(5 years, 7 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
It is a pleasure to serve under your chairmanship, Mrs Moon. I pay tribute to the hon. Member for Dwyfor Meirionnydd (Liz Saville Roberts) who is a passionate advocate of this issue, and I thank her for giving me advance notice of the topics she intended to cover so that I could consider seriously the points raised. She gave an impassioned interview on BBC Radio Wales today, and her work in this area is a credit to the campaign she is championing. I also thank other Members who have contributed to this short but important debate.
Bereavement is one of the toughest experiences that people face, particularly with the immediate upheaval. I know that from first-hand experience because I lost my father at an early age. My parents ran their own small business and—this is a sign of times gone by—it was predominantly in my father’s name. At the point when grieving should have been the natural process, my mother was required to go back into work and fight the banks to try to keep a roof over our heads, and I was back in school the following lunchtime.
The Government’s focus is very much on appropriate and immediate support, and that has been reflected in some of the changes we have made. That is an important focus for the Government, and we spend £464 million a year on various forms of support for those who have been bereaved. Recent changes mean that over the next two years we expect to spend an additional £40 million. I recognise that the thrust of this debate is to encourage and push for further changes, particularly for children, and we have demonstrated a willingness to do that where appropriate.
Changes to the bereavement system will cost an additional £40 million over those first two years—something we all welcome. As a principle, such support will be easier to claim, and it will provide the immediate support that was very acute on the list of asks in the 2011 consultation—the need for help in those early months is paramount. Such support is now paid in addition to other household income, and it is not taxed, means-tested or applied to the benefit cap. After we listened during the consultation we widened the support available to include anyone of working age, and younger spouses and civil partners without children will now get support. It also removes the potential trap that stops people being able to move on because if they found a new partner they would lose any support, even if they are still in need of it.
Having listened to the consultation responses we increased the initial lump sum for those with children by an extra £1,500, to recognise that additional need. That support is in addition to the initial sum of £2,500 for those without children, and £3,500 for those with children, and therefore provides 18 months of support, rather than 12. Those without children receive £100 a month, and those with children get £350 a month, for 18 months. Overall the changes not only reflect that immediate need for support, but target those on the lowest incomes and those most in need, who will receive cash on top of what is already provided.
I appreciate the Minister informing us of that, but he has not said whether the Government intend to move on cohabiting couples, and whether—five months down the road—they intend to respond to the Supreme Court judgment, and if so, when. Forgive me, but I feel it is my duty, given the title of the debate, to press those points.
We are only five minutes into my response—fear not, there is more to come, and it will cover exactly those points.
After the introduction of the bereavement support payment, a broader point was raised about how and when we will evaluate the effectiveness of that new system. We recognise that, as with many Government changes, we need to listen, learn and act, and that is separate from any legal judgment. We intend to assess the situation once sufficient evidence is available, and we must have enough data to examine fully the continued circumstances of the bereaved once their benefit payments come to an end. We will analyse that information, which will include looking at the characteristics of those in receipt of benefits, such as age, gender and other sources of income, as well as how bereavement support payments interact with other benefits. We will also look at outcomes for recipients once bereavement support payments come to an end. At this stage, we do not have a specific timescale for that evaluation, as we must ensure enough time to allow other forms of support fully to bed in.
Let me turn to the thrust of the hon. Lady’s intervention and the principle of cohabitees. The question of opening up bereavement payments to cohabitees was debated and decided against in Parliament during the passage of the Pensions Act 2014, which legislated for the introduction of bereavement support payments in the UK. Restricting bereavement payments to claimants who are in a legal union with the deceased has been a feature of bereavement support since the 1920s. That was based on the outdated assumption that someone would rely solely on their spouse for income and would never work themselves. The concept of a legal union is a constant feature of contributory benefit schemes. It promotes institutions of marriage and civil partnerships by conferring eligibility to state benefits derived from another person’s national insurance contributions only on the spouse or civil partner of the person who made the contributions.
Cohabitation is not a straightforward concept and can sometimes be open to interpretation; unlike a legal union, it is not a black-and-white issue. That is partly why it is taking time for us to reflect very carefully. An extension to cohabitees could also trigger multiple claims on behalf of the same deceased person—for example, if the deceased was legally married to one person but cohabiting with another. That has the potential to lead to delays and additional burdens to claimants that are likely to cause distress at a time of bereavement. It is an important factor. I am not saying that the issue is insurmountable, but that is why this is a complex issue to reflect on.
I am sure the Minister needs no reminding that the UK Government ratified the UN convention on the rights of the child in 1991, and I am sure that he would therefore share my concern that if discrimination against children is being facilitated on the grounds that it is bureaucratically too difficult to resolve the issue, that is not making the interests of the child a priority.
I thank the hon. Lady for her invention and have two points to make in response. I am not necessarily questioning that. What I am demonstrating is that we have acknowledged that we need to respond—we need to act. This is not a black-and-white issue, so we cannot do that within 24 hours. In effect, there are two asks. One is that people want me to do something, and to do something quickly; and that is what I am—
I am coming to the issue raised by the hon. Lady. The second point is that we do recognise the principle in respect of children, which is why, under the bereavement support payment, there is additional money for those with children; that principle is there.
Let me cover a bit more and I will happily take interventions, because we are okay for time.
Last year, the Supreme Court declared that the primary legislation that governs widowed parent’s allowance is incompatible with the principles of human rights law, as it
“precludes any entitlement to widowed parent’s allowance by a surviving unmarried partner”.
The courts cannot strike down primary legislation; only Parliament can change primary legislation. Therefore, that ruling does not change the current eligibility rules for receiving bereavement benefits. I am keen to take action, however, in the light of the Supreme Court ruling. I made that very clear in my statement on the Floor of the House, and since then, to help to shape the response—this debate will also be taken into consideration—I have met a number of MPs and campaigners personally. That has been an important part of the process.
However, the issues are complex and there is no quick fix. As Lady Hale herself noted in her judgment:
“It does not follow that the operation of the exclusion of all unmarried couples will always be incompatible. It is not easy to imagine all the possible permutations of parentage which might result in an entitlement to widowed parent’s allowance.”
Crucially, that is not a clear steer—a clear steer equals a much swifter response from us—and we have to take that into consideration; Lady Hale herself acknowledged that. That does not mean that we are pushing this into the long grass. As I confirmed on the Floor of the House and I am hoping to convey here, we are taking it very seriously. There is extensive and comprehensive work to look into it to ensure that we get it right.
To go back to the earlier point, we do not wish to unintentionally cause additional stress where there could be competing people who feel, under the new rules—new potential rules—that they would have the claim. Each in their own right would feel that it should be them; and at a time of bereavement the last thing we want to do is cause undue stress.
I remind the Minister that virtually every other European state treats the children as eligible, in which instance the legality and licence of the relationship between the parents is inconsequential. I wonder whether the Minister would move to support such a principle, but none the less I would greatly appreciate some sense of the timeframe. I understand his point that the matter is complex and thus deserves a thorough response, but I would press him to give an indication of when he is likely to come back.
In terms of the way other European countries do this, that is part of our work, because we are looking at what has worked, what the potential unintended consequences are and what can be done to mediate that. That is shaping much of the work. I absolutely understand why the hon. Lady would love me to be able to give a specific timeframe, but I cannot do so, other than to say that it is an absolute priority for us to do this and to do it thoroughly and properly and to avoid unintended consequences. We absolutely recognise the importance of this.
