Universal Credit: Farmers

Jo Churchill Excerpts

Wednesday 24th April 2024 Westminster Hall

[The Minister for Employment (Jo Churchill)]

It is a pleasure to see you in the Chair, Mrs Murray. Before I respond, I would like to pay tribute to Lord Field, whose passing was announced earlier today. He was a wonderful individual who contributed over many decades to the important issue of welfare. My personal memories are of his kindness and compassion during my early days here. As a former Work and Pensions Committee Chair, I know he would have taken great interest in all the activity happening across the House on welfare issues, not only this week but in the recent past.

I congratulate the hon. Member for North East Fife (Wendy Chamberlain) on securing this debate. First, let me put it on record that the Government recognise the vital contribution of farmers to the country and to the economy as a whole. It is worth the most enormous amount to us, in not only the growing sector, but the manufacturing sector. From my own early days as a young farmer, right through to my representing a rural community, I have been more than embedded, and I understand the challenges. The hon. Lady will know—as I do—that, as with many business areas and sectors, these businesses come in a multitude of forms. Although I appreciate what she said about her farmers lambing, my farmers are trying to get seeds in the ground after the most appalling rainfall. I say gently that they are not the only businesses dealing with fluctuating incomes, transitions throughout their year or lives where they put in 12-hour days. We are working with them, and I agree that that point is important.

For clarity, I met the representatives from the National Farmers Union on 19 March, and I am very grateful to them. As soon as the issue of the migration of those in the farming community from tax credits to universal credit was flagged to me, I reached out to the NFU directly, it responded and we had the meeting to discuss that issue. I cannot answer the specifics that the hon. Lady brought up, but I am interested in them, because the tax credit migration notices have only just gone out, so I am confused as to why there would have been the stories she mentioned. Perhaps if I might be facilitated with those individual challenges, I can make sure they are addressed swiftly.

Officials in my Department are continuing that engagement to ensure that farming communities are communicated with clearly, that the transition to universal credit is as smooth as possible and that the concerns are heard. At official level, I had meetings on 9 and 10 April with officials from my Department and the NFU. Engagement has been constructive. Actions include sharing the third-party information pack on the move to UC with the NFU, which will share it with farming charities—the pack supports welfare rights organisations and charities in understanding the process of making claims and what support is available; the NFU promoting the move to UC activity to the farming community via its regular communication channels; work with the NFU to produce a product for work coaches explaining the farming sector, because I, too, do not like that term; and inviting the NFU external affairs team to a monthly UC stakeholders forum. I have also asked whether we can have somebody with the right expertise at our county shows throughout the country to have a session in the NFU tent, the CLA tent or wherever is appropriate, so that people can have discreet conversations where they are most likely to be facilitated.

The Department is providing that support, including assistance when making a claim for universal credit to those who need it. Importantly, that also includes comprehensive transitional protection if they are eligible. Transitional protection is an extra payment in a customer’s UC award ensuring that their entitlement is not lower than what they would have received on tax credits at the point of movement. Transitional protection is there to smooth the change, which is why individuals should fill in the migration notice when they get it. Importantly, self-employed customers are also exempt from the application of the minimum income floor for a 12-month period, providing significant time for the adjustment to UC to take place.

It is therefore vital that customers take action when the migration notices are received, so that they do not miss out on the important transitional protections we are trying to provide to make sure that a worried customer—today we are talking about farming, but they could come from various other sectors—is helped and managed through the migration. When I discussed this with the NFU in March, it understood the need to avoid delay and indicated that it stood ready to support individuals and ensure they engage.

[Mr Carmichael]

I am sure we can all play a role in ensuring that this transitional relief and the importance of returning the form are understood—doubtless, the NFU and others will do that, too. The difficulty I have, however, is that even at the end of that transitional period, I do not see what in the farming business model will have changed. There will still be self-employed people with income coming in significant sums, but at small points in the year. At the end of the transition, we will still be where we are today—that will not change. If there is going to be change, it must come from the UC system.

[Jo Churchill]

I thank the right hon. Gentleman for his comments. If he will allow me, I will come on to those shortly. I gently say that he comes from a tourist-driven area, where those incomes for those individuals fluctuate, and we expect them to have moved over to the UC system.

With regard to self-employment, universal credit addresses a number of flaws with the tax credit system. The Government stand by these reforms, which were first introduced in 2013. To give context, self-employed individuals have previously been able to report very low earnings from their business activity while receiving much of their income from tax credits. That can act as a disincentive to grow a business or look elsewhere for employment, if a business is not viable. All of us in this room know that businesses vary in their viability. This is an arguably unfair situation for the taxpayer and risks trapping individuals in low-earning self-employment and thereby, in some instances, more of a dependency on the welfare system.

All customers moving to universal credit, including farmers, are asked and expected to attend a one-off meeting with a work coach to confirm their employment status. This means confirming that farming is their main employment, being regular, organised and developed, and trying to making a profit—not that it has to, but just that it is their main job. I am sure the hon. Member for North East Fife would not disagree with this approach, as it is focused on fairness. We consider each claimant’s circumstances individually, and it is no different for farmers. They are most likely to be considered gainfully self-employed, for the exact reasons she laid out: they have livestock, they have to be there every single day, or they have crops to grow and so on. They will therefore be free to work on their business with no expectation to look for other work or take it up while in receipt of universal credit.

During a farmer’s first year in receipt of the new benefit, they might be expected to meet their work coach up to four times more, but to minimise this, multiple appointment channels are available, which I am assured includes digital, so it might just be a short meeting over Teams. With all due respect, that is not any more onerous than engaging with a feed supplier or with accountants. After 12 months, the minimum income floor is applied, and no further work coach interactions are required if an individual’s or a household’s circumstances stay the same. Again, once established—that is what the transition period is about—that stability is carried through.

I know that concerns have been expressed about the impacts on farmers through the way their earnings are reported and the administrative burden that this might cause, but I would like to reassure hon. and right hon. Members that my officials are working with the NFU to better understand whether farmers are worrying about this challenge in anticipation, or whether there are things we can do to assist. That includes the NFU’s attendance at monthly stakeholder engagement sessions and our offering to speak at NFU events. It is not to anyone’s benefit to have people worried in this situation.

Universal credit seeks to take earnings into account in a way that is fair and transparent, with earnings considered in the assessment period in which they are received, with a customer’s award adjusted accordingly. That does mean that individuals are required to report their earnings more frequently than with tax credits and in a slightly different way. However, the system has been designed to be simple and straightforward, with customers needing to provide only the total income from receipts into the business and high-level details of payments out during the assessment period.

While we are debating universal credit and farmers, I gently say that the farming community, as I alluded to earlier, is not the only profession experiencing these large monthly fluctuations, with retail and tourism also doing so. I am sure that the hon. Member for North East Fife agrees that it is important that we work with our farmers, vital as they are to all of us, given the food they put on our plate, to alleviate concerns, overcome barriers and help with the transition to UC.

Assessing earnings monthly rather than annually may have a greater impact on all self-employed people with large monthly fluctuations, but steps have been taken to account for that. Where a self-employed customer reports a loss, the value of the loss is carried forward and taken into account when assessing earnings in future assessment periods. Similarly, when customers experience a spike in their earnings, only earnings that have exceeded £2,500 more than the amount that would normally reduce their universal credit award to zero will be carried forward to affect a future assessment period.

