(9 years, 9 months ago)
Commons ChamberI apologise: I missed the question. What I do know, however, is that no one has any limits, or targets, or whatever it may be, for benefits or for sanctions. There are no targets for sanctions, and there will be no numbers.
Local housing allowance levels in Cambridge are far too low, and have been for years. In 2008, Shelter could find only four properties that were affordable, and the position is essentially unchanged. The Minister helpfully gave us an above-inflation increase, but it still has not solved the problem. Will he investigate further to check that local housing allowances match the cost of renting, and undo the legacy of the broad rental market areas?
My hon. Friend, and, indeed, his predecessor have been doughty campaigners on behalf of the city of Cambridge. He will be aware that the rent levels are set across the whole Cambridge rental market area, not just in the city of Cambridge. As he said, in 2014-15 we allocated £45 million for targeted affordability funding. We will be allocating £95 million in 2015-16, and the rates will be announced at the end of this week.
(10 years ago)
Commons ChamberI am glad that the hon. Lady has referred to the letter I sent her, because it confirms that the BBC report
“does not reflect Government policy.”
It also makes the point that we have seen
“a fall in out of work benefit numbers of 832,000 since 2010—the total is now below 4 million, the lowest figure since 1990”,
that incapacity benefit numbers have fallen by 98,000, and that the spend on incapacity benefits has also fallen by £1 billion in real terms between 2009-10 and 2013-14.
I thank the Minister for his comment that the mooted cut was not Government policy. Can he reassure me and others that it will not become Government policy and that he will not consider making cuts in that area? People who are unwell or disabled often face additional costs to those faced by everyone else.
The hon. Gentleman talks about disabled people having higher costs; he is obviously talking about the personal independence payment, which is the help we give to people to help them to stay or become independent. The BBC report was talking about employment and support allowance, which is an out-of-work benefit.
(10 years, 2 months ago)
Commons ChamberThe hon. Gentleman knows that, as I have just said, if someone has an overnight carer, that is a perfectly acceptable reason for having a room. He will also know that local authorities have been given significant sums in discretionary housing payments to deal with difficult cases that do not clearly fit the rules. Most local authorities are not spending the money that the Government have allocated to them.
On 11 March last year, I asked the Secretary of State about under-occupancy. I said:
“Does the Secretary of State agree that no benefit reduction should take place until people have at least been offered somewhere appropriately sized and located?”—[Official Report, 11 March 2013; Vol. 560, c. 22.]
The Secretary of State said, “I agree”. What has he done to deliver that?
I remind my hon. Friend that we have given local authorities more than £300 million in discretionary housing payments. What they are meant to be doing right now—many of them are doing it, by the way—is finding people the accommodation that they require and supporting them through discretionary payments while they are looking for it. That is why we are saving £1 million a day and £500 million a year.
(10 years, 4 months ago)
Commons ChamberRoughly the same number who were employed on zero-hours contracts under the Labour Government in 2000. I know that Opposition Members like to say that the number has significantly increased, but I believe that they were taken to task for getting that information wrong. Local councils such as Doncaster, where the Leader of the Opposition resides, have the highest number of zero-hours contracts.
14. What assessment he has made of the effect on homelessness among under-35-year-olds of the extension of the shared accommodation rate.
The Department has commissioned an independent review of the changes to local housing allowance, including the extension of the shared accommodation rate. The final report of that review is due to be published this summer.
I thank my hon. Friend for that answer. The situation worries many of my constituents, and a recent study by Crisis showed that in many parts of the country such as Cambridge only a tiny fraction of shared houses are available for people to rent. When he considers the review, will he change the broad rental market areas and ensure that people can find somewhere to live if they wish to be in Cambridge, Blackpool or any other location?
My hon. Friend has made repeated representations about the broad rental market area for his constituency. We have used targeted funding to provide additional local housing allowance rates in areas of pressure, so although the general increase in the LHA rate is 1%, four of the five LHA rates for Cambridge, including that for shared accommodation, increased this April by 4%.
We have given local authorities between £300 million and £400 million for discretionary payments. It is their job to ensure that individuals with particularly difficult circumstances can be helped with that money. The overall policy is very simple. It is about people who are living in accommodation that they do not fully utilise, and about others, including the quarter of a million left by the last Government in overcrowded circumstances and the 1 million people on waiting lists. I do not think that the hon. Lady has ever got up and asked a question about those people. The reality is that this policy will help them to get the accommodation they need to improve their lives, and not waste it on people who do not need it.
I hear repeated concerns that there may be targets for benefit sanctions at jobcentres. Will the Secretary of State confirm that that is not the case, and send a clear message to advisers that they should not be seeking to sanction people inappropriately to hit some sort of target? Their aim is to help people.
I can assure my hon. Friend that there is no target on benefit sanctions, that the advisers give benefit sanctions as a last resort, and that the system has a full set of checks and balances. There is a mandatory reconsideration almost immediately of that decision, and then there is the opportunity to appeal. The purpose of a sanction is to help to remind the individual that this taxpayers’ money comes with an obligation to co-operate; to find work by seeking work.
