(8 years, 11 months ago)
Commons ChamberWe spend almost double what the Germans spend—about 6% of our Government spending, which is more than we spend on our police and defence budgets combined.
3. What assessment he has made of the effect of family stability on levels of poverty and on life chances.
Our family stability review found that family instability is one of the main drivers of poverty, with unstable families more likely to have low incomes. That is why support for families is firmly at the heart of what we are doing in Government, such as doubling the funding for relationship support and doubling the amount of free childcare.
I welcome the Government’s determination to tackle the root causes of poverty. With respect to the doubling of funding for the relationship support scheme, what steps is the Secretary of State taking to ensure that the scheme can be accessed across the country by those who find it hardest to reach Government support and those who most need it?
My hon. Friend is absolutely right, and I pay tribute to the huge amount of work he has done in backing this up and supporting it, and to the work he is doing at present to make sure it gets across to everybody. We are clear that any new or extended support that we provide—and we do—will need to be accessible and effective for all families, no matter where they are, with additional, complex needs, and more will be said on that when we bring forward the life chances strategy, to be published this summer. However, I can guarantee to him that it is the No. 1 priority to make sure everybody who needs support gets it.
(9 years ago)
Commons ChamberOnce again, I stand at the Dispatch Box grateful for the subject chosen by the Opposition for debate. We are always happy to discuss welfare reform, because it is at the heart of the Government’s agenda. We make no apology for this commitment to the people of Britain.
Our aim is simple. We need to balance the books and introduce a welfare system that is fair to taxpayers, where work pays and where having a job is always preferable to a life on benefits. The right hon. Member for Wentworth and Dearne (John Healey) speaks as though we are debating in a vacuum. We have to bear in mind where we have come from in order to understand where we are going, and the wider picture. Let us remember that in 2010 we inherited a welfare system that failed to reward work, hurt taxpayers, and was a millstone around the neck of the British economy. During the 13 years of the Labour Government, welfare spending had shot up by 60% in real terms and 1.4 million people had spent most of the previous decade trapped on out-of-work benefits. The result was a benefits system in disarray, which was costing taxpayers an extra £3,000 a year.
Was my hon. Friend as surprised as I was when he heard his opposite number talking about good policy, when in the last 10 years of the Labour Government housing benefits increased by 46% in real terms? How could that be considered good policy?
My hon. Friend, as ever, makes a powerful point about the way the Labour Government worked to trap people in dependency. We want to work with people to drive aspiration, while giving a fair deal to the British taxpayer.
(9 years, 1 month ago)
Commons ChamberLots of think-tanks and non-governmental organisations have been queuing up to point out that this measure removes work incentives. It strikes me that increasing the work allowance would be a far more progressive measure than, for example, raising the personal tax allowance, which benefits higher-rate taxpayers such as ourselves far more than anyone in low-paid work.
The cuts to the universal credit work allowances are being introduced via the Universal Credit (Work Allowance) Amendment Regulations, which a Delegated Legislation Committee considered last November under the negative resolution procedure. My hon. Friend the Member for Glasgow South West (Chris Stephens) opposed the cuts at the time, because it was clear to him, as it was to me, that reducing the amount that a household can earn before universal credit starts to be reduced would hurt low-income families in certain circumstances very badly indeed, and would remove work incentives for those households.
It causes me great concern that, instead of being fully debated here in the Chamber, the changes were enacted through delegated legislation without the scrutiny that their consequences merited. As far as I am aware, the Department for Work and Pensions has yet to produce a proper impact assessment of the changes to the work allowance, so we are very much dependent on external bodies for worked impact analyses. I would be grateful if Ministers said today that they will publish an impact assessment, particularly given that the Social Security Advisory Committee has expressed concerns about the adequacy of the evidence base for evaluating the changes. We can get up in this Chamber and spout as much hot air as we like, but if we lack the proper evidence or use the evidence so selectively to back up only our arguments, we really will fail the people who depend on the support of our social security system.
In late December, the Social Mobility and Child Poverty Commission said that
“the net impact of changes to universal credit...on work incentives is largely negative due to significant reductions in the generosity of work allowances.”
It pointed out that claimants who pay income tax will keep only 24 p in every extra pound they earn. They would need to earn an extra £210 a week to make up the losses from a reduced work allowance—a staggering rate of marginal taxation that makes a mockery of the notion that any work incentives will be left in universal credit. Incidentally, it is important to get away from the false idea, which has been creeping into today’s debate, that there are taxpayers and then there are people on benefit. Work allowances are for people who are working—the clue is in the name—in low-paid jobs.
I have been listening carefully to the hon. Lady. She says that it is very important that the full data and the alternatives are exposed. Will she set out the cost implications of going down the route she would prefer, and explain how it would be affordable?
I will happily do that. Before the general election, the Scottish National party set out in some detail its fully costed alternative to austerity. We were keen to point out that austerity is a choice. We can balance the books without austerity and release £140 billion for investment in public services. That would be a much fairer and more economically sensible way of doing business. I refer the hon. Gentleman to our manifesto.
I will not give way again. The hon. Gentleman might be interested to know that in our manifesto we proposed increasing work allowances by 20% to create the exact incentive that the Government say that they want to create while, at the same time, pulling out the rug from underneath it.