Universal credit is a broad system of support that takes account of all individual household circumstances. I am a little concerned that the assumption today is that every engagement a farmer might have with the Department for Work and Pensions would be a negative one; that is not the case. Where additional help is available—for example, with childcare or other assistance—individuals will be signposted to the support they are eligible for, which they might not have been aware of prior to making their claim.

Finally, I want to put on record my thanks to the NFU, which swiftly engaged with us when asked and was honest and forthright about the challenges. It has stepped up to working with us. I hope that we can work together to assist the broader farming community, which is hugely important to the nation. I strongly encourage people to engage with the migration notice so that they can access the support and income protection as we make the move to universal credit.

[Mr Carmichael]

On a point of order, Mrs Murray. It was remiss of me while intervening in the debate not to remind the House of my entry in the Register of Members’ Financial Interests. I hope you will allow me to do so now for the record.

Food Poverty Strategy

Jo Churchill Excerpts

Monday 22nd April 2024 Commons Chamber

[The Minister for Employment (Jo Churchill)]

I congratulate the hon. Member for Glasgow South West (Chris Stephens) on securing this important debate on the potential merits of a food poverty strategy. I would like to start by saying that no one wants to see people struggling in our constituencies right across these islands, and I understand fully the passion that drives the contribution on these important subjects. I would like to add my voice to those of the hon. Gentleman and the right hon. Member for Midlothian (Owen Thompson) in extending thanks to all those charities, and more broadly to institutions such as the Church that do lunches and so on. They not only provide food but are part of that cohesive societal network that helps people at times of need.

Food insecurity is highly complex—the hon. Gentleman explained very clearly how complex it is—covering not only my own Department but the Department for Environment, Food and Rural Affairs, the Department of Health and Social Care, the Department for Business and Trade, His Majesty’s Treasury and so on.

The annual statistics on incomes and living standards were published by my Department last month. They cover the year when the war in Ukraine and global supply chain pressures led to exceedingly high inflation, averaging 10% over the year. Food price inflation linked with the consumer prices index peaked during this time, reaching a high of 19.1% in March 2023. Thankfully, however, the latest figures show that it has dropped again, to about 4%, with upward forces bringing the rise in February and March to 0.2%, down from 1.1% since a similar period last year. According to statistics, food bank use during this period has remained relatively stable, although I agree that it is higher than any of us would want.

Since 2022-23, the period covered by these statistics, we have taken firm action to help families on the lowest incomes. We will spend about £306 billion in the coming financial year through the welfare system, including £138 billion on families and those of working age. The Government provided an unprecedented cost of living support package worth £96 billion during 2022-23 and 2023-24, including £20 billion for two rounds of cost of living payments targeted specifically at those who were struggling the most. That helped to shield people from the impact of inflation, preventing some 1.3 million households from falling into absolute poverty after housing costs. Since 2010 the Government have overseen significant falls in poverty, with 1.1 million fewer people in absolute low income after housing costs in 2022-23 than in 2009-10.

I am not suggesting for a minute that things have not been, and are not still, difficult for many. Food poverty is complex, as I have said, and it cannot be tackled through welfare alone. The levers for tackling this issue sit with a number of Government Departments, which is why we are not only working across Government to bring down food inflation, but meeting external anti-poverty stakeholders through our Departments and talking to other Departments about what more we can do. That includes encouraging retailers and those involved in local ecosystems.

Through regular engagement, the Department for Environment, Food and Rural Affairs continues to work with food businesses throughout the supply chain to explore a range of measures that they can take to ensure the availability of affordable food by, for instance, maintaining value ranges, price matching and price freezing. However—the hon. Gentleman would expect me to say this—it is not for the Government to tell retail outlets how to set their food prices, or to tell companies what to do. Retailers have introduced incentives for customers, such as reward cards offering small discounts, and a number of stores are offering meal deals either in-store or in their cafés. As the hon. Gentleman pointed out, many use local or national groups to redistribute food at the end of the working day, and many interact with FareShare, among other charities.

[Chris Stephens]

A scandalous amount of food is being wasted and going to landfill, and I think we should do something about that. It is not a silver bullet, but will the Minister ask her colleagues in DEFRA to sit down with those of us who care passionately about this subject, and discuss addressing the fact that we have food poverty on one hand and a large amount of food waste on the other?

[Jo Churchill]

Funnily enough, earlier today I was talking to the Under-Secretary of State for Environment, Food and Rural Affairs, my hon. Friend the Member for Taunton Deane (Rebecca Pow), about exactly that issue. The hon. Gentleman mentioned that there was no mandate three years ago, and I was discussing how the reporting and so on was going. We know that not only are there the benefits of redistribution for individuals but there is a significant environmental benefit for not putting that food in landfill and creating methane, so arguably there is a double win. When done sensibly, redistribution enables others to do the same as charities such as the Felix Project, which freezes food and makes it available to people.

The economy has turned a corner. Inflation has more than halved and is forecast to fall below 2% in 2024-25, while wages are rising in real terms and have done for the last consecutive nine months. Prices for food and non-alcoholic beverages rose by 12% in the year to March, easing for the 12th consecutive month. However, we recognise the financial challenges that many are still facing, which is why as inflation comes down to the 2% target we are continuing to provide support for the 2024-25 period. This includes uprating working-age benefits by 6.7%, well ahead of the current inflation rate, and uplifting the local housing allowance to the 30th percentile of local rents, which will benefit about 1.6 million private renters by, on average, £800 a year, as the hon. Gentleman indicated, alleviating financial pressures throughout the system for individuals.

Further, there is additional support for families, including free school meals, which are being claimed by some 2 million of the most disadvantaged pupils; the £40 million that the Department for Education has put into stimulating the breakfast clubs; and healthy food schemes, such as Healthy Start, which provide a nutritional safety net to more than 3 million children. I looked after the Healthy Start policy when I was at the Department of Health and Social Care, getting the uplift to £4.25 a week, so that pregnant women and children over one and under four receive £4.25 every week. For a child under one, it is £8.50 every week. This can be used to buy, or be put towards the cost of, fresh, frozen or tinned fruit and vegetables; fresh, dried and tinned pulses; milk and infant formula. I remember well meeting Daisy, who spoke to me very clearly about the difference it made having fresh produce, as the hon. Gentleman has already mentioned, come into her life and those of her children, and the nutritional benefit it gave them.

For those who still need extra help while inflation continues to fall, we are providing an additional £500 million to enable the extension of the household support fund for a further six months, including funding for the devolved Administrations through the Barnett formula, meaning local authorities in England will receive an additional £421 million to support local people, with the rest being distributed to the other nations. Independent charitable organisations do fantastic work that also helps in this space, whether they are our local churches or organisations providing lunches and community pantry schemes. As the hon. Gentleman mentioned, they all help individuals and families when they are in need.

[Chris Stephens]

I thank the Minister for giving way again; she is being extremely generous. One concern that has been reported to us is that the Department for Work and Pensions is no longer helping with food bank vouchers. Can she confirm that that is now departmental policy? That would be a very real concern for someone who is in difficulty, having a conversation with a work coach, for example, who is now being denied that food bank voucher or discussing that sort of support that someone in absolute poverty requires.