I am gratified by what I think the Minister said, which is that eligibility based on marital status cannot be determined purely on the basis of convenience. I am glad that he seems to have said that, but like the hon. Member for Dwyfor Meirionnydd (Liz Saville Roberts), I ask him to assure the House right now that the children will be at the heart of any way forward that the Government embark on.
Many of the things that we do as a Government rightly recognise the importance of children. As the state, we have a duty of care to ensure that all children, regardless of background and circumstances, have the opportunity to unlock their full potential. Whichever political side they are on, every individual Member would echo that, in their own terms.
As I said, we have recognised the importance of the hearing. We are keen to do this thoroughly. We are taking it very seriously. We wish to do it as swiftly as possible, but it has to be done absolutely right. Let me give further reassurance. Although there is no one simple or obvious solution following the declaration of incompatibility, the officials are working very carefully, and ultimately I will return with potential solutions. This must go through the House’s legislative process, so all Members will have further opportunities to shape what we then believe would be the right conclusion. We are working very closely with our counterparts in Northern Ireland, recognising that the specific case was from there. But this must be done very thoroughly.
In conclusion, we are carefully considering the McLaughlin court ruling. We recognise that we currently have incompatible law on the statute books, and we are actively considering all options. With the introduction of the bereavement support payment, we have demonstrated that we will seek to make sensible and positive changes to target support at those most in need.
It is very clear that the hon. Members present feel strongly that the emphasis has to be on the children; I have heard that loud and clear. As I said, it has always been our intention to assess the impact of the bereavement support payment, which we will do once we have sufficient data. We are committed to supporting the bereaved and ensuring that they receive the right support at a difficult time. I echo my tribute to the hon. Members who care so passionately about this subject. It is a real priority for the Government and for me, and as we make progress I will be very happy to meet again, individually, those who are interested, in order to update them on the work. I want to be inclusive, because we all want the right outcomes. It is just that the issue is complex. There was not a clear steer, which meant that there could not be a quick fix, but the issue is a genuine, real priority for us.
Question put and agreed to.
(5 years, 7 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
It is a pleasure to serve under your chairmanship, Sir David. I pay genuine tribute to the hon. Member for Edmonton (Kate Osamor); although obviously I do not agree with all the points she made, it is clear from her time as an MP and formerly as a councillor, and from the issues she raised in her speech, that she is a passionate campaigner on the subject, particularly for vulnerable claimants in her constituency. I am not the Minister ultimately responsible for universal credit, which was the predominant focus of her speech, but part of my portfolio is to represent vulnerable claimants who go through the universal credit process, so I recognise some of the issues that she pointed up.
I will talk about some of the specific asks that have been addressed and on which there is much agreement, but first it is fair to remind hon. Members that there was cross-party support for the principle of universal credit: to offer personalised, tailored support. Stakeholders broadly support that principle. That does not mean that all is right, but we must not forget that legacy benefits were not the panacea of a utopian state in which everything was great. They were incredibly complicated, with six different benefits and three different agencies, and with the involvement of the DWP, Her Majesty’s Revenue and Customs, and local authorities. Frankly, anyone navigating them had to be a nuclear physicist, whether they were claimants, MPs or MPs’ staff members trying to support predominantly vulnerable claimants.
The figures bear out that point. We typically saw 700,000 claimants a year missing out on £2.4 billion of benefit support—about £280 each per month—that we had all voted to give them because we recognised that it was the right thing to do for those predominantly vulnerable claimants. There was a 90% tax rate for some claimants, and there were well-known problems with the cliff edges at 16, 24 and 30 hours. In our casework, we saw people who wanted to do the right thing and were trying to improve their opportunities in life, but the system was working against them. Universal credit was therefore introduced, as I said, broadly with cross-party support. It is right that we have looked at it all the way through as a test-and-learn, and that is why it is important that the hon. Member for Edmonton has raised her direct experiences and those of her office.
We have already made some significant improvements. We, rightly, made the changes to advance payments. Those payments were always there, but people had to know to ask and, unsurprisingly, very few people did. They are now, rightly, automatically part of the initial interview with the work coach and, unsurprisingly, the take-up rates of advance payments have significantly improved.
Initially, those payments were repaid over six months. That was, rightly, changed to 12 months, and then to 16 months. The repayment rate has also been reduced and we have strengthened the discretion to take into account particular hardships, to make sure we are not compounding a problem.
Those who are transferring over from legacy benefits, such as housing benefit, will get an additional two weeks-worth of housing benefit money, with no strings attached. That is additional money. As the regulations come forward, there will also be an additional two weeks for those on employment and support allowance, jobseeker’s allowance or income support, again with no strings attached. That is typically worth £237 on housing benefit and £200 on ESA, JSA or IS. Opposition Members often seek to oppose what the Government do, but this is something they should support.
We have scrapped the seven-day waiting period and strengthened the alternative payment arrangements, on housing costs direct to the landlord, for example. If a legacy claimant already had that provision, there will now be a presumption that we should have the conversation to see if that was the right arrangement. We have also looked at the frequency of payments, for those who have been used to a more frequent payment and might struggle with monthly payments.
There is the extra work allowance. We have made changes to the exemptions for the minimum income floor for self-employed claimants, and there are additional protections for those on severe disability premiums. But there is still more to do.
The advance payments are still a loan, which is a crucial point that my hon. Friend the Member for Edmonton (Kate Osamor) made. My question is this, however: those people who are being managed through their migration to universal credit will have protections, but those people who have naturally migrated—often, but not always, through change of circumstances—will not have those protections. What is the justification for that? Many of my constituents are worse off.
As the hon. Lady said, that is to do with change of circumstances. The transitional arrangements were put in place for those who were transferring as part of natural migration, and we have, rightly, confirmed that that number will be ring-fenced to just 10,000 this year, so we can have a real deep dive to look at the levels of support that are needed. I will come back to that in a moment.
On the wider point about why transitional arrangements were not put in, that is because it was recognised that there would be a change of circumstances. We are seeing that a lot of people benefit, and some go the other way, but overall we are now spending an additional £2 billion on the current benefits compared with the legacy benefits, before the extra money goes in. That is more money going to the people who need that help.
Let me turn to points where I think there is agreement. We talk about office casework. We all have busy offices and have to prioritise casework and supporting our constituencies. I am very proud to have been rated third out of 650 on theyworkforyou.com on helping constituents. I absolutely understand the importance of casework. One of my staff specialises in this area, has visited the jobcentre with me and talked to the partnership manager. We all have a partnership manager, who is the point of contact for escalating cases.
I know the hon. Member for Edmonton was due to visit the jobcentre in December 2017, and that that visit was cancelled. I encourage her and her staff to take part in such a visit. It is really important, and they are there to help. Where we have specific cases that do not seem right, there is an ability to escalate; MPs can talk to the senior people in the respective jobcentres and they can help take that forward.
I have a lot of sympathy with the point about digital by default. The principle was to mirror the world of work, because most workplaces now expect staff to have a reasonable level of digital engagement. However, that is not the case for all people. Not all people on universal credit will end up in work—even if that is their ultimate aim, not everybody is going to, and not everybody will do that overnight. We need to improve communication in order to advise about alternatives; claimants can access support via the telephone, face to face, or through home visits. We need to do better at promoting that and it is certainly something that I will continue to push on.