No, I will not give way again, because I want to make some progress. I may give way again a little later in my speech, but I am conscious of time.
The Commission on Social Mobility and Child Poverty also pointed out that a single parent working full-time on the minimum wage and receiving no help with housing costs would lose £50 a week. In what fantasy world does that amount to making work pay? Many parents who are working hard, and struggling to support themselves and their families, will find themselves substantially worse off.
There is enormous complexity around the impact of the cuts to the work allowance. There is a range of factors, including the number of adults in the household and whether or not housing costs are included. As has already been said, single parents and the self- employed are likely to be among those worst hit, but it really will depend on individual circumstances. However, the IFS points out that there will be more losers than winners under these changes, and the Resolution Foundation estimates that working families with children on universal credit will be, on average, £1,300 a year worse off by 2020. The IFS estimates that, overall, 2.6 million families across the UK will be worse off by an average of £1,600 a year. Let us not pretend any more—either to ourselves or to the public—that universal credit will create work incentives and tackle in-work poverty. It will not. For most of the people affected, it will make things worse.
I think that universal credit is a sensible idea. It has potential to make the system simpler and in particular to make it clearer to people what their financial position will be if they move from unemployment into work. We have always said that the idea is sensible. It is not a panacea—Ministers frequently tell us it is a solution to the problems, even though it is not—but it is a helpful step.
The delivery of universal credit, however, has been a shambles. It went very badly wrong right at the start. Ministers accepted terrible advice about how long it was going to take. Page 34 of the July 2010 Green Paper, “21st Century Welfare”, stated:
“The IT changes that would be necessary to deliver”
universal credit
“would not constitute a major IT project”.
How anybody persuaded themselves that replacing the entire benefits system was not going to constitute a major IT project is beyond me, but that was the naivety that underpinned the leadership of the project at the outset.
Warnings from Labour Members and others were cheerily waived aside and it was not until September 2013, when the National Audit Office first reported on the issue, that some shafts of light were trained on what was really going on. The NAO said that
“the programme suffered from weak management, ineffective control and poor governance”,
and it was absolutely right.
Does not the right hon. Gentleman agree that, during his distinguished spell in government, a considerable amount of taxpayers’ money was wasted on IT projects and that, as of now, those lessons have been applied and significant, incremental progress is being made in the delivery of this important reform?
Unfortunately, we were told in 2010 that the lessons from all those problems had been learned and that things were going to be different, and that is true, because now we have not one, but two major IT projects for universal credit—the live service and the digital service—both under way in parallel. No one has yet told us when those two different systems will be brought together, and undoubtedly large sums of money are being wasted.
I want to spend a couple of minutes addressing the question of just how far behind schedule universal credit is now. If the Secretary of State had spoken at the beginning of this debate—as he should have done, as my hon. Friend the Member for Pontypridd (Owen Smith) correctly pointed out—he would have told us that it was on track, because that is what he always says. The Office for Budget Responsibility, however, pointed out at the time of the autumn statement that the project has been
“substantively delayed on at least three separate occasions”,
so just how far behind is it?
When the project started, we were told that transition to universal credit would be complete by 2017—an absurd claim, but that is what was said. Back in 2012, the belief was that transition would take five years from that point. Having failed to deliver on that date, Ministers have refused to announce a revised date; it is a question, I think, of once bitten, twice shy. The autumn statement, however, indicated that the Government now expect—the hon. Member for Banff and Buchan (Dr Whiteford) was correct to make this point in her speech—the roll-out to be completed by 2021. Therefore, exactly as in 2012, the Government in 2016 now expect the roll-out of universal credit to take another five years from that date. The completion date has gone back four years in the last four years.
Is it unfair to allege, therefore, that universal credit is running four years late? Let us look at a couple of other milestones, not just the completion date. On 1 November 2011, the Secretary of State published a press release that said:
“Over one million people will be claiming Universal Credit by April 2014 Work and Pensions Secretary…announced today”.
April 2014 was nearly two years ago and 1 million people are not receiving universal credit; the latest figure is 155,000. The OBR now expects that the figure will be 1 million by April 2018, so that milestone is also four years late.
Let us look at another example. On 24 May 2012, the Secretary of State announced in another press release— I always used to read them avidly—that
“all new claims to the current benefits and credits will be entirely phased out”
by April 2014. Again, the Department has not been willing to announce when it now expects all new claims to the existing benefits and credits to be phased out, but in a very helpful note, to which my hon. Friend the Member for Pontypridd referred in his opening speech, the House of Commons Library has worked out, by reading between the lines of opaque statements by Ministers, that new claims for legacy benefits are expected to be closed down by June 2018. That milestone is a bit more than four years late compared with what we were originally told. We can confidently say, therefore, that universal credit is at least four years late. It will undoubtedly slip further and I am equally certain that the Secretary of State will continue to tell us that it is on track.
The management has been a shambles and we have still not been told about key outstanding policy issues. Which recipients and claimants of universal credit will be entitled to free school meals for their children? We have been waiting for an answer to that question for more than five years, but we still have not been told. It makes an enormous difference, because the answer we expect the Government to give will introduce a huge new cliff edge to the social security system. It will be far worse than anything in the prior system, even though the whole point of universal credit was to get rid of such disincentives.