[Jo Churchill]

I thank the hon. Gentleman for giving me the opportunity to put to bed completely the idea that there has been any change in our policy. We have always signposted that support. The only thing the DWP has done is brought in a new slip to replace the one used previously. There is no change to the existing policy, but the new slip allows us to improve our existing practices and to comply with our departmental responsibilities under GDPR. Our jobcentres continue to provide customers with guidance to find that additional support, including signposting to emergency food support where appropriate. We stand ready to help people when they are most in need.

The hon. Gentleman mentioned the two-child policy. The latest statistic that we have for households in receipt of universal credit is that the majority of families—some 78%—have fewer than three children. Surely it is right that all families, whether in receipt of universal credit or not, should face the same financial choices when deciding whether to grow their family.

While our actions have shown that we remain committed to a strong welfare safety net—particularly during challenging economic times—we know that the best way we can help is through support to move into work. That approach is based on clear evidence on the role of full-time work in substantially reducing poverty. The latest statistics show that working-age adults in workless households were about seven times more likely to be in absolute poverty after housing costs. Children living in workless households were more than six times more likely to be in absolute poverty after housing costs than those in families where adults work. There are now over 1 million fewer workless households in the UK than in 2010—that is 680,000 fewer children growing up in a home where no one works. That is a cause for some gratitude.

There are more than 900,000 vacancies across the UK, and through our core job centre offer we are firmly supporting people to get into work. We support them with travel costs through the flexible support fund, with face-to-face time with work coaches, and help with interviews. The voluntary in-work progression offer is in all jobcentres across Britain, providing an estimated 1.6 million low-paid workers on universal credit with access to personalised work coaches.

We have also reduced the taper rate from 63p to 55p in the pound. We provide childcare costs, capped at £1,000 for a single child and more than £1,700 a month for larger families. We can even help with the advance.

To ensure that work pays, we have put the national living wage for people aged over 21 up by over 9.8% to £11.44 an hour, as the hon. Member mentioned. That makes sure that people are rewarded for the work they do, and it means an extra £1,800 for someone working full time. We are also providing a tax cut for 27 million people by further reducing the main rate of class 1 national insurance contributions.

Our focus continues to be on providing opportunities for people to be supported and to succeed in work, based on our firm belief that this is a sustainable way of tackling all forms of poverty. At the same time, we understand the challenges that people face, and we will continue to work across Government and party to ensure food security and that the broader welfare system will support those who need it.

[Madam Deputy Speaker (Dame Rosie Winterton)]

Order. I wish to inform the House that the message to the Commons from the Lords is that the Lords do not insist on their amendment to the Safety of Rwanda (Asylum and Immigration) Bill to which the Commons disagreed.

Question put and agreed to.

Administrative Earnings Threshold

Jo Churchill Excerpts

Friday 19th April 2024 Written Statements

[The Minister for Employment (Jo Churchill)]

Further to written ministerial statement HCWS405, tabled on 15 April 2024, I can confirm we intend to lay the Universal Credit (Administrative Earnings Threshold) (Amendment) Regulations 2024 later today.

This will raise the administrative earnings threshold level, delivering on a commitment made in the spring Budget last year, to £892 per calendar month for individual customers and £1,437 per calendar month for couples in Great Britain. The new threshold levels would be equivalent to an individual working 18 hours per week at the national living wage or couples working a total of 29 hours per week at the national living wage. This change will mean that the threshold will have doubled since September 2022, when it was first increased from the equivalent of nine hours for a single person.

Combined with previous increases, this means 400,000 more customers will have more intensive support from our work coaches to help them to progress in work and move off welfare. This is why the Government have today laid regulations to amend Regulation 99(6) of the Universal Credit Regulations 2013 to raise the administrative earnings threshold level to £892 for individual claimants and £1,437 for couples in Great Britain, from 13 May 2024.

This is all part of our welfare reforms to make work pay and is backed up by our £2.5 billion back to work plan, which will help a million people find, stay and succeed in employment.

[HCWS418]

Universal Credit Administrative Earnings Threshold Level

Jo Churchill Excerpts

Monday 15th April 2024 Written Statements

[The Minister for Employment (Jo Churchill)]

Since September 2022, the Government have increased the administrative earnings threshold on 26 September 2022 and 30 January 2023.

As a result, individuals with low incomes impacted by the changes have received direct one-to-one support from Department of Work and Pensions work coaches to access opportunities and agree steps to increase their earnings such as developing their skills, progressing in their current role or sector, or by changing their job.

These changes have helped achieve a better balance of the responsibilities asked of individuals in return for their benefits. They have ensured that there is a clear expectation that individuals receiving universal credit alongside their income should be taking every appropriate step to increase their earnings, subject to full conditionality and with the support of their local Jobcentre Plus.

Moving into better work boosts both the economy and the individual, improving life prospects and mental and physical health, and providing the opportunity to develop new skills. This is why the Government intend to lay regulations to amend Regulation 99(6) of the Universal Credit Regulations 2013 in the coming weeks to raise the administrative earnings threshold level further, delivering on a commitment made in last year’s Spring Budget.

Individuals impacted by the upcoming rise in the administrative earnings threshold level will be contacted by the DWP through their universal credit journal. Our work coaches will review and agree new claimant commitments with each individual, providing support and setting appropriate requirements to help them access opportunities to increase their earnings. They will help identify barriers such as childcare, transport and skills and will support the customer with solutions.

This is part of our next generation of welfare reforms and mission to ensure work always pays and is backed up by our Back to Work plan which will help over a million people find, stay and succeed in employment.

The Department for Communities in Northern Ireland is aware of the upcoming administrative earnings threshold increase in Great Britian. While social security policy is a transferred matter and policy decisions rest with the devolved Northern Ireland legislature, Northern Ireland generally maintains parity with DWP on social security matters.

We will confirm further details on the threshold increase in due course.

[HCWS405]

Oral Answers to Questions

Jo Churchill Excerpts

Monday 18th March 2024 Commons Chamber

[Chi Onwurah (Newcastle upon Tyne Central) (Lab)]

2. What recent assessment he has made of the potential implications for his policies of regional variations in levels of employment and inactivity.

[The Minister for Employment (Jo Churchill)]

The regional employment gap is significantly lower than in 2010. Jobcentres take a place-based approach to deliver targeted support that reflects local need and the local economy.

[Chi Onwurah]

Health Equity North research shows high levels of economic inactivity in the north-east due to disability or ill health—40% above the national average. I visited the jobcentre in Newcastle and was very impressed by the dedication and hard work of the staff, but I know from the Public and Commercial Services union that one in four universal credit managers took time off in 2023 for mental illness, which is three times the figure before 2019. We are the only country in the G7 not to have the same level of employment as before the pandemic. Are those high rates not because of record NHS waiting lists, low staff morale and general Government incompetence?

[Jo Churchill]

As the hon. Lady found, within our jobcentres we have highly skilled people helping people to find work. We have a higher number of people with disabilities in work than in 2010—more than 2 million—and we intend to ensure that work coaches can work carefully and sensitively and attend to people’s needs.

[Stephen Crabb (Preseli Pembrokeshire) (Con)]

In recent months, the Welsh Affairs Committee has heard from young adults about their experiences with the benefits system. We have been struck by how this group of young people want to work and feel that they can work, but they have been written off as long-term sick and passed to the long-term sickness benefit roll by jobcentres. They feel incredibly let down. Does the Minister agree that we cannot afford to be signing off so many of our young people on long-term sickness?