We also need to look at the issue of consent. One of the complications of the General Data Protection Regulation is that we now need implicit consent. I regularly meet stakeholders, particularly housing associations and local authorities, who say, “We represent many of your vulnerable claimants, and we want to help. We have the resource to help, and we have teams, but unless we know that one of the people that we are working with is about to be migrated or has come on to universal credit or is accessing an advance payment, how can we help?” We have got to find a way, and I think that should be done in the same way as with advance payments—through making asking for implicit consent an automatic part of the initial interview, in order to get those support organisations working with claimants. There is a resource there that wants to support claimants and we should be doing everything we can to match them up.
We made a significant announcement on putting citizens’ advice into every single jobcentre throughout the country. It will be an independent organisation, and we will cover the costs. That will start in April, and I welcome it. As part of the test-and-learn with the 10,000, I want to look closely at exactly how much time is available to vulnerable claimants. Is it enough or are there other things that could be done? I think we should look very carefully at that.
Advance payments still take five days. Does the Minister agree that that is just too long? What are people expected to do during that period?
Actually, if somebody is in particular hardship, they can get access to money within a couple of hours, so that is an option. I am not sure how well that has been communicated, but that rule is in place for those who genuinely need it.
We should continue to work with stakeholders. I am very receptive to meeting stakeholders. Throughout the week I meet different groups that will often come and challenge the Government, and hold our feet to the coals. It is right for them to do that, because they are identifying issues. There are a number of cases where a stakeholder with particular expertise has then helped to rewrite and deliver our training. For example, on the very important issue of domestic abuse, I have been working very closely with Women’s Aid, Refuge and Mankind. They went over all the training documents and sat through a typical claimant’s experience to identify whether things are in place. We are looking to bring further improvements based on their expertise.
I just wanted to put on the record that I was never a councillor.
Also, on my visit to the jobcentre, there was a threat of closure and at the time, the visit got dropped, but it was not because I did not want to go there.
Will the Minister answer my question about whether a helpline will be put in place?
I am sorry that the hon. Lady was not a councillor. I was a councillor before, and I enjoyed it very much. I am sorry that she missed out on that opportunity. I did not pass judgment on the visit—I just said that it would be good if she could make that visit. As a Back-Bench Member, I personally benefited from such a visit.
I brought in a national helpline on personal independence payments when I was a disability Minister. The issue here is a little different. There were national, one-size-fits-all rules on PIP. Universal credit is personalised and tailored, and people need to speak, in effect, to the work coach. What is in place is a partnership manager in every single jobcentre who should be the MP’s point of contact. By coincidence, we recognised earlier this week that we suspect that not all MPs know who their partnership manager is. The Minister for Employment responsible for UC has committed to share that information and to make sure that we all have the details of those points of contact, because they are there to help.
Finally, to pick up on a few points, income inequality has fallen under this Government, having risen under the last Labour Government. The average income of the poorest fifth in this country is now up by £400 a year in real terms, while that of the richest fifth is down by £800. There are 1 million fewer people in absolute poverty, including 300,000 children. There is still much more to do. I pay tribute to the hon. Member for Edmonton and her wealth of experience; she gave a very constructive speech. I hope she can see that many of the points raised are ones that we are actively looking to address, and that is absolutely vital for all claimants and, in particular, for vulnerable claimants. I thank you, Sir David, for the opportunity to set out what the Government are doing.
Question put and agreed to.
(5 years, 7 months ago)
Commons ChamberUniversal credit supports working parents with childcare costs, regardless of the number of hours they work. This provides an important financial incentive to those taking their first steps into paid employment. People can recover up to 85% of their eligible childcare costs on universal credit, compared to 70% on the legacy system.
As the Minister will know, one of the big challenges with universal credit is that families have to pay their childcare costs upfront. Save the Children and the Centre for Social Justice have recently warned that this is leaving families in £1,000 of debt when they start work. Under the review that the Department now seems to be conducting, can it look again at this, and can it also look at their other recommendation of making it not 85% but 100% of childcare costs, because this would really benefit those on low pay?
I know that the hon. Lady has worked tirelessly on this issue. The Government recognise its importance, which is why we have increased our financial support by nearly 50% since 2010. We are making improvements specifically in relation to payment in arrears, improving communication and ensuring that the Flexible Support Fund is better known and better used to help those who would otherwise face a financial barrier.
Can the Minister confirm that parents with disabled children will continue to receive additional support under universal credit?
I am very sorry to hear about that case. The hon. Lady’s constituent should have had access to an advance payment, and if she was down to her last £10, it should have been made on that day. If the hon. Lady will write to me with all the details, we will look at that specific case to see what went wrong.
I welcome the Secretary of State’s announcement about examining the impact of universal credit on women, which, through women, often affects children. Will she look again at the single household payment, and consider separate payments to protect women from financial coercion, control and abuse?
This matter relates mostly to domestic abuse. I have been doing a huge amount of work with Women’s Aid, Refuge and ManKind to increase awareness that split payments are available in those circumstances, and to ensure that more work is done to identify, refer and support such claimants.
Universal credit spends £2 billion more than the system it replaces. It simplifies the old system and makes work pay. It is already transforming lives across the country.
Happy new year, Mr Speaker.
What an extraordinary answer. Some 10% of children in the UK live in severely food-insecure households. That is the highest number in the European Union. However and whenever the roll-out of universal credit starts, begins or enters into its full flood, will the Minister work with the Office for National Statistics to measure the extent of childhood food poverty before and after the introduction of universal credit?
I think we all recognise that we need better-quality statistics. Various groups are working on alternatives, and the Government will take those seriously. As has been mentioned, there are 300,000 fewer children in absolute poverty. On the specific issue of food insecurity, in the past five years alone it has almost halved to 5.4%, which is 2.5% lower than the EU average.
Happy new year, Mr Speaker.
I note the delays to the roll-out of universal credit announced over the weekend, but will the Minister please tell us what justification there can possibly be for people who have had to claim universal credit so far not receiving any protections? Will the Secretary of State agree to halt natural migration, compensate every single person who has lost out, and investigate the circumstances that have led people on to universal credit when there has been no change in their circumstance?
If the hon. Lady looked at the feedback we have had from stakeholders following this week’s announcement, she would see that they make it absolutely clear that they support universal credit over the legacy system. We know that 700,000 people—some of the most vulnerable people in our society—are missing out on £2.4 billion of support because the legacy system is too complicated. Universal credit gives personalised, tailored support and makes sure that people get the support that they need.
Thank you, Mr Speaker.
I hope that the delay to the full roll-out of universal credit is a sign that the Secretary of State for Work and Pensions is open to making the many changes to universal credit that are needed. I urge Minister to look in particular at the harsh repayment timescales for loans, which led my constituent to say:
“I should never have taken that 3 month job. It made me worse off”.
Surely that is the very opposite of what the Government are trying to achieve with universal credit.
I, too, welcome the hon. Lady back.
This issue is a real priority for the Secretary of State. We have already made changes: initially, the repayment period was six months, then 12 months, and it is now 16 months, and we have moved the maximum deduction rate down from 40% to 30%. We will continue to review the situation.
