahagow (Dr Cameron) said about this is very relevant, for each and every one of us here. We are here because we have a passion for our people and want to put that over in the debate.

That tunnel of darkness is brightened only by the light of love and compassion, and I believe that governmental dealings with those in need of help must change in a compassionate way. We ask the Minister to do that, first because we know that she appreciates, understands and has an interest in these issues, and also on behalf of our people, who beseech her to make those changes.

[Several hon. Members rose—]

Recognition of Fibromyalgia as a Disability

Jim Shannon Excerpts

Tuesday 15th January 2019 Westminster Hall

[Jim Shannon (Strangford) (DUP)]

I congratulate the hon. Member for Chesterfield (Toby Perkins) on securing the debate and other hon. Members who have made contributions in a restricted time. Without a doubt, the subject is worthy of a three-hour debate, as the number of hon. Members present indicates.

My introduction to fibromyalgia has come through my constituents in my position as a local representative, a councillor, a Member of the Northern Ireland Assembly and now a Member of Parliament. My constituents have told me about the sensation of being in pain and feeling ill. One lady said that her day-to-day life was having her sight affected and having no energy.

Clearly, my heart went out to that constituent, not simply because she has a difficult life, with days where she cannot get out of bed, eat or even really drink, or simply because she is young, but because I want her to get so much more out of life than a daily battle to do the things that most of us can do, such as showering and basic hygiene care, but that she cannot. The diagnosis of fibromyalgia will not automatically entitle her to the help that she needs, which is why the debate is so important. She will have to fight another battle to have her illness and needs recognised and accepted. We all know what the issues are.

The specific treatment for fibromyalgia syndrome is a multidisciplinary approach that includes physical rehabilitation, access to hydrotherapy, psychological support, behavioural therapy and education sessions. Alongside that, the European League Against Rheumatism’s guidelines on the condition say that treatment should incorporate collaboration with a range of professionals, including pain specialists, psychologists, physiotherapists and occupational therapists. All that tells me how complex fibromyalgia is, with a lot of different departments managing a lot of different facets. It is little wonder, with respect to the Department and the Minister, of whom I am very fond, as she knows, that some people feel abandoned and alone in the middle of all of those people and departments. It is for them that we stand here today.

We want research and legislation. We need protection under the Disability Discrimination Act 1995. I conclude with a comment from a lady, who says:

“I know a lady who is an absolute whirlwind when she is well. She could be in my office cheering everyone up with a winning smile and charming personality and literally an hour later, she is wiped out and can’t move for days at a time. To expect this lady to be able to attend job centres weekly for hour-long job interviews without understanding that she physically cannot do this is absolutely absurd and yet she is not automatically entitled to ESA and other helps. To believe that she will”—

by some miracle—

“be able to attend her PIP assessment on a certain day is a nonsense and yet she faces losing PIP if she doesn’t present herself to be assessed.”

It is because of people like her, and all those people who live a life of darkness and pain, who battle to live, to eat and to turn their lights on, that this debate is important.

Universal Credit

Jim Shannon Excerpts

Monday 14th January 2019 Commons Chamber

[Alok Sharma]

I think the hon. and learned Lady will find that universal credit has already rolled out in her local area, because the last roll-outs were in December. In terms of providing support, she will be aware of the partnership we now have with Citizens Advice, which will make a difference and help the most vulnerable in particular.

[Jim Shannon (Strangford) (DUP)]

I welcome the changes that the Minister has proposed, but universal credit has created incredible problems in my constituency, including delays and reductions in payments. Will he outline what will be done to assist those who are already in the universal credit system and not on the pilot scheme?

[Alok Sharma]

The hon. Gentleman and I have discussed universal credit before and, as I have said, my door is always open. If he has specific cases, I will be happy to review them.

UN Special Rapporteur on Extreme Poverty and Human Rights

Jim Shannon Excerpts

Monday 7th January 2019 Commons Chamber

[Mrs Lewell-Buck]

My hon. Friend points to a worrying analogy, and I do of course agree.

Professor Alston’s statement confirms what many Labour Members have known for a very long time—that when it comes to welfare reform and this Government’s policy agenda overall,

“the evidence points to the conclusion that the driving force has not been economic but rather a commitment to achieving radical social re-engineering.”

It has long been embedded in Tory DNA that “there is no such thing as society”, and social experiments in rolling back the state always begin with those who need the state the most. That is why the legacy of every Tory Government is one of deep inequality.

