Social Security

Jim Shannon Excerpts

Tuesday 9th February 2021 Commons Chamber

[Jim Shannon (Strangford) (DUP) [V]]

It is always a pleasure to follow right hon. and hon. Members, and indeed learned Members, and I look forward to the Minister’s response. He is very intent on and interested in his portfolio.

Article 6(2) sets out that the full rate of the state pension is to be amended from £175.20 to £179.60. I would be most obliged to understand that consideration has been given to the fact that this additional £4.40 per week would just about cover the cost of the BBC TV licence. I make this point because today a number of constituents have contacted me about the BBC TV licence. We have all got our reminders about it today, as indeed have many pensioners. Pensioners must now pay, never mind the cost of living increases. Surely we would be better placed to increase this before that reaches final approval.

Again, this is not the Minister’s portfolio—it is not his direct responsibility—but I would respectfully and gently ask: has he had any opportunity to talk with a Digital, Culture, Media and Sport Minister about perhaps approving free TV licences for those over 70 years old, because there are many who fall into that category? I am always very mindful at this moment in time that we have had an increase in poverty in all age groups, in particular families and those who are elderly.

I have some concerns about the uplifts in benefits. The most vulnerable in receipt of PIP are seeing uplifts, under article 16, of anywhere from 10p per week to a grand amount of 45p per week. I am not against the increase, but before I could consider voting for the motion I would like an understanding of how the cost of living increase is factored into this. I think it is important that we understand how these increases, while in many cases nominal, have the cost of living factored into them.

In Northern Ireland, the Northern Ireland protocol is seeing individual products increase by more than this—it is something that I would be aware of and my colleagues would be aware of—never mind a whole week’s shop-worth. While these provisions exclude Northern Ireland, perhaps an outline of the rationale can be given as to the uplift amount.

On the state pension uprating, as pertains to part 2, article 10, maternity pay has an uplift of 77p. It is difficult to comprehend, as this would not even pay for a litre of milk. Again, I say respectfully and genuinely to the Minister: is he able to explain the rationale to expectant parents who, when hearing of the uplift, will believe that their life is to be made easier, only to understand that these uplifts will cost more to process than the actual increase to a family?

Every one of us, as elected representatives, is very aware of those in poverty. We have been confronted with a greater number of those who are subjected to poverty in all spheres of life, but more so due to the pandemic, and all the stats and figures indicate that that is the case. So when it comes to increases in pensions and benefits, I think the rationale for how they are considered and how they are agreed is something that we all wish to understand better.

When we take into consideration the difficulty that lockdown babies are facing with their social skills and the need for parents to be able to afford to take them out to baby classes as soon as it safe to do so, it seems that their maternity pay uplift will not help them increase the quality of life for their child. I know that the Minister is keen to ensure that they are helped, affected and assured, but again, my constituents ask me: just how does it work?

Has consideration been given to the effect of the pandemic on maternity leave? I referred to that just a few minutes ago. I think it has been the extra that has pushed people very much to the breadline. I am aware that, in my constituency, among many of the people who are under pressure financially, there are more referrals to the food bank in my constituency. The one in my constituency was the first food bank in the whole of Northern Ireland. Over this last period—the Christmas period—it handed out 870 individual assistances to those people. That again tells me that there is real financial pressure. I would ask: has consideration been given to the effect of the pandemic on maternity leave and is that a consideration that we can make at this stage?

I conclude by saying to the Minister that I ask these questions genuinely and respectfully, but I do feel, on behalf of my constituents, that I need an answer.

Covid-19: Child Maintenance Service

Jim Shannon Excerpts

Thursday 21st January 2021 Commons Chamber

[Jim Shannon (Strangford) (DUP) [V]]

I congratulate the hon. Member for Motherwell and Wishaw (Marion Fellows) on setting the scene so well. It is a pleasure to see the Minister back in his place. I look forward very much to his response. He never lets us down—so there is no pressure on him to give us the answers that we need! I thank him so much.

The Child Maintenance Service is an extremely important service to the lives of so many children. It is always desirable for splits to be amicable and for parents to be able to make decisions on the division of time and finances. That is always the goal, but unfortunately it is not always reached. Too many times in my office, I see parents at the end of themselves due to a relationship breakdown, struggling financially while they await the involvement of the CMS to help resolve their dispute.

As other Members have done, I thank my local CMS team, who have worked with my office. They do their utmost to be open and transparent, and to get back to us urgently. Often, their hands are tied, because they are waiting for employers or accountants to come back to them. The process is long and difficult. Time prevents me from discussing today the many examples my office has seen of people who we would suggest are deliberately avoiding making payments. I think the right hon. Member for Romsey and Southampton North (Caroline Nokes) said that there was somewhere special for them; I cannot say, “That would be right,” but we do need them to respond quickly.

Add in the delays that the pandemic has introduced, with civil servants waiting for months to get the appropriate equipment, and cases being put on hold. Although this is understandable, as all our offices have had difficulties, it does not make the situation acceptable. For the parent left at home alone, holding the baby and waiting for financial help—with no way of increasing tax credits, which are reviewed annually—the stress of lockdown has been exacerbated by the lack of financial and emotional support. It is clear that the CMS system needs drastically to alter so that it can help in the short term, not just the long term.

Some parents have used the impact of furlough on wages as a reason to reassess their outgoings and cut payments for the maintenance of their children, and delays in the system have been made worse by the lack of equipment and staff. Press articles have told people to pay child maintenance as usual, and that amounts could be recalculated. Although this is understandable if a hairdresser or leisure centre worker has been precluded from working, the child still needs the same money to live. The Government could and should have made up the difference in the interim, and then worked out the longer-term repayments. That might be one thing that we learn from the process.

The number of food bank vouchers issued through my office has more than doubled, and many single parents have been devastated by the loss of payments, which were not made up for by tax credits or universal credit. We have to learn constructive lessons, so that we can address the essential issue of how we support children in poverty—those who need extra attention. They may be in worse-for-wear clothes or show other small signals of struggles, and yet have a parent who does their very best.

We have heard concerns expressed that these children do not have laptops at home. I am thankful to the Education Minister at home, who ensured that schools were able to take in children who do not have access to reliable internet or equipment. But we need to do more, and perhaps it would go a long way if all the Government Departments worked in tandem.

My heart is for children. The more I speak to those who work with them, the more I understand that there are so many homes with so many more difficulties in these worst of times. We in this place have not made the decisions that would have eased things for many. Getting it right through the CMS relieves financial and emotional pressures in the home. We must find a way of altering the CMS process to help people who are struggling, so that they can provide a steady life for their beloved child. We are in unprecedented times, and we now see the problems in the system and should learn from them. Let us take steps to rectify those problems, knowing that when we do, we will have a positive impact on the home lives and experiences of children, who need this more than ever.

The Future of Work

Jim Shannon Excerpts

Thursday 19th November 2020 Westminster Hall

[Jim Shannon (Strangford) (DUP)]

You are very kind, Mr Hollobone. I thank the hon. Member for East Renfrewshire (Kirsten Oswald) for setting the scene, and everyone who has contributed. This is the second time that I have followed the hon. Member for York Central (Rachael Maskell) in Westminster Hall. I do not know whether we are a pair—one speaks and then the other speaks—but I have always followed her. That may be how life is, but there we are.

It is a pleasure to speak in this debate. These are incredibly worrying times for the nation—for those with vulnerable family and loved ones, for those with small businesses, and for those with jobs in various industries. The minimum wage is really a minimum for those who have had their hours reduced; they cannot even pay their bills. We do not have all the answers in this place, and we do not know what tomorrow will bring, but we know that we need to work to give opportunities no matter what comes with the new days. We look with expectation to the Minister in relation to that.