I want to pick up on the points so well made by my hon. Friend in his opening speech about the way in which the changes to universal credit since it was first announced are undermining so fatally its objectives. In the early debates, the Secretary of State used to make a lot of the fact that universal credit was going to cost more than £2 billion more than the previous system, but that is not true anymore—it is now going to cost £3.7 billion a year less. That has been done by eroding the work incentives that were supposed to be the whole point of doing it in the first place.
The whole House has accepted that it would have been wrong to go ahead with the tax credit cuts, which would have had a huge impact on and reduced the incomes of working families on modest incomes. There would have been a reduction of £1,000, £2,000 or £3,000 a year for those with a household income of £20,000 a year. The whole House accepts that that would have been wrong, and yet the Government are going ahead with precisely those cuts for the relatively small number of people—there are, I think, 50,000 of them at the moment—who are in work and claiming universal credit. If we have all accepted that it is wrong to impose such draconian cuts on the incomes of working families who are claiming tax credits, why is it right to go ahead with precisely the same cuts, which will have a huge impact, to the incomes of working families in receipt of universal credit? I intervened to ask the Minister that question three times. Each time he told us that he would come to it later in his speech. Unfortunately, he never got there. If he is able to explain to us how that can be right, I hope that he will do so.
My hon. Friend the Member for Pontypridd is right to say that all the way through the process of universal credit, we have been told that there would be transitional protection, yet this group of 50,000 working people, who are already receiving universal credit, will suffer enormous cuts in their incomes in April because of the changes to the universal credit work allowance. That cannot be right and the Government need to change their mind.
It is privilege to contribute to this debate, which I think goes to the heart of this Government’s approach to reform of our society. Universal credit will, I believe, be the critical measure of success for this Government. In the wake of the debate on tax credits, it would be easy to be distracted by how significant universal credit is. Time and again, it has been shown that well-worn problems with our current welfare system cannot be solved by tinkering at the edges of the previous welfare system. As a member of the Select Committee on Work and Pensions, I have listened to representations about benefit delivery, welfare to work and tax credits, and I believe it makes absolute sense to have radical reform across the benefits system.
Universal credit achieves three core aims. The first is making benefits more like being in work through monthly payments, getting rid of the distinction between benefits such as working tax credits and jobseeker’s allowance and removing the need for reapplication. Secondly, piggy-backing on PAYE via real-time information will deal with a vast number of benefit delivery issues that successive Work and Pensions Committees have addressed. Finally, there is benefit simplification by addressing benefit delivery and helping claimants, who quite reasonably find it difficult, to work out what they are entitled to. This effort has been launched by this Government and particularly by the Secretary of State for Work and Pensions who has been in post determinedly for five and a half years, battling those who have been cynical about the necessary adjustments he has had to make.
In my previous employment, before I became a Member, I worked in an IT consultancy firm. I recall it winning a contract under the previous Government to deliver a significant project for the NHS. A few years later, however, I saw several billion pounds being written off because that project was not run properly. However, I do not particularly want to make a party political point about this issue because it is incredibly difficult for any Government to deliver complex IT systems.
This Secretary of State has shown admirable determination in the face of great cynicism and a lack of clarity from the Opposition about what exactly should be delivered. Are the Opposition in favour of universal credit? Are they in favour of it only if it works within a timescale that they think is politically expedient; or do they have a credible, well thought through alternative that will deliver the quantum of savings to which they committed in their manifesto?
I listened carefully to the speech by the hon. Member for Banff and Buchan (Dr Whiteford), who quite reasonably said that we must look at the detail and not make grand statements. We must, however, also recognise, as my hon. Friend the Member for Hertsmere (Oliver Dowden) pointed out, that there would be major consequences of not making the changes that we have set out and not delivering the savings on which this Government have based their projections for our public finances.
We do not need to be distracted by the speed of universal credit delivery; we can be positive about the progress that has now been made. The DWP announced before Christmas that universal credit is now in three quarters of jobcentres. It is my expectation, based on the evidence I have seen, that everything is moving in the right direction towards full delivery of universal credit within the timescale that has been set out.
This Government’s legacy will be enhanced by the fact that universal credit is not a stand-alone measure. The reforms of the personal allowance, the national living wage, rising wages, economic growth delivering record numbers of jobs, the simplified benefit system and the detail of work coaches helping those who need assistance will provide a compelling legacy. I regret the fact that the Opposition have brought this motion before the House today; it is misguided, and I shall vote against it.
(9 years, 7 months ago)
Commons ChamberUrgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
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I welcome the hon. Gentleman to his post. May I say that the latest figures from Scotland show a fall of 40,000 in the number in relative poverty between 2012-13 and 2013-14? Our position is to help the worst-off, to support pensioners through the triple lock and to get all of them into a sustained life of good income.
This week, I attended the launch of Scope’s Extra Costs Commission, which is looking at the barriers faced by disabled people in entering the workplace. May I urge my right hon. Friend to do all he can to continue the Government’s strategy to ensure that more disabled people are able to enter the workplace?
My hon. Friend makes a powerful point. It is worth reminding hon. Members that, through our Disability Confident programme and the support we are putting in to get more people with disabilities back into work, there are now more people with disabilities in work than ever before. That is still not good enough—the line is still too far below the line for others in work. We want to halve that gap by the end of this Parliament.