The Government are committed to supporting care leavers. We have introduced a £1,000 bursary for those starting an apprenticeship and a £2,000 bursary for those going into higher education, extended paid internship opportunities across Government and launched the care leaver covenant. We are also working closely with Barnardo’s on an innovative work experience pilot.
Care leavers are some of the most difficult people to get into employment. Social workers are helping with that transition through projects such as Staying Close and Staying Put, but what particular outreach support can the Department deliver to improve the statistics, which do not look good?
I know that my right hon. Friend worked tirelessly on this when he was a Minister in the Department for Education. We have 900 single points of contact who are supporting care leavers across the country. We are also working with a lot of businesses so that they can realise the huge potential that care leavers offer. I had two fantastic visits, to the Big House in London and PGL, which I saw at first hand were benefiting from giving care leavers work opportunities.
(5 years, 7 months ago)
Commons ChamberI pay tribute to the hon. Member for South Shields (Mrs Lewell-Buck), who has done a huge amount of work in this area over a number of years. She brings a huge amount of experience to many of the points she has raised.
This report covers not only the Department for Work and Pensions but the Ministry of Housing, Communities and Local Government, the Treasury and the Department for Exiting the European Union, but I will be speaking predominantly from the perspective of the DWP. At this stage it is only an interim report, and we are committed to considering Professor Alston’s views and opinions very carefully.
I recognise that hon. Members would now expect me to disagree with the majority of the report as it stands, and there are certainly things with which we do not agree, but I support the important role of the UN special rapporteur on extreme poverty and human rights. The former Secretary of State for Work and Pensions, my right hon. Friend the Member for Tatton (Ms McVey), other departmental Ministers, our respective teams and I were fully engaged with the process. We met Professor Alston, we supported the visits and the engagement throughout the process and, as I said, we will give very serious consideration to his views and opinions.
As a Minister, I am not precious. Government should be challenged and held to account, whether by the UN special rapporteur, by stakeholders or by the fantastic work of the various Select Committees. All Governments of all political persuasions, since the dawn of time, have had challenging reports, and it is rare we get a report that says, “Fantastic. You are single-handedly doing everything perfectly right.” Such reports are an important part of our democratic process, and even the most challenging and most critical reports ultimately shape future decisions.
I will give way. I will not take too many interventions because I have a lot to cover.
I thank the Minister for giving way. I am a little confused, because the Prime Minister and the Secretary of State for Work and Pensions have both dismissed the findings and do not agree with the report. Has there been a change of thinking since they made those comments?
What I am saying is that we will consider the report seriously. We obviously do not agree with all the points, but Professor Alston has highlighted some important views and opinions to which we should rightly be looking to respond.
One challenge I make to Professor Alston ahead of his final report is that, at two of the visits, the visits to Newcastle and Clacton, he had the opportunity to meet frontline staff and volunteers. At the recent Women and Equalities questions, my hon. Friend the Member for Clacton (Giles Watling) expressed a huge amount of disappointment from those frontline staff and volunteers, who felt that their fantastic work was not recognised—it had just one line. It is right that the report holds the Government’s feet and Ministers’ feet to the coals, but we would all recognise that there are people doing a fantastic job, both the paid formal staff and the volunteers, and I hope Professor Alston will reflect on that.
As we consider Professor Alston’s views and findings, we must remember that this is a snapshot. On many of the issues raised, we are rightly already taking action, acknowledging that there were issues and that they needed to be dealt with. That is either through the additional money secured in recent Budgets, or through our ongoing and crucial work with stakeholders, with their particular expertise. As I have said, while this covers many Departments, I will focus on where the DWP has the lion’s share of the involvement.
Understandably, UC formed a significant part of both the report and the speech we have just heard. To be absolutely clear, this was never a financial thing. We are looking to spend an additional £2 billion compared with the legacy benefits, and rightly so. UC offers the opportunity for personalised, tailored support dealing with housing, training and childcare, and giving claimants who are in a position to seek work an additional 50% more time to find work.
Although there are still challenges and there is much more work to do, if Members visit jobcentres, they will find that the frontline staff do recognise that UC is significantly better than the complex legacy benefits. They were six benefits across three agencies—HMRC, the DWP and local authorities—and, frankly, people had to be nuclear physicists to navigate them. We all know from our own constituency casework how complex it was to unravel the situation.
My constituency office is about 100 yards from the social security office—it is as close as that—and I have had numerous distressed people come from the social security office to my office looking for advice. I have written perhaps not to the Minister directly but to his Department to outline some of the changes that we feel should be made. In the light of those things, perhaps more needs to be done in the social security office to address the issues early on.
I thank the hon. Gentleman for his intervention. I am coming on to those. UC dealt with the fact that, for some, there was in effect a 90% tax rate. The well-documented 16, 24 and 30-hour cliff edges were significant barriers for people. It was so confusing and complex that £2.4 billion-worth, we believe, of claims went untaken each year across 700,000 claimants, who were some of the most vulnerable people. My role in the DWP is to represent vulnerable people going through the benefits system and it was often those people who were missing out on money because they were simply unaware that they were entitled to the support that we rightly wanted them to have.
Let me make a bit of progress and I will give way if I have time. The hon. Member for South Shields has raised some important questions and I want to try to cover as many as I can in the limited time. If I can, I will come back to the hon. Lady.
There have already been much needed improvements, partly through the additional £4.5 billion cash boost that has been secured in recent Budgets. There are the changes to advance payments, particularly to make that a part of the discussion in the initial conversation. We have changed repayments from six months to 12 months to 16 months and the rate at which they are done. That is something that we will continue to review. There is the additional, non-repayable two weeks’ housing benefit, worth up to £237, and the recent announcement of an additional two weeks of ESA, JSA or income support, worth up to £200. We have scrapped the seven days’ waiting. There are the alternative payments—direct to landlords—on housing, and more frequent payments where we feel that will help. There is the additional £1,000 work allowance, worth £630, which alone came to £1.7 billion. There is the 12-month exemption from the minimum income floor for the self-employed, and there is the increase in the severe disability premium from £158 to £326.
However, there are areas where we still need to do further work. The hon. Member for South Shields talked about digital by default. I think we do need to look at that. We have alternatives in place, but we also need to be more proactive in recognising those who would need that support. We have to identify vulnerable claimants and a major step was to put in place a formal arrangement—I championed this—with Citizens Advice. It will remain independent of us, it is widely respected and it is best placed to give support, particularly to vulnerable claimants, not just on the digital side, if that is needed, but general support as people navigate the benefits to which they should be entitled.
Building on that, we have to make sure that stakeholders are absolutely key and at the heart of everything we do in training our frontline staff and providing support for claimants. For example, a month before Christmas, I was working very closely with Women’s Aid, Refuge and ManKind, meeting three or four times, so that they could do a root and branch review of the training we do to help to identify potential victims of domestic abuse, update our training manuals and guidance, feed in the feedback they receive from their supporters, and look at the best ways to identify potential victims, refer them to the maximum number of local and national support organisations, and work on the level of support we can offer. That is a principle I would like to see formalised, so that it does not just happen because it is a topical issue; it is a given going forward and we look to do that in many areas.