Unison has given me a briefing, and I want to use some of those facts in my speech. We are facing the worst jobs crisis in a generation. Up to 1 million people on furlough are in jobs that will not return after covid-19. Those people are significantly less likely to have qualifications than the general population, which will have an impact on the jobs that will be available to them. Some 130,000 of those people do not have an equivalent to a level-2 qualification, and a further 250,000 do not have a level-3, so the ability to support people who lose jobs in such sectors depends on the support available to them.

We always look to the Government and the Minister for help because that is their job. They have been voted in by the people and tasked with providing support, and I believe that they have a responsibility to do so, so how can we help people in those sectors? The number of young people experiencing long-term unemployment has tripled over the last quarter—some 33,000 of 18 to 24-year-olds. A further 65,000 have been out of work between one and two years, with the risk of long-term unemployment should the job climate persist.

That is all very concerning given that we know the scarring related to long-term unemployment for young people. It may impact their future job opportunities, earning potential, and physical and mental health. Take the effect of coronavirus in my own area. The Library’s provision of constituency claimants shows, using what they refer to as the alternative account, that there were 3,035 unemployed claimants in Strangford in August 2020, which is some 1,400 higher than in August 2019. That trend is worrying—even more so when we realise that those who are on furlough will potentially be added to it. It is 5.4% of the population aged 16 to 64. That was what it was when I came to this House in 2010, and we are back there today, unfortunately. It is deeply disturbing.

The furlough scheme extension is welcome. We thank the Government for all that they have done. We will not be churlish about it because many people are in jobs today because of the commitment that the Government made, but we must do more to ensure that people have jobs to come back to. Small and medium-sized businesses in particular have vulnerable staff who are so stressed about going back to work that they are unable to return. Again, I believe that the Minister and the Government must take steps to invest in job protection and in future jobs.

I am thinking of the plethora of small, independent shops and businesses. I will give one example, because it comes to mind: a small kelp shop. Kelp is basically seaweed. This person has found a market for it, made a business out of it, and then came a cropper due to covid-19. There were many one-person starters that were full of hope for the future. I believe that those workers are on universal credit while applying for a new job.

We need more support for the backbone of our workforce: the small and medium-sized enterprises that cannot allow people to work flexibly from home, and depend on the office block buying their sandwiches and coffee. I understand that we cannot tell the future. Oh boy, what if we could? We would all pick the six numbers for Saturday night. We would do many other things, of course, but we would do that if we had the opportunity. However, that does not mean that we do not have to future-proof. That must begin with support for owners of SMEs, to give them confidence that their business will survive, that they will come out the other end, and that we will be here to support them.

[Mr Philip Hollobone (in the Chair)]

We now come to the Front-Bench speeches. The guideline limits are 10 minutes for the Scottish National party, 10 minutes for Her Majesty’s Opposition and 10 minutes for the Minister. Then Kirsten Oswald will have three minutes at the end to sum up the debate.

--- Later in debate ---

[Mims Davies]

It is an absolute focus for us to drive forward local needs and support where they can change the local labour market and local opportunities. Earlier, the hon. Lady also mentioned working with local mayors and local enterprise partnerships, which this Government encourage.

On automation, we know that the increase in productivity, progression and wages that it can bring if we get it right will be really important as we head into this fourth industrial revolution. It is very difficult, as we know, to predict with any kind of precision what automation will do to the labour market, but it is important that we understand new technology, including the enablement of smart robotics and artificial intelligence, grab it and put it in place as part of our process of change. We know that 60% of the jobs in 2014 simply did not exist in 1990, so we know that things will change imminently.

[Jim Shannon]

In my contribution—perhaps the Minister was about to come on to it—I said that the indications are that about 1 million people will lose their jobs after covid comes to its end, and those are generally people with low educational achievement. I gave two figures that together almost come to 400,000 of that million people—those who have two GCSEs or equivalent, and those who do not even have a level 3 education. So, although I know that it is not the Minister’s direct responsibility, is it possible for her to look at those people who do not have many qualifications but need extra help?

[Mims Davies]

I was coming on to the interventions that we need to make. At DWP, I have introduced a new sub-brand for our jobcentres: “jobs, community, progression”. It feeds into my passion to shape the future of the labour market, to deal with its structural problems and to reflect the breadth of what we do in our jobcentres, so that people understand that they are there for the reskilling and upskilling of individuals.

That is a key priority for us in the next decade and it is applicable not only to individuals displaced by the pandemic. As the hon. Gentleman suggested, it is also to deal with a structural problem in the labour market, to make sure that the occupational skills base matches what is needed in the labour market, so that people are not left behind and we match businesses’ needs. We recognise that this approach cuts across Government departmental boundaries, but we also recognise that collective action is vital when it comes to jobseekers being able to adapt to changes in the workplace.

Pension Schemes Bill [Lords]

Jim Shannon Excerpts

Report stage & 3rd reading & 3rd reading: House of Commons & Report stage: House of Commons
Monday 16th November 2020 Commons Chamber

[Madam Deputy Speaker (Dame Rosie Winterton)]

I thank the hon. Gentleman for that point of order. We were asked to suspend the House just to ensure that there was a little bit of extra cleaning. I do not have any further information other than that, but I am sure that it is precautionary, and if there is anything further that Members need to be informed of, I am sure that they will be.

[Jim Shannon (Strangford) (DUP)]

First, let me thank all those who have made contributions, which have been excellent. I thank the Minister for his response and the hon. Member for Grantham and Stamford (Gareth Davies) for the contribution he made just before me. It is a pleasure to speak on this issue. Although I know that this is not the purpose of this Bill, I cannot in all good conscience let the occasion go without raising the issue of the WASPI—Women Against State Pension Inequality Campaign—women, who still want their pension scheme. Once more, I look to the Minister for a response on that.

I want to speak to new clause 1 and some of the other amendments, ever mindful of the fact that the Bill provides for territorial extent, as set out in clause 117 and schedule 8, clause 120 and schedule 9, clauses 118, 119 and 129 and schedule 11. Pensions are a devolved matter in Northern Ireland, but this is an area where Northern Ireland has long maintained parity with Great Britain. There is, in effect, a single systems of pensions across the UK, with many pensions schemes, and indeed the regulator, the pensions ombudsman, the Pension Protection Fund and so on operating on a UK-wide basis.

Devolved government has now been restored in Northern Ireland, and we are pleased to have it in place. On 1 June, the Northern Ireland Assembly approved the legislative consent motion on the Bill, as introduced, and a further LCM will be necessary to cover amendments to the Bill, which the Northern Ireland Minister for Communities has agreed will be done and should extend this to Northern Ireland. So some things are positive on that.

I have been in contact with a number of pensions bodies that have expressed concern about the proposals in the Bill. We all know how essential a good pension is, and it is becoming more important with each month. I am sure that I am not the only one to have seen the losses in pensions in this year’s statement. I have a decent understanding of how my pension pays out, but I was listening to the girls in my office and it is clear that, although my staff members in their 40s and 50s have a grasp on their pension, the two staff members in their 20s and 30s do not and they do not seem to be able to understand just how it works. The older girls say, “I wouldn’t swap my pension but I like to see what is in it,” and they have already had a look at their pensions to know what they have. Many people are wise and astute enough to do that, but others are not and they have no understanding of what can be done. There is more to doing our best to secure our financial future than simply opening a letter—there has to be more than that.