Professor Alston rightly notes that nowhere can this social re-engineering be seen more clearly than in the roll-out of “universal discredit”, as he calls it.

[Jim Shannon (Strangford) (DUP)]

I congratulate the hon. Lady on bringing this matter to the House for consideration. The report highlighted the alarming rise in food bank use. In my constituency, the Trussell Trust food bank had a 20% increase in take-up over the Christmas period because of debts due to delays in first universal credit payments, leading to people being forced to choose between paying rent and feeding their children. Does the hon. Lady not agree that the Minister—I am being respectful to him—must take steps to address the issues highlighted in the report? It cannot be ignored.

[Mrs Lewell-Buck]

I thank the hon. Gentleman for his intervention. I will come to those points later in my speech, but he is right; this cannot be ignored any longer.

In principle, universal credit seemed to make some sense. Consolidation of six benefits into one should have achieved the key tenets of simplifying payments and incentivising people into work. Crucially, however, it was never designed to get support to those who needed it in a timely and efficient manner. In reality, like all welfare reform measures from this Government, it was about creating a hostile environment and demonising and dehumanising benefit claimants. As Professor Alston notes, the Department

“is more concerned with making economic savings and sending messages about lifestyles”

than with responding to genuine needs.

The result has been an unrelenting onslaught of abject harm inflicted on more than 3 million people. The late-in-the-day news that the next phase of roll-out is being scaled back gives no comfort to the millions already suffering. Trussell Trust food bank figures show that in areas where universal credit has been implemented, food bank usage has increased by 52%. The fact that the Work and Pensions Secretary states that she “regrets” the growth in food banks will offer no comfort to the estimated 8.4 million people in the UK suffering from food insecurity, or to the volunteers and faith groups filling the gap left by the state and manning the nearly 2,000 food banks that we shamefully now have operating as a permanent part of the welfare state.

Nor will the Secretary of State’s regret give comfort to my constituents, such as one 18-year-old girl starting out in life who unexpectedly lost her job and who, despite statements made by the Government to the contrary, has not been eligible for housing cost assistance through universal credit. She narrowly escaped homelessness thanks to the intervention of our irreplaceable South Tyneside citizens advice bureau. The Secretary of State’s regret will also not help my constituent who suffers from mental health difficulties and was left with only £1.25 per day to live on after the Department made an error with her payments.

The five-week delay embedded in the system, which often turns out to be longer, was never going to achieve anything other than hardship, because one day going hungry and not being able to pay the bills is one day too many.

--- Later in debate ---

[Justin Tomlinson]

What I am saying is that we will consider the report seriously. We obviously do not agree with all the points, but Professor Alston has highlighted some important views and opinions to which we should rightly be looking to respond.

One challenge I make to Professor Alston ahead of his final report is that, at two of the visits, the visits to Newcastle and Clacton, he had the opportunity to meet frontline staff and volunteers. At the recent Women and Equalities questions, my hon. Friend the Member for Clacton (Giles Watling) expressed a huge amount of disappointment from those frontline staff and volunteers, who felt that their fantastic work was not recognised—it had just one line. It is right that the report holds the Government’s feet and Ministers’ feet to the coals, but we would all recognise that there are people doing a fantastic job, both the paid formal staff and the volunteers, and I hope Professor Alston will reflect on that.

As we consider Professor Alston’s views and findings, we must remember that this is a snapshot. On many of the issues raised, we are rightly already taking action, acknowledging that there were issues and that they needed to be dealt with. That is either through the additional money secured in recent Budgets, or through our ongoing and crucial work with stakeholders, with their particular expertise. As I have said, while this covers many Departments, I will focus on where the DWP has the lion’s share of the involvement.

Understandably, UC formed a significant part of both the report and the speech we have just heard. To be absolutely clear, this was never a financial thing. We are looking to spend an additional £2 billion compared with the legacy benefits, and rightly so. UC offers the opportunity for personalised, tailored support dealing with housing, training and childcare, and giving claimants who are in a position to seek work an additional 50% more time to find work.

Although there are still challenges and there is much more work to do, if Members visit jobcentres, they will find that the frontline staff do recognise that UC is significantly better than the complex legacy benefits. They were six benefits across three agencies—HMRC, the DWP and local authorities—and, frankly, people had to be nuclear physicists to navigate them. We all know from our own constituency casework how complex it was to unravel the situation.

