Budget Resolutions
Karin Smyth Excerpts(8 months ago)
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Mel Stride
My hon. Friend is absolutely right. At the beginning of my speech, I invited the shadow Chancellor to explain to the House what she will do, given that the non-dom status will be abolished and windfall taxes on oil and gas will come forward. Will she once again U-turn and run for the hills, as she did with the £28 billion, or will she raise taxes or borrowing? Answer came there none.
Karin Smyth (Bristol South) (Lab)
When the Minister has time, he might want to read the shadow Chancellor’s speech in Hansard and help his colleagues who will be speaking later.
May I take him back to the subject of ordinary people? As a result of last year’s mini-Budget, people who remortgage are now paying £240 more—real money for them—than they were previously. If he does not accept that there is a £46 billion hole as a result of yesterday’s announcement, will he tell us what he thinks the figure is? Can he assure people who are remortgaging this year that they will not be further impacted by yesterday’s announcement and that there will not be a further scare on those markets?
Mel Stride
I can reassure all mortgage holders up and down the country that this Government are absolutely determined to see inflation return to its target. The OBR’s economic and fiscal outlook, published yesterday, makes it clear that we will meet the 2% target one year earlier than it forecast in the autumn. The significance of that for interest rates is obvious: interest rates will come down faster if inflation recedes quicker, and that is exactly what has happened.
Peter Grant
I will come on to that in a minute. The Scottish Government are perhaps not reducing child poverty as much as they could, because nobody is ever perfect, but they are doing a blooming sight more than any Government down here ever will. As I said, we have free school meals for everybody in the first five years of primary school and for a great many children right up until they leave school. We have followed the example of our Scandinavian friends by welcoming every newborn baby in Scotland with a baby box containing the essentials for the first six months of their life. That is not just about practical physical help; it is also about the difference it makes to a new mum. It simply says to them, “We think your new baby is somebody special. Your baby is welcome as a new citizen of our country.” We have more than 1,140 hours a year of early learning and childcare for every three-year-old and four-year-old, and all eligible two-year-olds.
Karin Smyth
Just to correct an earlier point, when the hon. Member said that the Scottish Government would do more than any Government down here, I helpfully remind him that the last Labour Government lifted hundreds of thousands of children—I think up to 1 million —out of poverty, and we would seek to do that sort of work again. Who is in government here in Westminster does make a difference, does he not agree?
Peter Grant
I am not saying that a Government here cannot do it—in fact, I am saying that a Government here can do it. The problem is that the Government, which the hon. Member’s party said we could trust with the welfare system, are not doing that.
We have also introduced free bus travel throughout Scotland for 2 million people, including all young people up to the age of 21. That is important, because it not only significantly helps those people with the cost of their travel, and therefore the cost of living, but it encourages young people not to get into the habit of travelling by car. It encourages them to get into the habit of seeing public transport as a viable option.
In answer to the hon. Member for Rutherglen and Hamilton West (Michael Shanks), independent analysis has indicated that 100,000 children in Scotland will be kept out of child poverty this year because of actions by the Scottish Government. If the UK Government were willing simply to do what has already been done in Scotland, there could be 1 million fewer children living in poverty in the United Kingdom. Child poverty is not inevitable; it is a deliberate political choice. Scotland has chosen to say no to child poverty. The Budget has chosen to allow it to continue and to grow.
As well as the right support for children in low-earning families, the Government could have announced any number of things to help people in work to have better and secure pay. I have already mentioned the living wage, and they could have strengthened protection for workers instead of taking away the right to strike of those working in all sorts of public sector work.
Dame Jackie Doyle-Price (Thurrock) (Con)
It is a pleasure to follow the hon. Member for Halifax (Holly Lynch). She was doing so well until she mentioned Thurrock.
Perhaps I could give some clarity on why Thurrock Council got in such bad financial trouble. Over the last decade, as some Members will know, Thurrock was the subject of very aggressive three-way politics, with the UK Independence party holding the balance of power between a Labour minority administration and a Conservative minority administration. Frankly, it was impossible to get a balanced budget passed, because sensible decisions would not be taken to either increase council tax or reduce spending. That led council officers to pursue a risky borrowing strategy in order to plug the gap. The lesson we should learn is not so much about the Government’s overall strategy on local government, but about the need for all of us, wherever we are in public life, to take sensible decisions based on positive outcomes for those we serve.
