Offshore Wind Farms: Health and Safety

Jim Shannon Excerpts
Monday 6th March 2023

(1 year, 7 months ago)

Commons Chamber
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Kenny MacAskill Portrait Kenny MacAskill (East Lothian) (Alba)
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A just transition was proclaimed when COP26 was held in Glasgow in 2021. While that global jamboree may have underwhelmed in so many respects, it was at the forefront in one aspect, for as we transition from fossil fuels to renewables, not just countries but businesses, communities and workers were to be supported. Entire industries require to be run down or forsaken and decent jobs given up, even lifelong careers; however, financial support was to be given to assist nations in that journey. As for workers, assurances were made that in the transition to net zero, they would be protected and long-held rights would be assured—justice for workers, as well as for our planet.

Those assurances were echoed outwith the global gathering, endorsed by the UK Government—they have since been championed by them in the green jobs taskforce—and chorused by the Scottish Government in their just transition commission. The rhetoric has been fairness and equity for those whose work would require to change. In Scotland and in the UK as a whole, the sector most affected is in the North sea. Though extraction of oil and gas is still required, we are on a journey to decarbonise and to transition to renewables; it is a transition, but it must be a just one. That sector has provided huge wealth and benefit to our society, and many who worked hard in those difficult and often dangerous conditions are now moving into renewables. Where once it was oil and gas, it is now becoming wind, wave and tidal—let us not forget that we recently had a Prime Minister who championed the UK as the Saudi Arabia of wind. It is a move that matters for our nations and will create wealth, as well as provide hope for our planet.

However, recent events in the North sea have revealed that while there is a transition in the economy, there is no just transition for those working in that new and growing sector—primarily in the maritime sector, where minimum wage law does not apply consistently and immigration law is used as a crude instrument to profit from seafarer exploitation. That, though, is a debate for another day. Tonight, I want to raise the issue of employment rights, especially the effectiveness of health and safety legislation that is too easily avoided. The lack of consistent and effective offshore safety legislation has been brought to light by a recent tragedy. We must hope that from that sorrow there will come some solace, with the existing legislative gap being remedied.

That legislative gap affects hundreds if not thousands of workers in the offshore energy supply chain, sailing out of not just existing offshore hubs such as Aberdeen or Dundee but Eyemouth, Montrose, Fraserburgh, Wick, Buckie, and other Scottish ports involved in delivering a successful offshore wind industry. It also affects those in England servicing energy installations in the North sea from Humberside, Tyneside, Teesside or East Anglia, along with those who will be embarking from Holyhead, Milford Haven, Mostyn and other ports in Wales. At present, the framework of statutory employment and seafarer rights on which that workforce will depend for their health and safety is not fit for purpose. A just transition was promised, and a just transition there must be for our maritime and offshore workers, as well as our planet.

Let me detail the tragedy which brought those failures to light. On Sunday 22 January, a man went missing from Valaris 121, a mobile offshore drilling unit being towed to Dundee and located some 98 miles from Aberdeen. Police Scotland investigated and while satisfied that no criminal investigation was required, had concerns regarding wider health and safety issues, which they referred to the Health and Safety Executive. This is something that the HSE would not normally investigate. That it did so here is perhaps indicative of the concerns that the police had raised, for it is not the same as an industrial accident on land. Neither is it similar to that on an oil or gas rig on the UK continental shelf, or even on a fixed or floating wind turbine in the UK exclusive economic zone.

HSE legislation has rightly been extended to cover workers’ rights, but it is incomplete and, as a result, workers are at greater risk. Mobile drilling units such as Valaris 121 are classified as a ship or a vessel when towed, meaning that they fall outwith HSE jurisdiction and within that of the Maritime and Coastguard Agency. Accordingly, while the HSE could and very likely would have carried out a full investigation had this incident been on land, a rig or even a turbine, it is restricted in what it can do in this instance. Likewise, a report that may have seen a fatal accident inquiry in Scotland or a coroner’s court hearing in England and Wales will not happen. Why is that? It is because it is not classified as a health and safety issue, giving the HSE authority. Instead, it is considered a maritime safety matter, and the MCA has authority and leads these investigations through the marine accident investigation branch.

Jim Shannon Portrait Jim Shannon (Strangford) (DUP)
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I commend the hon. Gentleman for bringing this matter forward. When it comes to health and safety, we are all concerned. Given the fact that the offshore energy created comes on land in Scotland and England, is there some role for the Health and Safety Executive, even though, as he has clearly outlined, the MCA takes precedence? If the energy is coming here and the workers work out of Scotland and England, is there not a responsibility?

Kenny MacAskill Portrait Kenny MacAskill
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As I will come on to say, the HSE does a good job onshore, on oil and gas and on turbines, but we require that its powers be extended. It is the agency. The MCA and the MAIB do a wonderful job in preserving life and ensuring wider maritime safety, but they are not qualified in industrial accidents; neither are employment laws within their remit. Fundamentally, and worsening that handicap in expertise, the MCA does not even have responsibility for the investigation, or jurisdiction over this incident. That is because it occurred outwith UK territorial waters, which extend to 12 miles. Beyond that distance, even when within the UK exclusive economic zone of 200 miles and on the UK continental shelf, incidents are subject to international maritime regulations, which prescribe that the investigating agency is to be from the vessel’s flag state. That is the country where the ship is registered.

Valaris 121 is registered in Liberia, a flag state managed in Virginia, USA. Accordingly, we have the absurdity of responsibility for an investigation and jurisdiction in enforcement for an incident leading to the death of a UK worker resting not with police or Crown, HSE or MCA, or even with an organisation based in Edinburgh or London, but in the flag state of Liberia, a country located on another continent. That country is one of the world’s largest shipping registers and is categorised by the International Transport Workers Federation as a flag of convenience. That means that employment and safety standards are at the international minimum and ship owners pay no tax to the Liberian state. That alone is a concern, as questions are sometimes raised regarding registration, let alone supervision.

Despite my asking numerous questions, the Government are unable to tell me how many vessels operating in the UK sector are foreign flagged. That should be a concern, as anecdotally it would seem that the vast majority are not registered under the red ensign, despite the Government’s obsession with wrapping things in the Union Jack.

The Lord Advocate advised that a multi-agency meeting took place to discuss the incident; it involved representatives of the Maritime and Coastguard Agency, the Health and Safety Executive, Police Scotland, the Crown Office and Procurator Fiscal Service and the Republic of Liberia. They discussed who would have primacy in the various investigations. I do not know this, but I assume that it was a virtual meeting; likewise, I do not know who the representative from Liberia was, or what level of seniority they had. The Lord Advocate explained further that Police Scotland remains in charge of the missing person enquiry, though, sadly, the body may never be recovered.

The Lord Advocate confirmed that the HSE remained the lead agency for the investigation in Scotland and the UK—but doing what, and enforcing which laws? Is that because there is no one here from Liberia to do it, and because the only folk nearby are from the HSE? Will we simply see a report filed and no further action taken? More importantly, how does this address the failure to extend health and safety legislation for the oil and gas sector to the new world of offshore wind, other renewable energies and nascent green technologies such as hydrogen, carbon capture and storage and liquefied natural gas?

Leaving aside the good intentions of the Lord Advocate and the diligent work by the HSE, let us recall where jurisdiction and enforcement lie: with the flag state, Liberia. Let me again set out why that is—all this has been confirmed through repeated parliamentary answers from several Government Departments.

Health and safety legislation applies to workers on land and operating in UK territorial waters, as the hon. Member for Strangford (Jim Shannon) mentioned; those territorial waters extend for 12 miles. The Health and Safety at Work etc. Act 1974 (Application outside Great Britain) Order 2013 applies to oil and gas, and even turbines, but that is insufficient for the new sector, as I shall detail. Valaris 121 is classified as a vessel or ship, which means that it is not subject to that legislation. As the tragedy happened outwith UK territorial waters, it is classified as a maritime incident—hence the involvement of the flag state, and the absurdity of Liberian jurisdiction. The issue of the absence of health and safety rights goes far wider than this incident or this vessel. It goes to the very heart of how the new sector to which we are transitioning operates.

As disclosed in parliamentary answer 139284 from the Department for Work and Pensions, under the 2013 order, health and safety protection applies to those operating in the offshore wind sector when on a “structure or machine”; the provisions apply to

“structures for the production of energy from wind”,

and to

“the operation of a cable for transmitting electricity from an energy structure.”

All well, one might think, but no; the legislation goes on to specifically state:

“Ships are not defined as energy structures for the purposes of this legislation.”

Therein lies the injustice of this North sea tragedy. It also shows that current provisions are incapable of providing the protections required for workers in this new sector. There are two clear reasons for that. First, few people work on a turbine; it is accessing, maintaining and supporting turbines that matters. Workers do not live on them, as they do on oil and gas rigs—or at least not yet, and if that changed, living accommodation would likely be confined to flotels, special operation vessels and other entirely separate solutions. If protection is provided only when people are physically working on the turbine, that totally ignores the nature of both the job and the sector.

Secondly, Valaris is classified as a vessel or ship, but she is not what most imagine a vessel or ship to be, as she is designed as a working platform. Some workers will be drilling, and others will be working while attached to a turbine. If they are physically attached to the turbine, then they are covered, but when they are travelling to the turbine or back, or even if they are proximate to it but not physically attached to it—that will likely be the bulk of the work—they are not.

The current legislation fails to take account of the operation of and working practices in offshore wind. It is an expanding and developing sector, which means that people are being denied cover in aspects of the work that lack protections. The danger is that this tragedy might be replicated, and oft times more, given the expansion of the sector. Health and safety protections that apply for oil and gas must be available for offshore wind and other renewables.

I have had discussions with Offshore Energies UK, which takes safety extremely seriously, as the House would expect, and it has indicated an acceptance of the gap and a willingness to assist in resolving the situation. To address it, the definition of energy structures under the 2013 order needs to be extended, and legislation to protect seafarers operating in the offshore wind sector needs to be enacted, but so far the DWP has failed to show any interest. Will the Minister agree to meet me and worker representatives to discuss this? There must be a just transition for our planet, but there must also be a just transition for workers, and this most certainly is not a just transition in the offshore wind sector.