(9 years, 7 months ago)
Commons ChamberWe are already talking to many social landlords, who have agreed with us that the improvements we have made are dramatic and helpful, but I am very happy to meet anybody the hon. Lady wants to bring to me.
Will the Minister explain the Government’s commitment to training in jobcentres? One concern is that there is inconsistency in decisions made. What commitment will be given during the next five years to the training budget for jobcentre staff?
I am not altogether certain that I quite understand what my hon. Friend is referring to. If he is referring to the Flexible Support Fund, that is allocated deliberately so that jobcentres can make local decisions about the kind of training that they need to give. If he has a particular problem, I am more than happy for him to write to me or come and see me.
(10 years, 2 months ago)
Commons ChamberActually, we are working very hard to bring down fraud and error. Of course, universal credit will bring down fraud and error. That is one of the driving reasons that it is important to implement universal credit, which is why we are delivering it safely and securely. We all want fraud and error to come down. Of course, we always hear about the mix-up between error and fraud. There is a tendency to think that everyone is defrauding the system, but that is not the case; sometimes, official errors get into the system. Universal credit gets rid of that by simplifying the process, which should make it better. The hon. Gentleman is right to say that we have more to do on fraud and error. We need to keep bearing down on it, which is what any Government would want to do, and universal credit will help enormously.
The working-age welfare budget increased by 40% in real terms between 1996 and 2009, while long-term unemployment doubled. In 2009, a quarter of the unemployed had been on in-work benefits for nine of the previous 10 years. That was the legacy of the previous Government. What does the Secretary of State think the legacy of his Government’s careful roll-out of the very well organised and researched universal credit will be once his period in office ends a long time in the future?
That is exactly the point. On the first part of my hon. Friend’s question, the Opposition are in a kind of amnesia: they seem to forget that they crashed the economy in the biggest disaster it has ever had, with a fall of some 7% in GDP, and that many people lost their jobs. We have managed to get more people back to work and now have more people in work than ever before, with unemployment falling dramatically, youth unemployment falling and even more people with disabilities now going back to work. As it is rolled out, universal credit will deliver even more to those people—a better income, better support and a much simpler process that they can understand, rather than the chaotic system of tax credits that we have at the moment.
(10 years, 3 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
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It is a pleasure, Mr Hollobone, to serve under your chairmanship. I congratulate my good friend and colleague, my hon. Friend the Member for Congleton (Fiona Bruce) on securing this important debate. The subject needs discussion and careful and considerate handling, but it is right to examine how we nurture children’s well-being and what support exists to ensure that children in this country can benefit from the best possible situation when growing up. It is not enough to observe family breakdown and its wide implications for society and then say it is nothing to do with the state because we are frightened to death of seeming to moralise about people’s private choices.
I am here this morning because I believe we should look at the evidence in our society. As my hon. Friends the Members for Congleton and for Enfield, Southgate (Mr Burrowes) said, the evidence is overwhelming. The Government must look at the evidence, suspend their reticence about getting involved in family circumstances, and act. It is right to acknowledge the Government’s progress. I, too, heard the Prime Minister’s excellent speech in London in August when he set out what the Government have done and his aspiration to go further.
This morning, I want to use my contribution to focus on the importance of children’s relationships with their fathers to amplify some of the points that my colleagues have made.
Does the hon. Gentleman agree that good relationships and respect in society start in the home and in the family? Parental responsibility is essential and cannot be handed over to anyone else, not even the state. However, Government policy must encourage and strengthen the family unit instead of undermining the traditional family unit in society.
I agree absolutely that we must look at how relationships are formed in the home and recognise that families exist in a wide range of sometimes sad circumstances. We must not be squeamish about being honest about messy situations, but recognise that solid family relationships give children the best platform to develop good and meaningful lives in society.
I want to focus on the importance of children’s relationships with their fathers, especially when fathers cannot live with their children. I believe that fathers’ involvement boosts children’s self-esteem and confidence and that children with good relationships with their fathers are less likely to experience depression or exhibit disruptive behaviour at school. When fathers are actively involved in their children’s care, children are more likely to feel good about themselves, do well at school, avoid trouble and reach their potential.
Several months ago, a lady came to my surgery saying that her relationship with her partner had broken down after they had lived together for 10 years. During that relationship they had brought up their own child and another child who had been born a year before the relationship began. The acrimony of the breakdown of the relationship had led the departing father to arbitrate on which child—they were only a year apart in age—he would want to have contact with. The one who was not his blood relative—the stepchild—wanted to maintain the relationship because the man was the only father figure he had known, but his birth child was more reticent about seeing his father. The impact of the disruption on those children and the arbitrary removal of that father influence would have tragic consequences. That experience typifies many that we hear about in our surgeries and throughout society, and we must respond to it.
It is highly worrying that the Centre for Social Justice has estimated that more than 1 million children have no meaningful contact with their fathers by the end of their childhood. The shocking but quotable statistic that a young person is considerably more likely to have a smartphone than a resident father is a sad indictment of society.