A lot was said about measures of poverty and what the reality is out there. What we do know is that there are 1 million fewer people in absolute poverty—a record low—including 300,000 children. On the different measures of relative and absolute poverty before and after housing, all are no higher than in 2010 and three are now lower. The average income of the poorest fifth in society under our Government has increased by £400 in real terms.
Does the Minister agree with Professor Alston’s assessment that, because the Government use four different measures of poverty, they can essentially say what they want about the figures? The reality is that there are 14 million people living in poverty in the UK.
The hon. Lady has just used one of the statistics. There is cross-party work on looking at alternatives. We are very interested to see if there is a way we can find statistics that we can all agree on. I think that is one area on which we do all agree.
The richest fifth are £800 less well-off under this Government. We are rightly targeting support at those who are most in need. Household incomes have never been higher and income inequality has fallen, having risen under the last Labour Government.
Many Members referred to food banks. Food affordability, the ability to afford a meal, has almost halved in the last five years. It is down to 5.4%. That is 2.5% lower than the EU average. There is still more to do in that area, which is why I am committed to working a lot more closely with the food bank network in this country. For a variety of reasons, some people may be going to food banks who should be receiving formal support. I want to make it as easy as possible to identify, to refer them and to get them back in to the system, so they can receive the full support.
The hon. Lady is shaking her head. I do not understand why anybody would not want to do everything within their power to identify vulnerable people in society and give them the support we want to give to them. The very heart of the question raised by the hon. Member for South Shields is: is there a will from the Government? There absolutely is—from me and right through the Government.
We are going to keep on working with all stakeholders and partnership organisations to ensure that those in most need in society receive the support that they should. We are also looking at homelessness. Rightly, we have put in an additional £1.2 billion, building on the principles of the duty to refer. We have some exciting pilots: the Newcastle trailblazer; partnership working led by Crisis, which has had some really positive findings; and the Housing First initiatives in Manchester, Liverpool and the west midlands. Again, they are on the principles of identifying, referring and supporting. There are exciting developments from those pilots and they will go to the heart of future roll-out support.
The key for me, with my individual role in the Department, is sharpening up the tailored support, whether for care leavers, ex-offenders or the parental conflict programme, and ensuring that those who need the extra support that many of us in our lives have been able to take for granted are given it to unlock everybody’s potential. Some of the areas I felt were missing from the report related to education attainment to unlock people’s potential. I went to a school that was at the bottom of the league tables and two of my best friends went to prison. It is absolutely key that we ensure that, regardless of people’s background, they are given the maximum opportunity to succeed. I wholeheartedly support the significant improvements we are making in education.
As a former headteacher, I talk to a lot of my former colleagues. Many of them, of a morning, are washing children’s clothes and giving them breakfast. They are having to give children extra lunch because they are starving. Does the Minister agree that that is totally unnecessary and inappropriate? We should be caring for the most vulnerable in our society.
That is why it is absolutely right that we have targeted support at the poorest in society, so the poorest fifth are now £400 better off in real terms than they were under the Labour Government. We will continue to do that work.
By prioritising sound financial management and a strong, growing economy, we have been able to deliver record employment in every region of the country. Wages are rising the fastest in a decade. We introduced the national living wage, income tax threshold changes and universal credit childcare up to 85% of costs, which is worth up to £15,000 to parents with two or more children, and we doubled free childcare. Those are all priorities for this Government, because we recognise that everybody should be supported, regardless of their background. By treating people as individuals in a simplified system that can give tailored, personalised support, we can unlock their potential, regardless of their unique challenges and opportunities.
As I said, we have to take many of the findings and opinions seriously. We are doing a huge amount of work, and we will continue to do so. I thank the hon. Member for South Shields for raising this very important issue.
Question put and agreed to.
(5 years, 8 months ago)
Commons ChamberIt is extraordinary that the Government have been able to find the money to cut inheritance tax for the richest, but they cannot find money for people with disabilities and mental health problems.
As my hon. Friends have said, the stress and distress caused, particularly to people with mental health problems, are a serious problem. People are put into a situation of tension because they do not know when or whether they are going to be reassessed. I have constituents who are concerned for their family members’ wellbeing, because they get so anxious and cannot face the work capability assessments.
Let me now turn to the problem of ESA. The hon. Member for Ayr, Carrick and Cumnock talked about how we need to encourage and support people back into work. That is indeed true, but the fact is that, from the point of view of an employer, employing people with disabilities means higher employee liability insurance, it very often means adjustments at work and there is simply no incentive for people—[Interruption.] The Minister is saying, “Rubbish” from a sedentary position. Would he like to come to the Dispatch Box and tell me why that is rubbish?
Both as a Member of Parliament in my constituency office and as somebody who ran a business for 10 years, I employed disabled people and I benefited. It takes good employers to have a wide-ranging workforce. If you get it right it is a win-win for everybody. I do not recognise the situation the hon. Lady sets out.
I am glad the Minister did as he did, but we do also hear from people who cannot get jobs because of their disabilities and from employers who say it is too expensive to make the adjustments.
I think the Minister is nodding his head, and I think he accepts that, but we need to have people that can do that for them. We deal with them every day of the week in my office, and in every other hon. Member’s office. I am not different from anybody else—we are all the same.
The EHRC also recommends that the Government should:
“4. Make the UN Convention on the Rights of Persons with Disabilities…part of UK law”—
that is what the hon. Member for Eastbourne (Stephen Lloyd) referred to in his intervention—
“so individuals can effectively challenge rights violations in the domestic legal system, and develop a clear and coordinated plan for how the UK and devolved”
Administrations
“will systematically address the UN’s recommendations on disability rights.”
I have been contacted in the last two days by some constituents. The hon. Member for High Peak referred to a quotation from some of her constituents. My constituents have asked me to highlight the fact that universal credit simply isn’t working. Those are real-life responses from real people with real problems. They have asked me to make contact with the Department, especially with Ministers, to ensure that their voices were heard in the midst of everything that has happened in this House today. We all know about it—I get a sore head just thinking about it. I assured my constituents that I would ensure that I voiced their concerns today, in the presence of the responding Minister. The concerns are as follows.
The Government say that no one falls through the cracks and ends up losing their benefit, because they will make sure that everyone claiming benefits under the old system is moved automatically on to universal credit and not forced to make a new claim. The Government say that no one is left without the money they need to survive, because they are continuing to pay people all of their old benefits until their new ones have kicked in. The Government say that everyone is protected from becoming worse off under the new system, especially vulnerable groups. I say that is a very honourable assumption to make. I do not for one second say that that is the purpose of what the Government have put forward, but currently the Department is failing people.
I know of many people who went to the jobcentre and went through the online process with a member of staff and then came into my office. The benefits office—what we would have called the bru office many years ago—is just around the corner from my office, so most people come to me when they have a problem, to talk to my staff members. Although they went through the online process with a member of staff, they then came to my office, in tears, as they simply could not understand what was happening to them. They could not understand that they had not got their benefits. They could not understand the paperwork system. I do not want to be too critical, but I have to say these things, as that is what has happened.
People are sick with worry, not understanding what is happening or what is required of them. They are very worried about their benefit, and when we think that many of those who are on universal credit are ill, and that the stress of this makes things worse, it is clear that we are failing. We are failing the most vulnerable, and much as I would love to help every person on universal credit, my staff are doing nothing else but that.
