Pensions Guidance and Advice

Jim Shannon Excerpts

Tuesday 1st March 2022 Westminster Hall

[Jim Shannon (Strangford) (DUP)]

May I start by wishing you a return to full health and strength, Ms Bardell, so that you are able to play football again? At the moment, it is quite unlikely that you are able to. It is nice to see you here.

It is a pleasure to hear the hon. Member for Amber Valley (Nigel Mills), who I thank for securing the debate. It is no secret that I am totally sold on the pensions issue. I know its importance, and I have expressed that in previous debates. As a teenager, I was encouraged by my mother—you never say no to your mum—to take out a pension at a very early age. Obviously, over the years, we have taken out a few others as well. There is no doubt in my mind that, in these uncertain times, it is more important than ever that people ensure not only that they have a pension, but that they have the one that works for them.

I am pleased to see the Minister in his place. I know that, like me, he is sold on this issue. We can see from his earlier response that he is energetic and keen to respond to hon. Members’ questions.

I did a quick round robin in my office among the six staff I employ. Of the six, only two actively check their pensions—one personally and one with her financial adviser. I thought having a financial adviser was quite impressive. Some staff are obviously very aware of the future. The other four members of staff, ranging in age between 20s and 40s, have no knowledge of what to do with their pensions. I think that is query. They have a pension—that is good news—but they have no idea what it really means. That is the question and that is the thrust of this debate.

Without a UK-wide perception of the importance of pensions, we may be in trouble. People must be aware that it is not enough to know that they have a pension; they should be aware of what it is and actively try to understand what it will do for their future.

I received a detailed briefing from Just Group, which highlighted that, as noted by the Financial Inclusion Commission in January 2021,

“pensions have largely been absent from the financial inclusion debate—even though they are a major factor in ensuring people are financially and socially included in retirement.”

The concepts, terms and associated risks are unfamiliar to most, which creates risks for savers when research shows that the complexity of related decisions is high and the familiarity with the products, options and processes is so low.

[Guy Opperman]

I am trying to make it a tradition to always intervene on the hon. Gentleman in any debate. I feel that Parliament is better when he intervenes, so I have decided that I will always try to intervene on him. The hon. Gentleman raised the point that pensions are not part of the financial inclusion debate—I look forward to appearing in front of the hon. Member for Kingston upon Hull West and Hessle (Emma Hardy) tomorrow, sort of. [Laughter.] The serious point is that the financial inclusion forum, which was set up after the Financial Guidance and Claims Act 2018 was brought in, specifically has Ministers from the Treasury and the Department for Work and Pensions working together. While it is not the main event—I totally accept that—there is no doubt that a real effort has been made. I would urge those who doubt my comments to look at the specifics of the reports of that financial inclusion forum.

[Jim Shannon]

I never doubt the Minister’s commitment to do what he says; I am sold on it already.

The Government created Pension Wise in 2015 as a free, impartial guidance service for people to use before accessing defined contribution pensions under the pension freedoms policy. There has been a lot of change in policy direction. The service was intended to enable informed decision making and has received consistently excellent feedback. User evaluations found that 94% of Pension Wise appointment customers were either very or fairly satisfied—at 77% and 18% respectively—with 97% saying they had already recommended or would recommend the service to others. That is good news for Pension Wise, but it also leaves people more informed and better equipped to avoid pension scams than non-users.

However, Pension Wise usage remains low and has actually fallen over the last three years. I do not think that we can ignore that. FCA data shows that the number of DC pension pots accessed after Pension Wise was used fell from 94,744 in 2018-19 to 94,274 in 2019-20, and down to 81,805 in 2020-21—a 14% reduction. We cannot ignore those facts. Perhaps the Minister will tell us how we can energise that again. Similarly, the number of pensions accessed via a regulated financial adviser fell by 4% in that period. That is important because Pension Wise provides an opportunity for savers who do not access financial advice to at least understand their options and speak with a professional who can impart key, relevant information, answer their questions and correct misunderstandings. However, the FCA data confirmed that hundreds of thousands of savers are accessing their pension benefits each year without first using Pension Wise, even though appointments are available for free. We must reach that mindset and change that.

There is clearly a massive breakdown in communication with our working people regarding pensions and the fact that they should have an active role in that respect. There is a fear concealed behind the attitude of my younger staff, which we should perhaps look at, that they “don’t do finance”—those are their words. When I asked whether they had ever topped up their pension with additional money in their account, they looked at me blankly and asked, “What does that mean?” We must get the message across, beginning in schools and throughout working life, that pensions are not something to be scared of.

Ms Bardell, you have been kind with your time, as have other hon. Members, so I will conclude with this point. A pension is a part of life, in preparation for the hopefully happy days of retirement—hopefully people will all see that. However, what will add to that happiness is a working pension that can provide when we cannot and do not work. We all have a part to play in that. I look to the Minister, as I always do—I know that he understands where I and others are coming from—to outline how we can get the engagement that is apparently, for some, missing.

[Hannah Bardell (in the Chair)]

Before I call on the Front Benchers, I will just say that I expect there to be at least a few minutes left at the end for the hon. Member for Amber Valley (Nigel Mills) to wind up.

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[Matt Rodda (Reading East) (Lab)]

It is a pleasure to serve under your chairship, Ms Bardell. I pay tribute to the hon. Member for Amber Valley (Nigel Mills) for what I thought was a very thoughtful and knowledgeable speech, which has left us all with a great deal of food for thought.

I also thank the Chair of the Select Committee, my right hon. Friend the Member for East Ham (Stephen Timms), and Members across the House, in particular my hon. Friend the Member for Kingston upon Hull West and Hessle (Emma Hardy) and the hon. Members for Strangford (Jim Shannon), for Kilmarnock and Loudoun (Alan Brown) and for Glasgow South West (Chris Stephens). In addition, the hon. Member for Grantham and Stamford (Gareth Davies)—I beg his pardon—spoke with great knowledge of the sector; I appreciate his detailed explanation.

I do not want to completely rehash or repeat points that have been made by colleagues, but I want to focus the Minister and ask him for a response on one or two very important things. First, however, we should acknowledge, seven years on from their introduction, that while increased pension freedoms have brought greater flexibility, they have also resulted in a potentially greater degree of risk. Although advice services such as Pension Wise have played an important role in making advice more available, the service’s own figures show that just 14% of savers are accessing that advice. That really is not good enough.

Clearly, most people will make a decision about their pension—a decision of this scale—only once in their lives, so it is staggering that only 14% of people are receiving appropriate advice from Pension Wise. Imagine if only 14% of people were seeking advice for any other major financial decision—obviously, alarm bells would be ringing in Ministers’ offices and across the relevant sector. We have to reflect on that, so I hope that the Minister will try to address some of the thoughtful and well-made points raised by the hon. Member for Amber Valley and others.

I also want to draw the Minister’s attention to the fact that the same points have been raised by a number of other voices outside of the House today, so I hope he will go into this issue in some detail. I hope, in particular, that he will address the point made by the hon. Member for Amber Valley that many of the people who are not seeking advice have smaller pension pots and possibly less financial experience, and may need a greater degree of support, while those seeking advice appear to have larger pension pots and, arguably, may have a bit more financial experience. That seems to be the wrong way around.

I hope that Government policy can focus on that and, in particular, that they will look at some of the behavioural points—the nudges—and ways that they may legitimately assist people in this important matter. The Chair of the Select Committee also raised some interesting and thoughtful points on the issue of the potential trial service. I hope the Minister will comment on those.

I appreciate that time is limited, so I want to draw the Minister’s attention to another key area; I hope he will update the House on what the Government intend to do on this matter. The flip side of the lack of advice is the very sad and quite worrying growth in the number of scams; it is interesting that the two things have happened at the same time. While organisations such as Age UK have produced guidance to support those who may be vulnerable, it is really the role of Government to do much more on this important issue. Again, as with the issue of the lack of advice, the question of scams has been highlighted by the official Opposition, the Work and Pensions Committee, former Ministers and other respected figures such as Martin Lewis.

The pensions industry estimates that more than 40,000 people may have been cheated out of £10 billion-worth of pensions savings since freedoms were introduced in 2015. Action Fraud has reported that pension scams are becoming one of the UK’s most common types of fraud. These scams are often harder to spot than expected, even for those with good IT or tech skills. Research by Citizens Advice showed that one in eight people who said they were confident with technology found it difficult to spot a scam. However, it is possible to take action against that sort of fraud; as the Minister knows well from his involvement in the passage of the Pension Schemes Act 2021, the Government have taken action on telephone fraud, which is a related type of scam.

[Jim Shannon]

The hon. Gentleman is absolutely right. If someone is approached by a person with a scheme to improve their pension that looks too good, it probably is too good. Be careful—if someone promises you the world, the stars and the moon, there is something wrong.