I listened very carefully to what the hon. Lady said about special educational needs, and she is absolutely right: it is an issue that we really need to get to grips with. The Budget is great for providing plenty of knockabout between the Front Benchers, but her speech reminds us that we really need to think in a more granular way about whether we are delivering the outcomes that we want for a mature, advanced society, and particularly about whether we are delivering the best outcomes for those who are most vulnerable and perhaps least able to speak for themselves.
We are witnessing some very real challenges for children with statements in our schools, for a whole host of reasons. One of them is that, for a while, there was a fashionable view in the educational establishment that children with special needs ought to be educated in a mainstream setting. That will work for many of them, but we will fail others, including others in the school, if we continue with this model. Overall, it has led to under-investment in special provision, which has resulted in so many schools having to manage more and more children with special needs. I have seen that at first hand in my constituency. We have reports of a massive post-pandemic increase in children with statements, not all of which are related to having been out of school; some of these things are genetic. There has been a massive increase in children presenting as non-verbal, and we have not really got to grips with why that is.
We need to acknowledge that the explosion in special needs is being absorbed by our school sector. Let us pay tribute to those working in the sector, who are doing their best. I have seen at first hand the real efforts being made in some of my schools to manage this issue, and to give the best possible education to all pupils. I recently visited Tudor Court Primary School in my constituency, where I was told that 13% of the school’s intake now have a statement. I was also told that the figure is low compared with that for other schools, which strikes me as a significant indication that this issue ought to become a top priority.
I come back to the fact that we must, first and foremost, look after those who need our help the most, not those who shout loudest. I often say that this place works best for the pointy-elbowed middle classes. We really need to make sure that we focus on those who need our help the most.
Karin Smyth
The hon. Lady makes an excellent point about special needs provision in most authorities across the country, regardless of the politics of a place. The situation is really damaging for young people. Bristol City Council has become part of the Government’s safety valve initiative, along with neighbouring Conservative- run councils and others. Does she agree that we need to take a serious look at this issue across the country to understand both demand and the provision that already exists, and that we need to work together for the benefit of children coming through the system and their families, who are so desperate for support?
Dame Jackie Doyle-Price
I agree, and we should embrace this outbreak of consensus. The hon. Lady is absolutely right, because we cannot tackle this in a silo. Ultimately, it is for the local authority to ensure that a statement of special educational needs is given, but equally, local authority budgets are under pressure. I went to my local education authority a few years ago to talk about the need to progress a free school application for special provision, and I received a clear message: “We don’t want to encourage that, because people will move here, and we would have to look after them until they are 25.” We need to look at this at a high level to make sure that we deliver the provision that is needed across the board.
Turning to the substance of the Budget, I welcome the decision on national insurance, which is clearly no longer the contributory levy that it once was. The idea was that people bought credits towards their pension and out-of-work benefit entitlements, which have become much more universal, so national insurance makes no sense as a separate tax. That raises a philosophical debate about whether there ought to be a contributory principle for some services. In particular, we still await a long-term solution to funding social care.
Although I welcome the aspiration to remove national insurance, we still need to sort out social care funding. There is still uncertainty about how we fund social care, and local authorities are again left to pick up the pressure. It has been very convenient to give local authorities that responsibility, but we need to do our bit. Ultimately, everything has to be paid for. If we are to have mature and sensible long-term decisions at central Government level, we need to give local authorities the same space. While there is still uncertainty about how the cost of social care will be met, local authorities cannot make sensible decisions, and the disasters that the hon. Member for Halifax described will only become more common.
We need to look again at how to ensure that local authorities make mature and sensible decisions about their budgeting. The Audit Commission has been replaced by audit firms, and the frank advice that ought to be given has simply not been given. We used to have the surcharge, which was a very blunt instrument, to ensure that councillors made mature and sensible financial decisions, but now councillors have no stake.