I observe, by the way, in the news that staff in one of the jobs and benefits offices were enjoying a celebratory cake for doing an excellent job and seeing the end of the roll-out in Northern Ireland. There was not much of a celebration in Newtownards about it, and that is a fact. Nor was there a celebration anywhere else. That is not saying that they should not have enjoyed the cake; I am just saying, celebrate when it is good but do not celebrate when it is not. Too many people are anxious and concerned. I would ask the Minister to assure me, and others in the House, that changes are on the way for the most vulnerable in the practicality of the roll-out, and changes in how it is affecting all of those I listed earlier.
I understand that we need all those who are able to work to do just that. That is very constructive and helpful, but let us be honest: are people on benefits and sickness benefits because they want to be? No, they are not. They want to work the same as the rest of them. It is perfectly plausible to put that forward. But I also understand that forcing those who are not able to work to worry and make themselves ill is cruel and unnatural. It must not happen. We need changes, yes. We also need assurances and action. I look to the Minister and the Department as to how and when that will happen.
(5 years, 8 months ago)
Ministerial CorrectionsWe suspect that the estimate of 5.5% fraud and error, which was set in 1996-97, does not reflect the reality today. The new measure, which will come in next year, can accurately set out where we should be, and where we should then target and prioritise our resources to prevent, identify and counter fraud and error even more effectively and efficiently.
[Official Report, 27 November 2018, Vol. 650, c. 71WH.]
Letter of correction from the Under-Secretary of State for Work and Pensions, the hon. Member for North Swindon (Justin Tomlinson).
An error has been identified in my response to the debate.
The correct response should have been:
We suspect that the estimate of 5.5% fraud and error, which was set in 1996-97, does not reflect the reality today. The new measure, which will come in 2020, can accurately set out where we should be, and where we should then target and prioritise our resources to prevent, identify and counter fraud and error even more effectively and efficiently.
(5 years, 9 months ago)
Ministerial CorrectionsLone parents are the primary beneficiaries of the Government’s decision to increase the help provided for childcare from 70% to 85%, which will help us to enhance the record levels of lone parent employment in this country.
The whole House will be aware that lone parent employment increased radically under the last Labour Government, but unfortunately lone parents now face being worse off because of universal credit. So can the new Secretary of State and her ministerial team guarantee that as part of their review they will make sure that no lone parent family in this country is worse off because of universal credit?
The lone parent employment rate is now at 67.6%, which is a record high and something this Government are very proud of. We will continue to try to push to see that figure go up further. We have made announcements on increasing the national living wage, which has seen a real-terms increase of 8% over the past three years, and changes to the income tax threshold worth £1,200, while the national living wage in itself, for somebody working full-time, is worth £2,000. That is making sure that lone parents who are working are getting the support to have more money available at the end of every month.
[Official Report, 19 November 2018, Vol. 649, c. 566.]
Letter of correction from the Under-Secretary of State for Work and Pensions, the hon. Member for North Swindon (Justin Tomlinson):
Errors have been identified in the responses I gave to the hon. Member for Wirral South (Alison McGovern).
The correct responses should have been:
Lone parents are the primary beneficiaries of the Government’s decision to increase the help provided for childcare from 70% to 85%, which will help us to enhance the near record levels of lone parent employment in this country.
The whole House will be aware that lone parent employment increased radically under the last Labour Government, but unfortunately lone parents now face being worse off because of universal credit. So can the new Secretary of State and her ministerial team guarantee that as part of their review they will make sure that no lone parent family in this country is worse off because of universal credit?
The lone parent employment rate is now at 67.1%, which is a near record high and something this Government are very proud of. We will continue to try to push to see that figure go up further. We have made announcements on increasing the national living wage, which has seen a real-terms increase of 8% over the past three years, and changes to the income tax threshold worth £1,200, while the national living wage in itself, for somebody working full-time, is worth £2,000. That is making sure that lone parents who are working are getting the support to have more money available at the end of every month.
(5 years, 9 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
It is a pleasure to serve under your chairmanship, Mr Betts. I thank the hon. Member for High Peak (Ruth George) for opening the debate. She displays a huge amount of knowledge, passion and care in this area, and she has raised many points that the Government and I would agree with.
Carer’s allowance actually falls within the remit of my hon. Friend the Minister for Disabled People, Health and Work. There is an outstanding relationship with Carers UK, both at ministerial level and with officials. There are regular meetings with Carers UK, and many of the points raised in this debate have been raised previously and are being looked at and reviewed, so the debate is very timely.
As an individual, I share much of the passion that we have heard today. Not a lot gets me emotional, but I remember, in my early days as a constituency MP, meeting young carers, who are often forgotten in debates about carers. I am talking about children who have often lost the things that we all took for granted when growing up, as they have taken on caring responsibilities. It was a particularly moving meeting, and one that I have never forgotten, so I was happy to step in for this debate.
The Government recognise and appreciate the vital contribution made by informal carers, who provide invaluable support for relatives, partners, friends and neighbours who may be ill, frail or disabled. We also recognise the important role that many carers’ organisations play across the country in supporting carers, including those in the hon. Lady’s constituency, such as the Blythe House and Buxton carers’ support groups, which I am sure that she, as a diligent constituency MP, will have had much involvement with.
The Government are already supporting carers in a number of ways, including through the benefit system. About 850,000 people currently receive carer’s allowance. Since 2010, the rate of carer’s allowance has increased from £53.90 to £64.60 a week, with a further increase to £66.15 planned for April 2019, meaning an additional £635 a year for carers since 2010. By 2023-24, the Government forecast a spend of around £3.4 billion a year on carer’s allowance, which is a real-terms increase of more than one fifth since 2016-17.
Carer’s allowance offers a measure of recognition of the vital contribution that carers make to our society, although we fully appreciate that many make substantial sacrifices to care for their loved ones. That is why in June 2018, the Government published “Carers action plan 2018 to 2020: supporting carers today”, which sets out a two-year programme of targeted work to support unpaid carers. The plan puts a focus on practical actions to support carers and gives visibility to the work already under way or planned within Government.
However, I recognise that there are concerns about carer’s allowance, particularly around earnings and the possibility that a number of claimants may have been overpaid. Again, I pay tribute again to the hon. Lady, who raised some of those issues, which have been raised in the media, through the work of the Work and Pensions Committee and through her own recent, diligent parliamentary questions. It is in everyone’s interest that we deal with fraud and error effectively, preferably by stopping it happening in the first place.
We have been discussing updating our measurement of carer’s allowance fraud and error with the National Audit Office over the last year or so. We now plan to start the measurement during 2019, with the intention of publishing revised estimates during 2020. This is vital, because the last time we did this was in 1996-97. A huge amount has changed since then—not only the technology, but the way people work and their circumstances, as the hon. Lady mentioned. We suspect that the estimate of 5.5% fraud and error, which was set in 1996-97, does not reflect the reality today. The new measure, which will come in next year, can accurately set out where we should be, and where we should then target and prioritise our resources to prevent, identify and counter fraud and error even more effectively and efficiently.[Official Report, 6 December 2018, Vol. 650, c. 12MC.]