[Matt Rodda]

The hon. Gentleman makes an excellent point; we do need to apply common sense to these very important matters. As I was saying, the Pension Schemes Act made it illegal to cold call and offer advice, in an attempt to reduce the number of telephone scams. Obviously, there are other forms of scams.

Benefit Cap

Jim Shannon Excerpts

Tuesday 1st March 2022 Commons Chamber

[David Linden]

Absolutely. I pay tribute to my hon. Friend, who I know is a trustee of Feeding Britain and has the Threehills Community trust in his constituency. He is right, and he sees at first hand the food poverty that exists in our communities needlessly as a result of the poor social security policy emanating from Whitehall. The Feeding Britain charity, which he is on, and local organisations in his constituency are very much at the sharp end of that, and I hope that the Minister will reflect on that.

It should be noted that benefit capped households in receipt of universal credit have also largely not benefited from the £20 increase to universal credit during the pandemic. The benefit cap remained in place, which meant that universal credit claimants who had already reached the cap saw no increase in the support they received, and even more households were affected by the cap as the universal credit increase pushed them to the cap’s limit. On top of all that, and very much to add insult to injury, the cap does not increase to reflect increasing costs of living.

[Jim Shannon (Strangford) (DUP)]

First, I congratulate the hon. Gentleman on securing the debate. I fully support what he has been saying. Does he not agree that in the current economic climate the power of the pound is so massively reduced that, while benefits may once have helped pay substantially for additional costs, the same amount goes nowhere near to meeting needs today? If that is the case, the hon. Gentleman is correct that there is clearly a need to reassess the cap entirely, and for that reason I fully support what he is proposing.

[David Linden]

I am very grateful to the hon. Member for his intervention. It is almost as though he had seen my speech, but that may not be the case. I like to think that he is the Mystic Meg of Strangford. But he is absolutely right and makes a serious point, which, in the context of the cost of living crisis, is a massive issue. He has very much put that on record for his constituents in Strangford, who I know will be incredibly proud of him.

The problem with the benefit cap is that it is in effect a cut in real terms each year. As we face the cost of living crisis that the hon. Member spoke about, benefit claimants will see their costs go up while their incomes continue to be capped. The benefit cap has profound impacts on the people affected by it. For many families it means insecurity and anxiety, poor mental health, an inability to afford essentials such as food and heating, and reliance on food banks. It has also forced many of the constituents of SNP Members into problem debt.

United Nations Convention on the Rights of Persons with Disabilities

Jim Shannon Excerpts

Thursday 24th February 2022 Westminster Hall

[Jim Shannon (Strangford) (DUP)]

I appreciate being called to speak early in the debate, Mr Stringer. I am nearly always at the end of the queue. I am not worried about that, by the way—I always think that getting to speak is more important than when I am called. The good book says that the first shall be last and the last shall be first; today, I have been elevated to one of the first, so I am very pleased.

When the hon. Member for Motherwell and Wishaw (Marion Fellows) asked me, as I am sure she did everyone, “Would you come down and speak?” I did not have to be asked twice, because this subject is of particular interest to me. I will mention a couple of things that I think will resonate with other Members present. I thank the hon. Lady for her tireless work on behalf of those with disabilities—I want to put that on the record. It is often said in this House, but she truly is a disabilities champion. I have heard the word “champion” used so many times in the Chamber that I think it has lost its importance, but when I say it today, I mean it. I want her to know that.

The hon. Lady has perfectly underlined that we have obligations to those with disabilities. I share her frustration and that of the hon. Member for Oldham East and Saddleworth (Debbie Abrahams), who is a good friend as well. I say this respectfully to the Minister and the Government, but I have seen how the Government pick and choose how they interpret those obligations. In Northern Ireland, they chose to interpret the convention on the elimination of all forms of discrimination against women as a legal obligation; they circumvented the Northern Ireland Assembly and, in so doing, circumvented the principle of devolution. That is not what this debate is about, but I just want to put that on the record.

At the same time, the Government have refused to uphold the protections to prevent unborn babies from being terminated for a disability as repairable as a cleft lip. Under their interpretation, having Down’s syndrome is reason enough not to live. I find that absolutely unbelievable and reprehensible. I believe we are witnessing something that is morally wrong, and I do not think I will ever be able to understand or accept that rationale. The hon. Member for Motherwell and Wishaw has outlined many further failings of this Government pertaining to our obligations to disabled people.

I want a society where disabled people have the same rights and opportunities as we have and where they are treated equally. That is the society I want to live in. Maybe I dream too much, or maybe, through this debate, we have an opportunity to express the hope that every one of us can have the same opportunities in life.

I want to give some examples to illustrate the issues raised by the hon. Lady, although they are absolutely frustrating. I have a full-time member of staff in my office who is dedicated solely to filling out forms for those who are unwell. Unfortunately, she is never out of work. Her name is Yvonne; she is an important member of staff. All my staff are important, of course, but Yvonne has a very important role to play. I wish I could bring her here to explain in her own down-to-earth way the living nightmare that some of our disabled people endure to get their disability benefits.

One of my constituents, Sharon, was born with a severe mental impairment. I know the young lady and her now elderly parents, who have cared for her for 50 years. Due to the distressed mental impairment she has, she used to simply watch the TV and walk up and down the living room. However, she is now 50, and her mobility has decreased. After 50 years of being on her feet, pacing up and down the hall, she needs hip replacements. There is something seriously wrong when a Government Department questions whether such an operation is necessary when it is very obvious that it is. In this case, there was a successful conclusion, but only after a fight. Everything I do for disabled people is a fight, and there are always so many obstructions put in front of us.

Consultants have questioned Sharon’s ability to go through rehab after the operation and do not feel it will be successful. She cannot deal with the pain of walking and mentally cannot deal with sitting down for prolonged periods, because that is how her condition affects her. Her disability living allowance, as it was then called, was up for renewal. After that was explained, a house call was set up and Sharon was asked to do a number of physical exercises that she was physically and mentally unable to do. Her parents told me that she screamed for hours afterwards due to the upset that it caused her. Is that fulfilling our obligation? No, with great respect, I do not think it is. Her medical records clearly indicated her difficulties, yet the form-filling and the check-box exercise put her and her elderly parents through an awful time getting her benefits, which should never have been in question.

My brother Keith was injured in a motorbike accident some 18 years ago. It left him unable to do multiple tasks. Every one of us in this room is blessed. We can walk down to the room below; we can chat and walk, have a drink and eat a biscuit, use a mobile phone—we can multitask. He can only do one thing at a time, let alone fill in all the questionnaires that our mother and I have to go through as his court appointees. We are appointed by the court because he does not have the ability to look after his financial affairs. That is a fact of life; it is what happens. But then a Department comes along with so many exercises for someone to go through that they feel downtrodden and burdened almost before they even start. They are asked, “Can you stand on one leg?” Keith cannot stand on one leg; he would fall over. People such as Sharon, the young lady I mentioned, are asked to do things that they cannot physically do, which should be clear from their notes.

That is the story of just one of my constituents, many of whom suffer from mental health issues. They are put through the mill when a cursory glance at their medical records would show everything that needs to be shown. I welcome efforts to get those who are able to work back to work; I want them to do that, and they want to get back to work too, if possible. But tormenting—I use that word on purpose—people who are unable to is simply not acceptable. It is time that our definition of “disabled” gave more protection than the disability discrimination Act offers at this stage.

I represented a constituent with ulcerative colitis who worked for the civil service. She had her DDA form in, but she was still medically retired at the age of 27. She is a lovely young girl; I have known her since she was a wee tote, as we would say back home, and I know her parents very well. The civil service could not find a flexible way of working around her disability, so I went to appeal with her as her DLA said she was able to care for herself. Really? Had they not comprehended the seriousness of the issue? One Department said, “You’re fine” and another said, “You’ll never work again,” and the doctor was saying, “Give her antidepressants to deal with the upset and effect of it all.” I question whether those Departments work hand in hand.

I know that others want to speak, so let me conclude with this. How dreadfully sad it is that the Government’s own employees do not have the flexibility to allow them to stay in work when they so desperately want to do so, especially now that staff can easily and effectively work from home.

I commend the hon. Member for Motherwell and Wishaw, the other hon. Members who have spoken and those who will contribute later. I am confident that the Members here today, as well as others who are not present, have compassion for the people we are here to help—those with disabilities and those who cannot cope with the troubles of life in the way that we can. We are privileged to be Members of Parliament and to be able to help others, and to get paid to do it. One of my great pleasures is helping people who are disabled and those who have real problems on the journey of life that they tread, and today’s debate gives us an opportunity to do that.

Something must be done about the way that our disabled people are viewed and treated—not by those speaking in the debate and not by the Minister, but we really need central Government and the civil service to have a better grasp. The change needs to start in this place and work its way down. All the disabled people we are speaking on behalf of today should have the benefit of a Government with compassion and a system that understands them, and should get the help they need when they need it.