[Jo Churchill]

That is why we have WorkWell, the back to work plan, and the occupational health group, led by Dame Carol Black, looking into fit note reform. It is also why we have youth employment coaches and the youth hubs. We are working to ensure that there is the right attenuated support, including kickstart, the sector-based work academy programme and boot camps. Only last week, I met Steph, who is 27, 10 years out of work and grateful for the help that she has had.

[Gordon Henderson (Sittingbourne and Sheppey) (Con)]

3. What steps he is taking to help people into work.

--- Later in debate ---

[David Duguid (Banff and Buchan) (Con)]

6. What steps he is taking to help fill job vacancies in Banff and Buchan constituency.

[The Minister for Employment (Jo Churchill)]

The jobcentre team are providing a broad range of support, including partnering with Morrisons and the Co-op to fill local vacancies in my hon. Friend’s constituency and delivering targeted outreach at Banff library with local providers.

[David Duguid]

My hon. Friend is aware of the very low unemployment in Banff and Buchan and the difficulty in filling vacancies with local people, particularly in the food and drink sector. The seafood sector in particular is still in a transition away from dependency on overseas workers, which could take some years. What data can the DWP provide on the measures that local businesses have taken to maximise the employment of local people, and what other support can the Department offer to attract workers to areas of low unemployment such as Banff and Buchan?

[Jo Churchill]

There are the wages paid through the rise in the national living wage, my hon. Friend’s local jobcentre and the range of access to support. I am sure we will be discussing all these issues tomorrow at the roundtable with seafood processors that I will be attending along with the Minister for Legal Migration and the Border, my hon. Friend the Member for Corby (Tom Pursglove).

[Mr Speaker]

I call the Chair of the Select Committee.

[Sir Stephen Timms (East Ham) (Lab)]

A large number of people in Banff and Buchan are economically inactive. They are not claiming benefits so they are not eligible for employment support from jobcentres, but the Select Committee recommended last summer that such people should be eligible. Would that not be in their interests and in the interests of employers struggling to fill vacant posts at the moment, and therefore supportive of much-needed economic growth?

[Jo Churchill]

We always take these matters very seriously and keep them under full review.

[Mr Virendra Sharma (Ealing, Southall) (Lab)]

7. What recent assessment his Department has made of the potential impact of changes in the cost of living on levels of food bank use.

--- Later in debate ---

[Peter Gibson (Darlington) (Con)]

8. What steps his Department is taking to increase the support offered by Jobcentres in Darlington.

[The Minister for Employment (Jo Churchill)]

The team are working tirelessly with Darlington Borough Council, Tees Valley Combined Authority and other partners to deliver through job fairs, SWAPs and skills bootcamps.

[Peter Gibson]

I thank my hon. Friend for her answer, and may I be the first in the Chamber to wish her a very happy birthday? In addition to the issues that she has highlighted, may I highlight the wonderful work that Darlington jobcentre has done in setting up its Facebook page? Does she agree that it is a template for others to follow, and will she come to Darlington and meet my fantastic work coaches?

[Jo Churchill]

I thank my hon. Friend—it is seemingly quite a large number on my birthday cards today.

My hon. Friend has been a fantastic champion of his local jobcentre, and has campaigned vigorously to ensure that Darlington is at the forefront of innovation. I will be meeting his team in April. I have been to seven jobcentres since the last DWP questions, and I will make sure that his work coaches are at the top of my list.

[Jim Shannon (Strangford) (DUP)]

The Minister, in her response to the hon. Member for Darlington (Peter Gibson), has emphasised what she will do for his local jobcentre. Whatever she will do for Darlington, she will also do for the rest of the United Kingdom, including my constituency of Strangford. Across this great United Kingdom of Great Britain and Northern Ireland, how can we work better with further education colleges to get our young people ready for the jobs that become available?

[Jo Churchill]

I talk regularly to colleagues in the Department for Education, ensuring that those skilled boot camp SWAPs make people job-ready, because they have not only the experience but a guaranteed interview. That is the way we are driving those numbers up.

[Mrs Heather Wheeler (South Derbyshire) (Con)]

9. What steps his Department is taking to support pensioners.

--- Later in debate ---

[Dan Carden (Liverpool, Walton) (Lab)]

T8. The Government will move thousands of my constituents across to universal credit over the next year. They will be forced to wait five weeks for their first payment or up to nine weeks if they receive child or working tax credits. According to DWP data, 60% of the people across Merseyside who are in that situation will take out an advance loan. Does the Minister think it right that my constituents, who are among the most deprived in the country, should be pushed into debt or face weeks without the bare minimum that they need to afford the essentials?

[The Minister for Employment (Jo Churchill)]

The plan is to roll out those migration notices by 31 March. We intend to publish data for the hon. Gentleman’s constituency. We are committed to ensuring that the transition works as smoothly as possible for everyone.

[Mr Laurence Robertson (Tewkesbury) (Con)]

T4. Has the Minister made any recent assessment of what trades or occupations are short of workers at the moment, and what steps are being taken to persuade people—perhaps more experienced people—back into the workforce to fill those vacancies?

[Jo Churchill]

We are working with other Departments, employers and stakeholders to isolate where those vacancies are, and on sector-based work academy programmes. We have put over 266,000 people through construction, care, tourism, hospitality—all those gaps that we need to fill.

[Dame Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op)]

Of people currently claiming tax credits, 20% are not moving over to universal credit in the migration. The Department tells us that those who are not claiming would have got a median amount of £3,200 a year. Will the Minister assure me and the House that she is doing everything she can to ensure that people are getting the money that they are owed?

[Jo Churchill]

I assure the hon. Lady that we are keeping a close eye on the issue, but ultimately it is the customer’s responsibility to claim. I gently point out that we have been rolling out the migration in her constituency since May ’23, with not one complaint. There is plenty of help available to those people as they transition.

[Mrs Sheryll Murray (South East Cornwall) (Con)]

T5. As my right hon. Friend will know, fast diagnosis and treatment are key to getting people back into work. What representations has he made to his departmental and Cabinet colleagues to ensure that that is the case?

[Grahame Morris (Easington) (Lab)]

Schools, general practitioners, social services, charities and housing associations can all refer their clients to a food bank in an emergency, yet this Government, who are responsible for benefit sanctions, have ordered DWP staff to stop referring claimants to food banks. How can Ministers justify this decision to the families of the 4,027 children living in poverty in my east Durham constituency?

[Jo Churchill]

May I make it clear that that was just scaremongering? The DWP has not changed its policy. There are merely improvements being made to the signposting slip, so that we comply with our obligations under the GDPR. We continue to provide guidance to customers, signposting them to emergency support, as is right.

[Gordon Henderson (Sittingbourne and Sheppey) (Con)]

T6. A couple in my constituency recently received an apologetic letter from the Department for Work and Pensions that set out a catalogue of mistakes that it had made. Those mistakes almost led to their losing their home, which caused them enormous stress. My constituents are now waiting for a decision on the compensation that they may receive. Will my right hon. Friend look into the case, and ensure that a decision is taken as quickly as possible, to save my constituents any further stress?