Oral Answers to Questions

Jim Shannon Excerpts
Monday 6th March 2023

(1 year, 7 months ago)

Commons Chamber
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Lindsay Hoyle Portrait Mr Speaker
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No, but you did stand at the beginning. In that case, I call somebody who is always going to stand: Jim Shannon.

Jim Shannon Portrait Jim Shannon (Strangford) (DUP)
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Thank you, Mr Speaker. It is very important that all benefit fraud is taken on board, but many times in my constituency over the past few years, people have inadvertently filled in forms incorrectly and have found themselves having to pay money back. May I ask that compassion be shown to those who have inadvertently done wrong but realised they have to pay back, to ensure that they can pay back at a level they can afford?

Saving for Later Life

Jim Shannon Excerpts
Tuesday 7th February 2023

(1 year, 7 months ago)

Westminster Hall
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Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.

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Stephen Timms Portrait Sir Stephen Timms
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That is very important. We are expecting quite significant progress on the dashboard this year. The Select Committee will, I hope, be taking evidence about that in a session quite soon. That will be an important step, when it finally becomes available.

We recognised in our report that with the cost of living crisis now is not the right time to increase everybody’s pension contributions, but the ground needs to be prepared for increases in future. To quote the Financial Inclusion Commission, we need a “light bulb moment” to alert employers and the public to the gravity of the current under-saving problem. We need to start building a new consensus on what an adequate retirement income is and what is needed to deliver it.

Jim Shannon Portrait Jim Shannon (Strangford) (DUP)
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I commend the right hon. Member on bringing this forward. It is not just about the workers of today; we must start earlier. I know he has probably commented on that, but there have been numerous surveys. One, undertaken by Deloitte, states that younger people do not have a sound understanding of things such as ISAs, saving pots or pension pots. We must also note that some teenagers as young as 14 have jobs, so they should be knowledgeable about pensions and savings. Does he agree that consideration should be given to incorporating these matters into learning for life and work modules in schools across the UK nationally? Start it early, because that is when we build for the future.

Stephen Timms Portrait Sir Stephen Timms
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The hon. Gentleman makes an important point. It is helpful for people at school to develop an understanding of financial matters. Even a fairly brief exposure to these matters at school can be really helpful in forming an understanding that serves people well throughout their future working lives.

In their response to our call for work to start building this consensus, the Government said they had a range of metrics for adequacy, but that misses the point. Will Ministers work with others to identify what an adequate retirement income is, and will they then start laying the ground for sufficient saving to deliver it? The Department’s own analysis in 2017 was that 12 million people were under-saving—that is about 38% of the working-age population. Some 1.5 million were substantially under-saving. The Minister’s predecessor, the hon. Member for Hexham, told us that the number of under-savers was “up for debate” but “clearly substantial”. He said the Government would carry out further analysis and keep the Committee informed. When will the Department produce new estimates of the extent of under-saving? When will it publish its research on the pension saving issues for people with low incomes?

The 2017 auto-enrolment review recommended first lowering the minimum age at which a worker must be auto-enrolled from 22 to 18. Secondly, it recommended

“removing the lower limit of the qualifying earnings band”—

which is £6,240 at the moment—so that contributions are paid on the whole of somebody’s earnings. We heard there was “almost universal support” for thus helping people poorly served by the current system—in particular, low-paid or part-time workers—and we recommended doing so. In response, the Government restated their commitment to implementing the 2017 review in the mid-2020s, saying:

“We aim to bring forward legislation at a suitable opportunity and when parliamentary time allows.”

Well, the mid-2020s are approaching rapidly. We need legislation this year if that is to be achieved, and I would welcome any encouragement that the Minister can give us about the prospects for that.

A second big problem is tackling exclusion from auto-enrolment. As I have said, auto-enrolment has reversed the decline in the number of employees saving in a pension. By contrast, there has been a big fall in self-employed pension savings, from about 48% in the 1990s to 16% now. We have known about that for some time; indeed, the Department’s response to the 2017 auto-enrolment review said that it was

“a significant and complex strategic problem”,

which is a fair comment.

A lot of people giving evidence to our inquiry argued for mirroring auto-enrolment, using the tax or national insurance system to auto-enrol self-employed people. It is very disappointing that the Government have no plans to do either of those things. Instead, they say that they favour prompts and nudges through accountancy, plus opportunities from the Making Tax Digital programme, but none of that will be enough. Can the Minister tell us when the Department plans to report back on those efforts? I am afraid they are doomed to fail.

A key part of our report focused on the gig economy. The 2021 Uber case suggested to some people that auto-enrolment might be opened up to all workers, but there are big enforcement challenges. Uber gave us compelling evidence and told us about its auto-enrolment model for drivers, which it had invited competitors to join. None of them has done so yet. The Government say that many gig economy workers are already eligible for auto-enrolment, including fixed-term contract, zero-hours and agency workers. The Pensions Regulator ought to be securing employer compliance, but it told us about a “significant evidential burden”. It told us that employers routinely challenge it at every stage and that the guidance issued by the Department for Business, Energy and Industrial Strategy last July did not help.

Uber and the GMB trade union called on the Government to legislate for better enforcement, with a new body for that purpose. We repeated the recommendation that we made in two previous reports for an employment Bill to address these issues. We have no idea why that Bill has not been forthcoming. In their response, the Government referred to their backing for five private Members’ Bills on a range of employment issues. Those are all no doubt helpful, but none of them helps with delivering auto-enrolment in the gig economy. We called for the Department to work with the Pensions Regulator to estimate, first, how many people in the gig economy should be workers for auto-enrolment purposes and therefore should be auto-enrolled, and, secondly, what resources or powers the Pensions Regulator needs to make sure that employers comply with their obligations, which they are most certainly not doing at the moment. I hope the Minister will be able to tell us something about what the Government will do to stop people working in the gig economy missing out on their entitlement.

The third important gap was referred to in evidence to us from a number of bodies, including Age UK, which told us the gender pensions gaps remains a serious problem. It reflects differences in labour market participation and hits women at retirement, when there is very little they can do about it. Nobody in government produces any data on the gender pensions gap, so the Prospect trade union produced a definition. It suggested the definition should be the percentage difference in average gross pension income for men and women receiving the state pension, and it currently estimates the gap to be 37.9%. There has been very little progress in reducing that since Prospect started reporting five years ago.

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Nigel Mills Portrait Nigel Mills (Amber Valley) (Con)
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It is a pleasure to serve under your chairmanship, Mr Hosie. I congratulate the Chair of the Select Committee, the right hon. Member for East Ham (Sir Stephen Timms), on securing the debate. As a member of the Backbench Business Committee, I thank him for applying for time for us to have a debate on this important topic.

Pension debates are bit like buses: we have had none for ages, and now we have had three in the last four sitting days, so we can certainly explore the topic thoroughly. By some fluke, we have ended up with all the key planks of pensions status being considered over the last few days. We looked at the age at which people should get their state pension and, last night, we looked at increasing pensions to keep them in line with inflation, which is key plank. If we are going to have a model where the state pension should be enough to keep people out of poverty in retirement, and after that is up to people to save for the kind of living that they want, we need to ensure the minimum floor is in the right place. We should welcome the fact the Government did that last night.

However, that leaves our whole pension-saving approach relying on how much people and their employers save for their own retirement. It is almost impossible to avoid the conclusion that people are simply not saving enough. The vast majority of people who work now are not saving enough, and the younger they are the more likely they are not to be saving enough.

The situation is stark. Around 28% of employees are still in defined benefit schemes, mainly in the public sector. Some 87% of those get an employer contribution of over 12% of their pay. However, for the 51% of people in defined contribution schemes, that number falls to 9%, so 91% of people in defined contribution schemes are not getting an employer contribution that is anything like the level that they used to have, or the level that we get.

The situation for the self-employed, as the Chair of the Select Committee set out, is even worse, as only 16% of self-employed people are saving anything like a material amount in a pension. Despite the incredible growth in the employed having a pension, that number for the self-employed is down from 48% 20 years ago, so they are going in the wrong direction. I suspect that is mostly because there is now a lot more self-employment in the gig economy. We can argue whether they are really self-employed, but they are the ones without any pension provision at all. There is clearly a huge problem, and we need to find a way to solve it.

Auto-enrolment was a tremendous start, getting people who were not saving anything to at least save something. The problem, of course, is that they are not saving anything like enough, and they probably do not even know that. The reason why auto-enrolment was chosen and was such a great success was that it did not require any engagement from the individual. In some ways, engagement is a bad thing, because if they do not know that this money is being taken from them and put in a pension scheme, they will not opt out.

We are trying to build a model that requires engagement to boost savings levels on a model where success was based on not having very much engagement. That is a real problem that we must wrestle with carefully. We do not want people to start opting out, but we do want them to realise that they are not going to have much quality of life in retirement if they do not do something materially different.

That brings us to two initiatives. The first is the dashboard and the second is access to guidance. There is a general consensus that the dashboard will be great, and that it will move us forward by enabling people to understand how much they have got in savings. It would be helpful if the Minister could give an update on when people will have live access that enables them to see at least the majority of the pensions they have saved for in their life. I think we would all accept that it is better to have it later than to have something that is rubbish, but let us not have perfection delay it too far. There probably will be some pensions schemes that will not be able to meet any kind of realistic starting date soon, but they will have so few savers in them that there will not be a problem for the vast majority. I hope that some time next year, people will have live access so that they can find out how much pension saving they have.

Having spent years working out the mechanics and how to make the system safe, what we really need to fix is what people will see when they go on the pensions dashboards. Will the Minister set out the process and her vision for it? People need a clear statement of what they have already saved and some objective, fair and consistent comparison with what they need to have saved, what other people have saved by that time and what they are on track to achieve. Otherwise, they will just see a large-looking pot of money. For someone with no other savings, having 20 grand in their pension might look like they are rich and everything is going to be fine.