[Jim Shannon]

My constituency office is about 100 yards from the social security office—it is as close as that—and I have had numerous distressed people come from the social security office to my office looking for advice. I have written perhaps not to the Minister directly but to his Department to outline some of the changes that we feel should be made. In the light of those things, perhaps more needs to be done in the social security office to address the issues early on.

[Justin Tomlinson]

I thank the hon. Gentleman for his intervention. I am coming on to those. UC dealt with the fact that, for some, there was in effect a 90% tax rate. The well-documented 16, 24 and 30-hour cliff edges were significant barriers for people. It was so confusing and complex that £2.4 billion-worth, we believe, of claims went untaken each year across 700,000 claimants, who were some of the most vulnerable people. My role in the DWP is to represent vulnerable people going through the benefits system and it was often those people who were missing out on money because they were simply unaware that they were entitled to the support that we rightly wanted them to have.

Disability Support

Jim Shannon Excerpts

Wednesday 19th December 2018 Commons Chamber

[Jim Shannon (Strangford) (DUP)]

I am pleased to contribute to the debate, and I congratulate the hon. Member for Oldham East and Saddleworth (Debbie Abrahams) on securing it.

Benefits are the biggest issue in my office. I have one member of staff who does nothing else but deal with benefits five days a week; to be honest, she works outside her hours because she is a compassionate lady. The rest of us in the office, including myself, have done DLA appeals, and we still continue to do them. We deal with the benefits system as well, and these are incredibly difficult issues. The Government have indicated that they will review some of the universal credit system, and may I say that that cannot come soon enough?

I want to say something to the Under-Secretary of State for Work and Pensions, the hon. Member for North Swindon (Justin Tomlinson), who is in his place, and to the Minister for Disabled People, Health and Work, who has left but will no doubt be back shortly. I am not saying this to give them a big head, but both Ministers are very affable and engaging, and they do try to address the issues. I know that because I have spoken to them both. They have come to me to say, “Look, if there’s anything at all that you want to speak about, please speak to us about those things”.

Both the Ministers are keen and eager to help—I say that in advance because I do not want them to think I am attacking them, because I am not doing so—but there are things I have to say tonight about universal credit and where it is, and the fact that it is having an impact on my constituents. It would be remiss of me to come to this Chamber and not to say that. I wanted to say that first, because I know the Under-Secretary always responds; he knows that, because I have spoken to him before about it. None the less, we are where we are on these issues.

The Equality and Human Rights Commission has done a very in-depth analysis, which I and others have read; indeed, some right hon. and hon. Members have referred to it. It shows that the bottom two deciles will lose, on average, approximately 10% of their net income, with much smaller losses for those higher up the income distribution. Negative impacts are particularly large for households with more disabled members and for individuals with more severe disabilities, as well as for lone parents and those on low incomes.

For some family types, these losses represent an extremely large percentage of income. For example, for households with at least one disabled adult and a disabled child, average annual cash losses will be just over £6,500—over 13% of average net income. Here is a specific figure, because I have some people from Bangladesh in my constituency: the impact of changes to direct taxes and benefits is to reduce the income of Bangladeshi households by some £4,400 per year on average. These are specific points, and I want to say them in a very constructive way to the Under-Secretary, because I know he responds. I am happy to say these things, because I know he will come back, as he always does.

At an individual level, women will lose on average considerably more from changes to direct taxes and benefits than men. Women will lose some £400 per year on average, and men will lose some £30.

[Stephen Lloyd]

The hon. Gentleman is making a very powerful point. The figures he is talking about are true in my constituency as well. I know one family that is losing just under £500 a month. As we in the Chamber all know, the reality is that these are substantial sums of money for some of our poorest disabled fellow citizens. There is no point arguing about it any more. That is why I think the request from the hon. Member for Oldham East and Saddleworth (Debbie Abrahams) for an independent impact assessment is reasonable and fair, and it needs to be a matter of priority, otherwise there will be many more of the stories the hon. Gentleman is talking about.

[Jim Shannon]

I thank the hon. Gentleman for his intervention, and yes, I totally agree. At the very end, I will make a similar recommendation to what the hon. Gentleman has mentioned.

This does affect low-income families. Some of the figures I have mentioned are for men and women, but the figures conceal very substantial variation within both genders. Lone parents in the bottom quintile—the bottom fifth—of the household income distribution lose some 25% of their net income, or £1 in every £4 on average. The hon. Member for High Peak (Ruth George) referred to this earlier, and mentioned very clearly the income impact on those in the lower income brackets.

