Oral Answers to Questions Debate
Full Debate: Read Full DebateJustin Tomlinson
Main Page: Justin Tomlinson (Conservative - North Swindon)Department Debates - View all Justin Tomlinson's debates with the Department for Work and Pensions
(5 years, 8 months ago)
Commons ChamberHousehold incomes have never been higher. In 2016-17, there were 1 million fewer people living in absolute poverty than in 2010. In Scotland, whichever way we look at poverty—relative or absolute, and before or after housing costs—in the three years to 2016-17, no measures are higher than in the three years to 2009-10; in fact, three are lower.
A few weeks ago, a young family with a newborn baby appeared at my constituency office in Helensburgh. They were halfway through their four-week universal credit assessment period. This was a family in crisis. They were penniless, and the father had not eaten for three days. They did not even have enough money to buy baby milk and had been refused healthy start vouchers because they ticked the wrong box. Is that not the reality of the poverty being created by the Government?
I am sorry to hear about the circumstances of that case, and I am happy to look into it further. One of the recent announcements we have made is that there will be Citizens Advice support within every jobcentre from April onwards. That is the sort of case where Citizens Advice can step in and provide independent support and advice, to ensure that people get their full entitlement.
Be it universal credit, the benefit freeze or Brexit, the poor are being hit the hardest at the moment, yet according to research from the Resolution Foundation, overall tax and benefit changes will take £100 from families in the bottom fifth of income distribution and give £280 to those in the top 10. Does the Minister think that that is fair?
That is not something I recognise. Through the additional money being put into universal credit, record employment, the changes to the income tax personal threshold and rising wages, the poorest fifth in society are now £400 better off in real terms than in 2010.
Does the Minister agree that, with employment at record levels and wages rising in real terms, the best approach to helping people out of poverty is the one that this Government are delivering?
My hon. Friend is spot on. Only 5% of children whose parents work full time are in poverty, against 63% for families where there is only part-time work, which is why our delivering record employment in all regions of the UK is making a real difference.
Next year, the benefit freeze will leave the poorest 20% of families with children £900 worse off on average. In January, the Secretary of State said that the benefit freeze was the right policy at the time, but both she and the Chancellor have signalled that it will not be renewed in 2020. If it is not the right policy now, why are the Government continuing with the freeze for another year?
The hon. Lady continues to object to any measures to restore fairness to the benefits system. Under the last Labour Government, we saw welfare spending increase by £84 billion and an additional tax burden of £3,000 per hard-working household. This is about fairness and supporting people, while having a good safety net for those most in need.
An evaluation of the cap, covering these groups, is expected to be published in spring 2019. Some claimants might not be required to look for work, but they are expected to undertake activities designed to help them prepare for and move closer to the labour market. Those needing additional help adjusting to the cap can apply for discretionary housing payments.
But this is really missing the point. As the Work and Pensions Committee report made absolutely clear, the benefit cap should not apply to people who are not required to undertake a work search. Why are constituents such as mine having to find £50 out of their child benefit and child tax credits when they are in homeless accommodation and have no say over where they are accommodated and how much rent they are paying, or when they are exempted from a work search, including, in one case, when a mother had been fleeing domestic violence?
There are automatic exemptions for claimants on DLA, PIP, carer’s allowance, guardian’s allowance, working tax credits when working over 16 hours a week, universal credit when earning over £542, ESA support or the UC higher rate. Where they are not covered by that, discretionary housing payments can be used, and in that case they certainly should have been looked at favourably.
On 29 January, the Minister told me in a written answer that the Department does not know how many resettled refugee families may be subject to the benefit cap. Can he give me an assurance on the Floor of the House that the Government will start to look at that data and guarantee that no such family will be left unable to access the financial support they need?
I thank the hon. Lady. I have met a number of stakeholders to discuss this issue and wider issues connected to refugees. It is an area of priority for the Department, and I would be happy to meet her to discuss this further.
Our own evidence does not show a direct link between the increase in food bank use and the roll-out of universal credit. As the Trussell Trust has said, it is impossible to identify one single cause. Universal credit spends £2 billion more than the system it replaces, and it incentivises work, providing a pathway out of poverty.
In my surgery on Friday, I met a family with very young children who have been without benefits to which they are entitled since before Christmas, due to mistakes by the DWP. They are already in housing rent arrears and reliant on the local food bank. Without resolving those errors, the DWP is now moving them on to universal credit, where the terrifying prospect of a five-week wait and no funds to repay an advance pose a real risk of homelessness. I want the Secretary of State not only to look into this case but to deal with the incompetence and cruelty in her Department, which are causing such misery for far too many people.