The right hon. Member for East Ham (Stephen Timms) referred to new clause 1, which underlines the importance of an easily accessible, easy to navigate pensions dashboard that is easier to understand than an annual statement. The Association of British Insurers has said:

“Pensions Dashboards are a necessary addition to Automatic Enrolment. More than 10 million people have now been automatically enrolled into workplace pensions through inertia, and will need to find their pension pots and make decisions about them.”

We are all probably at that age, Minister, when we have to think about our pension pots, and if we are not doing so, there is something seriously wrong, because we should be. The ABI went on to say:

“Already 1 in 5 adults admit to having lost a pension pot and latest PPI research suggests that there is at least £19.4bn held in pots that consumers have lost track of.”

It is horrendous to hear that.

[Guy Opperman]

I welcome the hon. Gentleman back to the House, as this is the first opportunity I have had to do so. He is rightfully regarded as an institution in this place and long may that continue. I hope that he will understand that a combination of the pensions dashboard, as set out in clause 118, which will give people online access to their pensions, simpler statements, which the Department is taking forward in respect of written statements, and many other pieces of work we are doing to trace individual pensions will make tracking down past pensions an awful lot easier.

[Jim Shannon]

I thank the Minister for that response. The Department for Work and Pensions estimates that 50 million pension pots will be lost or dormant by 2050, and people are vulnerable. We hope that the intervention he made may allay some of the fears people have. The ABI continued:

“Pensions Dashboards will not only help to find lost pensions and reduce the cost of financial advice, but should also prompt people to engage more closely with and save more into their pension, aiding consumers to make informed retirement decisions.”

That is really what we have to be doing—the thrust of this debate should be to try to focus that attention. The ABI went on:

“Pensions Dashboards are now woven into nine different Government and regulatory policy strategies, including the Government’s UK Digital Strategy, the FCA’s Retirement Outcomes Review and the Cabinet Office’s Dormant Assets Commission.”

The ABI also tells us that 60% of 25 to 34-year-olds would be most comfortable viewing their pensions through their mobile banking app—because that is the nature of the future—compared with only 11% of those aged 65-plus, which is probably my generation and thereabouts; 20% of those aged 65-plus would be comfortable receiving their pension data via post, compared with only 4% of 18 to 24-year-olds; and 61% of those aged 55 to 64 would find it most convenient to view their savings through the pension provider’s website, compared with 30% of 18 to 24-year-olds. What does that tell us? It tells us that people have different ways to access their pension, to look at what it means to them and to get the answers that they need.

More people in Northern Ireland feel that they have low financial capability—indeed, Northern Ireland has the lowest proportion of all the regions of the United Kingdom of Great Britain and Northern Ireland. Fewer Northern Irish people describe themselves as “confident and savvy consumers”, with 43% saying so, versus the UK average of 52%—so we do fall behind—or as highly confident in managing their money, with 26% saying so, against the UK average of 37%. Fewer consider themselves to be highly knowledgeable in financial matters, with 10% saying so, against the UK average of 16%. We in Northern Ireland need the necessary advice so that we can decide, collectively, what our pension pots are worth.

The figures I have outlined suggest that pension savers in Northern Ireland may appreciate the benefit of a Pension Wise appointment even more than their counterparts elsewhere in the UK. Sadly, the DWP, FCA and Pension Wise data does not split user stats by location, so we do not know user stats for Northern Ireland; we know only the headline UK-wide stat that just 14% of pension pots were accessed after the Pension Wise service was used. The Northern Ireland proportion of current retirees whose main income is the state pension is the same as that for the UK as a whole; however, that proportion is predicted to fall back to 37% for those aged 45 and over and not retired.

I was reading through some of the briefings, and one of them said that the DWP had recently confirmed its intention to base new guidance and regulations on a “stronger nudge”. I am of a generation that can remember Monty Python and the story that went, “Elbow, elbow, wink, wink, nudge, nudge, say no more,” but in this instance we need to say a whole lot more. We look to the Minister for more than just a nudge when it comes to the key points. We hope that Pension Wise guidance sessions will be available, and I think it will be good for people to take them on. In a survey of some 1,000 defined -contribution pension savers aged 45 to 54, nearly eight in 10, or 77%, said that they wanted impartial guidance to help them to understand their pension access options, yet a larger proportion, 81%, did not know that they were entitled to receive free, impartial guidance from Pension Wise. Fewer than half said that they understood enough about pensions to make decisions and just 4%, or one in 25, said that they would opt out of a pre-booked guidance session. I welcome the Minister’s response to the intervention; I feel that that might just make the difference for a great many people.

In relation to the workplace—[Interruption.] My voice is starting to go; it is going to crack up shortly. It is significant that greater numbers of people will have defined-contribution pension savings as a result of being auto-enrolled into workplace schemes. For these people, achieving financial security and wellbeing in retirement will depend on making well-informed decisions. This is a much greater challenge for those who do not get impartial guidance or regulated financial advice. I can well remember when my mother took me down, as 16-year-old—that was not yesterday, by the way—to open my first bank account, and she had me in a pension scheme at 18. That is many, many years ago—

[Ms Angela Eagle]

Surely not!

[Jim Shannon]

I am afraid it is. My mother was very wise—she still is: she is 89 years old now and is even wiser today than she was whenever I was 18. It is always good to have your mum to tell you what to do, even though you might be a lot older. But that is by the way.

It is clear that the way that we are doing these things is not as effective as it should be. New clause 1 is essential to underline the importance of people understanding their pension and taking control of it, with appropriate advice, rather than simply thinking, “This is for when I’m old.” Take it from me: that time comes quicker than one could possibly imagine.

I conclude with this: the issue is incredibly complex, and it needs a complex answer. I look to the Minister to outline how he believes that issue has been addressed in the Bill. I feel that we need both a robust dashboard and compulsory written statements, and I am not content that that has been provided for in the Bill. I respectfully ask the Minister for that advice and help. We have to get pensions right for everyone, whether they be 18 or 65. We will do it together.

--- Later in debate ---

[Jim Shannon]

I thank Members and the Minister for their contributions on Third Reading. I look forward to bringing to the Minister’s door issues on behalf of my constituents, which he has been very generous in responding to in the past. I know that he will not be averse to me calling at his door, and that as always, he will respond in a positive fashion. That is the sign of a good Minister.

Question put and agreed to.

Bill accordingly read the Third time and passed, with amendments.

Covid-19: Disability-Inclusive Response

Jim Shannon Excerpts

Thursday 15th October 2020 Westminster Hall

[Jim Shannon (Strangford) (DUP)]

I had not expected to be called to speak so early in the debate, but I appreciate your doing so, Mr Rosindell. I thank the hon. Member for East Kilbride, Strathaven and Lesmahagow (Dr Cameron) for setting the scene. She and I work together on many disability issues in the House, and it is always a pleasure to support her whenever she speaks in a debate. She speaks straight from her heart; we know it is a good heart, Mr Rosindell.

The pandemic has been hard on every person in the nation, but none more so than those in the disabled sector. I want to speak quickly about some of them. The Royal National Institute of Blind People has told me that 250 people begin to lose their sight every day in the United Kingdom. A lot of people find it difficult to socially distance or to see direction arrows on the ground. Would they be able to negotiate their way into this room? They would have no idea how to do that without an assistant to help them. I have heard about many people being yelled at for not keeping social distance. They were not recognised as disabled—maybe they were not wearing the black glasses or did not have the stick—but they are partially disabled from the point of view of their sight.

The RNIB has made various suggestions, of which I hope the Minister has been made aware and that he can work on them. The suggestions do not mean breaking social distance rules, but being kind and compassionate, and taking time to speak to someone who looks as if they might be struggling to navigate through the shops. People have difficulty because they are disabled, not because there is anything else wrong with them.