The coalition’s programme for Government promised to encourage shared parenting from the outset and to look at how best to provide greater access rights to non-resident parents, but I would like to highlight three areas where we could do more. First, we should bring into force schedule 6 of the Welfare Reform Act 2009 on joint birth registration, which requires fathers to register themselves on birth certificates. As my hon. Friend the Member for Enfield, Southgate said, there seems to be some ambiguity about why that has not happened. At present, the law on birth registration signals that fathers are less important to children than their mothers and that less is expected of them. If they are not married, the mother, not the father, is named automatically. Crucially, the mother’s approval is required if the father wants to be named. Obviously, there must be appropriate exemptions, such as when the mother does not know the father’s identity or whereabouts, the father lacks capacity within the meaning of the Mental Capacity Act 2005 or the mother has reason to fear for her safety or that of the child if the father is contacted in relation to the registration of the birth.
If that change was made and the mother wanted the father to be recorded, but that was against the father’s wishes, the mother could identify the father independently. Similarly, a father who wanted to be named but was obstructed by the mother could declare his paternity and have his name recorded against her wishes. Being named on a birth certificate confers parental responsibility and the right to be involved in decisions affecting where the child lives, their education, religion and medical treatment. If fathers are not registered on the birth certificate, that predicts both less involvement in their children’s lives and low or non-payment of child maintenance. Australia achieved a reduction of 20% in mother-only registrations during the 10-year period between 1994 and 2004 by adopting a similar measure.
Secondly, if parents separate, it is often highly beneficial to children if they continue to have a relationship with both parents. Yet it can be incredibly difficult to ensure there are well functioning contact arrangements with children. That can be incredibly painful for children, but it is understandable because parents’ inability to work together rarely repairs itself naturally after they have split up.
At this point, I want to refer to a meeting I had on Saturday in Salisbury, where I gave out some awards to volunteers at Salisbury’s contact centre, and in particular to Liz Sirman, who has spent the last five years managing that contact centre. I said then, as I do now, that it seems we can either say that the glass is half-full or half-empty. We can either say that it is lamentable to have children’s contact centres, where parents’ relationships are so broken that they have to rely on volunteers to arbitrate—one partner delivers the child and goes, and another comes to collect the child, and then there is the same process in reverse—or we can pay tribute to the work of such centres, as they try to rebuild relationships and help those families form better relationships in the interests of the children.
We need to be willing to support families once parents have separated. The Department for Work and Pensions innovation fund has invested significantly in better ways of doing that. Additionally, we need family relationship centres, such as those that have been functioning in Australia for several years. Pioneering centres such as Island Separated Families on the Isle of Wight and the Jersey Centre for Separated Families will shortly be joined by other centres in the midlands and the north-west of England. Their help for separated families could be delivered within the system for family hubs mentioned by my hon. Friend the Member for Congleton.
Finally, although the contributory principle in child maintenance is indispensable, it should not have the unintended consequence of preventing non-resident parents from playing a meaningful role in their children’s lives. Some low-income parents are being left with too little money to look after their children adequately while they are in their care after paying child maintenance. That is because the current thresholds at which maintenance is paid are fixed at 1998 prices, and there is no self-support reserve in our system, unlike in many other countries.
This is a critical and controversial area, but we have to examine the reality of how these dynamics are working for the poorest in our society. We need to look at making interventions that change those rules to facilitate better dynamics between, and more involvement of, both parents in bringing up a child. I know that the Minister, who is universally seen as one of the most capable and thoughtful individuals in Parliament, will reflect very carefully on these points. I look forward to hearing what he has to say in response today and subsequently by letter, if some of these issues cannot be responded to today, but I urge him to reflect on the spirit and the substance of what has been said this morning. We are here because we can see an epidemic of family breakdown in our society. We are concerned about the life trajectory of those children, and I urge him to do anything that he can to improve that situation, such that those children can look forward to better lives, with both parents involved in their upbringing.
The debate is due to end at 11 o’clock and we have two Front-Bench speakers. If they split the time, it is 18 minutes each, but the debate does not have to run all the way to 11 o’clock —it is entirely up to them. I call Steve McCabe.
I certainly accept that we would not want to try and explain family breakdown over a period of just four years. I will make the point later that there are a variety of issues; I am simply focusing on the fact that if we are considering the impact on how Government policy assists, we should not ignore the economic factors.
The hon. Member for Congleton referred to Dr Coleman and the OnePlusOne group, which makes the point that evidence shows that where couples enjoy a good employment situation, that in itself leads to a stronger relationship. That may be because they have fewer financial worries or a stronger sense of personal identity. I do not want to dwell on the issue unduly, but I do want to make the point that we have heard about family centres and the need to give Government support, and there are a couple of things from the past four years on which we should reflect. We should ask whether the decision to scale down Sure Start has necessarily been in the best interests of children.
The hon. Gentleman is right: contact centres do not receive state funding. Sure Start centres did, but there are 628 fewer of them since the Government came to power, and I suggest that they have in the past been used as a source of support for a number of parents and families.
Likewise, there is an issue about the availability of child care. That is why, to be fair, both parties are putting quite a stress on child care availability at present. We disagree about the best way to provide it. Obviously, I am much more attached to Labour’s model of providing between 15 and 25 hours for three and four-year-olds. We have to recognise the cost of child care.