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[Mims Davies]

The hon. Lady makes an important point: I have not even mentioned my Wivelsfield station, so the reality is that we still have work to do. I know that my hon. Friend the Rail Minister, the hon. Member for Aldridge-Brownhills (Wendy Morton), is very committed to that.

The hon. Member for Motherwell and Wishaw, who opened the debate so eloquently, asked about committing to spending on aid projects, and I will address that later in my speech. I am trying to cover various points, so I hope hon. Members will bear with me while I make progress.

Alongside the Government’s national disability strategy, we have published the health and disability Green Paper and the Government’s response to the “Health is everyone’s business” consultation on minimising the risk of ill health and related job loss. Those publications demonstrate that we are taking a holistic approach to improving the lives of individuals living with disability. I think it is important for anybody listening and engaging with this debate to notice and to know that progress is being made. Of course, there is always more to do.

Significant progress has been outlined in the national disability strategy. At the DWP, we have piloted the adjustments passport, which supports disabled people’s transition into employment. The passport is personalised to the individual and captures in-work support needs, enabling the employer to have an informed conversation with the passport holder—we have just heard about flexible working. In addition, the Department for Business, Energy and Industrial Strategy has launched an online advice hub offering accessible information and advice on employment rights for disabled people.

BEIS has also completed a consultation on making flexible working—we have seen hybrid working too—the default in Great Britain unless employers have good reasons not to offer it, and it is reviewing the responses. I think that consultation is crucial and necessary. The pandemic has given us an opportunity to bust the myth of presenteeism and show that, moving forward, many sectors can be flexible and work in a hybrid way and can absolutely be inclusive of people who are disabled or living with a health condition. That will make opportunities so much more accessible for our constituents, which is what we all want.

I want to turn to the comments made by the hon. Member for Oldham East and Saddleworth on the pandemic. Since the start of the pandemic, the Government have worked hard to ensure that disabled people have access to employment support, disability benefits, financial support, food, medicines and vaccines, as well as accessible communications and guidance. I, like other Members, had constituents asking for all of that and more, and I am glad that we have been able to respond.

Of course, the NHS is offering new antibody and antiviral treatments for people with covid-19 who are at greater risk of becoming seriously ill, such as those who are immunosuppressed or face other risks. There is separate guidance and there will be additional boosters coming forward as well, which many of our constituents may be eligible for. It is important that we let people know, whoever they are and whatever is going on in their lives, that when it comes to the challenges of living well out of the covid-19 pandemic, we recognise that we must understand the impact on those with a disability or health condition. We are absolutely committed to that.

The Prime Minister made clear in launching the national strategy that we fully recognise the need not only to deliver on our near-term commitments but to go further. I can assure the House that we are doing so. As an example, in the autumn 2021 spending review, we provided an extra £1 billion via the Department for Education to support children and young people with more complex needs, including those with a disability. That will bring the total high-needs budget next year to over £9 billion.

It has been mentioned that work is an important part of disabled people’s lives. It is absolutely right that we in the DWP place the emphasis on supporting people into work where possible. Of course, we know how valuable that is. It is more than just a pay packet; it is camaraderie, friendship, and a reason to get up and get going. It makes such a difference to be part of a team and to achieve what we are able to achieve. I am passionate that, whoever someone is, wherever they are and whatever barriers to progression they may face, if they are able to work, they should be well supported to fulfil their potential by the Government, the community and jobcentres.

[Jim Shannon]

On that point, it is also important that employers understand their responsibility to ensure that their employee is respected in every way and has the opportunities that every other employee has.

[Mims Davies]

I thank the hon. Gentleman for making that really important point. I recently had some engagement with the construction industry about really good, inclusive work practices, reaching out and being more equal. For example, 50% of the population—females—is under-represented in the sector.

Many employers often do the same recruitment and end up with the same people. They want to be more inclusive; they want the different voices and experiences that we have found so important this afternoon, but unfortunately we end up recruiting the same people because recruitment processes are not open and wide enough. We need to do more.

[Jim Shannon]

I wanted to put that on the record because the Minister is right. A recent headline said:

“Swindon man with Down’s syndrome gets scaffolding apprenticeship”.

There is an example of what can happen if you put your mind to it.

[Mims Davies]

I have found this through our 160-plus youth hubs at DWP. Many people have neurodiversity. Young people have been very anxious and nervous. It has been really great to give people that “can-do” experience; it makes such a difference, in terms of being inclusive. People with a disability or a health condition are absolutely perfect for some jobs, and it will be right for them to be in that workplace. Let us challenge employers. Let us not just talk about it, but push for action. I am proud that DWP has led the way in supporting disabled people by recognising what they need in order to get into employment. We are there to help.

Oral Answers to Questions

Jim Shannon Excerpts

Monday 7th February 2022 Commons Chamber

[Mims Davies]

We have a new model of 11 armed forces champion leads across the DWP districts. We are working with armed forces champions and the covenant locally. We have 50 armed forces champions across the jobcentre network. With covid, of course, some of this upskilling and these add-ons were paused, but we are absolutely committed to making sure that our veterans get the best service at DWP.

[Jim Shannon (Strangford) (DUP)]

I thank the Minister for her response. In Northern Ireland, the role of the armed forces champions in jobcentres and in district councils presents difficulties with the security of some ex-soldiers. What discussions have taken place with the Minister or with jobcentres in Northern Ireland to ensure that veterans in Northern Ireland can access these services?

[Mims Davies]

I thank the hon. Gentleman for raising this issue. Universal credit now has an identifier to help us enhance support for all our claimants who may have a veteran background. Many people do not declare that background and can be working with us for a long time before they recognise that it needs to be understood. Some 83% of veterans are employed within six months, but we need to do better and make sure that all are supported.

Social Security and Pensions

Jim Shannon Excerpts

Monday 7th February 2022 Commons Chamber

[David Rutley]

We are following the policy that Governments have followed for many years, by increasing in line with CPI over a year to September 2021. On the point he makes, I will come on in more detail to explain the smoothing effect, which he is well aware of, given his experience in the House. We will come to that point and see what he has to say at the end.

[Jim Shannon (Strangford) (DUP)]

We are well aware that over the weekend the chief executive of Tesco was on the TV, and has been in the papers today, saying that the price of food will increase by another 5%. We are in incredibly difficult times that we have not been in before, at least not that I can remember in my lifetime. Given that and what the right hon. Member for Leicester South (Jonathan Ashworth) is referring to, can consideration be given in this legislation to these abnormal price increases?

[David Rutley]

I thank the hon. Gentleman for his question. He will have seen the Chancellor set out last week a three-part plan to deal with rising energy prices. Of course the Government are watching the situation, but, as we will discuss, there is more than just the uprating legislation being put in place to help people through these challenging times.

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[Jim Shannon (Strangford) (DUP)]

I thank all right hon. and hon. Members from the Government and Opposition Benches who have made significant contributions. It is worth noting that there has almost been unanimity among all the Members who have contributed, and I suspect that will continue among those who follow me.

I thank my local DWP staff in Newtownards: the manageress, Geraldine, and all her staff do such great work. Every day of their lives they make it easier for my constituents when it comes to any contact they have with the DWP office.

It is not often that our pensioners get good news. Some had hoped that the Government would give them the good news of a substantial pension increase to match the substantial cost of living increase and the recent unbelievable uplift in the cost of heating, which automatically affects our pensioners and the very vulnerable the most.

In his economic statement to the House last Thursday, the Chancellor gave the constituents across Northern Ireland £150 million to help with the cost of energy. The Barnett consequentials brought another £100 million, making £250 million. We welcome that, so I will not be churlish about what has happened. We ought to recognise that. Everybody who has contributed to this debate has recognised the contribution that has been made, but we are saying we do not believe it has gone far enough.

Let me quickly make some comments on the cost of living. Pensioners did not look forward to the increase for very long, with the news that the Social Security (Up-rating of Benefits) Act 2021 suspended the earnings element of the triple lock for the 2022-23 financial year and that state pensions would be increased by CPI inflation of 3.1%—the right hon. Member for Hayes and Harlington (John McDonnell) referred to the triple lock in his contribution. The full rates for 2022-23 will be £185.15 per week for the new state pension for those reaching the state pension age on or after 6 April 2016, up from £179.60 in 2021-22.The figure will be £141.85 per week for the basic state pension—the core amount in the old state pension system—up from £137 in 2021-22.

We welcome the increases, but what is coming forward does not address the full impact of the cost of living, and I want to give some examples. Rents have risen by 5.8% in the last year and have increased at the fastest rate. A house in my constituency that would have been rented for £400 or maybe £450 a month is now £560 or £600. If we add all these increases together, I find it unbelievable that the cost of living is not higher—I might not be the greatest mathematician in the world, but we can figure these things out.