Cotters is a shop in Newtownards that sells a range of groceries, cleaning products, hardware and other valuable daily essentials. That is not a plug for them, by the way, although I will send the staff a copy of Hansard afterwards and let them know that they were mentioned in Westminster Hall. The staff noticed that many of their elderly customers were struggling to understand them through their masks. The muffled voices of the staff could not be heard and the customers could not understand what they were saying. Out of their own pockets, the staff ordered masks that have plastic across the mouth to make it easier for those who cannot hear to see.

It took a few months to get that measure in place, but we are all adapting to new regulations and systems put in place because of coronavirus. Local councils could help to direct people in relation to those issues, but it would be more effective if measures relating to those who have hearing difficulties that need to be addressed came from this place.

Northern Ireland has introduced a circuit breaker, but the rules are not easy for many to understand. Elderly people ring or make a journey to my office to try to understand how they can do things. Do you know why, Mr Rosindell? Because most people want to do it right. They want to know what to do. By and large, most people—probably 98%—will do exactly what they are asked to do. We should try to help them. People want to get a lift to church. A lady who had a heart operation and has not been allowed to drive needs to get to church, because that is probably her only contact with other people. That lady needs somewhere to contact so she can sort that out.

There is an 84-year old lady who drives her 86-year old brother’s dinner round to him every night. She asked if she was allowed to stay to tidy his kitchen, as she could not do that during the last lockdown. I am not being disrespectful, and neither is she, but by the end of that period, the kitchen was a mess. The cleaning up she had to do on her brother’s behalf was horrendous—those are her words. Can she care for her brother?

I must ask the Minister for a dedicated phoneline for people to get informal help. Can there be a dedicated line for people to ask a question and get some direction and guidance on what they can do? That would be a great helper.

The vulnerable people who hear “circuit breaker” fear that, for them, it will be a life breaker because of the impact the regulations would have on their heads. We must have more information for our disabled and vulnerable and step it up on their behalf. For guidance to be issued a week before might be fine for you and me in this place, Mr Rosindell, but it is not okay for someone to feel for a month like they cannot see or speak to another living person or for someone not to be able to care for those who depend on them. That is happening to people in my area and yours. We must address it quickly.

[Several hon. Members rose—]

--- Later in debate ---

[The Minister for Disabled People, Health and Work (Justin Tomlinson)]

It is a pleasure to serve under your chairmanship once again in Westminster Hall, Mr McCabe. I pay tribute to the hon. Member for East Kilbride, Strathaven and Lesmahagow (Dr Cameron), who has a long-standing reputation as a proactive, constructive chair of the all-party parliamentary group for disability. I have had the pleasure of attending many meetings, including one this week virtually, as we embrace new technology. She is held in high regard across Government and that was reflected in the nature of this debate. It has been good-natured, conducted with good spirit, and has highlighted the important concerns that we collectively have to address as we navigate the unprecedented challenges of covid.

I also pay tribute to the former Minister, my right hon. Friend the Member for Basingstoke (Mrs Miller) pan-disability, have benefited hugely from.

I will try to respond to as many points as I can, in particular where MPs have raised specific points, but first, a sense check: I am the Minister for Disabled People, but the Department for Education leads on special educational needs, for example, and the Department of Health and Social Care leads on care easements. However, I have attended a Women and Equalities Committee hearing that covered those things, so I have a reasonable understanding of them. As the Minister for Disabled People, Health and Work, I have two primary roles. I am responsible for all things related to disability in the Department for Work and Pensions—predominantly the provision of disability benefits—but I am also responsible for our Disability Unit, which was launched last year and which is based in the Cabinet Office.

The unit is the eyes and ears of disability issues across Government, making sure that disability issues are embedded in policy development. It is personally supported by the Prime Minister, which makes my job much, much easier. Disability issues are brought up at Cabinet and in interministerial groups, where I get to instruct other Ministers about their importance. We are an asset across Government, because we spend—I in particular spend—a huge amount of time on stakeholder engagement. In the past seven days, just as part of my ongoing work, I have met representatives of all the national charities that have been mentioned in the speeches today. I enjoy talking to people with real lived experience, and we then flag up that experience with the relevant Department if it is not DWP, and it makes a tangible difference.[Official Report, 17 November 2020, Vol. 684, c. 4MC.]

Many people today have talked about the challenges of accessing food during covid. Actually, the Royal National Institute of Blind People was one of the many charities that we were able to link up with the Department for Environment, Food and Rural Affairs, which allowed its representatives to bring their real lived experience to bear, and that sped up the process of improving the situation. The DEFRA Minister was then able to share that exchange as best practice with other Ministers and tell them to look at Disability Unit as a helpful resource, because we can signpost people to experts, who speed up policy development and make sure that it is right first time.

Looking at the broader points that were raised, one was accessible communications, and it is absolutely vital. Again, through interministerial groups and with the support of the Prime Minister, we have been reminding cross-Government Departments and public sector organisations outside Government that they have a duty under the Equality Act to ensure that communications are accessible. Using the RNIB again as an example, it has proactively helped us to look at communications and put them into Easyread and braille. In my own Department, we have launched our deaf-signed YouTube channel, which explains benefits through British Sign Language. There is a lot more best practice that we have to share, but again, through the Disability Unit, we are keeping a very close eye on what the Government and other connected organisations are doing.

[Jim Shannon]

rose—

[Justin Tomlinson]

I will take some interventions in a bit; let me just clear a few things first.

I also believe that we need to be smarter about how we use our stakeholders in future announcements regarding the difference in guidance on tiers 1, 2 and 3. What we should do is to make sure, as quickly as possible, that we communicate to our extensive network of stakeholders the potential impacts or opportunities as guidance changes, so that they can then share that very quickly with their members. That is because a lot of communication is reliant on people watching the news and following our powerful speeches in Parliament, but sometimes they do not do that, so we need to rely on our network of stakeholders, who have much better reach than our Twitter channels. Both my hon. Friends the Members for Warrington South (Andy Carter) and for Southend West (Sir David Amess) highlighted the trust, expertise and reach of good local organisations. Again, if they are part of sharing the communication, we know that those who are most in need of good communication will be able to get it.

On social distancing and hidden disabilities, the hon. Member for Enfield, Southgate (Bambos Charalambous) is absolutely right about the sunflower lanyard. The dilemma for the Government is that technically it is produced by a commercial organisation, because it can sell these lanyards, and Governments do not normally publicly endorse a commercial organisation when it has competitors, because we are not supposed to pick winners; we are supposed to do open exercises. However, my personal view is that these are unprecedented times and that of all the different schemes—there are many very good schemes—that is easily the best known one and I think that we absolutely should get behind it.

Other Ministers who have been in conversation about this issue with the hon. Gentleman have also talked to me, and we are trying to work out the best way to promote this scheme, because it works two ways. One, we absolutely need to make things as easy as possible for people with hidden disabilities, and the hon. Member for St Albans (Daisy Cooper) very eloquently set out the importance of that. However, there are also people we rely on to challenge people who are not abiding by the rules, because they do not like it when they get it wrong and they ask a question of somebody with a hidden disability. We have to get it right for both parties. However, this is an issue that I am really keen to push on, and I think that is the best possible scheme.

I pay tribute to organisations such as Transport for London, which have been brilliant at improving communications, so that the general public are more aware about hidden disabilities. I know that lots of other businesses are looking at that issue and I encourage them to do more. I also welcome the fact that the NHS is trialling 250,000 clear masks. Again, there will be lessons to learn from that.