On average, disabled lone parents with at least one disabled child fare even worse, losing almost £3 out of every £10 of their net income. In cash terms, their average losses are almost £10,000 per year. That is massive, and we cannot ignore those things. Those things really quite annoy me, and I think they annoy us all. In fairness, I think they probably annoy Ministers as well, but we do need a response from Ministers if we are to deal with them.

Around 1.5 million more children are forecast to be living in households below the relative poverty line. These are massive issues; in Northern Ireland, and in my constituency, children are sliding into poverty as a result of these reforms. I am being completely honest, Madam Deputy Speaker: these things are happening, in my constituency! And they are happening in everybody else’s as well.

We quite recently had the roll-out of universal credit, so we know these things come in almost like a storm breaking over people. The statistics carry on, but this gives a very clear picture to me. We were told that universal credit would be beneficial to households in need. I have to say honestly, I do not see that happening at this moment. To see disabled homeless people being so massively affected is totally unacceptable. For that reason, I support the recommendations of the Equality and Human Rights Commission. It recommends that the UK Government should:

“1. Monitor and publish the impact of welfare reforms on disabled people, including assessment of the cumulative impact of tax and social security changes.”

I think that if we get those facts, they will tell the tale.

“2. Review the levels of benefits to ensure they provide an adequate standard of living.”

It is so important. People are falling into poverty, and children in particular. I always get annoyed when I hear of children living below poverty levels; I think others might as well.

“3. Ensure that work coaches are trained to deliver tailored employment support so that the specific needs of disabled people are being met.”

How important that is.

[Justin Tomlinson]

indicated assent.

[Jim Shannon]

I think the Minister is nodding his head, and I think he accepts that, but we need to have people that can do that for them. We deal with them every day of the week in my office, and in every other hon. Member’s office. I am not different from anybody else—we are all the same.

The EHRC also recommends that the Government should:

“4. Make the UN Convention on the Rights of Persons with Disabilities…part of UK law”—

that is what the hon. Member for Eastbourne (Stephen Lloyd) referred to in his intervention—

“so individuals can effectively challenge rights violations in the domestic legal system, and develop a clear and coordinated plan for how the UK and devolved”

Administrations

“will systematically address the UN’s recommendations on disability rights.”

I have been contacted in the last two days by some constituents. The hon. Member for High Peak referred to a quotation from some of her constituents. My constituents have asked me to highlight the fact that universal credit simply isn’t working. Those are real-life responses from real people with real problems. They have asked me to make contact with the Department, especially with Ministers, to ensure that their voices were heard in the midst of everything that has happened in this House today. We all know about it—I get a sore head just thinking about it. I assured my constituents that I would ensure that I voiced their concerns today, in the presence of the responding Minister. The concerns are as follows.

The Government say that no one falls through the cracks and ends up losing their benefit, because they will make sure that everyone claiming benefits under the old system is moved automatically on to universal credit and not forced to make a new claim. The Government say that no one is left without the money they need to survive, because they are continuing to pay people all of their old benefits until their new ones have kicked in. The Government say that everyone is protected from becoming worse off under the new system, especially vulnerable groups. I say that is a very honourable assumption to make. I do not for one second say that that is the purpose of what the Government have put forward, but currently the Department is failing people.

I know of many people who went to the jobcentre and went through the online process with a member of staff and then came into my office. The benefits office—what we would have called the bru office many years ago—is just around the corner from my office, so most people come to me when they have a problem, to talk to my staff members. Although they went through the online process with a member of staff, they then came to my office, in tears, as they simply could not understand what was happening to them. They could not understand that they had not got their benefits. They could not understand the paperwork system. I do not want to be too critical, but I have to say these things, as that is what has happened.

People are sick with worry, not understanding what is happening or what is required of them. They are very worried about their benefit, and when we think that many of those who are on universal credit are ill, and that the stress of this makes things worse, it is clear that we are failing. We are failing the most vulnerable, and much as I would love to help every person on universal credit, my staff are doing nothing else but that.

I observe, by the way, in the news that staff in one of the jobs and benefits offices were enjoying a celebratory cake for doing an excellent job and seeing the end of the roll-out in Northern Ireland. There was not much of a celebration in Newtownards about it, and that is a fact. Nor was there a celebration anywhere else. That is not saying that they should not have enjoyed the cake; I am just saying, celebrate when it is good but do not celebrate when it is not. Too many people are anxious and concerned. I would ask the Minister to assure me, and others in the House, that changes are on the way for the most vulnerable in the practicality of the roll-out, and changes in how it is affecting all of those I listed earlier.