[Ian Paisley (North Antrim) (DUP)]

Like me, my hon. Friend must be alarmed at the comments by the head of Tesco, who has indicated that the cost of the average food basket will go up by 4% to 5%. The cost of living is really putting a squeeze on ordinary citizens across the entirety of the kingdom.

[Jim Shannon]

I thank my hon. Friend for that intervention. I was going to mention that earlier—I did do so in an intervention on the Minister. I really do have concerns. We have rent increases of £150 or £200 a month for a dwelling, and then we have the other things, with people not even having enough to cover the rise in the cost of heating. These things affect our most vulnerable and those we most respect, and society is always marked by how it treats those in the generation beyond. How long can we rob from the same pot—the same pot of stew—and how long will our consciences allow us so to do?

Those with more than two children cannot get working families tax allowance for more than two children. The Minister might wish to consider allowing people to claim for the children they have and not for how many the Government would mandate them to have. There are large families who cannot get the benefits for where they are, and it is time that we helped them.

I welcome the moneys the Government have set aside and allocated, but I am concerned about inflation. Just this weekend, as my hon. Friend the Member for North Antrim (Ian Paisley) referred to, the CEO of Tesco said that the cost of food will go up by another 5% on top of what is already there—in Northern Ireland the increase is somewhere around 15%. Energy prices continue to rise in Northern Ireland, by 25% to 30%. Here is another example, and it is not 25% to 30%, but more. Oil was advertised in about October last year at £375 for 900 litres. This week it is £529 for 900 litres. That is a 50% increase in my book. Again, I may not be the greatest mathematician, but I can work it out and, what is more, my constituents can work it out.

We have an increase in rent, we have an increase in food prices and we have an increase in energy prices, with electricity, gas and coal prices all going through the roof. If energy prices continue to rise and foodstuffs continue to be unbearably expensive for our constituents, householders and families, will the Government set aside more funding for the next period? I cannot remember which Member said—perhaps it was the Minister present—that we will bring things back in, say, eight or nine months, but we cannot wait nine months. The pain is now. That is what really concerns me.

Pensioners are under more pressure than ever before. I am reminded of TV ads in which competing supermarket chains say, “A weekly shop here costs this, and a weekly shop there costs that.” When we do a weekly shop today, we notice the difference from two or three months ago like never before.

What help can we give pensioners? I am conscious that the Minister and other Members referred to pension credit. Whenever I go round the doors to ask people what their problems are and what help they need—as I do regularly, by the way, not just at election time—I am surprised to find that many pensioners do not know all their rights. I feel that the Government and the DWP need to focus on pensioners, for example when it comes to the accessibility of pension credit. I also suspect that many people do not know that because of illness they can apply for attendance allowance. Those are the sort of things that can make life easier for people, so we need to see a wee bit more focus. Perhaps the Minister will come back to that point.

I found it hard to listen to the comments of the Governor of the Bank of England yesterday urging people not to ask for pay rises in order to keep inflation down. I understand the logic of what he is saying, but people on universal credit are overwhelmed with massive bills—the reality for the people whom I and Members on both sides of the House represent is that their bills will be enormous. I ask the Minister and the Government to step up to the mark and give us some indication of where we will be in three months’ time, if things are getting worse as they seem to be.

The Minister is a decent man and a good man; I know that he wants to see benefits coming to my constituents and to all constituents. The hon. Member for Waveney (Peter Aldous) said that perhaps the Government need to target those who are now panicking, wondering how they will pay their bills and worried about the pressures of life and what will happen in the next three months. I support the thrust of what he says, because that is what we, and perhaps the Minister and the Government, need to focus on.

We are here to help our constituents. That is where the burden in our heart is, that is where our compassion comes from on behalf of our people, and that is why we really feel for them and their future if things are not as helpful as they could be. Those on the minimum wage, those who cannot get any more wages and those who cannot work extra hours face the spectre of debt coming towards them.

I thank all hon. Members for their contributions and look forward to the Minister’s response to all our questions. We really need help—the Minister’s constituents need help, and so do mine and everybody else’s.

Disability Benefits Assessments

Jim Shannon Excerpts

Tuesday 1st February 2022 Westminster Hall

[Jim Shannon (Strangford) (DUP)]

I am grateful, Sir Gary, for the opportunity to speak in this debate.

I also thank the hon. Member for Battersea (Marsha De Cordova) for setting the scene so very well on a very important issue. I am sure that she will not mind my saying this, but her disability has never prevented her from bringing forward cases in this House, and I would say that for many of us she is an inspiration in the way in which she deals with her life for the benefit of all. I thank her for that and say well done to her.

As my party’s health spokesperson, it is important for me to be here; I always give a Northern Ireland perspective on how issues impact on my constituents. I do it in every debate I attend; I think that hon. Members, right hon. Members and Ministers probably expect it.

In July last year, the Department for Work and Pensions released its Green Paper on health and disability. First, may I say that I welcome the positive things that have come from the Green Paper? It has allowed the extension of special terminal illness rules, which is a much-needed step in the right direction. There was also an extension on the continued use of audio-visual assessments, which certainly makes the process more accessible for claimants as well.

The DWP was given extra time to look at evidence and make decisions, ensuring that all those eligible received what they need. These are steps in the right direction, and we need to have them in place. The hon. Member for Battersea has raised issues that I would like to discuss. First, there are accessibility issues for benefit assessments. A recent study showed that 27% of disabled adults across the UK have never used the internet. When it comes to assessments, I think we have to recognise that. One of my staff works full time helping my constituents to complete their benefit forms and says that, very often, in an audio-visual assessment, it is hard for consultants to get a real feel of how badly the claimant is suffering, making it less likely for them to make a successful claim. Perhaps the Minister can respond on that.

As of August 2021, in Northern Ireland there were 161,000 PIP claims. The overall award rate is 64%. Some 75% of DLA-reassessed claims were granted an award of PIP. and 79% of those claims were at an enhanced rate. I think there is a certain level of positivity, but there are those who do not get there and who, perhaps, as the hon. Member for North Ayrshire and Arran (Patricia Gibson) said, are overawed by the process and just give up. We need to try and reach out to those people.

The Green Paper also refers to PIP and ESA costing £8 billion in the early ’80s, rising to £31 billion in 2021 and probably £40 billion in the next five years. It states that Ministers want to take steps to make the benefits system more affordable. I am not quite sure what that means. Does that mean that they are cutting back on the number of applicants, or that people who justify receipt of the benefit do not get it? I hope the Minister can clarify that point.

One factor crucial to me is the protection of the disabled in terms of employment. The hon. Member for Battersea is a wonderful representation of how a disability should not impact what someone wants to do with their future. There are 8.4 million people in the UK who have a disability of some kind and 4.4 million are in employment. When looking at these figures it must be remembered that they scope from minimal disabilities to the most severe. Much to my dismay and that of others, employment-related suggestions are concentrated around the disabled person rather than changing the attitudes of the employer. The employer should understand what it means to have a disabled person in their workplace, and should be working to meet that goal.

It is imperative that disabled people are a priority for the Government, both in benefit assessments and in the Green Paper. They are often left behind in society and the Green Paper provides a way to reverse that. Their concerns must be listened to, not only by us, but by our constituents and by those who will be directly impacted by the Government’s Green Paper.

[Sir Gary Streeter (in the Chair)]

I thank all colleagues for their co-operation. We got there, bang on. We will now start on Front-Bench speeches, beginning with Marion Fellows.

--- Later in debate ---

[Vicky Foxcroft (Lewisham, Deptford) (Lab)]

It is a pleasure to serve under your chairmanship, Sir Gary. I congratulate my hon. Friend the Member for Battersea (Marsha De Cordova) on securing this important debate and thank her for all her work in this area. She powerfully put forward why the assessment system is not working and the devastating impact that has on disabled people.

Many Members have outlined serious constituent concerns. That includes those so powerfully put forward by my hon. Friend the Member for Middlesbrough (Andy McDonald), and I hope the Minister will look into the cases he raised. There are numerous concerns about the health and disability Green Paper, including, as many Members said, about the lack of proper consultation and co-production with disabled people. Having spoken to disabled people across the country, a running theme has been the tokenism with which the consultation has been undertaken. They asked me, “Why is the DWP so reluctant to engage with those who have been through the assessment process?”

As my right hon. Friend the Member for East Ham (Stephen Timms) outlined, it is deeply concerning that the Department has not taken onboard the recommendations of the independent Social Security Advisory Committee about the way it involves disabled people in the design and evaluation of policies that affect them. The committee recommended co-production with disabled people. The Green Paper’s consultation has, sadly, fallen short of that. Worse still, the DWP has not undertaken any proactive engagement with disabled people and their organisations—the experts by experience who have been through this process and would enhance this paper.