I turn now to care easements, which have been used by only eight of 151 local authorities and are meant to be a last resort. It is not carte blanche, as they are underpinned by the Human Rights Act, but the broad principle is that if covid causes an organisation to have such a depleted workforce, we do not want a situation where immediate urgent care in somebody’s home is missed for the sake of filling in an annual report. That is an extreme example, but that is the sort of reason why, with great reluctance, we all collectively voted for that. Absolutely, the moment when we do not need those emergency powers, they should go. What stakeholders are asking me—many of the stakeholders actually deliver adult social care, so they are saying it from two angles—is to ensure good transparency so that, when a local authority does that, not only the Care Quality Commission but independent stakeholders can keep an eye on it. That is an example of where something came to us, the Disability Unit took it across Government and, within hours, guidance was pushed through and it was easier to be more transparent. Again, we will keep a close eye on that.

I turn now to my responsibility in the DWP in terms of face-to-face assessments. My shadow, the hon. Member for Nottingham North (Alex Norris), kindly said that we should continue to improve them, and rightly so. They were introduced under a Labour Government, and we have done over 100 improvements following five independent reviews. One thing about suspending face-to-face assessments and doing auto-renewals is that what limited capacity we had left was then able to concentrate on new claimants, so new disabled people and people with health conditions could access financial support; those whose conditions had changed and who would be entitled to more money; and, absolutely, those with terminal illness, so we could still process those in four to six days.

We brought forward telephone assessments. We had planned to pilot them over 12 to 18 months; we piloted them over about 12 to 18 minutes in the end. As part of the Green Paper, we will be looking at how well received they were. Anecdotally, the stakeholders like them. They are not perfect, and there is more work to do, but stakeholders want them to stay. Will video assessments help? What more can we do to gather clearer evidence that increases the likelihood of a paper-based review and getting the assessment right first time round? Collectively, the improvements we have been making have delivered an additional £10 billion a year to support people with disabilities or long-term health conditions.

Access to Work is changing, and that is a good thing and an opportunity for the future. It recognises, for the first time, that people do not always have to come into the traditional workplace. We will provide funding for people at home and towards additional travel costs if there are links around covid. We are doing proactive webinars through Disability Confident, and I pay tribute to Microsoft, which has sponsored an additional round of those. Our Disability Confident leaders are sharing best practice through their business networks.

On the broader points about disability employment, all the funding for the Work and Health programmes, intensive personalised employment support, Access to Work and Disability Confident has been protected, and all of the £30 billion Plan for Jobs package is open to disabled people. Access to Work can help if additional assistance is needed. We are working proactively with our jobcentres to promote that.

On the final, broader point about the national strategy and the Green Paper, both are happening. The Green Paper focuses on the DWP around improving access to evidence, assessments, monetary consideration, appeals and employment support. We are actively doing pre-stakeholder engagement before we look to launch the Green Paper towards the end of the year. The national strategy for disabled people, personally supported by the Prime Minister, is cross-Government. Each Department has to set out what its ambitious priorities are to remove barriers and be more inclusive for disabled people. We will put that to disabled people for them to audit, and we will then bring forward conclusions on both of those papers.

We are absolutely determined that there will be an inclusive recovery. Disabled people, disabled people’s organisations and stakeholders will always be at the heart of our policy development. We are proud that we have delivered record disability employment and that we are increasing funding for those most in need in society. Covid has given us unprecedented challenges, but we will not be diminished in our ambition to improve the lives of disabled people.

Universal Basic Income

Jim Shannon Excerpts

Tuesday 13th October 2020 Westminster Hall

[Jim Shannon (Strangford) (DUP)]

It is a pleasure to participate in this debate. I thank the hon. Member for Inverclyde (Ronnie Cowan) for setting the scene and I am pleased to make a contribution. I am also pleased to see the Minister. I believe he will do his best to respond to what we are asking for.

As others have said, covid-19 has been with us over the past few months. I recollect many conversations with constituents about these matters back in March. Never at any point did I honestly think we would end up where we are now, with these restrictions in place. Even as we were fast hurtling towards the changes, I never envisaged us being here.

I thank the Government, Ministers, the Chancellor and everyone who has been forthright and helpful. Others have done so, but I would also like to put it on the record, as it is important to include it in Hansard. Many of my constituents in Strangford have survived until now because of the Government’s commitment and help. To be honest, those people would not be there without that, so I put on the record my thanks to the Minister.

As elected representatives, the nature of our job means that people do not necessarily come to us to tell us how good things are or to say thank you, although many do and we appreciate that. People come to us because they have concerns and worries. Some have come to me—others have referred to this—because they fell outside the scheme.

Even with all the schemes that the Government have brought forward, it is clear that people have missed out, including the 3 million people referred to in a question to the Prime Minister during his statement on covid-19 yesterday, as well as the self-employed and directors. I do not want to labour the point, but they invested their profits and income back into their family businesses, thereby employing 12, 15 or even 20 people. But when it came to helping them, the help was not there.

Why do I look sympathetically on this particular methodology of benefit? It is because universal basic income could be the system to help those who did not receive the income they needed. I am not being critical of the Government, but I want to put that on the record. If we cannot help people, we have to consider different ways of doing things. That is why the hon. Member for Inverclyde has promoted this issue and other Members have supported it.

The experience of my constituency of Strangford is no different from that of the hon. Member for North East Fife (Wendy Chamberlain), who said that tourism is important to her constituency. The core economic driver of Ards and North Down Borough Council, which covers the majority of my constituency, is based on tourism. Tourism is vital because it provides income and jobs, thereby keeping the whole thing going.

I am realistic about the system. I understand that the Government do not have bottomless pockets or a money tree at the bottom of their garden. There is no money at the end of the rainbow, so they have to work practically with the moneys that they have. I do believe, however, that the Minister should at least consider a pilot scheme for universal basic income, so that we can judge and consider it. Can we pay for it? That is important. We have to be realistic and honest. Can we reach out and help those people who have missed out, including in my constituency? Those are the people on whose behalf I am speaking today.

There are some 52 million adults aged 18 or over in the United Kingdom, and 12 million children and young people under 12. I understand the economics, the figures and the statistics that mean that some earners are taxed at a higher rate. My life is no different from that of anybody else, and the same is true of the lives of others in this Chamber. Society is judged by how it looks after those who are less well off. When I was a child—that was a long time ago, by the way—we never had much back in those days. It was a fact. We did not have material possessions, because that was the way it was in those days, but it made me more understanding of those who need help. That is why I am here today, to speak up and to support the hon. Member for Inverclyde.

The Minister is a compassionate person as well. I believe in my heart that he understands very well the policy we are putting forward and why it is so important. Can we do better than universal credit? I felt a wee bit embarrassed sometimes whenever people came to me during the covid-19 crisis and I said, “You can get universal credit.” I knew right away, though, that the guy or lady across the table had a business from which they were earning £300 a week—some were earning more—and I had to tell them, “Look, £94.50 is what you get.”

I understand that the Government offered what they could—I am not criticising that—but there must be a way to ensure that those businesses can hold on long enough so that they can then turn the corner and do better. I am really conscious of the issues. We need conditions when it comes to universal basic income. I understand that some of the naysayers are saying that it could reduce the incentive to work. Well, I tell you this: every person who came to me looking for help wanted to work. They wanted to continue to work and they wanted that opportunity. They just needed that wee bit of help to get them over the line. The Government have, in fairness, responded positively, but I wonder exactly what we need to do.