(10 years, 7 months ago)
Commons ChamberI would like to know which jobcentre that was. I know, as I go to jobcentres all the time, how caring and supportive the advisers are. They take as much time as necessary, particularly with the claimant commitment we have rolled out across the country, to find out what skills, tips and support claimants need. I know that that is working, which is why we have record figures. I shall take the issue up, however.
T8. A number of my constituents have contacted me to say that they are having to wait six months or even longer for an assessment for employment and support allowance or the personal independence payment. Surely that is unacceptable. What will the Minister do to make sure those people get assessments that are both accurate and prompt?
There are two separate answers to that question. On WCA, Atos is leaving and we will bring in a new contractor before moving to multiple contractors to ensure that the suppliers can do what is said on the tin, all without paying a single piece of compensation to Atos—[Hon. Members: “Hear, hear.”] Exactly the opposite, actually—Atos will be paying it to us. Secondly, PIP is being rolled out. We need to ensure that we get it right, as the hon. Gentleman said, and we will make sure that we get it through quicker. We need to make sure that the assessments are correct rather than making mistakes.
(10 years, 7 months ago)
Commons ChamberAs I have said, we have a programme going round the regions at the moment—it was started by the Prime Minister in London—to give employers the confidence to take on employees and to break the myth that it is more expensive and more difficult to employ disabled people or people with long-term illnesses. We all know that they will give more loyalty, dedication and commitment than anyone else in the work place.
I welcome the written statement from the Minister of State, Department for Work and Pensions, my hon. Friend the Member for Thornbury and Yate (Steve Webb), that discretionary housing payments can be made available for long-term or indefinite periods for disabled people. Will the Minister ensure that that applies across the board so that people do not have to keep being reassessed when there is no realistic prospect of them recovering?
That is exactly what I am looking at now, as I alluded to in my answer to the hon. Member for Llanelli (Nia Griffith). We want to ensure that when someone has gone to appeal and won at the tribunal, they are not called back in, because there is a suspicion that that is vindictive. We will ensure that that does not happen.
(10 years, 8 months ago)
Commons ChamberThe hon. Gentleman is making some interesting comments. I have been very concerned about the effect of the WCA on people with mental health problems, which are particularly badly assessed, and have taken people to see the Minister. Did the study look at mental health issues, which are particularly hard to assess with a single snapshot?
Indeed it did. The expert panel that sat to adjudicate on every single one of those test cases took the advice of mental health experts. A number of mental health specialists are now provided with specialist training in the testing regime. I think the figure is 30, but that is off the top of my head and it may be as many as 60.
In the fourth report, Dr Litchfield largely endorses the position I outline. He says:
“Any ‘test’ is necessarily a trade-off of many factors and the WCA appears to be a reasonable and pragmatic tool.”
There remain those who call for its abolition, but suggestions for what to replace it with are rarely forthcoming. No test is ever perfect, but the WCA has been designed with considerable rigour and is subject to a process of continuous improvement.
I hope that hon. Members will forgive this slightly tortuous journey through the WCA, but it is very important to show just how much trouble and care has been taken to design and improve it. It is not perfect and it will not always produce fair and just results, but that is what the appeals process is for and there to catch. That it is necessary to have some sort of objective test to help decision makers seems to me to be undeniable. Hence I cannot support the motion’s call for the abolition of the WCA.
(11 years ago)
Commons ChamberIt is obvious and clear that Labour Members do not support sanctioning. The reality is that they spend their whole time saying that they are in favour of benefit changes and at every single turn they oppose them. People who deserve sanctions deserve sanctions, and we impose them on those who do not play a part in the system.
People with autism and mental health problems have particular problems with the work capability assessment, and the courts recently found that the test put people with mental health problems at a substantial disadvantage. Will the Minister or the Secretary of State rethink the work capability assessment for those people and pause the process, for which Rethink Mental Illness called?
I have looked at this very closely in the past week. Of course, lots of groups would want us to look at individual cases. The way the assessment is done is not rigid, and it will evolve. We will look at this carefully, but I cannot make promises on individual groups today.
(11 years, 7 months ago)
Commons ChamberI do not believe that there is any need to compensate anybody. We have already told all those councils that they are not guinea pigs; they are actually getting very close support and advice. I think that it will be a tremendous success story. What they are doing is learning, along with us, about any issues that might arise, and we have already said very clearly that we will support them through any extra costs and expenses. The right hon. Gentleman’s party has to recognise that the reality is that the cap is right. The public support it because they are tired of seeing people getting more on benefits than those who are in work, so setting the cap is right. He needs to ask why his party keeps voting against it.
I and my Liberal Democrat colleagues are delighted that that proposal did not become Government policy and will happily keep making representations on it. Although it would be wonderful if all under-25s had a loving and stable family to live with, does the Secretary of State accept that that is simply not the case? Will he meet the YMCA to understand the realities facing many under-25s and continue to provide them with the support they need to have somewhere to live?