Jim Shannon Portrait Jim Shannon
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I want to pick up on the point about national insurance contributions, and ladies who thought they were on a pension scheme that would reward them when they reached pension age. As an elected representative, I have had a number of constituents come forward over the past few years to tell me that, as they were part-time workers, their national insurance stamps were paid only for a certain period of time. That means that when they reach pension age, their pension is not there for them, although their understanding was that they would have a pension. Does the hon. Gentleman agree that for ladies of the generation now coming to pension age who will not have a pension because they have not paid their national insurance contributions to their full entitlement, the Government should make people more aware so that they can take steps early?

Nigel Mills Portrait Nigel Mills
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Yes, the hon. Gentleman is right that we need people to understand if they have gaps in their state pension record. That can be found relatively straightforwardly on the state pension system. The dashboard will need to show the state pension entitlement. I urge ladies who might be in that situation to check, because they ought to have got credits while they were receiving child benefit. They might not have been working, but they had other caring responsibilities. It is always worth checking whether they have entitlements of which they may not be aware, and which the system has not picked up.

Back to my theme on the dashboard: for the dashboard to have the impact we want—for people to change their saving behaviour—the information needs to be there. It needs to say, “Yes, you have saved this amount, but most people by your age have saved this amount. If you want to have £10 grand of extra income in retirement over your state pension, you are not on track to do that, and you need to increase your saving.” We need to find a way to give people a context for their savings information. Otherwise, we will have a meaningless number that might not drive behaviour. It might even perversely make people think they are better off than they are.

It is important to understand what the Government and the regulators will allow to be shown and want to be shown. We must ensure that the data is objective, fair, accurate and preferably consistent, because we do not want people to get slightly different pension target across six schemes; they should be told the same information so they can make an accurate comparison.

The second area is the thorny issue of access to guidance and when people should have it. The Work and Pensions Committee has argued with the Government and the regulator about that for a few years. I hope the noises coming out of the Government about trying to get people who are not in economic activity back into work, and about wanting to do more than a midlife MOT or a financial review, mean that they are moving our way now, but the take-up of Pension Wise has been far lower than everybody wanted it to be. The Minister at the time said that Pension Wise take-up should be the norm. I am not sure how 8% or 14% take-up could be described as the norm; I would have thought that the norm would be just below half, or something. Perhaps the Minister can tell us what she thinks the norm is in that context.

There is no room for doubt: even with the stronger nudge that the Money and Pensions Service is trialling, Pension Wise will not get anywhere near that take-up. It is absolutely right that people should have access to that service when they are about to do something with their pension pot. It is a decision that they will not be able to change for the rest of their life, and if they get it wrong, it could be disastrous. Equally, given that we have so much unused take-up, can we not find a way of getting people to access the scheme earlier, soon after their 50s? That would allow them to get a proper review for half an hour or an hour and have all these things explained to them, so they can see what their situation is while they still have a chance to change it, rather than when it is too late? I am old enough to remember “Bullseye”—at the end of the show they used to say, “Here’s what you could have won.” Having a pension review at the age of 65 and a half that says, “Here’s what you could have had if you had saved a bit more,” is not all that helpful to people, so they should get that intervention earlier.

I was a little disappointed by the Government’s response to the Work and Pensions Committee. They said they did not want to go forward with a trial of auto-enrolling people into a Pension Wise appointment shortly after their 50th birthday. I understand that some pension schemes are willing to put their members forward in some sensible, random way so we can find out whether that works. All we are asking the Government to do is to allow MaPS and regulators to commission one of those trials so that we can see whether enrolling people into an appointment in their early 50s gets positive feedback and changes their behaviour. If it does not work, fine—we will have to find some other way—but it looks to be a low-cost way of seeing whether an intervention might work. It would use capacity that is already there and is not being taken up, and it would be a powerful way forward.

I hope that the Minister will be a bit more supportive than her predecessor. If we want to work out how to give people some kind of nudge, hint or push at an age when they can make a change, that is the best idea out there. If the Government are looking for ideas to get people in that age bracket to come back into work, because they have not saved enough for retirement but they think they have, a half-hour or hour session with an expert who can explain what they really need and what they have really got may be the best way of doing it. The online midlife MOT that the Government have produced contains some very useful information—I am not saying it is a bad thing—but it will not change behaviour. It is not an intervention that will really make a difference.

Social Security and Pensions

Jim Shannon Excerpts
Monday 6th February 2023

(1 year, 7 months ago)

Commons Chamber
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David Linden Portrait David Linden
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Yes, I think we are going to have a political “Lady and the Tramp” moment where we actually agree on this. There will be spaghetti across the House. The hon. Gentleman is absolutely right. We need to be in a situation where we encourage all our constituents to take up pension credit. Having met the Minister fairly recently—

David Linden Portrait David Linden
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I will give way to my very honourable Friend.

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Jim Shannon Portrait Jim Shannon
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I thank the hon. Gentleman for giving way. In my constituency, my staff and I encourage all the pensioners we meet every week to look at pension credit. Some will qualify and some will not. Today, Citizens Advice came to me to say it is going to start a project in Newtownards in my constituency and I look forward to that unfolding. Does he feel that the Government should focus attention specifically on pension credit, because there are many people out there who would apply if they knew more about it?

David Linden Portrait David Linden
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I am grateful to the hon. Gentleman for his intervention. I think I am unique in that I am one of the few people who serve as a Member of this House who has been in his constituency office and spoken to his constituency staff—some of us go on holiday to places like Newtownards. He is absolutely right. I ask the Government to put just as much effort into advertising things like pension credit take-up as they do into propaganda-like billboards in our constituencies about levelling up. If that amount of resource were put into advertising pension credit, perhaps we would see it go further.

The British Government’s assault on pensioners does not just extend to the pitiful state pension. Let us not forget that the Tories also scrapped free TV licences for over-75s, including in Broadland. People who watch on and see the Westminster incompetence of this place will know that pensioners across these islands have already been short-changed by £6,500 on average due to state pension underpayments. Peter Schofield, the permanent secretary at the DWP, recently told our Select Committee that—

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Jim Shannon Portrait Jim Shannon (Strangford) (DUP)
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It is a pleasure to speak in this debate and add a Northern Ireland perspective, as I always try to do both here and in Westminster Hall. Right hon. and hon. Members have set out well the state of the country’s finances for many people. I wish to put on record, and I think it is right that I do so, my thanks to the Government, and the Minister in particular, for coming forward with proposals that help.

I want to make four points in my contribution. A Presbyterian sermon is three points, and I will make four; I am not sure whether that makes my speech a sermon, but it is Presbyterian plus one.

John McDonnell Portrait John McDonnell
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I think that makes you a Catholic, Jim!

Jim Shannon Portrait Jim Shannon
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You be careful, boy.

I am very pleased to add my contribution to the debate. Inflation and the cost of living are really hurting people in Northern Ireland. The right hon. Member for Hayes and Harlington (John McDonnell) set the scene when he referred to child poverty and adult poverty in Northern Ireland, and he was right. I have a staff member who deals with nothing else but benefits, five days a week, and other staff members fill in. That gives an idea of the poverty and disability issues in Northern Ireland and why it is important for me to sow into this debate.

While I thank the Government, and the Minister in particular, for what they have put forward, and it is good to have that, I must first make the point from a Northern Ireland perspective that—as has probably become accepted in this House after so many debates—the Northern Ireland protocol has increased our outgoings substantially more than those anywhere on the mainland UK. The haulage costs and the prices of covering payroll have lessened the numbers of suppliers who will ship to Northern Ireland. That being the case, it becomes much harder to source competitively priced items. While this debate is about how we can help people on social security and improve their standard of living, we must recognise that costs in Northern Ireland are higher than anywhere else.

I read an interesting report back in October in the Belfast Telegraph that stated:

“Average weekly grocery spend is the third highest in the UK for shoppers in Belfast and Derry, according to new research by financial hub Admirals Group.

Shoppers in Northern Ireland’s two biggest cities are reportedly paying £77.70 on average for their weekly grocery shop in 2022, forecast to rise to £179.06 by 2030”—

well over twice the price. The report added:

“Only shoppers in London and Southampton are said to be paying more for their weekly shopping”.

That illustrates clearly that we in Northern Ireland are paying more. When it comes to social security and the benefit cap, we must register our concern that it is more costly to live in Northern Ireland than in other parts of the United Kingdom.

The lowest prices were said to be in Leeds and Sheffield—so at least they will have some benefit—and the same report stated:

“In 2021 the average British household spent £69.20 on groceries each week…If inflation were to remain constant at 11%, by 2030, the average grocery shop for a UK household could cost £177.02 per week, £771.28 per month and £9,204.84 per year.”

Those on benefits in Northern Ireland face a real anomaly. It is dearer to live in Northern Ireland; it is dearer to warm our homes and it is dearer to buy our groceries. That means that someone on benefits in Northern Ireland cannot expect their money to go as far as someone in one of the other constituencies in the UK represented in this House today.

While it is right and proper that benefits are uplifted to enable people to buy the bare necessities, the protocol means that those are not even covered by this uplift. The girls in my office referred almost double the number of people to the food bank coming up to Christmas this year, an indication that for many people any additional pressure on finances, such as to buy a small gift or a special meal, just cannot be managed.

The first Trussell Trust food bank that ever came to Northern Ireland came to Newtownards in my Strangford constituency. It has found a place and it is doing excellent work, and I support it very much, as indeed does the community. I am one of the referral points, so when it comes to understanding why people are going to food banks I can categorically state that it is not just those on the minimum wage, but those in the middle class, who I refer to as the working poor. The extra referrals, and we have had somewhere in the region of 30% or 35% extra just this last Christmas, tell me not only that the work of the food bank is important, but that there are different people going there. Again, that comes down to the cost of living, especially for those on benefits in Northern Ireland.