--- Later in debate ---

[Neil O’Brien (Harborough) (Con)]

T7. For many years, the Department published statistics giving a breakdown of welfare claims by nationality. Although the Department still has the data, it no longer publishes the statistics. Will the Minister look again at that, and start publishing those important statistics once again?

[Jo Churchill]

I thank my hon. Friend, but I would like to inform him that at the moment there are no plans to recommence the publication of those statistics.

[Mike Amesbury (Weaver Vale) (Lab)]

The last Labour Government lifted 1 million children out of poverty. After 14 years of Tory Government, we have 1 million children in destitution. What has gone wrong?

[Bob Blackman (Harrow East) (Con)]

T9. One of the most challenging groups of people to get back into the workforce is those in their 50s and 60s whose jobs disappeared during covid. They have possibly fallen back on their personal pensions, although with inflation, that money is being eaten away. What actions is my hon. Friend taking to get those people back into work, and to encourage them into jobs that are valuable and improve our productivity?

[Jo Churchill]

I thank my hon. Friend for that question. I would ask people to go to their jobcentre, which can help them build their CV and their confidence. We have 50PLUS champions across all districts, and midlife MOTs. I for one think that working in my 50s—and now my 60s—is a very good idea indeed.

[Jamie Stone (Caithness, Sutherland and Easter Ross) (LD)]

The two wellbeing hubs in my constituency, in Brora and Dunbeath, are crucial to the wellbeing of pensioners. They signpost the best mix of benefits and are a last safety net, but their future is uncertain because of the vagaries of NHS Scotland finance. Will a Minister meet me to discuss how we can safeguard the future of these two centres?

--- Later in debate ---

[Rob Butler (Aylesbury) (Con)]

Aylesbury is a wonderful place to live, work, visit and invest in, but sadly we have some areas of economic deprivation. Opportunity Bucks, run by Buckinghamshire Council, has identified Aylesbury north and Aylesbury north-west as areas for extra attention, where we could improve education, training and skills. How can my hon. Friend’s Department assist such initiatives in getting more Aylesbury residents into work?

[Jo Churchill]

We are working with employers and jobcentres on the sector-based work academies programme and boot camps, but I am more than happy to visit my hon. Friend in Aylesbury, and to talk to his jobcentres and employers, to see how we can provide more encouragement.

Universal Credit: Claimant Support

Jo Churchill Excerpts

Monday 11th March 2024 Written Statements

[The Minister for Employment (Jo Churchill)]

The Department for Work and Pensions would like to announce the outcome of the grant competition to identify an organisation to continue providing support for customers making a new claim to universal credit.

Citizens Advice and Citizens Advice Scotland will continue to deliver the support independently across England, Scotland and Wales, with up to a further £38 million investment planned for two years from April 2024. This means that free confidential and impartial support will continue to be available to help people make a new universal credit claim, including those invited to move from legacy benefits to universal credit, and manage their claim, up to receiving their first correct payment.

As there is no change in the substance of support provided, the “Future Support Offer 2024” name, used during the competition to indicate that DWP was looking for future provision, will revert to “Help to Claim”. The decision to retain the name reflects the fact that Help to Claim is a recognisable brand, both to people who will be using the support and to the people who will be providing that support.



Since April 2019, Help to Claim has supported nearly 900,000 people, with nine in 10 people rating their overall experience as good or very good and saying they would recommend it to friends and family, providing a strong rationale for the decision to keep the name.



The support will continue to be provided through telephony and digital channels. Those individuals who are unable to access support via these channels will be able to go to their local jobcentre, where jobcentre staff will identify the right support to meet their needs. This support is already in place and available to those individuals who choose to seek advice from the Department directly in making a claim to universal credit.



The Department is committed to providing the best possible support for all our customers, including the most vulnerable in society, in both making and maintaining their claim.

[HCWS330]

Decommissioning Temporary Jobcentres

Jo Churchill Excerpts

Wednesday 28th February 2024 Written Statements

[The Minister for Employment (Jo Churchill)]

We previously provided updates on decommissioning Temporary Jobcentres (“Expanding Our Services” on 23 March 2021, and “Expanding Our Services: Update” on 21 October 2021). These statements reaffirmed the Department’s commitment to reducing its Jobcentre estate back to pre-pandemic levels by decommissioning the temporary jobcentres or the additional space in established jobcentres in a phased approach, where the increased capacity is no longer needed. The full list of temporary jobcentres and their current status can be found here: www.gov.uk/guidance/temporary-jobcentres-during-the-coronavirus-covid-19-pandemic.



As part of this ongoing, phased approach to decommissioning the temporary jobcentres, the Department is today announcing the sixth and latest phase, which consists of decommissioning a further 42 temporary sites or additional spaces in existing jobcentres. This latest phase brings the total number of temporary sites announced to date to 182. Details of the sites being decommissioned in this latest phase are listed below.



The remaining 12 sites of the 194 originally opened will be either decommissioned or absorbed into the estate in the coming months and we will individually update all those Members whose constituencies are affected at the time.



The decommissioning of temporary jobcentres will not reduce the levels of service, or access to face-to-face appointments. Customers will return to being served by an established Jobcentre and there will be no reduction in the number of work coaches supporting customers as a result of the decommissioning.



The Department continues to support and update colleagues in a timely and sensitive manner. We also remain committed to ensuring all relevant stakeholders, unions, organisations and Parliament are engaged and regularly updated on our work. Letters are being sent to each right hon. and hon. Member with changes in their constituency to explain what this means for their local jobcentre, its staff, and their constituents.



Finally, in conjunction with this carefully planned decommissioning programme, we are looking to improve and upgrade jobcentres over time. It is important that all those who come to jobcentres are given the highest level of attention and service.



The 42 temporary jobcentres or additional space in existing sites to be formally decommissioned are:

Oral Answers to Questions

Jo Churchill Excerpts

Monday 5th February 2024 Commons Chamber

[Deidre Brock (Edinburgh North and Leith) (SNP)]

13. What recent estimate he has made of the number of children in poverty.

[The Minister for Employment (Jo Churchill)]

In the latest statistics, there were 400,000 fewer children in absolute poverty after housing costs than there were in 2009-10. In this financial year, we will spend about £124 billion on welfare supporting working-age families. We are also providing £104 billion between 2022 and 2025 to help families with cost of living pressures. However, the Government’s focus is firmly on reducing the risk of child poverty by supporting parents into work in every way we can.

[Yasmin Qureshi]

The Joseph Rowntree Foundation recently found that 42% of children in Bolton live below the poverty line. After 14 years of Tory cuts and general incompetence, Britain now has the worst rise in child poverty among the major countries. What would the Minister say to a young family in Bolton who told me, “One day we eat and one day we don’t”?

[Jo Churchill]

Nobody on either side of the House wants to see families struggling. However, I repeat that children living in workless households are about five times more likely to be in absolute poverty after housing costs than those in households where all adults work. The Government are supporting the whole family through our childcare support, which we have increased by almost 50% to £951 a month for one child or £1,630 for two; the increase in the national living wage to £11.44 from April; our cost of living offers; and so on.

