Welfare Reforms and Poverty

Debate between John Hemming and Angela Watkinson

Monday 13th January 2014 Commons Chamber

[John Hemming]

This is where the difficulties lie. I do not think that those are the details of the situation, but people misunderstand the situation and end up suffering as a result. I have never liked any of the cuts, but we have to make cuts because of the deficit. The one I would be most uncomfortable about is restraining the inflation increase to 1%, and if things get better I would at least like to examine the situation of the people right at the bottom of the pile—those on £71.70 a week or some £52.35 if they are under 25. They may only be losing out by £1.40 a week, but that is a lot for someone in that situation. I would like the Government to consider that issue.

I am also worried about the interrelationship between the welfare cap and victims of domestic violence, and whether there are situations that need more attention. I believe that people can get discretionary housing payment to leave a violent home, but it is important that we ensure that there is a route out of domestic violence for women. I am worried about that issue, just as I am about some wrongful sanctioning that I have seen. That does not help at all, because it undermines the whole process.

I would also like to see a substantial increase in the minimum wage, because as the economy is improving the Government should look at that, rather than maintain things as they are. I might be the first person to mention that. As colleagues are aware, I am not so uncomfortable about the spare room rent. On Saturday, a constituent came to see me because they were living in a one-bedroom council flat with a family of four. If that is happening, clearly there is space for people to downsize; I know that Bromford Housing Group has difficulty renting out single-bedroom properties, as it has said that to me. The details matter on this, and I am trying to get those details from my local authority in order to look at these things.

I am unhappy with my local authority cutting the amount of money it is putting into council tax benefit and therefore increasing the amount of council tax paid by people on JSA. We also have to examine the issue of habitual residency for in-work benefits, because a situation where people are encouraged to come here to be self-employed so that they can get a large amount of benefits even if they are not earning any money being self-employed—this is The Big Issue case—is not a good way of doing things. Debt issues are critical, and I am pleased that the Government are making some moves on payday loans, because when people get into a mess it is difficult to get out of it.

[Dame Angela Watkinson (Hornchurch and Upminster) (Con)]

Does my hon. Friend agree that fiscal education in schools is playing a vital role in helping the next generation of adults to be able to manage their personal finances, however modest, and to understand how to stay out of debt?

[John Hemming]

That is very important. The essence of what we are trying to do with the universal credit is get people to be able to manage their accounts. Again, people such as those at 6 Towns credit union offer services that facilitate that. That is definitely the way to go, but we need government action—regulatory action—on payday loans because people are not necessarily that numerate and they see these things as a short-term solution without being aware that they create a long-term problem. That is clearly part of the issue.

As I said at the start, the details are crucial. The motion calls for an inquiry to be set up that is independent of Parliament. I would prefer a parliamentary inquiry, but I am pleased to have my name down in support of a motion asking for these issues to be examined. The details are critical and they need to be kept under continuous review.