I am thankful for the food bank and to the social supermarkets, which are also doing fantastic work in seeking to help people make their money stretch further by teaching budgeting and different ways of purchasing. However, money is not elastic—it can only stretch so far. It is clear that the Government must bridge the gap, and by the same token we must lower the threshold to allow more people to access the help they are entitled to.

Having posed my first question to the Minister on behalf of the citizens of Northern Ireland about how they are finding it harder to beat the inflation that makes foodstuffs and heating more expensive there, I have a second question for him. For example, someone who is £5 above the threshold for universal credit will have missed out on the cost of living payment and will need the same help to pay the same amount for groceries as someone who is just below that threshold. We often find people who fall between two stools, and clearly those people do, so I want to make the point, as others in have in this debate, that they need help. I know the Minister always tries to respond, so I look forward to his response.

My third point is that I will hopefully bring a ten-minute rule Bill to the Floor of this House at some stage in the near future to make meaningful change to the child benefit threshold. Those disingenuous thresholds, which bear no relation or relevance to the cost of living and life, must be reviewed, and the same consideration must be given to the benefits threshold. We had a debate in Westminster Hall last Thursday, led by the hon. Member for Linlithgow and East Falkirk (Martyn Day), in which he raised a clear issue: two people in one house can earn £49,000 each, or collectively £98,000, and their child benefit will not change. However, one person in another house who earns £52,000 and whose partner earns £10,000, so that they earn £62,000 collectively, will see their child benefit change. There is clearly an anomaly in the threshold, and there needs to be a change of direction and some clarity to ensure that those who find themselves disadvantaged in that way are taken care of.

I make a special request, as others have done. Last week, we had a Westminster Hall debate on cystic fibrosis and living costs. Those with disabilities, such as those with chronic obstructive pulmonary disease or those who need oxygen 24/7, have higher costs. I quote some figures from that debate:

“People with CF have higher food bills because they need a higher calorie intake to maintain a healthy weight, and higher energy bills because they need to keep their homes warm to stave off lung infections and they may need to power an additional fridge to store sterile medications or essential medical devices such as ventilators.”—[Official Report, 2 February 2023; Vol. 727, c. 169WH.]

While this 10% increase is welcome, I ask the Minister very respectfully what can be done for those people with disabilities who are feeling the pain more than most.

In my opinion, and I believe others agree, a society is always marked by how it looks after those who are less well off. Our job in this House is to ensure that those who are finding these times particularly difficult—there are many of them across the whole United Kingdom of Great Britain and Northern Ireland—are looked after. That is my fourth request of the Minister.

While I welcome the increase, we are missing out those middle-of-the-road working people who are struggling and scraping by, week to week. I ask the Government to make their next priority the squeezed middle class, and those who need help and just cannot get to the level they would expect.

Child Maintenance Services

Jim Shannon Excerpts
Tuesday 17th January 2023

(1 year, 8 months ago)

Westminster Hall
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Mims Davies Portrait Mims Davies
- Hansard - - - Excerpts

Yes. To be clear, yesterday afternoon we went through the review step by step and took on board some of the feedback. On recommendation 10, there is some feedback with regard to timelines and implementation that I need to take to my noble Friend to try to unpick some of the questions that were raised yesterday and have been raised during this debate. On the review and the taskforce, we are aware of what has been reported today. I am keen to look at that because, again, it has been picked up today. I hope that clarifies things for the hon. Gentleman. [Interruption.] Yes and no, then.

As I say, in the Government’s response we were keen to ensure progress, to ensure that parliamentary scrutiny and engagement with stakeholders occurred, and absolutely to look to what the hon. Member for Motherwell and Wishaw mentioned. I hope that we will find, in essence, a middle way. I cannot speak too roundly for my noble Friend, but I am very keen to engage on this matter.

On the wider recommendations, I am engaging in this place on the question of amending the legislation to prevent direct pay from being used as a form of coercion and control. The removal of the requirement to report domestic abuse to qualify for the application fee waiver has been accepted. On piloting the use of dedicated caseworkers for complex domestic abuse cases, that is absolutely something that we will bring forward. In addition, the hon. Member for Caithness, Sutherland and Easter Ross asked about reviewing the calculation formula to ensure affordability for low-income paying parents and including a broader range of agencies in CMS training, as did many of the charities and organisations I spoke with, and Dr Callan recommended that too.

Crucial work is being done both in the review and through the two private Members’ Bills mentioned by the hon. Member for Westminster North. The Bill promoted by my hon. Friend the Member for Hastings and Rye, which is supported by the Government, will help to ensure that anyone using the service who has suffered any form of domestic abuse can feel safe and be reassured that their case will be handled sensitively and efficiently.

I would like to outline some improvements we have made in the CMS area, but I want first to cover a few other points that have been made. The hon. Member for Caithness, Sutherland and Easter Ross mentioned training. The CMS reviewed its domestic abuse training in 2021, with input from Women’s Aid, but it has been challenged about whether that is enough to ensure that our caseworkers are fully equipped to support parents in these multiple and challenging vulnerable situations. Some aspects of the training teach caseworkers how to recognise the various forms of domestic abuse, as well about checking on previous reports of abuse and providing appropriate signposting to domestic abuse support groups.

Following the independent review of the ways in which the CMS supports survivors of domestic abuse, the CMS will review the training to ensure that it is up to date and fully in line with best practice. The CMS also uses a complex needs toolkit for its caseworkers, which includes clear steps to follow to support customers who are experiencing abuse. The CMS will continue to review and evaluate the effectiveness of the guidance and training with regard to domestic abuse.

Issues around enforcement have been raised in the debate—certainly by the hon. Member for Weaver Vale, who mentioned deductions from earnings. Deductions from earnings orders have proved efficient and effective as a tool for collecting child maintenance. In the quarter ending September 2022, almost half of child maintenance —£29 million—was collected from paying parents who had a deduction from earnings order in place at the end of the quarter. We are working closely with employers to ensure that they understand their legal obligations and to help them to collect and pass on payments to the CMS much more quickly.

On minimum payments, operating a scheme in which the Government guarantee child maintenance payments is not the intent of CMS policy. The role of the CMS is to encourage parents to take financial responsibility for their children. However, as I say, we are often in a very challenged place when managing this issue. In the UK, CMS payments do not have any impact on the money received from other benefits, which has a positive impact on child poverty.

Jim Shannon Portrait Jim Shannon (Strangford) (DUP)
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I apologise to you, Mr Twigg, and to the hon. Member for Caithness, Sutherland and Easter Ross (Jamie Stone); I was in the main Chamber for questions and could not be here earlier, although I wanted to be here and I had a speech prepared.

May I ask about how we chase those who are reluctant to make child maintenance payments? In most cases they are men, and in many cases they are self-employed. I know of cases in which they return end-of-year statements that show minimal income yet live in half a million pound houses—paid for—and have top of the range cars that are worth perhaps £60,000. Their assets and quality of living would indicate that their income is far above what they declare. Is there any way that those cases can be looked at? I apologise to the Minister for not being here at the beginning of the debate.

Mims Davies Portrait Mims Davies
- Hansard - - - Excerpts

The hon. Gentleman was clearly double parked this afternoon—in two places at once. I will come on to his point; I will try to cover that for him.

The Child Support Collection (Domestic Abuse) Bill, the private Member’s Bill promoted by my hon. Friend the Member for Hastings and Rye, would amend the grounds for transferring people from direct pay to the collect and pay service in order to allow victims of domestic abuse to be transferred to collect and pay, and consideration is being given to exempting parents transferred for that reason from collection charges. The Bill will have its Report stage on 3 March, and I encourage Members to participate in that debate if they are able to.

Let me turn to unearned income, which has been mentioned this afternoon. The Government’s response to the consultation “Child Maintenance: modernising and improving our service” was published in March 2022. Currently, for certain taxable income a parents earns, such as income from property or investments, either parent must ask for that to be taken into account in the calculation. Our intention is to change the approach so that unearned income is identified at the initial case set-up stage and included in the calculation at that point. That will provide a more accurate reflection of the paying parent’s overall income; as the hon. Member for Strangford (Jim Shannon) alluded to, there are certainly concerns that that is not always the case. The change will require amendments to the legislation that governs the Child Maintenance Service, and we are exploring how that could be implemented. I shall come on to enforcement.

Hon. Members raised the issue of the 4% collection fee for the receiving parent, which is a contribution to the cost of using the collect and pay service. The fee is taken only from any maintenance received. The CMS often has to take action to secure child maintenance payments in the collect and pay service. There is a balance here, with the taxpayer subsidising a difficult service, but the fee acts as a nudge to encourage people to consider whether a voluntary arrangement can be made, whereby there are no fees to pay. However, I have heard hon. Members’ concerns about the fee.

With regard to the NAO findings on effective arrangements, the CMS is designed, as I have said, to encourage people to agree their own family-based arrangement. Some 40% of parents are now doing that, compared with just 29% before the CMS was established. This is a better system for children and families, and for the taxpayer. It is vital that we continue to push for such engagement.

Jim Shannon Portrait Jim Shannon
- Hansard - -

I again apologise for not being here to get the full gist of what the Minister and others have said. Over the years, I have had some ladies come and tell me that their husband has transferred their house, their rental properties and everything else into his mum’s and dad’s names; the husband has actually moved out of the property that they were living in to live with their mum and dad. Quite clearly, that is an abdication of responsibility by those men. Is there a mechanism within the changes and the new legislation that the Minister has outlined to ensure that those people who blatantly and systematically try to avoid making payments for their children can be caught?

Mims Davies Portrait Mims Davies
- Hansard - - - Excerpts

I thank the hon. Gentleman for his intervention and I completely agree with him. The lengths that some parents will go to are astounding, which is why we support the work by my hon. Friend the Member for Stroud (Siobhan Baillie) on this issue.

At the end of the day, we all should be responsible parents who do the right thing. We know that the vast majority of parents want to do the right thing and do it. However, it is absolutely clear that some people are prepared to do something very different. We need to ensure that child maintenance is paid. That is appropriate, because we know—I have reiterated this point today—the difference that it makes.