[Deidre Brock]

The recent Joseph Rowntree Foundation report highlighted Scotland’s much lower child poverty rate compared with England and Wales, and said that that was partly due to the Scottish Government’s child payment. Further progress is constrained by the UK’s inadequate social security system. The Trussell Trust’s “guarantee our essentials” campaign shows that 90% of low-income households on universal credit in the UK cannot afford everyday essentials. Does the Minister accept that raising the universal credit basic rate is critical to tackling child poverty?

[Jo Churchill]

The welfare system is there to be a strong safety net. It is not about a singular issue, because no households are the same. It is about wraparound care and dealing with people on an individual basis. It is about making sure that where children need support—for example, with free school meals—we provide it.

[Mr Speaker]

I call the shadow Minister.

[Alison McGovern (Wirral South) (Lab)]

Further to the Minister’s response, the Prime Minister has been asked similar questions about child poverty in recent Prime Minister’s questions. He usually responds that since 2010, the Conservatives have lifted 1.7 million people out of absolute poverty, which, as you know Mr Speaker, tracks living standards from a fixed point in time. Can the Minister tell me how many more people, on average, Labour lifted out of absolute poverty annually, compared with the 1.7 million since 2010 that the Prime Minister regularly claims?

[Jo Churchill]

Rather than trade numbers, I would say that this is about giving people the dignity of a job. Since 2009-10, 1.7 million fewer people are in absolute poverty after housing costs, including 400,000 fewer children and 1 million fewer working-age adults. I know the hon. Lady said that work was not the Labour party’s priority, but it is very much our priority.

[Alison McGovern]

If the Minister can point to an occasion when I have said that work was not the Labour party’s priority, she ought to say when that was, or she should withdraw that remark.

The answer to my question is that, on average, more than 350,000 more people left poverty in each year of the Labour Government. The Prime Minister’s claim is pathetic. Which of the following does the Minister think had the biggest impact on those poverty numbers? Was it when the Conservatives repealed the Child Poverty Act 2010, was it when they shut down the child poverty unit, was it the collapse in the value of child benefit, or was it the financial chaos caused by a Conservative Prime Minister in September 2022, which put all families’ finances at risk?

[Jo Churchill]

No, it is the fact that over 1 million more people are in work and youth employment is up by around 40%. Ensuring that people have the dignity of work and that, when they are not in work, there is a strong welfare system around them, is what this country needs.

[Helen Hayes (Dulwich and West Norwood) (Lab)]

6. What recent assessment his Department has made of the potential relationship between increases in the cost of living and trends in the use of food banks.

[Rachel Hopkins (Luton South) (Lab)]

16. What recent assessment his Department has made of the potential relationship between increases in the cost of living and trends in the use of food banks.

[The Minister for Employment (Jo Churchill)]

The Government take food security very seriously and are committed to understanding and addressing food poverty. The reasons that people use food banks are complex and varied. Food banks are independent charitable organisations and the Government have no role in their operation. As such, data on trends are not currently available.

[Helen Hayes]

The staff and volunteers at the Norwood and Brixton food bank in my constituency work tirelessly all year round to support local people who simply cannot make ends meet. They are responding to the highest level of need they have ever seen. Why does the Minister think that, despite this being one of the richest countries in the world, food bank reliance is continuing to rise so much on this Government’s watch? Can she tell the House what the Government are doing to end the need for food banks in the UK?

[Jo Churchill]

As I said, the reasons that people use food banks are complex and varied, as all the research indicates. We offer support through cost of living payments and the household support fund, running to hundreds of millions of pounds. The rise in the national living wage, the reduction in national insurance and the local housing allowance further help 1.6 million low-income households. We have a whole of suite of ways to help the very poorest in our society.

[Rachel Hopkins]

Food banks such as the excellent Luton Foodbank have been pushed to breaking point this winter, as more and more people need emergency food due to the Conservatives’ cost of living crisis. It is shameful that we now have more food banks than police stations. What conversations has the Minister had with colleagues in the Treasury about introducing measures in next month’s Budget to support low-income working people facing hardship and to reduce the dependence on food banks?

[Jo Churchill]

I point the hon. Lady to the further cost of living payments that will be going out this week to eligible households. We do not comment on future fiscal announcements.

[Sir Mark Hendrick (Preston) (Lab/Co-op)]

7. What assessment he has made of the adequacy of the carer’s allowance for people who care for more than one person.

--- Later in debate ---

[Peter Gibson (Darlington) (Con)]

24. What steps he is taking to help fill job vacancies in Darlington constituency.

[The Minister for Employment (Jo Churchill)]

Across the country our fantastic work coaches are supporting people to secure and progress in work. In Kendal, Cheadle and Darlington, jobcentres are working with local and national employers to match jobseekers with vacancies through job fairs, sector-based work academy programmes and apprenticeships. As it is National Apprenticeship Week, this is a great time for employers to promote the opportunities available, and I urge all colleagues who have not yet done so to visit their jobcentre if it has an apprenticeship fair on. The hon. Gentleman’s was last week, wasn’t it?

[Tim Farron]

I do indeed celebrate the work of the Kendal jobcentre. It does a fantastic job but one problem is that it has too small a workforce. This week we mourn the loss of yet another Lake District business, this time a bistro in Coniston, due in part to the loss of affordable homes and to restrictive visa rules, both of which are shrinking our local workforce. Will the Minister meet me and local Cumbrian business leaders to develop a plan to tackle Cumbria’s workforce crisis?

[Jo Churchill]

I am happy to meet the hon. Gentleman, but I also gently say that this is about other Government Departments as well. I will certainly work with him as far as employers go, under my remit.

[Mary Robinson]

Speaking to Stockport jobcentre last week, I heard about the success of the movement to work scheme, which places young people with employers, including in the civil service. However, the lengthy civil service application process is delaying placements. Will my hon. Friend look into how the process could be streamlined and accelerated, and join me on a visit to Stockport jobcentre?

[Jo Churchill]

I know that senior civil servants are engaged in piloting an initiative that will help to speed this up, because we need to place those candidates more quickly and ensure that we get them into work swiftly. I would love to visit Stockport and add its jobcentre to the growing list that I have visited.

[Peter Gibson]

I put on record my thanks to my hon. Friend the Member for Hexham (Guy Opperman) for his work to establish the Jobcentre Plus Facebook pages, of which Darlington’s was the first. Will my hon. Friend the Minister outline how successful that page has been and what further plans she has to develop accessible social media job advertising?

[Jo Churchill]

We know that social media helps, and that 40 to 50-year-olds in particular enjoy engaging with a digital platform when they are looking for work. We have had instances in the past of people thanking us when they have been given interviews online. It is important that posts are accessible and we are working to ensure that this is the case. I would point customers of any age to the JobHelp website, which has a host of useful information. I am keen to see if we can roll out such progress further.

[Mr Speaker]

I do find that a strange grouping, but not to worry, Minister. Well dealt with! How you got from Cumbria across the country like that is amazing.

--- Later in debate ---

[Jonathan Gullis (Stoke-on-Trent North) (Con)]

22. What recent assessment he has made of the potential impact of the number of people who are not eligible for statutory sick pay because they are paid less than the lower earnings limit on levels of inequality in Stoke-on-Trent North constituency.

[The Minister for Employment (Jo Churchill)]

The Department has not made a specific assessment for the Stoke-on-Trent North constituency, but I refer my hon. Friend to the evidence I presented to the Work and Pensions Committee last week. I look forward to meeting him this week to discuss this in more detail.