I noticed that the hon. Member for Enfield, Southgate (Mr Burrowes), in what was a very thoughtful speech in a number of areas—I certainly agree with him on the question of kinship and grandparents—mentioned the married couple’s tax allowance. It is worth pointing out, if that is an instrument of policy to help families and children, that it is available only to one third of married couples. It applies to only 4 million of the 12.3 million married couples, and only about one third of them have children, so when it comes to targeting a policy to help children, it would be possible to do a bit better.
(10 years, 7 months ago)
Commons ChamberThree principles underlie the Government’s welfare reforms: ending dependency, establishing a ladder of aspiration, and social justice and redistribution.
In 1874, Benjamin Disraeli said—I apologise to my Liberal colleague, the Minister of State, Department for Work and Pensions, the hon. Member for Thornbury and Yate (Steve Webb)—that the Conservatives had done more for the working man in five years than the Liberals had done in 50. That continues to ring true today.
When I was elected as Harlow’s MP in 2010, there was a feeling of negativity in the town. Unemployment, and particularly youth unemployment, was rife—a hangover from the last Government’s disastrous policies which suggested that a life on benefits was a way of life. Worse than that, despite welfare spending increasing by 60% under the last Government, the number of food banks increased tenfold, and median real wages stopped growing in 2003. Notably, the Office for National Statistics says that inequality is now at its lowest level since 1986.
Since then, there has been a new optimism. Unemployment is down by one third in my constituency, with youth unemployment decreasing by 30%. There is renewed confidence in the local economy, and businesses are creating jobs. The number of apprenticeships in the town have increased by a staggering 83%. What is happening in my town is not unique; it is happening up and down the country. Employment is up and welfare dependency is down, and according to the OECD Britain is a more optimistic place than it was in 2010.
The best way to get people off welfare and into work is by creating a conveyor belt of aspiration. That starts in the family, continues in schools, and carries on into skills training and post-16 education. Excluding those in full-time education, despite what the Government have done on youth unemployment, there are still 500,000 young people out of work, so we must make it easier for young people to get the skills that they need to give them the best chance in life.
In last year’s Queen’s Speech, the Government said that it should be typical for school leavers to go to university or start an apprenticeship. Significant progress has already been made, with the Government on track to deliver 2 million apprenticeship starts. The university technical colleges are part of this ladder of aspiration, giving young people—those on low incomes, who would never otherwise have had the chance—the chance to get a state-of-the-art technical and vocational education alongside traditional academic education, and we need to bring that through. We need to ensure that doing training and vocational work and taking up apprenticeships are as prestigious as going to university.
We also need to be the party of social justice and redistribution. The Government have done a lot of work on redistributing wealth from the rich to the poor by cutting taxes for lower earners. Even the 45p rate has raised an extra £9 billion for the Treasury, and I urge the Secretary of State to lobby for that £9 billion extra to be put into a special fund that we can use to raise the national insurance threshold for the poor—part-time workers and those on lower pay. We have the money now as a result of the 45p rate, so let us redistribute the money we have gained from tax cuts to the rich and give it in tax cuts to the poor. Let us be the party of social justice and redistribution.
Finally, I want to tell two stories of what has happened to me as a constituency MP. A man came into my surgery and said, “The Government won’t let me go to the zoo.” I said, “What do you mean?” He said, “Because I don’t get enough on benefits to go to the zoo.” I said to him, “Do you realise the average wage in my constituency is £23,000 and people are paying £1,250 in their taxes on welfare benefits, not including pensions, and are you saying that those people, who struggle every day, should be paying more in taxes so that you can go to the zoo?” He said, “Yes, it is my human right to go to the zoo.” He was brought up on a diet of dependency so beloved by the last Government.
Does my hon. Friend agree that it is in challenging these suppositions that this Government are really making progress in the reforms they are bringing through, and that we need to look very carefully at the level of the cap as we go into the next year?
All of us across the House are concerned about the most vulnerable people in our constituencies. It is deeply disappointing that many Opposition Members have implied today that universal credit, changes to the benefit system and the PIP are the function of a harsh Government who have no sympathy for the weakest among us. That is wrong: it is precisely because we have recognised that it was unsustainable to struggle on with over 50 separate benefits that did not respond effectively to minor changes in people’s day-to-day lives.
How could it be right that around 50% of decisions on disability living allowance were made on the basis of the claim form alone without a face-to-face assessment, and that changes in circumstances—for good and bad—went unaddressed by a benefits system that was not attuned to individuals and the needs of their conditions? Some 71% of DLA recipients got it for life. That was not right either for the taxpayer or for the people who had been written off callously by the state. More than 4 million working-age people were on out-of-work benefits and almost 2 million children were growing up in workless households under the last Government.
Yes, universal credit is the most ambitious programme to reform welfare in a generation and it is essential that it succeeds. However, as the Government have always said, it cannot happen overnight. It would not happen overnight under any Government. It is a task of substantial complexity. It is therefore unsurprising that there are challenges in its smooth delivery and the smooth delivery of the IT systems that are required to make it work.