I understand that we need all those who are able to work to do just that. That is very constructive and helpful, but let us be honest: are people on benefits and sickness benefits because they want to be? No, they are not. They want to work the same as the rest of them. It is perfectly plausible to put that forward. But I also understand that forcing those who are not able to work to worry and make themselves ill is cruel and unnatural. It must not happen. We need changes, yes. We also need assurances and action. I look to the Minister and the Department as to how and when that will happen.

Universal Credit and Child Tax Credit: Two-child Limit

Jim Shannon Excerpts

Tuesday 27th November 2018 Westminster Hall

[Jim Shannon (Strangford) (DUP)]

It is a pleasure to speak in this debate, Mr Streeter. I thank the hon. Member for Glasgow Central (Alison Thewliss) for securing this debate and for her perseverance in this matter. She has been an absolute stalwart and it is a pleasure to come and support her in these debates in Westminster Hall or wherever they might be.

As soon as I heard of this proposal, my immediate thoughts went to China and its child limitation policy. I can remember thinking, “How can we say that the state should help a mother to work and care for two children, but not three children or four? Why should the state and we in this House make that decision?” My parliamentary aide is the youngest of five children and she takes great pride in saying her parents kept going until they reached perfection, and Naomi is undoubtedly perfection. I can never say anything other than that. She will listen to this debate and that will confirm it. Probably I will be in her good books on Friday morning when I see her once again. I say that tongue in cheek, of course, but the principle is that her parents wanted a large family. It was their decision. Mum worked a little and dad had a full-time job. Today mum would not be able to work at all. That is a fact. Is that what we seek to promote? I say to the Minister with great respect that we must review this.

In the short time that I have I want to speak specifically about one organisation that contacted me. I will provide some background on the organisation called Refuge and what its opinion is. I had not considered entirely the implication of the rule for families experiencing domestic abuse until I read a briefing by Refuge. It certainly opened my eyes to the harsh reality for families throughout the UK. I sincerely hope the Minister hears what I say about the facts of the case. I hope it will open Government eyes to the situation and how we must change it to address the issues in my constituency of Strangford and in every other constituency in the United Kingdom of Great Britain and Northern Ireland.

The briefing highlighted opinion based on experience in Refuge centres throughout the United Kingdom. There is vast experience in the service that supports more than 6,500 women and children on any given day. That is the magnitude of what Refuge does. The services that Refuge provides include a national network of 42 refuges, community outreach, independent advocacy, child support services, and the freephone 24-hour national domestic violence helpline run in partnership with Women’s Aid. It does tremendous work. Refuge highlighted the problem:

“Policies which limit what is typically women’s income will inevitably lead to difficulties for survivors of gender-based violence. The two child limit inhibits and deters survivors from fleeing their abusers, where some cannot even afford to travel to a refuge. Once women have decided to leave, the added financial barriers to rebuilding their lives lead some women to question their decision, and sometimes return to their abusers.”

That is unfortunate. We do not want that to happen and I know that the Minister would not want that to happen. Refuge further explained:

“The policy itself has also been used as an excuse to perpetrate abuse. Refuge has supported a survivor whose abuser attempted to induce a miscarriage with violence because they wouldn’t get money for another baby.”

We must not let that happen, nor would the Government agree to that. That example shook me to my core, and it should shake everyone in this House to their core. It is clear that consideration must be given to circumstances such as those, and the limit must be changed.

The Refuge research found that the two-child limit is forcing survivors and their children into poverty and increases financial dependence on perpetrators. The two-child limit and lack of adequate support also act as a deterrent for many women who do not want to leave, as they fear they will be unable to support themselves and their children. Women’s lack of economic resources when they decide to flee and the added financial barriers to rebuilding their lives leads some women to question their decision to leave, which for some leads to their return to abusers.

In conclusion, the experience of Refuge, Women’s Aid and other charitable institutions must be recognised and must drive a review of the policy. I wholeheartedly ask the Minister to consider that. Life is tough for families and tougher still for those in abusive situations. We need to do what we can to help, and imposing a two-child limit on help to enable women and families to be financially secure is not helping. If we listen to the charitable institutions, that policy actually does harm. We must make a change, and I look forward to hearing the Minister’s response.