My hon. Friend the Member for Vauxhall (Florence Eshalomi) talked eloquently about how she had had a roundtable with the former Minister, and powerfully said how that had stayed with her and why co-production is absolutely key to building the trust of disabled people. What possible justification does the Minister have for not doing that? The Government need to learn from last week’s court judgment, which ruled that the national disabilities strategy consultation was unlawful. As many Members have said, a defence of “not set out to consult” fails to build trust with disabled people. The DWP must ensure that future engagement is far more robust and must urgently publish a plan for consulting with disabled people on the White Paper. It should allocate enough Government time for debate, ensuring that robust discourse can take place.

The next area that many Members mentioned is the adequacy of the benefits system. Even before the pandemic, disabled people were struggling to survive. As my hon. Friend the Member for Newport West (Ruth Jones) said, the number of disabled people living in poverty has risen by over a million since 2010. According to new analysis from the New Economics Foundation, single parents, pensioners and families with one or more disabled people are more likely to be the hardest hit by the rise in energy bills.

As my hon. Friend the Member for Cynon Valley (Beth Winter) said, people are worried that this Green Paper could be the start of a cost-cutting exercise. The Government must show that it is not. My hon. Friend the Member for Bolton South East (Yasmin Qureshi) articulated the problems and unfairness when people were moved from DLA to PIP. The House of Commons Library statistics show that, of the 1.5 million disabled people who were previously in receipt of DLA and who were reassessed for PIP, nearly half have seen their entitlement reduced or disallowed completely. While the Government might attempt to claim that that is positive, the high levels of mandatory reconsiderations and appeals tell another story.

We have a system that all too often places disabled people in extreme financial hardship. We know that the DWP has data on this. The Prime Minister committed to releasing the NatCen research it commissioned on the adequacy of benefits. What is the delay? Or is this something else he forgot? I welcome the fact that the Chair of the Work and Pensions Committee, my right hon. Friend the Member for East Ham, will see that research. I really hope it can be published, but as he rightly said, it is disappointing that the Government must always be pushed into doing these things.

The other area Members focused on was employment. There is no mention of the kind of work that disabled people have. Are these good or sustainable jobs? Do people get good incomes, or are they on unstable, zero-hours contracts with poverty wages? Sadly, evidence has shown that disabled people tend to be in lower-paid and unstable work, yet there is no acknowledgment of that in the Green Paper. Why does it put forward only a consultation on disability employment and pay gap reporting? The Minister could do that tomorrow. Will she? Perhaps she can give an answer in her response.

The Green Paper talks a lot about sickness management, but there is nothing on improving statutory sick pay. We need to support people who need short periods off work for sickness, so that they can return stronger and without fear of financial hardship.

[Jim Shannon]

I mentioned in my contribution the responsibility of employers towards employees. Does the hon. Lady feel that there is a role for an administrator to play to ensure that employers look after their employees the way they should be looked after?

[Vicky Foxcroft]

Absolutely. I completely agree with the hon. Member and I think that is really important. I was just coming on to that point.

Will the guidelines the Government are going to produce be fit for purpose? Surely the Minister should recognise now that co-producing these with disabled people and disabled people’s organisations is the best way of ensuring that they work and deliver a more diverse workplace where the talents of disabled people are fully realised.

Disabled people have said that they often struggle to access their rights in the workplace and that employers do not always follow guidance. It is hard for disabled people to challenge that, and the legal process is expensive, especially for those who are not in trade unions. Where is the support for disabled people to ensure that they can access tribunals to hold their employers to account? I ask the Minister: why not provide additional support to disabled people’s organisations and charities and to trades unions, which offer vital support?

To conclude, I thank my hon. Friend the Member for Battersea once again for securing this vital debate, and other Members for taking part. I thank the many disabled people’s organisations, charities and trade unions that work tirelessly to support disabled people. As all Opposition Members have said, co-production is key. The Minister should start listening to disabled people, who are experts by experience.

Automatic Pension Enrolment

Jim Shannon Excerpts

Wednesday 26th January 2022 Westminster Hall

[Jim Shannon (Strangford) (DUP)]

It is always a pleasure to speak on these matters, and it was especially a pleasure to hear the hon. Member for Grantham and Stamford (Gareth Davies) set the scene so well. We are here to endorse his words, and we look to the Minister for a response on the issues that still concern us and on which we wish to see action taken. It is also a special pleasure to say that I am one of those who bought into a pension at an early age, and I want to emphasise the importance of pensions to young people who do not fully understand the necessity or the benefits of having one.

I am pleased to see the Scottish National party shadow Minister, the hon. Member for Kilmarnock and Loudoun (Alan Brown), and the Labour shadow Minister, the hon. Member for Reading East (Matt Rodda), but I am especially pleased to see the Minister in his place. I had the opportunity to have him visit my constituency some two and a half years ago, before covid. That visit was to the local credit union. George Proctor was the manager, and the staff were there. We are very pleased to have them there. We were also very pleased to welcome the Minister, and we invite him to come back and get an update, if at all possible—if he has space in his diary.

[The Parliamentary Under-Secretary of State for Work and Pensions (Guy Opperman)]

It is an honour and a privilege to be able to intervene on the hon. Gentleman, who is a legend in this House for the fact that he intervenes every single night in the Adjournment debate. I well remember the trip in July 2018, I think it was, to Newtownards Credit Union. It is particularly memorable—colleagues will understand about ministerial visits—because when I arrived I was presented with a ginormous slice of home-made lemon drizzle cake, made by one of the team there. In my view, that is how all Ministers should be greeted.

[Jim Shannon]

I think I can say on behalf of Newtownards Credit Union that when the Minister does return, the slice of lemon drizzle cake will be even bigger than the last one he had. I will send today’s copy of Hansard to the staff and let them know what his expectations are. Joking aside, the Minister understands these issues and is always keen to address the concerns we have. Before we have any debates, he will always come and say to me personally, “Is there anything at all you want to bring forward today?” and then he tries to address those issues, which is something I especially appreciate. I wish all Ministers were the same, but I congratulate this Minister on doing that.

Provisions in the Pensions Act 2008 placed a responsibility on employers to automatically enrol job holders into, and contribute to, either a qualifying pension scheme or a new personal account scheme. Those duties apply to all businesses, regardless of size, which I for one welcome because it is the right thing to do. In his introduction, the hon. Member for Grantham and Stamford encapsulated the thoughts of us all about the growth of pension enrolment and how it benefits people. It is crucial that those eligible to put small amounts of money aside into a pension pot, whether they work in a small local café or in a large mechanical chain company, do their bit.

That legislation has reversed the decline in workplace saving. There has been a drastic increase in the total membership of defined contribution occupational schemes, from 2.1 million in 2011 to an outstanding 21 million in 2019—if that does not take Members’ breath away, I do not know what else would. I am of pension age, but at approximately the age of 20, I remember my mother saying to me, “Jim”— or James, as I am on my birth certificate—“we need to go and start a wee pension for you.” I said, “Oh, Mum, I’m too young to deal with that. I am not going to bother.” Mum insisted, and whenever your mother insists, you do not have any choice. We trotted down to the local place and I enrolled in a pension, some 45 years ago. At the time, I may not have understood that pension, but I understand the benefits of it today as it comes to its culmination.

So often, people find that they have been paying into a couple of pensions. Only a couple of years ago, I found out that I had being paying into four different pensions along the way. It is great way of saving. I may not have seen that at the time, but I see it now.

[Paul Howell]

I am an accountant by trade. I contributed to a pension for a long time. My wife also contributed to a pension for a short number of years before we had our daughter. When I came to retire aged 56, just before I came to this place, we looked at the balance of the pensions and found she had made a disproportionate contribution in relation to the time that she had spent working, because it was right at the start. Does the hon. Gentleman agree that communicating with people about the importance of early and continuous contributions is vital? It is not just a triviality, as it is so important to the outcome at the end. Personally, I am benefiting massively from what happened at that early stage. I do not think we get the message out about how important this is for people. Does the hon. Gentleman agree that communications are important?

[Jim Shannon]

I thank the hon. Gentleman for his comments. He is right that it is best to make contributions from an early age. I can speak to that and the benefits of it. Even though I may not have understood that at that time, my mother was insistent, so I enrolled. Today, we see the benefits of all the things we did in the past.

To be eligible for a compulsory pension scheme in Northern Ireland, a worker must be at least 22, under state pension age and earning more than the minimum earnings threshold. I know some young people who have been paying into pension pots from as young as 18, but that is down the employer and employee discretion. I do not see a reason why young people who are in consistent work should not be contributing to their future, as referred to by the hon. Member for Sedgefield (Paul Howell).