Where a parent fails to pay on time or in full, the CMS takes a proportionate approach. Importantly, it first tries to re-establish compliance. That gives the parent the opportunity to get back on track and to prevent the build-up of arrears. There are two different sorts of cases—those where people actively avoid payment, and those where people find that their circumstances change—and we need to be cognisant of that.

Where somebody consistently refuses to meet their obligations towards their children, the CMS will be robust in using enforcement measures. As I have said, it has powers to make deductions from earnings, bank accounts and certain benefits. It can also use enforcement agencies—previously known, in old language, as bailiffs—to take control of goods, and it has the power to force the sale of property. Baroness Steadman-Scott encouraged the CMS to be bold in using its enforcement powers and to leave no stone unturned to ensure that youngsters are adequately protected, supported and provided for. The hon. Member for Strangford outlined very important action that the CMS has to take, although it must be balanced in its approach. I know that some paying parents whose circumstances change wish for that to be understood more fully.

We are absolutely committed to the highest standard of engagement in terms of the customer experience, which has been raised today, with a focus on getting back to people and communicating better, and making digital improvements so that people can update us and engage with us more quickly. The phone line has been mentioned today, but customers can also apply online; indeed, over 90% of applications are now made digitally, which makes it easier for parents to access support. There is now an online service—My Child Maintenance Case—that allows customers to access and maintain data themselves. Parents can now report 20 different changes of circumstances online, and automation means that it will be much quicker for them to manage their arrangement.

Key changes have also been made to help people arrange child maintenance. A more accessible, 24/7 digital service helps customers try to work out the most suitable arrangement for them. It is a more modern, flexible service for the majority of customers and ensures that our caseworkers are able to focus on the most complex cases and the ones with which parents need more support and engagement.

In this conflicted parental environment and in supporting troubled families, customer satisfaction is key. We are reviewing the customer service framework through the digitalisation and transformation programmes. There is a focus on gathering customer insight and perception. Anecdotes from Members of Parliament are key, but it is important that we use that voice and change things in real time more quickly. The CMS recently piloted real-time customer feedback to better understand the customer experience and is now supporting a wider roll-out. We are focused very much on efficiency and improvements, and of course the review that I have responded to today and the two private Members’ Bills will help.

Jim Shannon Portrait Jim Shannon
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rose

Mims Davies Portrait Mims Davies
- Hansard - - - Excerpts

I will take one final intervention and then I will try to conclude.

Jim Shannon Portrait Jim Shannon
- Hansard - -

The Minister is being most generous—I want to put that on the record. Another concern that my constituents tell me about is the time it takes for an investigation to start and conclude. In the changes that the Minister has referred to, which I welcome, by the way, will a timescale be put on an investigation so that a lady who applies for a benefit can say, “In three months’ time”—or whatever the time is—“I will have this concluded”?

Mims Davies Portrait Mims Davies
- Hansard - - - Excerpts

That is a really important point, and I will take it away with me. This is often something that we hear from constituents in the process: “How does it work? How long will it take? What can I expect?” Certainly when it comes to supporting families, I can understand the point that the hon. Gentleman raises.

I want to conclude by saying that I appreciate all the insights and engagement from across the Chamber this afternoon. The response to the CMS independent review has been roundly welcomed by the sector and many of those who have heard some of our response today. I look forward to engaging further. I can assure hon. Members that although responsibility for the policy sits predominantly in the other place, there is interest across both Houses. That will not change as we try to support and help youngsters and families in these difficult times.

I thank Members for the opportunity to respond to this debate. I have tried to cover most of their points and I thank them for their constructive and helpful feedback. The DWP and the CMS will follow reports by the all-party group and other with great interest, and will always do what is best to support families and youngsters to get the best opportunities by working together.

Responding to MPs’ Queries: DWP Performance

Jim Shannon Excerpts
Tuesday 6th December 2022

(1 year, 10 months ago)

Commons Chamber
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Peter Grant Portrait Peter Grant (Glenrothes) (SNP)
- Hansard - - - Excerpts

Before I begin, I hope it is in order, Madam Deputy Speaker, for me to place on record my hearty congratulations to my hon. Friends the Members for Aberdeen South (Stephen Flynn) and for Paisley and Renfrewshire South (Mhairi Black), who have just been announced as the new leader and deputy leader of the SNP group here in Westminster. I offer my congratulations to both of them.

I am grateful to have the opportunity to raise in the House the woeful performance of the Department for Work and Pensions in responding to queries from Members of Parliament. I was particularly keen that the debate title should cover not simply correspondence, but all forms of communication—or non-communication—because the Department’s repeated failure to put in place a reliable and efficient way for MPs and our caseworkers to phone with urgent inquiries and speak to someone who actually understands the case is a recurring theme that I know causes immense frustration for MPs of all parties.

Let me quote just one of the many constituency cases I could refer to. Alison has a job, but it is low paid, so she gets universal credit and should have got her cost of living payment in July. It did not arrive. That, remember, is money that the Government have accepted she absolutely needs in order to make ends meet. By early September, Alison contacted my office in desperation. She told us that she had stopped the payments for her rent, council tax and internet service, that within 10 days she had to cancel her car insurance and that she was being referred to sheriff officers for council tax arrears.

My caseworkers went through the whole rigmarole of phoning and emailing all the right addresses at DWP, but they could not speak to or correspond with the people who were responsible for making Alison’s payment. None of the people my staff were allowed to speak to had any authority, even to ask for her payment to be prioritised. Two promised payment dates were not kept. Alison eventually received the money she was owed on 28 October, over three months late.

It is not the fault of overworked DWP staff that they could not do anything to help; it is the fault of the way the DWP has chosen to make it unnecessarily difficult for MPs to do our job of providing support to constituents in need. For Child Maintenance Service casework, our staff have access to an MP hotline and a dedicated email address. Until 2020, there was an MP hotline for working-age benefits such as jobseeker’s allowance, employment support allowance and income support. That gave my caseworkers and others a direct line to the local, regional and national complaints resolution team—based in Glasgow in this case—where staff had access to the various benefits systems and could contact other DWP departments with queries and to chase responses. The team was also contactable directly by email.

With the introduction of universal credit, that hotline became less useful—although the DWP staff at the other end continued to do the best they could. Eventually, the hotline for working age benefits just disappeared altogether—but the casework certainly did not. The current confidential list of all MP hotline contacts says in big bold letters, near the top of the DWP section:

“There is no MP hotline for Universal Credit”.

The question has to be: “Why not?” Similarly, the retirement services hotline was removed, although it was reinstated earlier this year after a lot of pressure from my office and a great many others. Sometimes, if the wheel squeaks often enough, it gets the grease.

Those hotlines and dedicated email addresses are not a perk for Members of Parliament; they are not some sort of freebie. For our constituency staff, whose workloads are heavy enough as it is, there is a massive difference between being able to phone and speak now to someone who understands the problem and can access the system, look at the details of the case and get someone to fix it straightaway, and waiting for an hour or more to speak to someone who is not allowed access to the constituent’s full record and who, because of their lack of experience or because their specialism is elsewhere, probably would not understand the complexities of the case even if they were allowed to see the details.

Jim Shannon Portrait Jim Shannon (Strangford) (DUP)
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Will the hon. Gentleman give way on that point?

Peter Grant Portrait Peter Grant
- Hansard - - - Excerpts

I believe there would be major repercussions—Parliament would probably go into meltdown—if I declined to take the intervention.

Jim Shannon Portrait Jim Shannon
- Hansard - -

I commend the hon. Gentleman for securing the debate. Although it is sometimes frustrating when our queries are not answered, we must appreciate all the highly skilled workers working in Government Departments and external agencies. Does he agree that to deal with delays in correspondence, we must ensure that those employed within Departments are able to deal with all issues presented to them, with the knowledge and ability to prevent delays and get queries answered?

Peter Grant Portrait Peter Grant
- Hansard - - - Excerpts

That is absolutely correct. I would not for a second want my comments to be taken as any sort of slight about the dedication and professionalism of staff at the DWP. There are simply not enough of them, and they do not have access to the information that they need. In fact, I would like to flag up some of them for special praise, but I am worried that the way in which they are being so helpful to my caseworkers is maybe beyond what the DWP thinks they should be doing, and I certainly would not want to get them into trouble for being too good in helping my constituents.

The way my office operates is that, when necessary, everyone in my staff takes on casework, so when I refer to my caseworkers, I mean everybody on my staff team. Every one of them does a fantastic job—as do the caseworkers of MPs right across the House—often delivering truly life-changing results for vulnerable people. I know that my constituents value them almost as much as I do—they could not value them more. But their performance is dragged down when they cannot get the answers that my constituents deserve.

Alan was diagnosed with a chronic and incurable medical condition, and was advised that he should claim employment support allowance, which he did online through his universal credit journal. He contacted us when he got no response. My caseworker emailed the only available email address—the generic DWP correspondence address—on 25 March, and on 26 April, 3 May, 25 May and 7 June. During that time, Alan told us that he had finally got his ESA but that it was not backdated. The DWP knew that we had been in contact about this, but it never came back to my office to tell us that Alan had got the money—well, he did. The DWP came back to us in November, months and months later.

When we got a reply on 21 July to my first two emails, whoever sent the reply had not been told about my three other emails, so I got a reply in July that did not mention the other emails I had sent—two in May and one in June. They explained how Alan’s payment had been calculated. It turned out to be correct. We thought he had been underpaid, and in this case we got it wrong and the DWP got it right. If there had been a properly supported ESA hotline we and more importantly Alan would have been told exactly how much he was entitled to and exactly when it would be paid in a single phone call almost four months earlier.

In response to Alan’s case and many others, I drafted a letter to the then Secretary of State asking for the ESA hotline to be reinstated. Some 63 MPs from, I think, every party represented in the House signed it, and I am grateful to each and every one of them. The letter went in on 29 July. Two reminders and nearly five weeks later we got a response, which stated:

“It is currently not possible to provide a date upon which the issue of the MP Hotline might be resolved.”