Yes, I would be very happy to meet my hon. Friend and any group of people, such as the YMCA, he wishes to bring to me. I simply say this: we have a significant problem, because we inherited a welfare budget approaching £200 billion that had risen out of control under the previous Government. He is fully aware that we have to reform it both to get people back to work and to ensure that we get the cost under control. Those are all areas we have looked at, but in those discussions we decided that, in the round, it was not a priority.
Again, another hon. Member who does not know the difference between a subsidy and a tax. The reality is that those who do not occupy all the rooms in social housing are being subsidised by many of those who live in overcrowded accommodation. Let me remind the hon. Gentleman—Opposition Members do not like to be reminded—that under local housing allowance for the private social rented sector, which was introduced by the previous Labour Government, people were not allowed to occupy houses that had spare bedrooms.
The Government’s under-occupancy policy relies on people being able to move into appropriately-sized housing, but in specific parts of the country that is very hard to achieve. Does the Secretary of State agree that no benefit reduction should take place until people have at least been offered somewhere appropriately sized and located? Will he make sure that there is enough discretionary housing budget for councils to ensure that that is the case?
(11 years, 9 months ago)
Commons ChamberNo, I am talking about people in very similar circumstances—those either in low-income employment or out of work—where the two numbers are much closer together. They are closer together than any of us would like, because we want it to be that much more worth while for people to work. The hon. Gentleman has to accept that, at the lowest income levels, there was a problem because the benefits went up by much more than the wages. What would the best answer be? It would be for all wages to go up more. The second best answer would be for the prices not to go up so much. But we are where we are and we have to work to try to come up with a fair settlement for the future.
The right hon. Gentleman highlights the 5.2% increase last year. I have not yet heard Opposition Members congratulate the Government on that, but I congratulate the Government now. Does he agree that one of the worst things—for decades far too little was done to fix it—was the benefits trap, whereby people discovered that when they started to work part time, they ended up with less money than they had before? I hope that this entire House could agree that that is fundamentally wrong. It has affected some of my constituents and has not yet been fixed sufficiently.
I will crack on, because I have not taken a useful intervention from Government Members yet, and other hon. Members want to speak.
Many of the people I meet who face this financial calamity on the horizon have worked most of their lives. The people I meet who have worked for 30 years and then gone on to benefits are overwhelmed not by the generosity of benefits, but by the difficulty of getting by. They believe there must be an alternative benefits system that is incredibly generous—that is the one they read about in the papers—because it is tough to get by on the benefits that they receive.
When we talk about the benefit bill, the most fundamental question we must confront is where the money goes. Most of it goes not into the pockets of benefit recipients, but into the pockets of landlords. The Thatcher Government introduced the right to buy. That was a good thing, but they did not have a corresponding scheme to replace the social housing that was lost, and there was chronic under-investment in the remaining stock.
The Blair Government rightly prioritised the refurbishment of social housing up to the decent homes standard over building new homes, but many Labour Members believe they took too long to take the housing shortage seriously. Although much of that was hidden during the good times, the welcome steps introduced by the Brown Government were too late and too slow to stop the housing crisis from escalating. Whomever we blame for the huge inflation in private rents, the people who claim housing benefit, whether they are working or not, are not to blame.
I will try to plough on if I may, because many hon. Members want to speak, and I sense the Opposition deputy Chief Whip—my hon. Friend the Member for Tynemouth (Mr Campbell)—glaring at me with intent.
In a raft of ways, tax credits cuts will hit people on low to middle incomes. By anyone’s definition, they are the thrifty, hard-working strivers that people across the political divide recognise are key to the country’s future prosperity, but they will be badly hit by the Bill.
Once again, women and children will be hit worst of all. The Government’s strivers tax will hit women particularly hard—4.6 million women who receive child tax credit will be hit by the strivers tax, including 2.5 million working women. All those will come together as the perfect storm. The 1% uplift is nothing but a blunt political instrument designed to create a political trap that has nothing to do with a nuanced benefits system, with all its complexities.
The Child Poverty Action Group has said that the 200,000 increase set out in the written answer from the Under-Secretary of State for Work and Pensions, the hon. Member for Wirral West (Esther McVey) should be added to the increase of 800,000 in children in relative income poverty by 2020 that the Institute for Fiscal Studies found in its analysis of the coalition’s welfare cuts. Let us remind ourselves of what the Prime Minister used to say about relative poverty. In 2006, he said:
“I believe that poverty is an economic waste and a moral disgrace. In the past, we used to think of poverty only in absolute terms—meaning straightforward material deprivation. That’s not enough. We need to think of poverty in relative terms, the fact that some people lack those things which others in society take for granted. So I want this message to go out loud and clear: the Conservative party recognises, will measure and will act on relative poverty.”
That is the manifesto on which Conservative Members were elected, and that was what they used to believe, but that is what they will vote against tonight when they support the Bill and reject the very reasonable amendment moved by my right hon. Friend the right hon. Member for East Ham (Stephen Timms).