As this subject is not taught in schools, young people feel unaware of the importance of taxes and pensions. I urge the respective Ministers to think about that in relation to schools. There may be a way of suggesting to young people at an earlier stage that they need to be making contributions, perhaps through an introduction provided while they are at school.

[Rob Roberts (Delyn) (Ind)]

I find it difficult to believe that the hon. Gentleman started his pension contributions 45 years ago, as he cannot possibly be of that advanced age. He reminisced about how his parents drilled into him the importance of starting early. In his opinion, what has happened since those years? How did we go from the point of saying that it was a personal responsibility? How did we go from the point of our parents drilling into us the importance of saving for deposits for a house, as we heard earlier, and for retirement? Is the situation we have now on automatic enrolment satisfactory in terms of getting us back to where we were before?

[Jim Shannon]

I think the figure gain tells it as it is. We went from 2.1 million people to 21 million people; the increase was massive. People from my generation were very responsive to what our parents told us and we did what they suggested because they knew best. Today the companies are trying hard and encouraging people but, as the hon. Member for Grantham and Stamford said in his introduction, education might be another way of helping us get even beyond where we need to be.

In February 2021, a report from the National Employment Savings Trust looked at the impact of the covid-19 outbreak on its 9.5 million members. It found no significant changes in average contribution levels; the majority had continued to save, with around one fifth contributing more than the minimum contribution rate. That tells us that the scheme is successful for some—potentially, everyone—and helps people to save. I find those figures reassuring and proof that this legislation is beneficial, which may answer the question raised by the hon. Member for Delyn (Rob Roberts).

There is absolutely no doubt that this legislation has brought many benefits. Pensions help people maintain their standard of living in retirement, and savings provide important supplemental income for unforeseen expenses. Pensions are an economically efficient way to fund retirement, which means they are a prudent use of taxpayer money.

Others have expressed a few concerns about the lack of pension provision for the self-employed, and I have a question for the Minister. How and when should pension contribution rates increase above the 8% minimum? It is important that there is provision for the self-employed. There are 134,000 self-employed people in Northern Ireland. In Strangford, and perhaps in other constituencies as well, we have a tradition of many people being self-employed. I had a period of self-employment but continued to pay the pension contributions. That was probably when I increased the number of pension schemes I was in. Perhaps the Minister could indicate how we might encourage the self-employed to be involved. That is my question for the Minister, and I know I will get the response I wish for.

I want to conclude because I am conscious that others wish to speak. Automatic pension enrolment for workers makes sense and is a good deal. Pensions not only help the local economy but are a win-win situation for employers, employees and local business owners. The figures are astonishing: since 2012, more than 10.2 million workers have been automatically enrolled in pension schemes and that is on the increase.

The scheme is a success, and we thank the Government for their encouragement and promotion of it. I only suggest that it could be approached educationally at an earlier stage. I urge the Department for Work and Pensions to look at the issues others will raise on pension enrolment and to step in to solve them. None the less, I thank the Minister and Government for all they have done.

DWP Risk Review Team

Jim Shannon Excerpts

Wednesday 26th January 2022 Westminster Hall

[Kate Osamor (Edmonton) (Lab/Co-op)]

I beg to move,

That this House has considered the Department for Work and Pensions’ Risk Review Team.

It is a pleasure to serve under your chairmanship, Mr Twigg. Today, I will talk about the Department for Work and Pensions risk review team, which was set up in May 2020. The DWP states that the team’s role is to

“review and take action on cases identified”

by the integrated risk and intelligence service as being “a high fraud risk.”

I was first alerted to the team’s existence in October 2021, when my constituency office began to receive contact from what would become a total of 29 constituents who had had their universal credit payments suspended indefinitely under almost identical circumstances. Those constituents are all Bulgarian nationals and tend to have either settled status or pre-settled status. Time and again, my office was told that the cases were under the management of the risk review team, with little to no further explanation of the reason, apart from some claims of suspicion of fraud. Constituents told me that their claims were suspended for months on end—as long as 11 months, in the worst case. Although that particular constituent’s claim has now been restored, they have received no compensation for the hardship caused.

The DWP provides no timeframe for the completion of the reviews, nor a right of appeal. A significant number of those constituents are single mothers who work part time. This situation has left them in a completely crippling financial position and pushed many into serious destitution—relying on food banks, facing eviction from their homes and racking up serious amounts of debt. One constituent, whom I will call Maria, is a constituent of mine only after she lost her home in Liverpool as a result of having her benefits suspended, and subsequently moved to Edmonton.

From the cases my office has been handling, a number of constituents have since had their universal credit payments restored and backdated, as there was no evidence of any wrongdoing.

[Jim Shannon (Strangford) (DUP)]

I congratulate the hon. Lady on securing this debate. I have constituents coming regularly into my office—you probably do as well, Mr Twigg—asking for help on this matter, although they may not be Bulgarian. Those constituents say that the DWP has asked them for information. I always ask, “Well, have you got that information?” to which they reply, “We are not quite sure.” Does the hon. Lady think that when an application is refused, whatever the reasons may be, the Department should make officers and staff available to help that person to get the right information and respond? The people she mentioned had their benefits restored, but they would not have had to wait had it been done right the first time around.

--- Later in debate ---

[David Rutley]

I understand the point that the Chair of the Work and Pensions Committee makes, but the key thing is that claimants need to prove eligibility. We want to help them to prove eligibility for a benefit. The challenge, and the reason these cases take time, is often that claimants are not able or willing to provide that evidence. I will come on to that later.

[Jim Shannon]

I think the hon. Member for Edmonton (Kate Osamor) hinted at this, and I did in my intervention: there are occasions when people do not understand the process, and need a wee bit of help. I think the hon. Lady asked about that. Is there an opportunity to make extra officials available to pursue those necessary evidential bases when claimants may themselves not understand what has been asked for?

[David Rutley]

The hon. Member makes a good point. We stand ready to help and assist. One of the points made by the hon. Member for Edmonton was that, in some of the cases that she highlighted, there are challenges around the ability to speak English. Of course, interpreters are made available. In the Chamber today, we have three of the most well-recognised campaigners in the House, along with others who have not spoken yet. Hon. Members should bring cases about which they have concerns to my attention directly, with the usual information that they think is appropriate and that needs to be processed. If there are any outstanding concerns, I will take a personal interest in them and move cases forward. The issue is that often—I will talk about the statistics in due course—the information is not provided, and of course we cannot provide benefits without that evidence, because of all of the fraudulent cases we have spoken about. I will carry on with my speech, which I hope will answer more questions. We will take a close look at each and every one of those 29 cases if that information can be provided—I give hon. Members that undertaking.

First, I need to emphasise that the overwhelming majority of claims for universal credit are legitimate. We know that most people are not trying to defraud the Department. The hon. Member for Edmonton raised—I would not say “a couple”—a lot of pertinent issues via parliamentary questions. That was one of the reasons why we were delayed in providing full answers to all her questions: we wanted to make sure that they matched up with the parliamentary questions. In the letter that I sent her, I apologised for that. As I say, it was mainly because we wanted to ensure that we had all the right information in response to all the questions. I hope that underlines the approach that we want to take, which is all based on due process.

However, I take this opportunity to stress, as I already have, that we are trying to get the balance right between getting money to those who need it and tackling those who are actively seeking to commit fraud. I will follow up on those individual cases in due course once the information is provided. Benefit claims should be verified and paid as quickly as possible, which is why we always make it clear to claimants exactly what information they need to provide. We do that via the claimant’s universal credit journal, and the messages also let the claimant know exactly how they can contact the Department and speak to the staff members responsible for their case. That is an important dimension; in our casework, we can do better at highlighting that to constituents. I also take the feedback that maybe we can do a better job at communicating that to MPs and their offices—a point well made.

Where there is a problem in providing information, we always encourage the individual to get in touch, so that we can discuss and resolve the matter as quickly as possible. As the hon. Member for Edmonton would expect, when we suspend a claim, we do not do it lightly. Suspension is always a last resort, for the reasons that the Chair of the Work and Pensions Committee, the right hon. Member for East Ham (Stephen Timms), has highlighted. Suspension is based on an initial assessment that a person would not be entitled to the benefit that they have claimed—an assessment that is based on intelligence and not on the specific characteristics of claimants, such as nationality. I know that that was a concern of the hon. Member for Edmonton, but I can confirm that a person’s nationality is not a factor in determining whether a claim is referred to the risk review team.

In fact, because nationality is not a factor in that assessment process, an equality impact assessment is not needed. However, as part of the initial universal credit claim process—not the risk element, but the claims process itself—we do request information regarding a person’s nationality. That is necessary to assess the eligibility and entitlement of a claimant at the start of their claim, but it is not used as part of the risk review process.