[Ronnie Cowan]

I should perhaps have said this earlier. One complaint about basic income is that it makes people indolent because people are paid for doing nothing. I refer the Minister to all the pilots that have been run throughout the world, which show that there is absolutely no evidence for that whatsoever. People the world over are just like us: they want the opportunity to work and earn a wage. Basic income does not make people indolent.

[Jim Shannon]

I wholeheartedly agree. I was sympathetic to the really good question that the hon. Member for Brighton, Kemptown (Lloyd Russell-Moyle) asked the Prime Minister yesterday in the Chamber. I am not saying that because he is sitting across from me; I told him it was a good question at the time. It was about the minimum wage. I understand how it works. There are arguments to reduce the working week to four days and to reduce wages, but if someone on a minimum wage loses wages, they have nowhere to go. This is about every penny they have.

I remember the stories that people in my constituency have told me. They managed everything almost to the last pound for that week. Even a small reduction in what they have will mean that they will not be able to pay their rent or their car off. They may be paying off furniture for their property, too. The whole thing becomes a real difficulty. If somebody takes ill, it becomes a real problem. The hon. Gentleman’s question was pertinent, because I could relate personally to what he was saying. I thank him for that.

In opening the debate, the hon. Member for Inverclyde referred to other schemes. I read in the briefing about the Finnish experiment. It is not all about money. I am conscious of time, so I will come to my conclusion fairly quickly. Those who participated in the Finnish experiment

“were more satisfied with their lives and experienced less mental strain, depression, sadness and loneliness. They also had a more positive perception of their cognitive abilities, i.e. memory…and ability to concentrate.”

Giving people that help improves their quality of life, physically and mentally. We have to look at that, because there is cost otherwise. If the Government or others are not able to help, there are impacts on people’s physical and mental health, which then has to be paid for by the NHS. I suggest that although the Finnish experiment may not be the best example, it did highlight that issue.

As I see every day, those who are under financial pressure and who are worried about their future also face mental stress and difficulty. I meet people every day, every week, in my office—my staff do most of that, to be fair—and recently, when universal credit first came in, I remember that there were great problems. The hon. Member for Glasgow South West (Chris Stephens) and I have spoken about these things on a number of occasions, and we understand that.

[Rachael Maskell]

That brings to mind another aspect of this issue, which is sickness absence from the workplace. We obviously know the impact that has, but if people have the underpinning of a universal basic income, that will help with their rehabilitation and get those people back into work, whatever form of work that is. It may be volunteering experience or it may be through social prescribing, and therefore having a universal basic income could be a real aid to rehabilitation. Does the hon. Gentleman agree that this is another opportunity?

[Jim Shannon]

I certainly do. That is why I brought up the issue of people’s physical and mental experiences—because if we can get people into volunteering or get them back to work and moving up, that will make the Minister’s job a lot easier as well.

The hon. Member for York Central (Rachael Maskell) referred to the five-week period, which turned out to be an eight-week period in many cases. In a way, with all the experiences we had early on with universal credit, we overcame many of those issues, and the Government did as well. I therefore say gently to the Minister that we should perhaps be looking at a methodology for a universal basic income, at least on the basis of a pilot scheme, because with a pilot scheme the Government can perceive the issue, look over it, challenge it and investigate to see whether it is possible. In Northern Ireland, 16% of people—300,000 people—live in poverty, and that is before housing costs, which are enormous. With that in mind, the Northern Ireland Assembly also asked questions on this matter, although I understand that responsibility for the DWP lies here.

We have always had the greatest respect for the Minister, as he knows, and I believe him to be a compassionate person who can understand why we, the hon. Member for Inverclyde, and others have spoken on this topic. We believe there is a necessity for the universal basic income to be looked at through a pilot scheme. I believe it will help others, and therefore, along with others, I ask for that as well.

--- Later in debate ---

[Ms Karen Buck (Westminster North) (Lab)]

It is a pleasure to contribute to this debate under your chairmanship, Mr Davies. I congratulate the hon. Member for Inverclyde (Ronnie Cowan) and others for securing the debate. We have heard strong contributions from Members who have critiqued the existing social security system and shown how its weaknesses have been exposed during the pandemic. That is absolutely right, for reasons that I will come on to, but we have heard not only about the pandemic, but about a recognition that the current social security system has a number of fundamental problems.

We have rehearsed the problems with the universal credit system on many occasions in the past and will no doubt do so again, 10 years on. Many problems have arisen from the fact that many people have been excluded from receiving help and the restrictions that apply, ranging from the five-week wait to the benefit cap and many other problems.

It is also true that there is a very long-term and fundamental issue with social security that those who support versions of universal basic income recognise. No system stands still. The world has changed fundamentally, particularly the world of work and the extent to which we are increasingly in a world of flexible employment, income volatility and fundamental demographic change.

Even the principles that Beveridge set out as the basis of the post-war social security system, starting with the concept of a flat-rate system, soon had to change as the world changed—as women went into the workplace and different pockets of disability emerged. The interaction between those at work and the nature of the jobs they were doing also changed and increasingly became a system that topped up the basic, flat-rate insurance-based systems, so we have ended up with a complex hybrid.

It is also true—I will come on to this in a minute—that whatever system we end up with will have to accommodate a variety of different approaches. Members have stressed this morning, and I agree, that if we want to build an argument for a form of universal basic income, the Government have done a lot of the work for us by introducing a system that has embraced conditionality and sanctions with vigour in recent years. If we want to convince people of the merits of a basic income, we could not do much better, given that the DWP seeks to micromanage so much of people’s lives, whether they are out of work or in work conditionality, where interaction with job centres often feels like an obstacle course of booby-traps designed to trigger sanctions. Those sanctions are wildly disproportionate including, until last year, cutting people off without support for up to three years. The social outcomes of all those policies include what many refer to as the soaring numbers of people whose destitution is such that they are dependent on food banks.

I do not want to cover all the points that have been made, but I will refer to two areas where the basic income argument is particularly relevant. The first is income volatility and the ability of the social security system to deal effectively with the fluctuations in income that have become characteristic of the labour market. Again, the problem is not new but, as self-employment, sometimes very dubious forms of self-employment, the gig economy and zero-hours contracts have become more prevalent, it is particularly pertinent.

The ability of the social security system to react in a timely manner to sudden drops in income is stretched to the limit. Despite the use of realtime information from the tax system, the monthly cycle of universal credit payments does not correspond to real-life volatility in many household incomes, as John Hills of the London School of Economics has certainly shown. There is a strong case for mitigating that volatility through payments that do not respond to changes in income, which is precisely what child benefit—the nearest thing we have to an element of basic income—does. The stability of child benefit has been shown to be one of the most valued components of the social security system. Whatever happens to earnings from other benefits, child benefit can always be counted on.

The second point concerns the basis on which benefits are awarded, whether to individuals or households. Our personal taxation system is overwhelmingly based on individuals, but our benefits system is increasingly based on the assessment of household income. Universal credit has reinforced that disparity. It is a benefit designed around an out-of-date model of a single breadwinner and it disadvantages second earners in the household, who can find most of their earnings lost to household means-testing. We should not be comfortable about the fact that people in lower-income households face a completely different set of implicit tax rates from the better-off.

[Jim Shannon]

I want to underline the issue. It is not just about finance, but about health, and the physical and mental responses to that. Does the hon. Lady feel that that has to be taken into consideration when it comes to support in such a scheme?

[Ms Buck]

I totally accept that security is fundamental to people’s physical and mental wellbeing. That is implicit in the idea of recognising the weaknesses of the existing system and how it responds to volatility, most obviously demonstrated during a crisis such as the pandemic, but consistent over the long term.