After I had applied for this Adjournment debate, my office received a copy of a letter dated 23 November 2022 referring to the joint letter of 29 July and stating that the working-age benefits hotline had been re-established. I did not remember seeing that letter come in—that is nothing unusual; I often do not—but what was unusual was that no one in my office knew anything about it, and they do not let these things slip.

I checked with colleagues who I knew had co-signed our letter. They confirmed that the reply had been sent out by email to all the joint signatories, but when they looked at the email circulation list, my name had been missed out. I do not know who else had been, but the person who initiated the letter had been omitted from the circulation list for the reply. The DWP had forgotten to tell me about its improved communication with MPs.

Sure enough, the latest online edition of the list of MP hotlines shows an “MP hotline for working-age queries only”. It is open for a three-month trial. We are already nearly one month into that, and to the best of my knowledge the DWP has not told anyone about it apart from the 63 MPs—well, 62 excluding me—who signed my letter. About 10% of MPs have been specifically alerted to the existence of this hotline. It will be no surprise if it does not get much use if nobody knows about it.

One firm request to the Minister is to give the new hotline a fair trial and to make sure that every MP is told about it in a simple dedicated email. The Government should not just assume that our caseworkers will check the intranet every time they want to speak to a civil servant or Department, just in case a new hotline has been established since yesterday. They should make it a proper trial of at least three months in real time after they have told MPs about it, and not including the Christmas and new year period. Most importantly, if they are going to call it an MP hotline, please provide the staffing and systems support to make it a proper hotline.

Anyone looking at the list of hotlines would not know it, but the working-age hotline in the exact words of the DWP is only

“for non-complex general enquiries that can be answered with little interrogation of our systems…Enquiries or complaints requiring thorough investigation”—

which is about 95% of DWP casework in my experience—

“should be submitted in the usual way by e-mail to”

and it then gives the standard DWP email address that my office has to wait five months for a reply from. That phrase

“can be answered with little interrogation of our systems”

looks to me very like saying that they will be able to answer general questions about the rules and regulations, but we will have no way of finding out why, for example, Alison went through months of utter misery or why Alan was not entitled to as much as he had thought. In other words, it is not a hotline at all.

Now that the DWP has been good enough to tell my staff about the hotline, I know they will use it. I am willing to be proven wrong and will even come to the Chamber and say I was proven wrong if it turns out to be working effectively, but it has all the hallmarks of a trial that has been set up to fail.

To conclude, when a Member of Parliament takes up a DWP benefits case on behalf of a constituent, there is a very strong probability—these days it is even stronger than before—that the constituent is already at the end of their tether and of their money. Often they will literally have no money and nobody but the loan sharks to fall back on if the DWP does not deal with their case quickly and effectively. Waiting weeks for any kind of reply is immensely frustrating for MPs and our staff—it wastes a lot of our staff’s precious time—but it can be much worse for the people we are here to serve. It can mean they are being denied the basics and the simple human dignity that any benefits system should surely be designed to protect. No Member of this House would ever tolerate their constituents being treated as badly as my constituents have been treated by the DWP’s inability to communicate properly with me or my staff. I certainly will not, and I look forward to hearing the Minister’s response.

UN International Day of Persons with Disabilities

Jim Shannon Excerpts
Thursday 24th November 2022

(1 year, 10 months ago)

Commons Chamber
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Jim Shannon Portrait Jim Shannon (Strangford) (DUP)
- View Speech - Hansard - -

Can I first say a big thank you to the hon. Member for Battersea (Marsha De Cordova) for setting the scene so very well? I was very pleased to go to the Backbench Business Committee with her and others to request this debate because it is an important debate. I feel particularly strongly about it. I am happy to be in the Chamber today to seek support along the lines that the hon. Lady and the right hon. Member for East Ham (Sir Stephen Timms) referred to, because it is important to debate this issue.

In her introduction, the hon. Lady referred to Roger Lewis and said that he was the encouragement for her to be here. I would just say honestly to her and everyone here that that is a man who has blessed us with her presence. We are very pleased that he was able to encourage her, and that we as a result have the benefit of the powers she clearly has.

I am a vice-chair of the all-party parliamentary group on eye health and visual impairment, which is for eyesight and eye care. The hon. Lady leads it, and she leads it well. Yesterday, she was not able to be there and asked me to substitute. I said to all those around that she could do it much better than me and I would never be able to chair the meetings as well as her and, yesterday, I think everyone recognised that.

Marsha De Cordova Portrait Marsha De Cordova
- Hansard - - - Excerpts

I thank the hon. Member for his stellar leadership of that group prior to my taking over as chair, but also for always stepping in for me at the last minute, and I know he chaired that meeting really well.

Jim Shannon Portrait Jim Shannon
- Hansard - -

The hon. Lady is most kind, and I hope that was the case.

I am pleased to be here to speak. I am also a vice-chair—in this place, I chair many APPGs and I am vice-chair of numerous others—of the APPG on disability. So it is always great to be here to promote the rights and wellbeing of those with disabilities and their contribution to all aspects of our society—educationally, socially, culturally and politically. As my party’s health spokesperson, I will always stand up for those with disabilities, because I want to see a society—I think the Minister would want to see such a society as well; I think we all do in this House, to be fair—that recognises achievement and ability, and does not look down upon somebody who just happens to have a disability, which I find disappointing for some of the people we meet in life, and we do meet them regularly.

It is always good to see the shadow Minister, the hon. Member for Oxford East (Anneliese Dodds), in her place—I know she is a lady of great experience and capability, so we look forward to her contribution—and also the spokesperson for the Scots nats party, the hon. Member for Motherwell and Wishaw (Marion Fellows), who is always here whenever we have such debates. I welcome the Minister to his place and I look forward to the answers that we seek today. I think that these are open door requests—I really believe that—and that it is hard to say no to the requests that we are making on behalf of those who are disabled, so we look forward to the Minister’s contribution.

The latest estimates from the family resources survey indicate that 14.6 million people in the UK had a disability in the 2020-21 financial year. That represents some 22% of the total population, and one in five—one in five —of the population in Northern Ireland. So it is important to remember the range of disabilities and impairments that people suffer with. Some are not visible—for instance, autism or bipolar disorder. I am not smarter than anybody else, but I understand these things because of my direct contact with my constituents. A large proportion of constituents come to see us about disability issues. Some are not noticeable—for instance, fibromyalgia. We cannot see that in the hands when constituents come in and present themselves, but they can tell us about it and about just how bad that is for many of them. It features in almost every one of the applications for personal independence payments that I do in my office. Again, I am not an expert—far from it—but I do understand. Regardless of that, we have continued to ask for respect for how someone’s disability impacts their daily life. I want disabled people to be recognised for their ability and achievement, not for their disability.

One of my staff members deals specifically with benefit queries in my office, whether that be disability living allowance, children’s DLA, PIP, income support or ESA—the most prominent forms of benefit claimed. We never truly know how different disabilities can affect one’s mobility and getting around. My staff member does that five days a week and does nothing else but benefits. That gives an idea of the magnitude of the issue. As a physically active Member of Parliament, I fill in the application forms as well. That gives us an understanding of the benefit and how to deal with it. It gives me an understanding of how life at present is so different.

The RNIB, which the hon. Member for Battersea referred to, is important. It has referred to the energy price and food price increases. While we who are able-bodied in this Chamber are able to budget and cut the cloth accordingly, many people who are disabled do not have that ability. I will ask this later again, but what can be done to help people who have disabilities in particular when it comes to dealing with those things?

The hon. Lady and the right hon. Member for East Ham referred to tribunal success. In our office, we have a 75% to 80% success rate in the benefit tribunals that we do on all those different benefits. I say this gently, because I understand that people make decisions based on what they have on paper in front of them: sometimes, when you have a face-to-face with a person at a tribunal, you can see things differently. Sometimes the tribunal sees things differently and it also provides a chance to bring forward the medical evidential base to back up the case. Perhaps these things could be done in the process as we go forward. None the less, it is a pleasure to represent people on the things that they need us to do.

On 24 September, the Minister for Communities in Northern Ireland announced that work would begin on a new social inclusion strategy, including a disability strategy that aims to promote positive attitudes towards disabled people and ensure their inclusion in society. I welcome that. It is good to do that. We should be focused on how we can do it better and that we see not the disability but the person and their potential to achieve and do well. That is what I want and what I hope to see. At the end of the day—I say this with respect—those people are human beings, just like everyone else.

The RNIB has been in contact with my office—it has also been in contact with the hon. Member for Battersea and others in the Chamber—and made it clear that the cost of living crisis is becoming increasingly difficult for people with disabilities. It said that more than two thirds of people with disabilities said that their financial situation had gotten worse, and more than a third often go without essentials, such as food and heating, and struggle to make ends meet. I hope the Minister will be able to answer this question: what can we do to assist people with disabilities when it comes to the energy crisis, food price increases and everything in life that seems to be getting more and more expensive? That is a big ask of the Minister.

Margaret Ferrier Portrait Margaret Ferrier
- Hansard - - - Excerpts

The hon. Gentleman, as well as the hon. Member for Battersea (Marsha De Cordova), mentioned the RNIB and people with a disability with sight. A real concern that many constituents have raised with me is the confidence of some taxi drivers in turning away passengers with guide dogs. Of course, that is illegal, but they struggle to see the consequences of that as it continues to happen. Does he agree that Governments across the UK should be tackling that together and stopping it?