First, I give a commitment that, yes, I am very happy to look into that specific case. It highlights the problems with the legacy benefits, whereby £2.4 billion a year of benefits were missed. It was a complex, bureaucratic process where mistakes could happen and claimants—particularly vulnerable claimants —did not take what they were entitled to. Under universal credit, with personalised, tailored support, mistakes can be rectified more quickly.
Rent arrears are deducted from jobseeker’s allowance at £3.70 a week, but for universal credit the deduction is £31 a month, while overpaid benefits and advance payments are deducted at even higher rates. Some of my constituents are having over £100 deducted from their monthly universal credit payments, forcing them to dip into their rent money and use food banks just to get by. They would not find themselves in this position if they were not waiting up to five weeks to receive their first payment. The Secretary of State says she has put in measures to address that, but they clearly are not working. When will Ministers face the facts and scrap the five-week wait?
Those transferring from legacy benefits would get two weeks’ housing benefit run-on, no strings attached, in addition and would automatically be offered the advance payment. We have lengthened the time over which that would be repaid and lowered the rate at which it would be claimed back.
We are committed to ensuring that individuals receive high-quality assessments. Providers are closely monitored against a range of measures, including through independent audit, to improve the accuracy of the advice they provide to decision makers. We continually look to improve the efficiency of the assessment process by working closely with our providers.
Quite apart from the problems with and maladministration of work capability and PIP assessments, I have requested that Ministers consider the passporting of people who were affected by the contaminated blood scandal, so that the benefits they are currently on are passported on to the new benefits. I do not understand, when there is a public inquiry into the scandal, why these people are still having to go through the assessments.
I know that the hon. Lady has campaigned for a number of years on this incredibly important issue, and I pay tribute to the diligence of her work. I would be very happy to meet her to discuss the matter further.
Some 72% of personal independence payment appeals were successful in the first three months of last year, which is an appalling failure rate. It is my understanding that Scottish Ministers have had power over the administration of personal independence payment since the Scotland Act 2016 came into effect, and that they would have the power to usurp the failed system and adopt a new one. Why is it taking so long to do it?
From my former role as Minister for Disabled People, I know that Scottish Ministers had the opportunity to take that forward. We are willing to work with their officials to make that possible if they wish to proceed. The ball is very much in their court.
I declare a family interest in the answer to my question. The undoubted problems with health assessments are causing delays in the appeal process right across the board, not just with PIP and others, but with disability living allowance and mobility allowances. Will the Minister agree to see me and discuss how we can accelerate the process, because some appeals take more than 39 weeks to come to fruition, with the effect that children have to wait over a year before they get their proper allowances?
I am sure that the Minister will agree to see the right hon. Gentleman. It would be extraordinarily reckless and foolhardy to refuse to do so, and I am sure that the Minister would never be reckless or foolhardy.
It will be a pleasure to meet my right hon. Friend. We have been working very closely with the Ministry of Justice to improve the capacity within the tribunal system, to speed up the process. The Secretary of State has set out ambitious plans to improve the mandatory reconsideration stage to reduce the number of decisions that are going on to the independent appeal part.
Will the Department and Ministers join me in paying tribute to Disability Support Project in Redditch, which does some great work to help disabled people to navigate the bureaucracy surrounding the system? Will the Minister outline when we will see a difference on the ground from some of the measures that he is putting in place to improve the transparency of the assessment procedures?
I thank my hon. Friend for highlighting the fantastic work that her local organisation does. Those with that frontline experience have to be at the heart of the improvements that we take forward. We engage very proactively and constructively with stakeholders, national and local, and they are helping to shape the improvements.
We are always reviewing that process and we work very closely with stakeholders, with their wealth of experience, to make sure that we continue to deliver improvements.
A mother in my constituency is struggling due to a lack of financial support from the father of her children. The woman’s ex-partner is not in work, but he gets considerable income from several properties he owns. However, that income is not considered by the Child Maintenance Service when calculating maintenance for his children. What can the Minister do to make sure the Child Maintenance Service focuses on not only salaries but other forms of income?
I will be very happy to look personally into this case and to report back. Actually, we do have powers to investigate further—these powers were opposed by the Labour party in January. We believe that everything should be done to help the receiving parent get the support they are entitled to.