Basic income as a fully individual entitlement could go some way towards addressing that problem, although it must be recognised that it is not a complete solution, because most of the proposals for basic income retain large parts of the existing social security system, most critically, housing benefit. Beveridge was defeated by the disparity in housing costs across the country, and that remains now—if anything, it is probably more pronounced than it was. A basic income is not the only imaginable way to improve the current situation, but the argument for it sets out the problem with great clarity.

Some contributions to the basic income debate, however, suggest that the reform could be easily implemented—“oven ready”, to coin a phrase—and that all that is necessary to deliver it is political will and progressive values. I do not want to drown the debate in figures, but it is important to get a sense of the scale of change involved in even modest basic income proposals. I will refer briefly to two important studies that address the issue of how to fund basic income. Both show incredible clarity and are from people who are sympathetic to the idea.

The first is a paper by the late Tony Atkinson, who was a towering figure in the study of inequality. The paper was published after his death in 2017. Tony Atkinson favoured what he called a participation income, which would be conditional on some form of social contribution, but not unpaid work. As those conditions do not influence the modelling, we can take the results as relevant to basic income in general. The adult participation income in his model scheme is £75 a week. Child benefit is raised to £52.60 and £89 for the first child. The scheme prioritises children, and is certainly not extravagantly generous to adults. Other social security benefits would be retained, so it is essentially a partial basic income scheme. The modelling shows that it would not eliminate poverty, but would lead to significant reductions.

How is the model funded? The personal tax allowance is abolished, so income is taxed from the first pound. The basic rate of income tax rises from 20% to 30% from the first pound of earnings, rising to 40% of gross income at £25,000 to 50% at £45,000 and 60% at £90,000 and beyond. An earned income tax discount is introduced to avoid excessive taxes on lower-income groups.

Members will appreciate that those are not trivial changes to the system of personal taxation. My hon. Friend the Member for Brighton, Kemptown (Lloyd Russell-Moyle) said that a basic income would require a total restructuring of the taxation system. That is not something that we can enter into lightly. The scale of what is needed to accommodate such changes is considerable. A doubling of the marginal tax rate on gross incomes of £25,000 a year would surely make even the most ardent supporter of basic income hesitate.

Any basic income scheme faces the problem that spreading payments out over the entire population will require either cuts to other expenditure programmes or increases in tax revenue. The Compass basic income model, which is widely quoted, does not offer a blueprint for immediate reform. The other scheme is intended as a policy that could be adopted immediately. Therefore, the basic income for adults and children is lower, at £60 and £40 a week respectively. To balance the books, the income tax personal allowance is abolished, as is the primary threshold for national insurance contributions, so all income is subject to tax and national insurance. A new lower rate of 15p in the pound is introduced for the first £12,000 of income to avoid successively disadvantaging the lowest earners. All other marginal rates are increased by three percentage points, so the basic rate would be 23% in England, Wales and so on. That gives an indication of what the implications would be for changes to the tax system. In both cases, marginal rates of income tax increase not just for the rich, but for middle and lower earners, and income that was never taxed before becomes liable for income tax and/or national insurance contributions.

Although I accept a number of the arguments about the positivity of changes to the social security system that give people security, we cannot dismiss the fact that we will either have to find significant additional contributions to make it work or look at how the changes to the taxation system will affect people and ensure that is part of the debate. It is worth pointing out that the pilot studies that have been conducted in other countries do not have the advantage of being able to do all this in realtime, precisely because to make a full basic income work requires social security and tax to be fully integrated as part of the model; it cannot simply be about testing some aspects of the scheme.

I welcome this debate, and I certainly do not dismiss the idea of basic income. I recognise and support the contributions made this morning. People are saying that a basic income can address long-term problems that are poorly handled by existing social security models. As Labour develops our proposals for replacing universal credit with a more generous and less stigmatising system, I hope we will rise to some of those challenges.

Universal Credit: Court of Appeal Judgment

Jim Shannon Excerpts

Thursday 25th June 2020 Commons Chamber

[Will Quince]

My hon. Friend is absolutely right. It was this Conservative Government who introduced our modern, dynamic, agile new benefits system, tailored for the claimant’s personal circumstances. The fact it is online means we have been able to process the claims of more than 3 million people, getting them the support they desperately need as quickly as possible. Just imagine for a moment, Mr Speaker, the chaos that would have ensued had we been relying on Labour’s broken legacy benefits system alone. Thank heavens for universal credit.

[Jim Shannon (Strangford) (DUP)]

I have had many similar cases over the years, so I am really pleased first to see the court decision, but secondly to see the Government and the Minister in particular responding in a very positive fashion. The judge referred to common sense; it is about not just common sense, but the practical effects on families at a time of financial stringency over Christmas and the new year. Can the Minister confirm whether he will retrospectively correct the mistake, which quite simply boggles the mind and common sense? He referred to solutions, and I can give him one very quickly. Will those who have had to take out loans to cover the month where they lost full payment receive help to pay the interest on those loans? Some took out loans with tremendously large interest rates. It is important that people have help right now.

[Will Quince]

I am happy to meet the hon. Gentleman to discuss those cases in more detail. As I said, I am absolutely committed to finding a fix. The court has not mandated any specific fix or action, but I am committing us to finding a solution, and I will do all I can to do so. The court dismissed the appeal on the grounds of discrimination. He mentioned families. The Department is absolutely clear in its firm support for all claimants. We continue to support families with things such as childcare costs, and I stress that childcare support under universal credit is far more generous than the old legacy benefits system, with the ability to claim back 85%, as compared with 70%. I would be very happy to meet the hon. Gentleman to discuss those concerns in further detail.

Covid-19: DWP Update

Jim Shannon Excerpts

Monday 4th May 2020 Commons Chamber

[Mr Speaker]

We now go over to a virtual Jim Shannon.

[Jim Shannon (Strangford) (DUP) [V]]

Thank you, Mr Speaker; it is always a pleasure to ask a question. I thank the Secretary of State for her energy and commitment and her responses to the questions so far. I also thank the DWP staff across the United Kingdom of Great Britain and Northern Ireland, and in particular those in Strangford, who have done a whole lot to help people.

The Secretary of State referred to self-employed directors. Hospitality, retail, fishing, construction and bus companies invest their profit back into their companies, as well as self-employed directors. Many of these are family businesses creating many jobs in the high street. Exactly what can be done to help the self-employed directors in shops in Newtownards, Comber, Ballynahinch, Saintfield and villages across the constituency of Strangford?

[Dr Coffey]

It is good to see my hon. Friend doing well over in Northern Ireland. I want to stress again that the scheme established by the Treasury will cover about 95% of people who receive the majority of their income from self-employment. I have tried to share with the House some of the approach taken in order to support people who pay themselves only, in effect, by dividends. As I pointed out earlier, a small percentage of people get the majority of their income in that way, on which, in effect, they pay only 7.5% tax. I am conscious that it cannot be decided whether dividends are solely for substitute pay or whether they are a return on investment, but I encourage those people to consider other forms of support that may be available at this time.

Statutory Sick Pay and Protection for Workers

Jim Shannon Excerpts

Wednesday 18th March 2020 Commons Chamber

[The Minister for Disabled People, Health and Work (Justin Tomlinson)]

We are in extraordinary times. The coronavirus pandemic is the most serious public health emergency that our nation has faced for a generation, but the Government will do whatever it takes to get our nation through it. We all need to pull together. We can, must and will get through this.

Before I proceed to the main part of my speech, I want to pay tribute to all our fantastic staff, particularly those on the front line who are doing their level best, where they can, to enable some of the most vulnerable people in society to continue to receive benefits, and to enable those who now need to gain access to those benefits to do so. The spirit of this debate shows Parliament at its best—we are all seeking to work in partnership.