We often say in this place that we have great champions for local communities, but we have to show leadership and maturity in making sensible decisions. When it comes to local councils, we have the same situation on speed. They have great local ward champions who view themselves as street-by-street spokespeople for every problem, but they perhaps do not properly recognise their corporate responsibility for making sensible judgments. Councils are multimillion-pound businesses that are there to deliver outcomes for the whole local authority area, not just individual wards.
As well as looking holistically, we need to make sure that, where local authorities get things wrong, there is an element of accountability outside the ballot box, especially because local election turnouts are so poor. That is all our fault. We are all politicians, and it is our job to motivate people to vote for us. I am often frustrated by the knockabout of political debate, which is a big turn off—it is sometimes a big turn off to sit here on a Wednesday lunch time. For people who are not engaged with politics, it is an even bigger turn off. The result is that, particularly in local politics, people zone out and switch off.
Even after the biggest failure in local government finance, the turnout in my local election in Thurrock was less than 20% in some wards. Is that not shocking? It tells us that the public are thinking, “Well, it doesn’t make any difference. It doesn’t matter who I vote for. Nothing will change.” We should all think about that as the general election approaches, because I detect the same mood out there.
Karin Smyth (Bristol South) (Lab)
Families in my constituency have felt the consequences of the Government’s political chaos and economic incompetence. Five Prime Ministers, seven Chancellors and 11 plans for growth have all left them worse off than they were 14 years ago. The Budget will not change that, and, crucially, the Government know it.
If the Conservatives had grown the economy at average OECD rates, households would be an astonishing £5,000 better off each year. That sum would make a huge difference to families in my constituency. It could have provided some financial security to them, helping them to pay their bills, support their families, and maybe even have that holiday—but no. Instead, families in Bristol South are struggling to make ends meet. Food prices are still 25% higher than they were two years ago. Rents are up by 10%. We know that people are experiencing higher mortgages as a result of the mini-Budget. The tax burden remains the highest in a generation. Working people have paid the price for the 14 years of Tory chaos.
The Government’s failure to grow the economy has gone hand in hand with the cuts to local spending that we have heard all about today. People are paying more and getting less. They are being forced to make do with struggling public services. Parents know that schools have had their per capita funding cut. People know that there are fewer police on the street. they know that bus routes have been cut. Crucially, they know when they try to get local appointments that the health service is under increased pressure. Everyone knows that they have lost out. Everyone has seen that the Government have taken resources away. Young people, families, the vulnerable —all left without vital support and local facilities after the past 14 years.
Councils of all political stripes have declared bankruptcy because the Conservatives’ piecemeal funding has failed local government. As we heard earlier, the movement of resources from local government to national Government has devastated councils’ ability to run local services. Some 900,000 people who were working in local government have moved to national Government, as we heard from my hon. Friend the Member for Oldham West and Royton (Jim McMahon).
Bristol’s Labour-run council has managed to maintain some vital services despite—not because of—the Conservative Government. As my right hon. Friend the shadow Chancellor said earlier, it is a deep irony that the Government—having taken away all those resources and, crucially, given the scale of waste and the fraud that we have seen at national Government level—are now starting to tell Bristol and other local councils how to run our local services, It is absolutely astonishing. The idea that they can start telling local councils how to run services is for the birds.
The Budget has done nothing for people in Bristol, but the council is still able to maintain basic services. We have protected the most vulnerable. There are 12,500 more homes, 14,000 dwellings have planning permission, we are on track for more affordable housing, and we are accelerating the delivery of council-owned homes. If we had a Labour Government working with that Labour council, we could really transform lives. If we were in government, we would rebuild the foundations of local government, working in partnership with councils, not against them, through long-term funding settlements to develop stronger, more secure and prosperous local economies.
To kick-start growth across the country, we need to invest in the workforce. A decline in skills and training is holding Britain back. As my hon. Friend the Member for Leicester West (Liz Kendall) announced this week, that is why we are so focused on helping people—particularly young people—back into work, giving them the chance to have a good, healthy life with new skills, specialist employment support, new careers advice and work experience, proper early mental health support and real opportunities, particularly for disabled people coming back into work.