[Jonathan Gullis]

I am grateful to my hon. Friend for her answer. I am proud to have joined a campaign, together with my right hon. Friend the Member for Witham (Priti Patel) and the hon. Member for Glasgow East (David Linden), to reform statutory sick pay. That campaign, led by the Centre for Progressive Change, was referenced in today’s Times Health Commission report. Ahead of the spring Budget, will the Department join us in lobbying the Treasury to make these important changes, so that we have a healthier workforce that contributes more to our economy and, more importantly, so that we make sure that work pays fairly?

[Jo Churchill]

I refer my hon. Friend to the answers I gave to the Work and Pensions Committee. Statutory sick pay is considerably more complex than he makes out, but it is nice to see all this cross-party collaboration.

[Helen Hayes (Dulwich and West Norwood) (Lab)]

T1. If he will make a statement on his departmental responsibilities.

--- Later in debate ---

[Peter Aldous (Waveney) (Con)]

T4. Sizewell C will provide an enormous number of job opportunities in Suffolk. Will my right hon. Friend outline the work that the Department for Work and Pensions is doing to ensure that local people have every opportunity to work on the project and acquire the necessary skills?

[The Minister for Employment (Jo Churchill)]

Like my hon. Friend, I am excited about the jobs and opportunities at Sizewell. Local jobcentres have been engaged with Sizewell C, and I understand that a local partnership manager will be designated to promote opportunities, and to find people for 1,500 apprenticeships and thousands of jobs. We will invest in local skills through sector-based work programmes and the like.

[Mr Speaker]

I call the spokesperson for the Scottish National party.

--- Later in debate ---

[Jessica Morden (Newport East) (Lab)]

T8. My constituent’s universal credit payments have been stopped over Christmas for two years running, because her employer pays her salary early in December. Why will Ministers not do more to ensure that caseworkers know that they can use the discretion that they have, so that my constituents and others like her have financial certainty at what is a very difficult time of year?

[Jo Churchill]

The way that universal credit works means that work coaches can use their flexibility, but if a payment is short one month, the appropriate thing to do is to sort it the next.

[Wendy Chamberlain (North East Fife) (LD)]

T10. In his opening remarks, the Secretary of State mentioned the assessment period for cost of living payments, but people on four-weekly pay schedules miss out on support because they fall foul of the assessment period rules for universal credit. What assessment have the Government made of the number of people missing out, and what remedy do they have?

--- Later in debate ---

[Mr Barry Sheerman (Huddersfield) (Lab/Co-op)]

When will the Minister wake up to the fact that working as an apprentice in engineering is a fabulous career choice, and well paid? Will she come up to Huddersfield to look at Cummins, whose apprentice system is first rate?

[Jo Churchill]

I would be delighted to do so on my tour of England. I could not agree more with the hon. Gentleman. My father is an engineer. It is a fantastic profession, and the more we can encourage apprenticeships right across the board, the better. Nearly 6 million people have now taken them up. I would be delighted to come.

Disability Action Plan

Jo Churchill Excerpts

Monday 5th February 2024 Commons Chamber

[Mims Davies]

Not so much, she says, so there we go. I reiterate that the disability action plan is not just another consultation, but real, tangible action to change people’s daily lives, with 13 practical actions across 14 different areas. It is about building a society that works for everyone.

The hon. Member for Lewisham, Deptford (Vicky Foxcroft) is right to point out that day-to-day life is too difficult for disabled people and their families; I agree with her. That is why we have taken the opportunities we can take in this round, alongside the wider national disabilities strategy. I would love to boil the ocean and to have fixed everything in the month or so I have been in the role, but I assure hon. Members that irrespective of the perceived level of the role, I have the convening power and support across Government. I am delighted that the hon. Lady keeps pushing for my elevation, but under the previous Labour Administration the Minister for Disabled People was an Under-Secretary of State. I am extremely proud to be an Under-Secretary of State—

[The Minister for Employment (Jo Churchill)]

A very good one.

[Mims Davies]

Thank you, I will take that. Under our Government, the role has been mixed, which does not mean that we do not take it seriously. I take it extremely seriously.

I have come to the role with my own personal experience of living with my father, who became disabled and lived under the Court of Protection. When I was growing up, my mum worked with disabled adults, getting them into work. She was an early part of the Riding for the Disabled Association and the Special Olympics movement. No matter what rank I have in the Government, I bring that experience and interest to the role. I say to people watching that the pay cheque or the rank simply do not matter—I am in this for them.

The Under-Secretary of State for Energy Security and Net Zero, my hon. Friend the Member for Derby North (Amanda Solloway), and I have met to discuss the point made by the hon. Member for Lewisham, Deptford about the cost of energy. My hon. Friend is a disability champion across Government, as am I, so we will continue to engage. I reiterate that the cost of living payments will start again tomorrow. Some 6.4 million people across the UK have been able to claim an extra £150 in addition to their disability benefits, as the hon. Lady mentioned.

It is, of course, a challenging time for everybody. We put in place the furlough scheme and the other support for businesses and communities across the country to try to keep people on their feet. Between 2022 and 2025, we provided £104 billion to help people with the cost of living. To anybody who has a disability, a health condition or any other need, I say: please look at the benefits calculator on gov.uk. They should look at the household support fund, which runs for a full year—a whole six months longer than the previous one. There is a huge amount of interest in it, so I urge people to contact their local authority about it. I am delighted that many people with caring responsibilities and those looking after disabled people have been helped in this way.

Finally, the help-to-claim service is there as well, provided by the DWP working with Citizens Advice, to make sure that those in need do not have to worry, because the Government, both locally and nationally, are there for them.

Pensions (Special Rules for End of Life) Bill

Jo Churchill Excerpts

2nd reading
Friday 2nd February 2024 Commons Chamber

[The Minister for Employment (Jo Churchill)]

It gives me great pleasure to confirm that the Government give their full support to this private Member’s Bill. I thank my hon. Friend the Member for Tewkesbury (Mr Robertson) for bringing forward what he said was a small and limited piece of legislation, but we have heard over the past hour and a bit how important these small changes will be to those affected. I thank my hon. Friend the Member for North East Bedfordshire (Richard Fuller), my right hon. Friends the Members for East Yorkshire (Sir Greg Knight) and for Ludlow (Philip Dunne), and my hon. Friends the Members for Stoke-on-Trent Central (Jo Gideon), for Shipley (Philip Davies) and for Aylesbury (Rob Butler) for their contributions.

My hon. Friend the Member for Shipley explained why the alignment is ultimately a good idea. As we have heard, a life-limiting illness can cause unimaginable suffering for the patient and their loved ones—and that is just at diagnosis, yet alone across the trajectory of the disease. Many people have said that they feel as though they have been hit by an emotional tsunami, and we should do anything we can to help and support those nearing the end of life. My hon. Friend the Member for Stoke-on-Trent Central poignantly outlined some of the challenges that people can face at this stage in their life.

Many charities have been mentioned, but I pay particular tribute to Marie Curie, which often provides nurses who sit with people as they near the end of life. It is an incredible service for our constituents, and ensures that people do not die alone. Its work is incredibly important—its motor neurone disease campaign has been mentioned—but we must also thank people in the hospice sector and more broadly across the NHS, particularly those who work in end-of-life and palliative care.

