Welfare Reforms and Poverty

Debate between John Hemming and Jeremy Lefroy

Monday 13th January 2014 Commons Chamber

[John Hemming (Birmingham, Yardley) (LD)]

These debates are important in highlighting matters of detail. I am pleased to have signed the motion for this one, which calls for an inquiry into the effects of the benefit system. The biggest detail involved in all this is of course the deficit. When this Government took over, the country was borrowing £150 billion a year, which was added on to the debt each year. If we reduce that too quickly, however, it will cause economic dislocation, so it will have to be reduced relatively gradually. That is why it is surprising that the Opposition are criticising the Government for not reducing it to zero straight away. Obviously, we cannot do that sort of thing.

Another important detail is universal credit. I am very supportive of universal credit because it goes down the route of creating an environment in which people can benefit by being in work. There are people who abuse the benefit system, but the majority of people who receive benefits need support from the state in order to live. It is important, when we are dealing with the people who are abusing the system, that we do not throw out the baby with the bathwater.

I have been doing some work with the 6 Towns credit union. One issue with universal credit is that people will receive a sum of money each month then have to pay their costs out of it. The reason for doing that is to ensure that people who go back into work and are paid monthly do not suddenly find themselves unable to cope financially. There is no doubt that that prospect often makes people frightened of taking a job. The motivation of paying universal credit on a cash-flow basis is a good one, because it is designed to create an environment in which it is easier for people to get into work.

To achieve that, however, there must be ways for them to manage their cash flow, because not everybody is good at that. That is why I am pleased that the 6 Towns credit union has expanded its modus operandi and its common bond to include a lot of Birmingham, including my constituency. When universal credit comes in, my constituents will now have a service towards which the Government have put some money, because they have put money towards credit unions generally.

Specific issues need to be looked at. I always worry about the debate on food banks, for example. If we do not look at individual cases and work out why people are depending on food banks for three days, we cannot identify the problems in the system. The Trussell Trust was created in 2000, so in 1999 there was no Trussell Trust and no food banks. There were schemes then—people would go to supermarkets and get stuff that was out of date; there were all sorts of ways in which people found emergency food support. The fact that we have good organisations with good volunteers offering a good service does not mean that suddenly everybody who is using that service is doing so as a result of changes in Government policy. We have to review this in detail and look at the individual cases.

One of the general sorts of cases I am concerned about involves people transferring off employment and support allowance and then not being informed enough to claim jobseeker’s allowance. I believe that the Government are working on dealing with that. A number of constituents have come to me with those cases when they are destitute. My top priority is to ensure that people are not destitute. We see that happening from time to time and we need to identify those cases. Sometimes when I tell people that we can give them a voucher for the food bank they tell me, “I cannot afford to cook the food, so there is no sense in me having anything from the food bank.” It is important to prevent people from being destitute, and I have raised this issue directly with the Minister and in a ten-minute rule Bill.

[Jeremy Lefroy]

I wonder whether the hon. Gentleman agrees with me about one problem with the transfer from ESA to JSA. A lady in my constituency says, “I am simply not fit for work, but by signing on for JSA I have to say that I am available and fit for work.” She does not want to tell a lie.

[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.

Education Maintenance Allowance

Debate between John Hemming and Jeremy Lefroy

Wednesday 19th January 2011 Commons Chamber

[Jeremy Lefroy (Stafford) (Con)]

I have very much enjoyed listening to many of the speeches in this excellent debate, which has been well worth having. I listened particularly closely to the right hon. Member for Sheffield, Brightside and Hillsborough (Mr Blunkett), who is not in his place, and to my hon. Friend the Member for Brigg and Goole (Andrew Percy), who made some powerful points.

I understand the reasons for the changes—the deficit of £23 billion in November brings things sharply into focus—but I am concerned, as many Members are, about the consequences. I shall briefly make two points that need stressing, although they have been alluded to by a number of hon. and right hon. Members. The first relates to fairness. Those who entered sixth form in September 2010 will cease to receive EMA in September 2011, and the Secretary of State needs to examine that closely, because it is not fair.

[John Hemming (Birmingham, Yardley) (LD)]

Sixth-form colleges in Birmingham are trying to assess how much the lower sixth-formers need their EMA. Does my hon. Friend think that that is a useful process?

[Jeremy Lefroy]

I think that that is an extremely useful process. I should also mention, in this regard, the people who just joined in January and have no particular scheme available to them.

My second point, which has been made by many hon. Members, particularly my hon. Friends the Members for Mid Dorset and North Poole (Annette Brooke) and for Nuneaton (Mr Jones), is about transport. I have an 18-year-old daughter and I find it strange that she pays for her bus fares to and from school whereas others who could well afford not to have free bus passes receive them. We need to examine that seriously. Today I met a couple of students from Stoke-on-Trent, in Staffordshire, one of whom said that she was paying £7.60 a day in bus fares because she had to take two buses; the hon. Member for Stoke-on-Trent South (Robert Flello) mentioned that situation earlier. I also wish to pay tribute to the work of the colleges in my constituency, in particular South Staffordshire college and Stafford college. They have brought the figures to me, and have shown me the importance of making these points and representations on their behalf.

Finally, I, like the Secretary of State and the hon. Member for Huddersfield (Mr Sheerman), wish to stress the importance of evidence. I agree that evidence is vital. This subject is too important to ignore evidence, because the prospects of young people are at stake. So my final request to the Secretary of State is that he be guided by the best possible evidence in this matter.