Universal credit is just one part of the bigger picture. It is far from the chaos that the Opposition have presented this afternoon. Forty-five welfare reforms are under way, 42,000 people have had their benefits capped, 23,000 staff have been trained in universal credit and 550,000 participants have started a job following on from the Work programme. As we have heard, the welfare reforms are set to save £50 billion over the course of this Parliament, with the cap bringing almost £120 billion of Government spending under control. We have done all that on top of dealing with the backlog of ESA cases that was inherited from the previous Government.
It is crucial that we get universal credit right and that we do not replicate what has happened with previous programmes by rolling it out too quickly. That would be truly irresponsible. Any programme that changes a system that affects more than 7 million people will be challenging. The question is whether the Government have the courage to do the right thing, no matter how difficult, and whether they will give in when emotive political challenges are cynically deployed to give the impression that if only the Government changed, all would be well.
Where universal credit has been implemented, it is working. In the pathfinder areas, more than 60% of claimants said that it was easier to understand, provided a better financial incentive and rewarded small amounts of additional work. People on universal credit are spending twice as long looking for work each week as a result.
I say, let us continue down this difficult pathway—
(11 years, 1 month ago)
Commons ChamberIt is a privilege to contribute to this debate, and a privilege and honour to represent the headquarters of the Trussell Trust in Salisbury. The trust’s food banks were established in my constituency more than 15 years ago. This started in 2000, when the trust was working in Bulgaria, looking after 60 street children who were sleeping at railway stations there. The founder of the charity received a call from a desperate mother in Salisbury who said, “My children are going to be hungry tonight. What are you going to do about it?” That happened in 2000, and in 2004 two food banks were set up. The people of Salisbury support the trust’s food bank very generously all the year round. Yes, there are people in Salisbury, which has 1.6% unemployment, who use food banks. I want to pay tribute to the individuals I have got to know over the past three and half years from Salisbury who lead the work of the Trussell Trust.
My hon. Friend speaks powerfully. The spirit that he mentions in relation to the food bank set up by the Trussell Trust has extended to Harlow with its food bank, which was originally set up by the Michael Roberts Charitable Trust but is linked to the Trussell Trust. An extraordinary amount of work is done there, and it has become a very important part of our community. Will my hon. Friend celebrate that? Does he agree that we should support that and not try to use it as a political football?
I am grateful for my hon. Friend’s intervention. Of course, we all support the work of the food banks and the individuals who work in them. I wish to finish my tribute to Chris Mould, David McAuley, Molly Hudson and Mark Elling. I have got to know them, and their responsibility has been to roll out the growth of food banks. That may be uncomfortable for some Government Members, as might its implications and the way the tone of the debate has taken an unfortunate turn this afternoon. We have to acknowledge the growth in food banks. In 2005-06, there were fewer than 3,000 users, but that had risen to 40,000 by 2009-10. I accept that we have seen a similar scale of use. The question is: why, and what are we going to do about it? [Interruption] We are talking about a factor of 10, to about half a million users at the moment. I am not trying to deny the scale of food bank use. If Labour Members would stop trying to make political points, that would be helpful.
The important issue is getting to the bottom of why so many people are using food banks. The Trussell Trust says that this is about not only homelessness, benefit delay, low income and changes to benefits, but domestic violence, sickness, refused short-term benefit advances, debt and unemployment.
A constituent of mine has had to go to our Trussell Trust because she was a victim of domestic violence. She was separated, had nowhere to go and her husband was not prepared to fund anything. I pay tribute, as my hon. Friend has been doing, to the trust. Hope for Belper and the Belper News, our local paper, have been supporting it to increase the amount of food given by volunteers to the Trussell Trust in Belper and thus spread the amount of food it can give out to people requiring it.
I am grateful to my hon. Friend for her intervention, which speaks for itself. On the deeper causes, it is not a question of isolating one particular change. I recognise that the Trussell Trust has acknowledged from the data it has collected that the benefit changes have presented significant challenges. But what I find lacking in this debate is a serious estimation of what alternative measures could be put in place; all I have heard is, “Remove the sanctions regime. Give more money.” Where is that money going to come from? How will the incentive effect—
I will carry on. How will the incentive effect of the benefit changes that the Government so desperately want to bring in have a chance of success if we do not make those changes? Some of the benefit changes have taken a long time to come through, and we need to let them take effect so that we can deliver the deeper change that needs to occur. People are motivated to go to the Trussell Trust and other food banks across the country for a whole number of reasons. They may find themselves in chaotic situations; they could be in debt and have no financial management skills to know how to prioritise their spending. I am not saying that that is true in every case, but we must be honest about the breadth of the problems faced by the individuals who use the food banks. We must come up with a solution that addresses all the issues. We should not tritely simplify the matter and say, “It is all about the benefit changes and the Government must do something, but by the way I will not specify what we would do as an alternative, how much it would cost and how we would pay for it and in what time scale.” Unless alternative policies are advanced, the things that some Members are saying ring very shallow for everyone involved in food banks.
It is regrettable that the relationship between the Trussell Trust and the DWP has broken down. I hope that a dialogue can reopen and we can see some progress. I do not believe that any Member in this House is happy to see people in their constituency going hungry, but we should be honest and holistic in our view of what needs to be done to sort it out.
(13 years, 2 months ago)
Commons ChamberOf course it is! The hon. Gentleman really needs to look at the ONS statistics. In every corner of the UK, youth unemployment is going up. Young people are facing unemployment because of the Government’s record.