However, we are not complacent about fraud and error and already have a number of measures in place to deal with it. We are also reinforcing to carers their responsibility to inform us of changes to their earnings and other circumstances. Our priority has been to try to clear new carer’s allowance claims as quickly as possible, including during a period when the number of carer’s allowance claims has increased significantly. In part, that increase is due to the great work of stakeholders to raise the profile of carer’s allowance. We have also done our part by introducing the new online claim system, which is easier to use and—perhaps surprisingly for a Government online system—has a 90% satisfaction rate, so there are certainly some lessons for us to learn there.
Our performance here has been consistently improving, partly as a result of recruiting new staff—an additional 150 in the last 12 months alone. Many of them are based in the Preston, Blackpool and Swansea offices. I know that the Minister for Disabled People, Health and Work visited the Preston office in the summer, in her role as the Minister responsible for carer’s allowance. She was very impressed with the enthusiasm and hard work of the staff.
The Minister says that performance is improving. In what way is it improving? Does he mean that they are now going back over these historical overpayments and requesting them back from carers? Most carers and most people in this House would not see putting right the wrongs of previous years by finally investing in compliance to be a performance improvement, at least not for the carers that it affects.
I am coming on to what those staff will be doing and the improvements that we are bringing forward. As well as focusing on new claims, we are working hard to reduce backlogs elsewhere in the system, remind carers of their responsibilities and make better use of available technology.
The Department for Work and Pensions takes every care to explain a claimant’s responsibilities when they apply for carer’s allowance. This includes the need to report changes on time. Our annual notifications help remind claimants how important that is. We also provide information on the website gov.uk, while customers who need additional advice can contact the Carer’s Allowance Unit for further information, and we encourage stakeholder groups to help to share that information.
I absolutely understand the points the hon. Lady made about whether the guidance is perfect. When the Work and Pensions Committee raised questions with the Minister, we recognised that there were improvements to be made in this area. We have already made significant changes to the website. I also accept the points made about the letter, which the hon. Lady went through. I will encourage the Minister for Disabled People, Health and Work to meet with her personally to discuss the specific points about the quality of that guidance and information. We absolutely have to get that right, and it was a fair point to raise.
The consequences of not keeping the DWP up to date, including the need to repay overpayments, are clearly stated during the initial claim process and in our annual uprating letters. Therefore, every claimant has an obligation to tell us when their circumstances change. As with all benefits, the DWP has a responsibility to recover an overpayment where a claimant has failed to disclose a change that would affect their entitlement. Where there is an overpayment, the DWP will always look to recover the debt through a sustainable repayment plan. Where a claimant is having difficulty repaying a benefit overpayment, they can request a reconsideration of the amount that is being taken. It is also important to note that once a claimant has told us of a change of circumstances, they would not be responsible for overpayments from that date. However, we must recognise that we need to work with claimants to help them avoid overpayment and to ensure that we pay the correct amount.
In recent years, the DWP has introduced new technology to make it easier to identify and prevent overpayments, with cases checked against earnings information held by Her Majesty’s Revenue and Customs. The new verify earnings and pensions—VEP—system, allows us better to check earnings declared by carers to the DWP against tax records, and it allows staff to quickly take any action to clear up any discrepancies. Where we do have arrears from previous exercises, our priority is to ensure that the benefit is being paid at the correct rate in order to provide regular financial support. Once we have done this, we can determine any overpayment that might have accrued. Even when there has been a delay in dealing with a change in circumstances, as a carer’s allowance claimant can earn £120 net of allowable expenses a week, many of these claimants will have been paid correctly anyway. We will be increasing the carer’s allowance earnings limit again from £120 to £123 a week from April 2019. The Office for Budget Responsibility forecasts that average earnings will increase by around 5.1% between 2017 and 2019, whereas we will have increased the carer’s allowance earnings limit by 6%.
The Government acknowledge the vital role played by carers and the valuable work that carers’ organisations carry out on behalf of carers. We recognise that the UK’s 6 million carers play an indispensable role in looking after friends or family members who need support, which is why it is so important that carers should continue to have access to a dedicated benefit that recognises their particular contribution to society. Our staff work hard to support carers and pay people the right entitlement. I know that the Minister for Disabled People, Health and Work is very passionate about this, and it is a real priority for her. Equally, there are improvements in place that mean that we are tackling arrears and have a much smoother process for taking account of any earnings changes going forward. I thank the hon. Lady for giving me the chance to talk about carer’s allowance.
Question put and agreed to.
(5 years, 9 months ago)
Written StatementsI am pleased to announce the proposed social security benefit and pension rates for 2019-20.I have attached the table of rates to this statement and I will place a copy of the proposed benefit and pension rates 2019-20 in the Library of the House. The annual uprating of benefits will take place for state pensions and most other benefits in the first full week of the tax year. In 2019, this will be the week beginning 8 April. A corresponding provision will be made in Northern Ireland and the Scottish Government will lay its own statutory instruments to make these increases to carer’s allowance in Scotland.
The annual uprating process takes into account a variety of measures:
The basic and new state pension will be increased by the Government’s “triple lock” commitment, meaning that they will be uprated in line with the highest of prices (CPI), earnings or 2.5%. Consequently, they will be uprated by 2.6% (the May-July average weekly earnings figure).
The legislative requirement for the pension credit standard minimum guarantee is that it is increased at least in line with earnings. This year the pension credit standard minimum guarantee will increase by £4.25 a week for a single person (and £6.45 for a couple). The pension credit savings credit maximum amount will be increased in line with prices.
Benefits linked to the additional costs of disability, and for carers, are increased by the annual rise in prices (2.4%). A number of other elements—including non-dependant deductions—will also be uprated in line with prices.
The majority of working-age benefits have been frozen at their 2015-16 levels for four years under the Welfare Reform and Work Act 2016.
In line with the announcement in the autumn Budget, universal credit work allowances will be increased by £1,000 from April 2019. This increase will take effect after the rates are increased by prices.
The list of proposed benefit and pension rates also includes a change to the carer’s allowance earnings rule, which will be increased for 2019-20 from £120 to £123 a week.
The attachment can be viewed online at http://www.parliament.uk/business/publications/written-questions-answers-statements/written-statement/Commons/2018-11-23/HCWS1104/.
[HCWS1104]
(5 years, 9 months ago)
Commons ChamberThe Welfare Reform and Work Act 2016 froze the majority of working-age benefits for four tax years from 2016-17. Those provisions will lapse in 2020, and the pre-existing statutory arrangements will come back into force.
According to the Resolution Foundation, the value of working-age benefits has fallen by 6.4% since 2014. What does the Minister think it tells us about the Government of which he is a part that the Chancellor’s priority in the Budget was to give a tax cut to higher rate taxpayers like him and me, rather than addressing that?
The reality is that the poorest fifth in society are £400 a year better off in real terms, and the richest fifth in society are £800 worse off.
The report from the UN special rapporteur on poverty in the UK was scathing. Professor Alston referred to a
“punitive, mean-spirited, and often callous approach”
and the “misery” that it caused, in relation to the cuts and changes to the social security system, including universal credit and the freeze on benefits. Does the Minister agree with him that in the UK, poverty “is a political choice”?
We disagreed with the findings, but we did take the opportunity to share our record of delivering record employment, a simplified benefits system that helps some of the most vulnerable people in society and 1 million fewer people in absolute poverty, as well as our proactive work with stakeholders, which is delivering real life opportunities for all in society.