We take good care to ensure that we understand a person’s personal circumstances, as the hon. Member for Strangford (Jim Shannon) highlighted, and any potential vulnerability before we suspend. That means that we can engage with individuals in the right way. We have processes in place such that any contact from a claimant will be dealt with by a dedicated team. That type of one-to-one conversation with a member of staff allows the claimant to discuss the claim in detail and means that the member of staff can provide the necessary support to help to ensure that individuals can give us the documentation we need.

Once the risk review team has its information and the decision has been made that there is an entitlement to benefit, we will of course lift the suspension immediately and pay any arrears due. However, we receive no contact from the majority of suspected fraud cases—approximately 65% of those that we suspend. That is a remarkable figure: 65% of people do not get in touch with us after a suspension notice.

If a claim is suspended, we are unable to make alternative payments. However, claimants are still able to get help from work coaches to find them work. We have a record more than 1.2 million job vacancies and our work coaches are supporting thousands of people into work. There is also continued support for the most vulnerable children, regardless of a parent’s universal credit suspension. Children in receipt of free school meals will continue to receive that support. There is also the free childcare provision for three and four-year-olds and disadvantaged two-year-olds, where eligible. An individual may also be entitled to claim child benefit, assuming they meet the qualification conditions.

More broadly, local authorities have responsibility for local welfare provision. Recognising that some households will require additional help this winter, we have provided £500 million to provide support with essential household costs such as heating and food bills. That is delivered through the household support fund in England. Other help may be available via healthy start payments and the holiday activities fund. Staff in local jobcentres will be able to help to direct those in need. I should also make it clear that, while in law there is no right of appeal against the decision to suspend payment of a benefit, a claimant does have the right to appeal any outcome decision where the Department has determined that there is no entitlement.

Hon. Members will appreciate that I cannot say too much about how the risk review team works in this area of activity. As I said, it is a constant challenge to stay ahead of fraudsters and we cannot provide any clues to those looking to evade our systems. However, while a focus on disruption is a primary tactic of the team, their activity does not stop at that point. The risk review team will also gather intelligence that can be used as the basis for a formal criminal investigation, should it be warranted. It is worth noting that although the number of suspicious claims processed by the risk review team is significant, it is believed that the numbers of people responsible for those claims are actually relatively small. Our focus is on pursuing those behind the attacks in intelligence-led investigations, which is the most effective use of our resources.

Last month I went on a raid with fraud colleagues as part of a joint crackdown on fraud with West Midlands police. The raid was part of Operation Goliath, a joint national operation with police nationwide that aims to combat fraud. Numerous arrests were made and we believe that we stopped an organised crime gang alleged to be stealing from the benefits purse. Thousands of false claims, based on thousands of hijacked identities, had netted the gang approximately £4 million already—a huge amount of money, and a figure that would have likely been far higher had we not been able to intervene at the pace that we did and had the approach taken by the risk review team not been in place.

As I have said, fraudsters are constantly thinking of new ways to attack us and to evade and circumvent our systems and safeguards. Some of the frauds are so engrained and deep-set that, remarkably, even after the arrest of major criminals, we are still being contacted by individuals pursuing claims linked to those investigations. It is extraordinary.

We are continuing to build and grow our capabilities, including investing to save. At the end of last year, we had announced a total investment of £630 million, which is a huge amount of money, over the next three years, to support the Department in this challenge and enable us to drive down fraud and recover debt. The money also enables further recruitment into our counter-fraud, compliance and debt so that we can continue to respond quickly and effectively to threats. It includes the funding of around 2,000 trained specialists to stop and identify scammers. I wish that we did not have to recruit those people, but we have a challenge, which is why we have to take those steps.

I hope that hon. Members agree that we must have a co-ordinated response to the attacks on the benefits system, and take action on as many fronts as possible to drive criminals out of it. These criminals will not let up and neither will we, on which note I commend the work of the risk review team, which is clearly playing a major part in helping to stop fraud getting a foothold.

At the same time, I reiterate the point that I made earlier: I know that it can be difficult, and that there are challenges for the people involved, but we always want to work with genuine claimants. In getting the balance right, I again extend the offer to hon. Members, particularly the hon. Member for Edmonton, who has been a doughty champion for her constituents, that if they write to us on those cases we will take them up and follow them through. I hope that she will do so, and that I have given her some satisfaction on the questions that she asked. Clearly, we will follow up on the outstanding parliamentary questions that she highlighted in due course.

Question put and agreed to.

Cost of Living

Jim Shannon Excerpts

Tuesday 25th January 2022 Westminster Hall

[Jim Shannon (Strangford) (DUP)]

It is an absolute pleasure to speak with you in the Chair, Mrs Cummins. I congratulate the hon. Member for North Ayrshire and Arran (Patricia Gibson) on leading the debate and on her important contribution; she knows about this subject, and speaks with real passion and belief. I am always encouraged whenever I hear her speak and, like other hon. Members present, I wholeheartedly support her on this issue. I could not attend a debate on this subject in the Chamber yesterday, because I was speaking here in a different debate—much as I may try, I cannot be in two places at once—so it is great to be present to endorse what the hon. Lady has said and support her fully.

This is a topic that applies to the whole United Kingdom. Although some housing matters are devolved, the issue remains the same across all of this United Kingdom of Great Britain and Northern Ireland. The cost of living has been rising since early 2021, but in December 2021—just a few weeks ago—inflation reached its highest recorded level in decades, affecting the ability of households to afford goods and services. That is what this debate is about: affording the basics of life. The hon. Member for Weaver Vale (Mike Amesbury) gave a couple of examples that illustrate the issue of food prices. Consumer prices were 5.4% higher in December 2021 than the year before—just 12 months earlier—making it the highest inflation rate recorded since 1992.

The cost of living combines the prices of housing, fuel, electricity, food and domestic services. First, I will speak about the issue of house prices. The hon. Member for St Ives (Derek Thomas) referred to house prices in his area. Prices in Northern Ireland, including in my constituency and the constituency of my hon. Friend the Member for East Londonderry (Mr Campbell), are the highest they have been for ages. It is putting people in real debt. I want to explain that, if I can, in the short time I have.

House prices increased by 10% in November 2021. The average property has risen by £20,000 in the last year—the fastest pace of increase in 15 years. That gives us an idea of how quickly this is galloping forward. Wages are not keeping track. I have been contacted by multiple constituents—young people, in particular—who simply cannot get on the property ladder because of those prices.

There has been a 25% drop in those aged 25 to 29 who have a mortgage because they feel that rent is a better option financially. The thing is, it is not a better option, because their rental prices are going through the roof as well. Houses that could previously have been rented for perhaps £375 to £400 a month now cost £550 to £600 a month. That is an extra £150 that they have to find, which they just do not have. The press has described the housing situation in Northern Ireland as a survival of the richest, as the majority of people simply cannot afford the rising price of houses. That is not the society I want; I want a society where we all have an equal opportunity to acquire a house.

[Mr Gregory Campbell (East Londonderry) (DUP)]

Does my hon. Friend agree that the picture that he is outlining—of escalating house prices, the inflation rate going through the roof and energy prices rocketing—sends a message to the Government that there need to be urgent solutions? We all understand that it is difficult because of the times that we are living in, but those solutions are needed now, not in six months’ or two years’ time. A crisis is emerging that all families, and particularly working families, are going to be hit with.

[Jim Shannon]

I absolutely agree and I thank my hon. Friend for his intervention. We look to the Minister to give us some encouragement. It is about now, not in six months’ time; it is about getting over this mountain that our constituents are dealing with because of the rise in prices. My hon. Friend is right.

We can argue that a wage increase could assist with those payments, but in reality the added finance that people are earning is going straight to paying for the cost of living. Two hon. Members who have spoken today, including the hon. Member for Rutherglen and Hamilton West (Margaret Ferrier), have referred to the issue of national insurance contributions. Today, it is being reported in the press that national insurance contributions may not actually be going up in April. I am not sure if that is true, but we cannot ignore the fact that there is no smoke without fire. Whether that is down to the Chancellor or the Prime Minister, I am not sure, but if that is the case, at least it would be something that we could take as help for our constituents—things we can do now, not later, as everyone is referring to.

Last week, I spoke about the rising prices of fuel. The fact that the Government and, back home, the Northern Ireland Assembly are having to provide additional schemes for people to avail themselves of shows that people are struggling to cope. The Communities Minister brought a scheme to the Northern Ireland Executive and Assembly to be endorsed: a £200 payment right away for those who are financially squeezed at this moment, and for those on benefits. We are doing it in Northern Ireland and I am sure that others are doing it elsewhere. Energy bills have already risen by a considerable amount and are set to rise to £2,000 per year from this April.