Why is it a deception if the Government set out a well thought through policy that they are ready to deliver in three or four months’ time? That is not a deception but a well organised policy. It is ludicrous to trade such cheap remarks about people’s jobs and futures.
I shall tell the hon. Gentleman my background in a moment—I certainly know what unemployment is like and have worked with unemployed people—but month on month, people are losing their jobs. Saying that there is hope in future of a scheme—he says it is well thought out, but nobody has seen it implemented—is a disgrace when the Government are doing away with schemes that were working and helping people. I met people who went on those schemes. They had the opportunity in a major global recession to gain work experience and skills. That is what the Government should be doing; they should not be talking about some generous scheme of the future that we do not know about.
The Government’s record is one of increasing unemployment, which compares with the Government of the 1980s and 1990s. The centre for the unemployed where I worked was established in the 1930s, and was re-established in the 1980s because of mass unemployment and mass depopulation. People left my area to look for jobs in the 1980s and ’90s as they did in the 1930s. The county of Anglesey, which I represent, was the only county in Wales that had a declining population in two consecutive censuses, because people went looking for work. Yes, they got on their bikes, but it harmed our community. Unemployment is not a statistic to bandy around in the Chamber; it involves real lives and real people. It affects individuals, families and communities. I have seen communities scarred by mass unemployment, which is why I am passionate about standing up here today to say that this Government’s policies are not working. We need to work together to find policies that work. When the Government scrap policies that have been successful in my community, I will stand up and say so—that is the reality of the situation not only in my constituency but in many parts of the country.
In 1992, unemployment in my constituency stood at 3,912—nearly 4,000. By October 2002 it was down to 1,516, and by October 2007 it was down to 1,093, because schemes that targeted the hardcore unemployed to help them back to work were introduced.
I remember that there was no plan to help in the 1980s. In 1992, the Chancellor of the Exchequer said that unemployment was “a price worth paying”—it was an economic tool. The Minister shakes his head, but those were the Chancellor’s words, and he cannot contradict that because they are on the record. The Chancellor said that there were shoots of growth, but people were losing their jobs and livelihoods, and communities were being destroyed.
The buzzwords of the ’80s and ’90s were “downsizing” and “redundancy”. We needed a scheme, and when the Labour Government came to power in 1997, we introduced the new deal for the unemployed. A levy from the excess profits of utility companies was used and targeted to help young people. Between 1999 and 2004, it was hugely successful. I think it should have continued, but after 2004 the scheme was targeted at other sections of society that needed help. With hindsight, perhaps we should have continued to concentrate on young people.
Youth unemployment has gone up in the past 12 months, whatever statistics we use. Young people are losing their jobs or are not able to enter the employment market. My daughter’s peers, who are in their 20s, have taken extra university courses because they cannot get jobs. They are coming out highly qualified and cannot get jobs. That is the reality of the situation today. It is incumbent on us all, whichever party we represent, to get the number down. Although bandying statistics does not help, we must, none the less, use the records of different Governments to paint a picture. The record of this Government is to do away with schemes that were successful and to say, “We’ll replace them with something in the future.” The reality is that unemployment is going up.
In my constituency, 997 people are unemployed, which represents 2.3% of those who are economically active. I recognise that that is a modest number compared with many constituencies, but it is an absolute tragedy for every single one of those individuals, particularly the 85 who have been unemployed for more than 12 months.
I agree with much of what the hon. Member for Bolton West (Julie Hilling) said about the tragedy of unemployment. It means a loss of self-esteem, poor mental health, losing the pattern and discipline of work and losing hope. Listening to the debate this afternoon, I have found it very difficult to take the charge that all Government Members believe that unemployment is a price worth paying. I do not, but I do believe that it is a very sad economic reality.
The question is how the Government should respond. Should they act as though they have all the solutions and can essentially buy a load of jobs to relieve the misery overnight? Would that be a sustainable solution for the affected individuals in six, nine or 12 months’ time? I do not think so.
Looking back to before the general election, I am certain that elements of the future jobs fund were worth while. However, when the Government are constructing a national scheme for getting people into work, there comes a point when they have to consider whether such a programme is the most cost-effective way of delivering sustainable skills and jobs that will lead people to full-time employment for many years.
I will not, because I want to give colleagues an opportunity to speak.
I believe that two significant matters need to be examined: supply-side reform and macro-economic stability. Many Members have already spoken about the excellent apprenticeship schemes, the work experience programme and the reforms under the new youth contract, but we need to recognise that if small businesses, such as the many micro-businesses in my constituency, are to be confident enough to take on new people, they need to feel that the Government are on their side. They need to know that the Government understand that they do not need so much regulation. They do not need the 14 new regulations a day that they had under the last Government. They want to know that we will exempt micro-businesses from new business regulation and EU accounting rules. Such issues influence whether a small business man takes the leap and takes somebody on in these difficult times.
We also need macro-economic stability. Low interest rates are important, because they condition investment decisions and how people feel about their finances. They cannot spend money that they do not have in a way that is expensive and does not have a secure outcome. The Government will not have all the answers, but they are on the right trajectory to relieve the misery, and I wish them well.