Jim Shannon Portrait Jim Shannon
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As often, whether it be in the House or in Westminster Hall, the hon. Lady gives us a salient reminder of the issue. Back home, even though it is illegal, as she said, it is still happening in certain parts. I do not understand the logic of it, because those guide dogs are among the best I have seen. Many years ago, the RNIB took me to Hollywood in Northern Ireland, gave me a guide dog and let me walk through the high street with a mask on. I could not see a thing; it was pure darkness. That was one of my better experiences in coming to understand how it is for some. I must say that I did not know the guide dog and it did not know me, but it stuck to my knee and negotiated the whole way down the high street. It is a busy high street with obstructions —people have coffee tables out—and we came to footpaths where I did not know what was going on, but the dog did. That is a fond memory, if I can say that, which has helped me to understand better what it means to be blind and the importance of that understanding.

I feel strongly about encouraging disabled people into education and employment. The most recent labour force survey showed that some 38.9% of people with a disability in Northern Ireland were employed in 2020, compared with 78.4% of people who were not disabled. Wow—that is a big factor to address. We need to squeeze the gap in opportunities for those with a disability and able to work to allow them to stand alongside those who are not disabled.

The hon. Member for Battersea referred to accommodation, which is another issue that regularly comes up in my office. Many times, we have people come in who are on benefits and have mobility issues. They might be in an upstairs flat or a house with stairs, which was okay when they were not disabled, but, as life has progressed, they have become disabled and that property is no longer suitable for them. That is a regular issue, as is people finding themselves in wheelchairs and needing a disabled facilities grant for their home, which in many cases may involve extensive changes to doorways, a ramp to the front of the house and perhaps one to the rear, and a walk-in shower and a bathroom all at a level. Perhaps we need to look at those things as well.

The rate of those with disabilities in employment has incrementally increased, which is a great sign that there is more public encouragement and awareness that people who are disabled are just as capable of doing jobs. Will the Minister outline what steps will be taken to encourage employers to employ those who are disabled? My requests will always be made in a constructive fashion—I mean that—because I look for the answers and the solutions. I know that that is what he wants as well. Many of the disabled people I meet have incredible intelligence and ability. I confess that I am no good at IT, but some of the people I meet are absolutely first-class; nay, with their IT skills they could do a job as well as others or a lot better. What can we do to increase their employment in a way that makes life better for them?

Another issue that needs to be addressed is the disability pay gap. Both previous speakers referred to it. It seems that, for those who are disabled—I say this gently—their time in employment is worth less than anyone else’s. It should not be, so what are we doing to address that? Employers sometimes need to understand that they should look not at the person but at their ability and power to achieve. In 2020, the disability employment gap in Northern Ireland was 42.2 percentage points, compared with 27.9 percentage points in the rest of the UK. That is not the Minister’s direct responsibility, but has he had any opportunity for discussions with his equivalent Minister in Northern Ireland? I know that he will do that. It is always good to share stories and experiences, because sometimes we can learn from things—I always do—and our Ministers can learn from where they have fallen short while things here are better. How can we share those experiences to make things better?

In addition, some disabilities are not recognised as such in the benefit system. For example, endometriosis and asthma have only recently been recognised as disabilities in PIP assessments despite being long or lifetime conditions that disable somebody from everyday tasks. We often have those issues.

There must be a proper consensus in the Department on what a disability is.

Myalgic encephalomyelitis and multiple sclerosis were first brought to my attention many years ago. In those days, doctors often did not quite understand what ME or MS were. I could see clearly from the person and the medical evidence from a consultant that there was a disability, but unfortunately—it is not a criticism; it is about how we move on and learn things—GPs sometimes did not have that understanding. Today, however, MS and ME, whose symptoms include incredible fatigue and pain, are recognised as disabilities.

Not every person who has a disability can work, but at the same time they are not always entitled to benefits. I believe the best way to encourage disabled people into work is to take away stigma, as many disabled people are forced to challenge stereotypes and prejudice when they are looking for work. In the autumn statement, I genuinely welcomed, because it is a positive step, the help for those on benefits trying to get back into work. Many people want to work, and they should be encouraged and helped along that pathway, as long as they are able and can do it, so that was one of the good things that came out of the autumn statement.

Disability inclusion is an essential condition to upholding human rights, sustainable development, and peace and security. People with disabilities are no different from us—I have said it before and I will say it again—and the United Nations disability inclusion strategy, which is part of this debate, provides the foundation for sustainable and transformative progress on disability inclusion through all pillars of the work of the United Nations. We all must work on disability inclusion within our own constituencies, in Strangford and across this great United Kingdom of Great Britain and Northern Ireland, in employment, education and society to promote the inclusion of all, and equality and fairness in our modern society. Would it not be wonderful—I always seek wonderful things, and it is not wrong to do so—if disabled people across society could have that as a key part of their employment, education, housing, health and benefits? That is the purpose of today’s debate.

I commend the hon. Member for Battersea and the right hon. Member for East Ham for their contributions. I look forward to others’ contributions, especially the Minister’s. We have set you a long list of asks, Minister. We look forward to the answers.

Social Security Support for Children

Jim Shannon Excerpts
Wednesday 23rd November 2022

(1 year, 10 months ago)

Westminster Hall
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Jim Shannon Portrait Jim Shannon (Strangford) (DUP)
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As always, it is a pleasure to speak in today’s debate, Sir Christopher. I thank the hon. Member for Airdrie and Shotts (Ms Qaisar) for securing it, and congratulate her on her first Westminster Hall debate—I am convinced that it will not be her last, and we look forward to her future contributions.

I was very impressed by the hon. Lady’s contribution today, which laid out the strategy of the Scottish Government and the work they have done outside this place for their own people. One cannot fail to be impressed by the clear commitment that the Scottish Government have to supporting children. The summary that the hon. Lady gave was illuminating and helpful; it is a guide for us in other regions across the United Kingdom to take note of, as I often do. I am a great believer in noting things that are done well in one region and taking them on board in my own region, and if we do something well, I like to share that. I know the Minister is of the same opinion.

I am very pleased to see the Minister in his place, as he knows—I have said so to my colleagues this morning. I always look forward to his contributions and his answers; I think he understands the points that we are trying to put forward, and hopefully from that understanding will come the answers that we seek. I am sure the Minister will tell us what has been done for children and social security across the United Kingdom. I want to replicate the contribution of the hon. Member for Airdrie and Shotts from a Northern Ireland perspective; many of the things that she mentioned are happening in my constituency as well, as I will illustrate.

The hon. Member for Airdrie and Shotts is right that the cost of living crisis is having a knock-on effect on children’s development. With the rising cost of electricity, oil, foodstuffs and school items such as uniforms and school meals, parents are struggling to make ends meet each month. That is greatly impacting parents and children. Social security services across the United Kingdom of Great Britain and Northern Ireland have a role to play in ensuring that children are given the best start in life. It is great to be able to discuss those matters.

We all recognise that families are struggling. I do; I see it in my office every day. I find it distressing to see a family in need, or to see a mother distressed over her children and how to make ends meet. For me, the question is how we help. I know that that is also how the Minister will respond: how can we help? What can we do?

Society is often marked, and should be marked, by its attitude to those in need. The hon. Member for Airdrie and Shotts referred to being a “voice of the voiceless”. That is what I want to be as well: a voice for the voiceless—for those who do not have the opportunity to come to Westminster but expect their MP to come for them. I am happy to do that.

Increasing numbers of families are truly struggling through this winter. In my office, I have seen large numbers of families seeking assistance from food banks. I am always encouraged—I say this respectfully—that the first food bank in Northern Ireland was in Newtownards, in my constituency of Strangford: the Thriving Life Church food bank. We do between 20 and 25 referrals to the food bank every week, so we get a fair perspective on who is coming to the office.

The manager of the food bank tells me that he foresees that this winter will be the hardest ever, and that is after 10 or 12 years of the food bank being in my constituency. It is not just the working class—I use that terminology to describe, rather than anything else—who come to the food bank. The working class will probably always be there, but the manager tells me that he now sees the middle class coming. I see that all the time. I see those who are squeezed by their mortgages and car repayments, who are living on a fine budget. They do not live in luxury, but they have a standard of living that they wish to have. They are being impacted, and I see that more than ever.

Almost all the families who come to my office have young children of school age. People want to do the best for their children. That is what a father and mum do, and it is what we have done all our lives. Reports have shown that Northern Ireland has the worst poverty rates, including for child poverty, in the United Kingdom. One in four children—24%, or around 95,000—are growing up in poverty in Northern Ireland. A massive two thirds of that group are growing up in families where parents are working. Some 12% are in absolute poverty, which means exactly that: absolute. People face situations that they never thought they would face. They need help from food banks, churches and their families: mums and dads, grannies and grandas, and probably uncles and aunts will step in to help out as well.

That highlights how dire the situation is. Belfast, Londonderry and Strabane are among the places with the highest volumes of child poverty in Northern Ireland at over 26%. The average for Northern Ireland is 17%, so in those areas it is even worse. Social security plays a crucial part in assisting people in Northern Ireland, especially families. Child maintenance is proven to help children’s wellbeing and the quality of family relationships. The parent who is not responsible for day-to-day care—the paying parent—pays child maintenance to the parent or the person who does: the receiving parent. Single parenting is a major factor in explaining why families are suffering. Looking after children as a single parent can be quite a challenge when one’s income has not increased along with inflation.

In addition, universal credit is a widely used benefit that assists in living costs for those on low incomes. One of the girls in my office deals with nothing but benefit issues, because of the magnitude of the issue. That is a five-day week on universal credit, employment and support allowance, personal independence payments, disability living allowance, income support and even housing benefit.

David Linden Portrait David Linden
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I know, having visited the hon. Gentleman in his constituency office in Newtownards last Easter, just how hard the staff in his office work. Does he agree with me that, even though we are in a crisis moment, now is quite a good time for a fundamental root-and-branch review of the social security system? Universal credit sometimes gets a bad rap. The concept in itself is not necessarily bad, but we need to look at how we can reform it to make it work. Churches do the right thing in terms of scripture—they look after our children and feed people—but that is not necessarily the role of churches. We should do a fundamental review of the social security system to ensure that churches can get on with their work rather than having to fill the void that has been created by the state.