On my way to work each morning, I pass one of the oil companies in Newtownards, and they have prices up on the wall. Only about three months ago, the price of 900 litres of oil was £370—I remember, because I bought it at the time—but now it is £510. That is in a matter of months—my goodness! Those figures cannot be ignored. That is the reality right now. Such price rises will be detrimental to those already in fuel poverty. Recent statistics from National Energy Action estimate that between 1.2 million and 1.5 million households across the United Kingdom of Great Britain and Northern Ireland will struggle to pay their electricity or gas bills, adding to the cost of living in the UK.

On pension increases, a wee lady came to me to say, “Jim, tell me this: how will I spend the extra 25p I have in my pension?” What can I say to that honourable lady, who is a very good supporter of our party and of me individually? Twenty-five pence, my goodness! I have mentioned the price of oil and the price of food—as the hon. Member for Weaver Vale did, and as we all have. Twenty-five pence would not buy a loaf, a pint of milk—not even half a pint of milk—or a bar of chocolate. Twenty-five pence is a drop in the ocean, a ping on the ground; it is really nothing. I plead with the Minister for our pensioners. He is not ultimately responsible for this, but we need to have the discussions about what we need to do going forward.

The rising cost of food prices are contributing to the added cost of living. Food and non-alcoholic drink prices went up by 4.2% in the year to December 2021, on the official consumer price index measure of inflation. They may—they will—rise further in the coming months, and that contributes massively to the increase in families availing themselves of food banks. The Trussell Trust, which is in my constituency, delivered 2.5 million three-day packages over 2021. That was one of the highest figures in recent years.

In my constituency, the Trussell Trust in Newtownards indicated that it has done a third more food bank referrals. I know that we did it through our office by massive amounts on a year ago. That tells a story. People’s generosity to the food banks, with churches and individuals coming together, is massive, and we thank everyone who made contributions. However, we need to address the issues now.

At a time when many are struggling, I urge the Government to step in—because that is what we do. We do not always have the begging bowl out; it is about helping our people right now. I wish I had more time, but I do not, to go into detail about how badly the rise in the cost of living is impacting people. All too often, families struggle to make ends meet and the rise in prices for the most basic of daily needs is disheartening for so many. It depresses us no end.

To look towards the future, I also urge the Government and the Minister to remember that there will be a rise in national insurance, although I hope that today we will get an indication that that may not happen. We need such steps taken to help our people. The great thing about today is that all of us—all parties—are here together, but now we look to the Minister. His fellow Conservative, the hon. Member for St Ives, spoke convincingly about the issue. I think we have consensus across the Chamber on it, and we look to the Minister for encouragement to our constituents, and to ensure that the help that comes will come now and not later.

--- Later in debate ---

[Alison McGovern (Wirral South) (Lab)]

It is a pleasure to serve under your chairship in this important debate, Mrs Cummins, and I congratulate the hon. Member for North Ayrshire and Arran (Patricia Gibson) on having secured it. It is a fairly obvious truth that there are things that really matter to our country, and the subject of today’s debate is one of them. There are also things that are embarrassing and we wish we did not have to talk about, and frankly the sorry state of Downing Street is one of those, so I am glad to be here in this debate, talking about something that really matters.

The cost of living crisis that we are facing is going to come to a crunch this year, but let us be honest: it has been a problem for the past decade. When a country has had slow or no growth for a decade, and when wages are held down while prices rise, that will cause a problem for the vast majority of families in that country. Those who are in the worst financial situations face the indignity of having a food bank parcel where their shopping should be, unlike every other normal family in this country. It is outrageous that 2.5 million of our fellow citizens, including half a million children, are in that position. That is not the product of events that have happened in the global markets in recent times; it is the product of 10 years of lost economic growth, and 10 years of lost progress on tackling poverty in this country. That is why we are here today.

[Jim Shannon]

As we look at the rise of referrals to food banks, it is important to note that a different category is increasing: those in the middle class are also squeezed now. We are finding that more and more people are under the cosh of prices. We all know how important the role of food banks is, but the Government have to recognise that this crisis is greater than it ever was before.

[Alison McGovern]

I thank the hon. Member for his intervention, and to a degree, I agree with him: any of us could end up needing to go to a food bank. This can happen to any of us, but important though food banks have become, I want a Government that seek to end the need for them. Is that too much to ask? Do we just have to accept food banks as a permanent feature of our country now, or might we one day have a Government that set out to end the need for them?

As much as I agree with some of the points made by colleagues from the SNP, I have to challenge them. How are they going to meet their own goal set in 2017 of child poverty reduction? It was made without qualification. We all want to see an end to child poverty and therefore it is important that that goal is met. I feel strongly that the Tories in Westminster made the wrong choice in getting rid of Labour’s national goal to end child poverty and wiping the Child Poverty Act 2010 from the statute book. It is equally important that those who have made commitments to the people of Scotland stick to them.

--- Later in debate ---

[David Rutley]

There are more vacancies available, and we are encouraging people to take them up across the country, in Scotland as well. The scheme has seen real success in turning people’s lives around. There are further opportunities in the months ahead for people to get involved with that important programme.

It does not stop there, because we want to ensure that we help address some of the gaps in the workforce that were highlighted yesterday: in hospitality, health and social care, and technology. Sector-based work academies help people to get new skills and a guaranteed job interview at the end of their placement.

I also recognise, along with many others here, the immense value that older workers bring to the workforce. That is why the DWP is providing specific funding for that cohort. There is funding available for the over-50s to get tailored Jobcentre Plus support, to help them find work and build on skills to get into the workforce.

In addition, to support those jobseekers who are out of work for 12 months or more, our Restart scheme provides intensive support to help claimants in England and Wales find jobs in their local area, which I am sure will be welcomed across the Chamber today. Through regular contact with all participants, providers will develop a strong understanding of the individual’s employment history, skills, aspirations and support needs to help each one succeed. That will break down the employment barriers holding claimants back from finding work.

I remind hon. Members that the DWP is focused on helping people to increase their income by progressing in work. We often talk about the importance of getting people into work, but we are equally committed to helping people progress in work and move ahead with their career aspirations. We will shortly respond to Baroness McGregor-Smith’s report on in-work progression and set out our approach. I hope that will be welcomed by the hon. Member for Motherwell and Wishaw (Marion Fellows), who was concerned about that issue.

Universal credit incentivises work as part of its design. With that in mind, we have gone further to make work pay, as has been referred to, by cutting universal credit taper rates from 63% to 55%, and increasing universal credit work allowances by £500 a year. That is essentially a tax cut for the lowest paid in society, worth around £2.2 billion in 2022-23. That means that 1.9 million households will keep, on average, around an extra £1,000 a year. In addition, from April 2022, we will boost the national living wage by 6.6% to £9.50, which is ahead of inflation and worth another £1,000 each year to workers on the lowest pay.

[Jim Shannon]

A number of Members have asked for confirmation that the national insurance contributions planned for April will be deferred, adjusted or done away with. I know the Minister cannot answer that question, because it is not his responsibility, but can he take it to the Chancellor for his consideration? That would be an excellent step in the right direction to help those who are under financial pressure.

[David Rutley]

The hon. Gentleman makes his point with characteristic commitment and compassion. We on the Treasury Bench note that and will make sure that it gets through. The particular levy he talks about is to tackle the impact of the pandemic on the NHS and to face a challenge that has not been faced adequately across many decades—to tackle social care—but the points he makes have been noted.

Coming back to the national living wage, the hon. Member for Edinburgh North and Leith (Deidre Brock) made some points about how we can move forward. Let me reassure her that the Low Pay Commission forecasts that the national living wage will reach £10 next year. That is consistent with the target for the national living wage to reach two thirds of median earnings by 2024. We will not stop at the 6.6% increase.

Underpayment of Benefits: Compensation

Jim Shannon Excerpts

Thursday 13th January 2022 Commons Chamber

[David Rutley]

More needs to be done to make those processes simpler. Again, this specific area is not part of my portfolio or brief, but we have made significant progress in getting disabled people into work, and we want to move that forward with the disability strategy and a clear action plan. I know that my colleague the Minister for Disabled People will actively drive that forward across the nations, and will work very closely on that with the Scottish Government as well.

[Jim Shannon (Strangford) (DUP)]

I thank the Minister for his replies. There is no doubt that the inaccuracy of benefit payments will have a detrimental impact on individuals and their families throughout the United Kingdom of Great Britain and Northern Ireland. Many of those 118,000 people are vulnerable and face the injustice of arrears. Those moneys belong to those people. Will the Minister confirm a timescale in which those affected are likely to receive their compensation? How many of the people to whom unpaid money is due are from Northern Ireland? What amount of money is due for Northern Ireland? I would appreciate an answer today, but if the Minister does not have the figures, I am very happy to wait for a written response.

[David Rutley]

The exercise to pay the arrears to the 118,000 people is complete. As of 1 June 2021, we have reviewed 600,000 cases. The 118,000 arrears payments were made to those who were eligible, and a total of £613 million has been paid. I will follow up on the hon. Gentleman’s other points.