These are uncharted times, and there are new things coming forward. I have talked to lots of stakeholders in the past few days as we have made announcements about our Department. In normal times, we could spend 18 months developing policies—testing them, carrying out engagement up and down the country, and talking to people with real-life experiences to make sure there are no unintended consequences—but we are on a daily basis having to review things. It is a credit to the Opposition that this debate is being conducted in a spirit of partnership, so that we can look at and feed in things that need to be considered to provide further support—I know that more support will come forward on a daily basis.

Our policy is to protect lives and fight this virus with everything we have. Everyone should follow Government guidance to control the spread of the disease. Those who have a high temperature or a new contagious cough, and those who share a home with people presenting these symptoms, should stay at home in self-isolation for 14 days. Everyone should avoid unnecessary travel and social contact with others, and people who can do so should work from home. That will help to protect the NHS and safeguard the most vulnerable.

I reassure the House that the Government will provide a safety net and support for individuals during this testing time. Everybody will be supported to do the right thing, and the Government will help employers to support their employees to do the right thing.

[Jim Shannon (Strangford) (DUP)]

The Minister is very dutiful in doing his job, for which I thank him, but I have had contact today from a mother who is isolating because of her child. Is she eligible for sick pay from the Government, or does she have to take unpaid dependants’ leave, which would be very unfair? Just how can that work?

[Justin Tomlinson]

When people in work are isolating due to Government guidance, which seems to be the case in the circumstances that the hon. Gentleman describes, they would be eligible for statutory sick pay through their employers. In addition, it is always worth their looking on gov.uk to see whether they can get additional support through the welfare system, whether universal credit or new-style ESA.

Social Security Benefits: Claimant Deaths

Jim Shannon Excerpts

Monday 24th February 2020 Commons Chamber

[Debbie Abrahams]

Thank you, Madam Deputy Speaker. I shall speak up.

As I was saying, the leadership determines the culture in an organisation. In a Department, that culture is determined by Ministers. It is a question not just of the policies and their implementation, but of the tone and culture that are related to their delivery.

We know that the Government’s health assessment process and sanctions regime leave sick and disabled people in fear and dread as they wait for the inevitable envelope to drop on their doormat inviting them to participate in a work capability assessment or a personal independence payment assessment, or possibly both. More than three quarters of claimants who appeal against assessment decisions telling them that they are fit for work have those decisions overturned, and that is because these are poorly people. We also know that in 2013 the death rates among people on incapacity benefit or employment and support allowance were 4.3 times higher than those in the general population, an increase from 3.6 times higher in 2003. That showed the level of sickness and ill health in that group of people.

Peer-reviewed research published in the Journal of Epidemiology and Community Health estimated that, between 2010 and 2013, work capability assessments were independently associated with an additional 590 suicides, 280,000 cases of self-reported mental health problems, and 725,000 antidepressant scripts. Not only are those assessments not fit for purpose; they are actually doing harm.

[Jim Shannon (Strangford) (DUP)]

I congratulate the hon. Lady on her assiduity. She has made a name for herself in the House not only on behalf of her constituents, but on behalf of everyone affected by this issue. Does she agree that, in this day and age, for anyone to die in stress while awaiting rightful help and aid from the Government should be deemed nothing short of obscene and disgraceful, that the shame of it has an impact on every person who takes a seat in this place, and that what we need is an urgent change in the present system?

--- Later in debate ---

[Debbie Abrahams]

My right hon. Friend hits the nail on the head. There are systemic failures within the Department and they have to be addressed. This is just not good enough.

Jodey Whiting, who was from Stockton, died on 21 February 2017. She was a vulnerable woman with multiple physical and mental health illnesses, which left her housebound and requiring 23 tablets a day. That meant that she was entirely reliant on social security support. In late 2016, the DWP began to reassess Jodey’s entitlement to ESA. Jodey requested a home visit as she rarely left the house due to her health, and she had made it clear in her reply that she had

“suicidal thoughts a lot of the time and could not cope with work or looking for work”.

Despite this, the DWP decided that Jodey should attend a work capability assessment in January 2017. Unfortunately, Jodey missed that appointment and, on 6 February, the DWP decided to stop the fortnightly ESA payments that Jodey relied on. She was immensely distressed to learn that her last payment would be made on 17 February. With the help of her family, Jodey wrote to the DWP to explain the severity of her health conditions and to ask the Department to reconsider the decision to terminate her ESA, but that did not happen until after her death. She also received letters informing her that her housing benefit and council tax benefit would be stopped because they are linked to ESA. She told her mum, Joy, “Mam, I can’t walk out of the house, I can’t breathe, how am I going to work?” Jodey took her own life just three days after her last ESA payment on 21 February.

The Independent Case Examiner concluded that DWP was guilty of “multiple” and “significant” failings in handling Jodey Whiting’s case and found that the DWP failed to follow its own safeguarding rules five times in the weeks leading up to the suicide. In addition, a report by psychiatrist Dr Trevor Turner says that Jodey Whiting’s mental state was likely to have been “substantially affected” by the DWP’s decision to remove her out-of-work benefits for missing a work capability assessment that she did not know about. The case is now the subject of an appeal to the Attorney General for a new inquest, and I know from speaking to Jodey’s family today that they are desperate to know when they may hear from the Attorney General.

Then there is Stephen Smith. Last April, we learned that Stephen, the Liverpool man many people remember from the front pages of various newspapers and whose emaciated body was more reminiscent of someone from a concentration camp than 21st century Britain, had died of multiple organ failure after being found fit for work. But there are many, many more cases of DWP claimants dying, some of which I raised in last year’s Westminster Hall debate.

Jimmy Ballentine took his own life in 2018 after being found fit for work. Amy Nice also took her own life in 2018 after being found fit for work. Kevin Dooley committed suicide in 2018 after losing ESA. Brian Bailey died in July 2018, again taking his own life after being found fit for work. Elaine Morrall died in November 2017, taking her own life. Daniella Obeng died in December 2017, again taking her own life. Brian Sycamore died in September 2017, taking his own life after leaving a note blaming the DWP after failing his work capability assessment.

Mark Scholfield, who died in July 2017, was a terminal cancer patient who did not receive any UC before he died in spite of his illness. Chris Gold, who died in October 2017, was found fit for work following a stroke and was facing foreclosure when he died because he could not work. Lawrence Bond collapsed and died in the street in January 2017 after being found fit for work. Julia Kelly died in 2015, taking her own life after losing ESA for a third time. Ben McDonald took his own life in March 2015 after being found fit for work. Chris Smith, who died in 2015, had cancer and was found fit for work despite a terminal diagnosis.

David Clapson could not afford to power his fridge to store his insulin and died as a result in July 2014. Michael Connolly took his own life on his birthday in 2014 after losing his ESA. George from Chesterfield died of a heart attack in May 2014, eight months after being found fit for work despite having had three previous heart attacks. Robert Barlow died of cancer in April 2014 after losing his ESA. David Barr died in September 2014, taking his own life after losing ESA. Trevor Drakard took his own life in 2014. Shaun Pilkington—

[Jim Shannon]

The hon. Lady is referring to a number of names. When someone comes to my office or to the office of another MP talking about anxiety, depression or suicide, we always say to ourselves, “These people need help.” Is it not time for the Government to instruct office staff that action must be taken when they hear someone threatening suicide or meet someone who has tried to commit suicide?

[Debbie Abrahams]

Absolutely. I thank the hon. Gentleman.

This is unforgivable. These are people’s family members and we are failing them. We must not let this continue.