We have heard much about the Social Security (Special Rules for End of Life) Act 2022, which changed the special rules process to allow simple and fast access to financial support through the benefit system. The changes made in the Act covered the disability living allowance, the personal independence payment and the attendance allowance, and ensured that people at this most difficult of times could receive their support more quickly and easily. The special rules were then extended to universal credit and employment and support allowance through secondary legislation that came into force on 4 April 2022. Under those rules, claims are fast-tracked and a medical assessment is not required. No waiting period is applied, and in the majority of cases the highest level of benefit is awarded. Since 1990, eligibility under the special rules had been limited to those who had been diagnosed with a condition that meant that they were unlikely to live for more than six months. The changes that the Government made in 2022 meant that people receiving certain social security benefits who were thought to be in the final year of their life were shown additional compassion and were able to receive that vital support six months earlier.

When the 2022 regulations came into force, they were welcomed by key end-of-life charities such as the Motor Neurone Disease Association, whose chief executive said at the time:

“I welcome the announcement that changes to the Special Rules will come into force next month. This change will enable more people living with complex and unpredictable terminal illness like motor neurone disease to access the support they need swiftly and sensitively. This is an important first step and we hope that this positive change can be enacted for other applicable benefits as soon as possible.”

Marie Curie also welcomed the changes, saying that they would

“make it easier for terminally ill people to access support quickly”,

and that

“the scrapping of the six-month rule for fast track access to benefits is a significant step forward.”

Macmillan Cancer Support said:

“Patients deserve better co-ordination of care into the last year(s) of life and this change gives us a brilliant opportunity to help them benefit from end of life financial support while having treatment, so they can make the most of the last year(s) of life.”

This Bill takes a further step in supporting those with a terminal illness by extending similar support through compensation payments made by the Pension Protection Fund and payments under the financial assistance scheme. As my hon. Friend the Member for Tewkesbury explained, the Pension Protection Fund pays compensation to members of eligible defined benefit pension schemes if the sponsoring employer became insolvent on or after 6 April 2005 and the scheme has insufficient assets to meet its pension liabilities. Members can claim their compensation payments before their scheme’s normal pension age, generally from the age of 55. The financial assistance scheme makes payments to members of qualifying schemes that are unable to meet their pension liabilities in full.

Currently, members of the PPF who are not yet entitled to receive compensation may make an application to their scheme for a terminal illness payment if they are expected to live for six months or less. Terminal illness is currently defined in legislation as

“if... the person’s death in consequence of that disease can reasonably be expected within 6 months.”

The Bill amends that definition to ensure that members with a life expectancy of up to 12 months can now receive the payments. It will restore the original policy intention of alignment between the social security special rules and the Pension Protection Fund. The same definition applies to the financial assistance scheme, and the Bill therefore amends that definition as well. The financial assistance scheme differs from the PPF in that a terminal illness diagnosis allows payments from the financial assistance scheme to be put in place immediately, rather than a specific lump sum being provided.

My right hon. Friend the Member for East Yorkshire and my hon. Friend the Member for North East Bedfordshire asked what consultation we had carried out. As I think my hon. Friend the Member for Shipley mentioned, we have consulted general practitioners, consultants, specialist nurses and other medical professionals.

Some may argue that the Government should take a more open-ended approach and not put any time limit on the payments. That argument, as we have heard, may be particularly pertinent for those who have conditions such as motor neurone disease, chronic obstructive pulmonary disease, Parkinson’s disease and a plethora of other conditions that can make it exceedingly difficult for clinicians and doctors to accurately predict how much time a patient has until the end of their life.

Unfortunately, there is not a clearcut, correct answer on how terminal illnesses should be defined, so as my hon. Friend the Member for Tewkesbury said, that should be left to the professionals. In recognition of that, the 2022 Act was preceded by an evaluation in which the majority of clinicians who responded said that a 12-month definition was preferable, as it would bring the special rules for benefits into line with NHS practice and NHS initiatives, such as the gold standards framework. The Department agreed, and the 2022 legislation aligned the definition of terminal illness with that used in the NHS, providing consistency for clinicians and tying the special rules into the NHS long-term plan to provide proactive, personalised and well co-ordinated care for all those in their final year of life.

This Bill builds on the previous legislation by aligning the definition used for the Pension Protection Fund and financial assistance scheme payments with that used more widely in the Department for Work and Pensions and the NHS. The Government believe that the 12-month timeframe is appropriate for defining the period for serious ill health payments in tax law. For an individual to meet the definition of a person in serious ill health, evidence is required from a registered medical practitioner that the individual is expected to live for less than one year.

The Pension Protection Fund may be a compensation scheme, rather than a pension scheme, but in many ways it is treated as a pension scheme for taxation purposes. That means that the Pension Protection Fund terminal illness payment falls under the category of a serious ill health lump sum. That allows it to be paid without triggering unauthorised payment tax charges on either the individual or the Pension Protection Fund. Extending the definition of terminal illness to longer than a year would open up members to significant tax charges on their terminal illness payments, which is not what the Government want at all.

My hon. Friend the Member for North East Bedfordshire asked about the impact on the levy. We believe that the cost to the Pension Protection Fund will be marginal. Most members will simply get their payments earlier. He also asked about pension funds having a 12-month provision. The benefits provided will depend on scheme rules. We do not know how many schemes have such a provision, but we believe that many schemes already provide early access to lump sums for terminally ill members, or those with a life expectancy of 12 months or less, because that is allowed under tax law.

My hon. Friend the Member for Shipley and my right hon. Friend the Member for East Yorkshire asked about commencement. As with any Bill that passes through both Houses, it will come into force on a day appointed by the Secretary of State. It is the intention for that to be as soon as practicable after Royal Assent, to ensure that all measures relating to the Pension Protection Fund and financial assistance scheme come in at the same time.

I heard that my right hon. Friend the Member for Ludlow had written to the Secretary of State, and I will make sure that an answer comes to him in a timely way. He asked who makes the decisions; the answer is clinicians, medical assessors and specialist nurses. In response to my right hon. Friend the Member for East Yorkshire, let me say that one can obtain a second opinion, and that goes for all the illnesses that I mentioned.

I thank all hon. and right hon. Members for their contributions, and for the sensitive way in which they have approached this matter. I appreciate the “time-bound” argument that my hon. Friend the Member for Shipley put forward, but these matters are always a challenge for clinicians. I agree with him and my hon. Friend the Member for Stoke-on-Trent Central that a better conversation about end of life, and how we treat issues as we move forward into that stage of our life, would be a very good thing for us all. We should be a lot more discussive about it.

I thank my hon. Friend the Member for Tewkesbury for bringing forward the Bill and all right hon. and hon. Members for their contributions. These changes will make a significant, positive impact for people nearing the end of their lives by ensuring that most pension fund members will be able to receive a payment at an earlier stage. That will give them the financial support they need at a most difficult time for them and their families, as well as help them plan more effectively to get the most out of the finances they are due. These changes send a message about end of life: that the conversation must be alive and vibrant for us all, so that we do the best we can. I am pleased to support the Bill and wish it a speedy passage through both Houses.

[Madam Deputy Speaker (Dame Rosie Winterton)]

I call Mr Laurence Robertson to wind up, with the leave of the House.