Jim Shannon Portrait Jim Shannon
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As always, the hon. Gentleman brings knowledge to these debates, which is helpful. That is a knowledge that he has gained through practical and physical work on the ground. That can probably be said of everyone present, in fairness, but it is an illustration of that work. What do I think about the universal credit system? It was designed, by its very nature, to help. From what the lady in my office who deals with benefits issues tells me, I often find we have to advise that it might be better for people to stay on what they have at the moment. They should not necessarily transfer to universal credit because that, in theory, could disadvantage them.

The hon. Gentleman asked whether there is a need to look at universal credit, and I think that the answer is yes, with respect. It should not be a disadvantage to go on to universal credit. It should not hurt people’s benefits. We must remember that the benefits are there for a purpose: they are there to help the person because they have a disablement. They may have care or mobility issues—serious issues. To make the change and lose out financially just does not make sense. I, the hon. Gentleman and probably all Members in the Chamber would be happy to give illustrations of that.

Sometimes our advice has to be that what is available is not necessarily the best thing to go on to. That is the issue, unfortunately. I know that universal credit is there for a purpose, but it may not suit everybody. In addition, it is a widely popular benefit to assist with living costs for those on low incomes. The issue with universal credit is that it is a combination of many benefits and often families will receive less money. That is making it increasingly hard to cope with the rise in the cost of living. The Government, through the autumn statement, indicated that they wish to give people in the benefits system more opportunities to work. I welcome that, but that will not work in every case. It cannot work in every case because people have disability issues that mean they cannot work. In theory, it may help people, as they can gain universal credit and have a job at the same time. There are opportunities, but it does not suit all.

The rise in the cost of living is also having a detrimental impact on people’s mental health. Any parent’s main priorities for their children are good health, housing and education. There has also been an increase in free school meals and uniform grant applications as parents are struggling to cope with the cost of school payments. This year has been horrendous. I have seen more and more people apply for the grants for free school meals and for uniform. A total of 97,000 children in Northern Ireland are on free school meals. There are consistent delays in processing the claims. The Minister is always keen to assist, so I ask, please, for some urgency when the applications are being processed. Let me give him an example. In September, one of my constituents applied for a school uniform grant. Eight weeks later—about two weeks ago—that money eventually came through. Again, at the time that it was needed, it was not there. It was not that it was not coming; that was not the issue. The issue is the processing of it.

Guy Opperman Portrait The Minister for Employment (Guy Opperman)
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I hesitate to interrupt esteemed colleagues in their speeches, because clearly I will try to address as many points as I can in closing. However, as always with any local constituency issue raised by colleagues from any political party, I ask the hon. Gentleman please to write me directly and I will look into it. Although that particular case may have taken eight weeks and the milk has spilt on that delay, I will look into it to try to see what I can do to ensure that the matters are processed an awful lot more quickly. We all accept that such delays are not acceptable.

Jim Shannon Portrait Jim Shannon
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The Minister has just demonstrated what I said earlier—he is a Minister who wants to help. I appreciate that, and I will take that opportunity. I think we all will. As he said, the milk is spilt and time has moved on, and the lady has got the payment, but she had to cover the full cost of uniform payments and free school meals herself for two months. The point is the pressure that is put on.

I know the Minister is always there, and I thank him for his intervention. He is keen to reach out and always does; he has done so in my constituency. I appreciate that. Could some discussions take place with the Northern Ireland Assembly Minister to get a feel for the situation back home? That could be used to develop a policy that would be helpful for us all.

There must be elements of dignity and fairness in social security support for children. Universal credit will rise by 10.1% in April 2023. I welcome that the Government have shown a willingness to support people. We thank them for the support, not just for children but also for senior citizens. My constituency has an ageing population and we also need to help them.

That help for everyone is welcomed, including those in my constituency of Strangford, but the reality is that people are struggling now. There are ways to tackle that, with more and better jobs and a benefits system that enables people to gain extra work. I think the Government said that in the autumn statement, which the Chancellor delivered last week, but I would like to see how that will work; we need more information, because we advise people.

Whenever we advise someone on benefits, we have to do that in a way that is to their advantage. It cannot be done without knowledge of the subject matter, because that could be detrimental. I am always conscious of that, and we have a very simple policy to always advise the pros and cons. The final decision is up to the applicant, but we have to advise them if there is a negative impact and they have to understand that.

The rise in the cost of living is having an impact on everyone, but some are more vulnerable than others. As the hon. Member for Airdrie and Shotts said, we are a voice for the voiceless—those vulnerable people, those parents and children in need. We must do better to help them through this time.

--- Later in debate ---
Kirsty Blackman Portrait Kirsty Blackman
- Hansard - - - Excerpts

I agree. The fact that the Government are unwilling to even measure child poverty shows the lack of importance they give to this issue. If they cared as much about it as they should, they should be willing to explain, “This is what the current situation is. This is the measurement. This is how bad it is. This is how many people are suffering and how many children are in poverty in the UK in 2022”—in the UK in 2022! How can we be saying this? The UK Government need to stand up, hold up their hands and say, “This is the current situation and this is how we are going to improve it.”

I want to set out a few specific asks, some of which have been made already. As my hon. Friend the Member for Airdrie and Shotts mentioned, 87% of those affected by the benefit cap are families with children. The benefit cap would need to increase by £942 to reverse the loss since 2013. Despite the fact that the Government are looking to increase it, this is only the fourth time that social security payments have risen with inflation in 10 years. If we in Scotland can find an extra £25 a week in order to provide the Scottish child payment, the UK Government, with their far vaster budget and flexibility in dealing with their fiscal situation, can surely afford to do the same. They can afford it, but they choose not to match the payments we are making in Scotland.

There is the issue of the sufficiency of social security. One in four people on social security skipped meals this summer. That was in the summer—before the additional price cap increase on electricity and gas; before the upcoming winter months when people will need to put their heating on; before people had to buy school uniforms for their children when school started again in August or September. That situation is set only to get worse, and the promise of a temporary increase in universal credit will not fix it. There is currently no way out of this. We have no certainty that there is not going to be a cost of living crisis next year. Certainly none of my constituents has that level of certainty.

Let me turn to the issue of debt repayment deductions that are made from universal credit and other benefits. We have a situation where the UK Government can take 25% off the standard allowance to reclaim debts. Sometimes, those debts are caused by overpayments that are no fault of the person, but entirely the fault of poor decision making in the DWP or job centres. To be fair, that does not happen all the time; I am just saying that sometimes it is an issue.

If the UK Government have done an assessment of social security payments and believe them to be sufficient—that people can afford to live on them—how can they justify putting in place a benefit cap or taking 25% off the standard allowance? They are saying, “This is what we believe is sufficient for people to live on, but we are just going to take a quarter of it away.” It does not make any sense. People already cannot afford to live on the social security payments they are receiving. When the amount people are getting each month is reduced because of those reductions or the benefit cap, it is even less sufficient. Again, the conditionality and sanctions in place reduce that basic minimum level of payment that people should be entitled to.

Jim Shannon Portrait Jim Shannon
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The hon. Lady makes an interesting point. There have been occasions where overpayments have been made to my constituents. The money has to be paid back, and they understand that. Reducing payments by 25% is very unfair. In the past, my staff and I have managed to negotiate a reduction of 10%. That option is more manageable and should be given to the person at an early stage. Does the hon. Lady feel that is the right way forward?

Kirsty Blackman Portrait Kirsty Blackman
- Hansard - - - Excerpts

I am glad that the hon. Member has managed that on behalf of his constituents. That is actually not the preferred route that I would take. I would prefer to look at whether people can afford payments rather than coming up with an arbitrary percentage, which is the UK Government’s preferred choice. I would look at affordability. How much are their outgoings and incomings? Can they afford to make the debt repayments? That is what we do, and when organisations like StepChange are managing debt, they look at whether people can afford it.

State Pension Triple Lock

Jim Shannon Excerpts
Tuesday 8th November 2022

(1 year, 10 months ago)

Commons Chamber
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Jonathan Ashworth Portrait Jonathan Ashworth
- Hansard - - - Excerpts

Today’s debate is about the triple lock, but we do agree that payments such as universal credit should be uprated in line with inflation and not suffer a real-terms cut.

Jonathan Ashworth Portrait Jonathan Ashworth
- Hansard - - - Excerpts

I give way to my fellow Leicester City fan.

Jim Shannon Portrait Jim Shannon
- Hansard - -

We are on a roll: three games we have won in a row.

Some people believe that retired people live a wonderful life, but the reality is often much bleaker: less heat, less food and making the most out of a meagre income. Does the shadow Minister agree that the Government must honour those who have paid tax and national insurance contributions over their lifetimes? Now is the time to support them, when they need us.

Jonathan Ashworth Portrait Jonathan Ashworth
- Hansard - - - Excerpts

My friend and fellow Leicester City fan makes his point with the same force and precision as Youri Tielemans putting one in the back of the net against Everton at the weekend. He is absolutely right.

Let me make a bit of progress. A cut in the pension will also disproportionately hit retired women, who rely on the state pension and other benefits such as pension credits for more than 60% of their income. This £900 cut in income is for those who have worked hard all their lives, who have paid their dues and who, as my mum would say, have paid their stamps.

Health and Social Care Levy (Repeal) Bill

Jim Shannon Excerpts
Jim Shannon Portrait Jim Shannon (Strangford) (DUP)
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I will not detain the House any longer than I need to; I just want to put on record my concerns for those who are on £9 an hour and those who are also what I refer to as the working poor. While I welcome where we are, I will steal the phrase of a well-known supermarket: “Every Little Helps”. Tonight’s bit will help and it will go a long way. However, we need to do much more than this little measure. When it comes to moving forward, for the working poor—those across this United Kingdom of Great Britain and Northern Ireland—this repeal Bill is necessary at this time, and I am glad it is here. Investment in families is also necessary, especially the working poor, who were doing fine two years ago and are not doing as fine now. I just wanted to make those pithy comments, Madam Deputy Speaker.

Question put and agreed to.

Bill accordingly read the Third time and passed.