This Government are committed to supporting care leavers. We have introduced a £1,000 bursary to those starting an apprenticeship, extended paid internship opportunities across Government, launched a care leaver covenant and are upskilling our Jobcentre Plus staff.
What work is the Minister doing with Barnardo’s, and what impact is the See Potential programme having?
I would like to take this opportunity to pay tribute to my right hon. Friend the Member for Tatton (Ms McVey), who made it a personal priority of hers to introduce Barnardo’s not only to help train and improve the guidance for all of our frontline staff, but to offer a comprehensive work experience programme and opportunities for care leavers. This is a vital part of our See Potential work, as we unlock their undoubted potential.
What more can be done for constituents such as mine living in YMCA properties who are still going to college, yet cannot afford the bus fare or to feed themselves? That is exactly what has happened to a constituent of mine.
We are looking very carefully at all of the ways that we can make sure care leavers have the same opportunities that others take for granted. For example, through second chance learning, care leavers aged 18 to 22 are still able to access full benefits while having a second opportunity to learn. There is the £1,000 bursary for those who choose an apprenticeship, and the £2,000 bursary for those who choose higher education.
We welcomed the recent report by the Social Security Advisory Committee and have accepted nearly all its recommendations. We are determined that all claimants are supported through this process, particularly the most vulnerable, and we will be working collaboratively with our stakeholders to ensure that those in need of additional support receive the assistance they require.
None of the changes to universal credit managed migration that were announced in the Budget will help people whose debilitating mental illness means that they are too anxious and unwell to open their post and are deeply fearful of any new assessment process. I welcome the new Secretary of State to her post, but what will she do to ensure that no one is left without income during the managed migration process, and will she commit to halt the roll-out until such a guarantee can be given?
I know that the new Secretary of State is very passionate about focusing on this particular area. There will be four to six months of comprehensive preparation for those looking to migrate. There will be personalised communication and information on the support available, and our highly trained and experienced staff will identify vulnerable claimants, such as those with mental health conditions, so that we can instead offer home visits or telephone calls, or even delay or stop the migration process if that is appropriate for the individual claimant.
Does the Minister agree that the system of implicit consent is absolutely essential for claimants with high support needs under the legacy system, and that it must be rolled out and extended to universal credit urgently and before managed migration begins?
There is real merit in that point. From talking to stakeholders, particularly social housing companies and local authorities, I think that when we can find a way to connect up stakeholders, including the most vulnerable claimants in particular, it increases the chance of making the process as smooth as possible.
I welcome the new Secretary of State to her post.
On 13 November, Mind wrote to me to outline its fears about how the approach of the then Secretary of State for Work and Pensions to the managed migration of universal credit created a real risk that many people with mental health problems could be left without an income altogether in the move to universal credit. Will the new Secretary of State take the opportunity to make a clear statement of independence from her predecessor, take note of the grave concerns of Mind, Macmillan and others, and withdraw these regulations immediately?
No, because these migrations will bring in very important additional supports, as each and every Member needs to bear in mind when the vote comes forward. We work closely with stakeholders, and I remind Opposition Members that under legacy benefits, more than 700,000 people, who include some of the most vulnerable claimants—the people who contact us as constituency MPs—are, on average, missing out on £285 a month because those legacy benefits are complex and not personalised. It is absolutely right that we do this, but in a controlled and sensible manner.
Many claimants come on to universal credit with pre-existing rent arrears, but we have introduced new measures to make additional payments of two weeks’ housing benefit to support claimants as they transition to universal credit, and to extend trusted partner status to social landlords to further support our claimants.
Universal credit rolls out in Hull just before Christmas, and the council is already preparing for expected increases in rent arrears. I am sure that the Minister will have watched Sean McAllister’s film “A Northern Soul” on BBC 2 last night. It featured Steve Arnott, a low-paid worker, and his work on the Beats Bus inspiring children on the council estates of Hull. The film showed in-work poverty, food poverty and child poverty. Can the Minister guarantee that the families in that film and in Hull will be better off when universal credit is introduced in December?
The key to universal credit is that, for the first time, a claimant will get personalised, tailored support that can help them navigate all the forms of support available. Under legacy benefits, more than 700,000 people, among whom are some of the most vulnerable people, miss out on an average of £285 a month. Those on universal credit will typically spend 50% longer looking for work. This is key to unlocking the potential of all claimants to improve their life chances.
Thenue housing association in my constituency tells me that errors in universal credit, such as the system retaining the wrong landlord details despite the claimant having asked for that to be corrected, have meant that some tenants have ended up two months in arrears through no fault of their own. What will the Minister do to fix the system before people end up in debt as a result?
I am very sorry to hear of that. If there are specific cases, please do not hesitate to highlight them. Through the roll-out of the landlord portal, which has been warmly welcomed by social housing companies and local authorities, there is an opportunity for claimants and housing bodies to work together to manage this migration process smoothly.
The Minister knows that the five-week delay under universal credit forces people into debt right at the start of their claim, which too often leads to rent arrears and other hardships. I welcome the new Secretary of State to her post. Will the Minister encourage her to take a fresh look at this indefensible five-week delay in particular?
As we have pointed out, those transitioning from legacy benefits will get the additional two weeks of housing benefit and, with the new measures announced, two weeks of either their employment and support allowance, their jobseeker’s allowance or their income support, as well as access to advance payments from day one. The key thing is that this system mirrors the world of work. For the vast majority of people, their aim is to get into work, and in work they would expect to be paid in arrears. They would have to deal with that at the same time as going back into work, whereas now the personalised work coach can provide support by giving them access to advance benefits and pointing them to the support offered by Citizens Advice and our wider universal credit support network. It is about providing that support as people prepare themselves for the world of work.
Lone parents are the primary beneficiaries of the Government’s decision to increase the help provided for childcare from 70% to 85%, which will help us to enhance the record levels of lone parent employment in this country.
The whole House will be aware that lone parent employment increased radically under the last Labour Government, but unfortunately lone parents now face being worse off because of universal credit. So can the new Secretary of State and her ministerial team guarantee that as part of their review they will make sure that no lone parent family in this country is worse off because of universal credit?
The lone parent employment rate is now at 67.6%, which is a record high and something this Government are very proud of. We will continue to try to push to see that figure go up further. We have made announcements on increasing the national living wage, which has seen a real-terms increase of 8% over the past three years, and changes to the income tax threshold worth £1,200, while the national living wage in itself, for somebody working full-time, is worth £2,000. That is making sure that lone parents who are working are getting the support to have more money available at the end of every month.[Official Report, 28 November 2018, Vol. 650, c. 2MC.]
My hon. Friend is being very active in this area, and it is a key priority for us that access to support is available from day one. We have 137 work coaches in prisons to help prepare for UC claims, and we now have three pilots—in Norwich, Wayland and Belmarsh prisons—to make sure we can test the difference that completing UC claims will make. This is a real priority.
We have always known that austerity is a political choice, but now, thanks to Philip Alston, we know that poverty is also this Government’s political choice as we consider his findings into areas like the near-£5 billion benefit freeze cut next year, the 1950s women who have been impoverished by pension changes, and targeting children with austerity via the two-child limit. What different choices can we expect from this new Secretary of State?