Employers desperate for skills know that we are not training people in the skills of the future. The Tories failed apprenticeship levy has prevented employers from doing the best for young people in particular, as I saw at first hand at my jobs and apprenticeships fair last week. While £1 billion of funding from the levy goes unspent, the Budget has again failed to deliver the levy changes that are needed. Labour has listened to businesses that are concerned about the levy. Our reformed growth and skills levy will give employers greater flexibility to use their funding so that people can gain new skills and access better jobs. We need to match the skills needed in our local economy to young people in particular, but also to people who are retraining, so that we can get the growth that we need to drive better prosperity. By developing skills for the jobs of the future, we can unlock growth in the economy.
In our approach to growth, we want to grasp the green agenda. We will establish GB Energy. Clean power created right here in Britain will mean more jobs and lower bills for households. Our national wealth fund will invest in industry to fund green initiatives. People and businesses in Bristol are desperate to transform our economy and get new skills, particularly in the construction industry, to build environmentally sustainable houses, as well as in digital and cyber. Where the Tories have ignored the potential offered to us by growth in green industries and jobs, Labour will invest in our future.
Under the Conservatives, people’s living standards have fallen. Families, and young people in particular, cannot afford to get on the housing ladder. Prices in the shops have risen, and the tax burden is the highest in 70 years. Yet the Prime Minister and the Chancellor still came here yesterday full of smiles, laughing and saying, “Frankly, you’ve never had it so good.” My constituents know that that is completely false. No number of Tory Budgets can rewrite the past 14 years of economic failure and the damage that it has done to our society. People need fresh hope, a sustainable plan for growth and a Labour Government who will put Bristol and our country first.
The Financial Secretary to the Treasury (Nigel Huddleston)
It is my pleasure to close the first full day of debate on this spring Budget, which my right hon. Friend the Chancellor of the Exchequer brought before the House yesterday. I thank everybody for their contributions today.
The past few years have been a sobering lesson in living through history. They have not been easy for the British economy or the British people, as we face the challenges and the legacy of covid, war in Ukraine and, now, war in the middle east. We all know that we are in an election year, but it is important that we focus on the policies as well as the politics, and on the facts, not just the spin, so let us have a look at some of the facts.
Inflation has fallen from 11% last year to 4% now. We knew that reduced inflation was the single most important thing for helping families, and it has happened. Real wages are now rising, and some mortgage rates are starting to come down. The economy has also performed better than forecast. It is projected to grow by 0.8% this year and by 1.9% next year, defying expectations that we would enter a long recession.
The International Monetary Fund forecasts that the UK will have the third-fastest cumulative growth in the G7 over the next five years, and will grow faster than Japan, Germany, France and Italy. We are on track to meet our fiscal rules, underlying debt is forecast to fall as a share of GDP in the fifth year of the forecast, and by the end of the forecast, borrowing will be at its lowest share of GDP since 2001.
Of course, it is only because we responsibly reduced the deficit by 80% between 2010 and 2019 that we were in a position to provide much-needed support, to the tune of £450 billion, during the pandemic and the recent cost of living challenges that followed the invasion of Ukraine. As has been repeated by many colleagues, we did not hear the Opposition complain about that support.
The support inevitably led to higher taxes, because public expenditure was higher. How on earth did the Opposition think all those interventions would be paid for? This reality has been forcefully emphasised today by my hon. Friends the Members for Folkestone and Hythe (Damian Collins), for The Cotswolds (Sir Geoffrey Clifton-Brown), for Devizes (Danny Kruger) and for Hastings and Rye (Sally-Ann Hart), all of whom made important contributions, but the job and the recovery are not yet done. Because of the progress we have made, though, the economy is turning a corner, and we have been able to afford tax cuts as part of our plan to reward work and grow the economy.
Karin Smyth
It is astonishing that on day two of the Budget, the Government still want to tell the country that it has never had it so good. Will the Minister address some of the points made by my hon. Friend the Member for Leicester West (Liz Kendall)? What does he say to those young people who cannot work because of disability or ill health? What does he say to women in their 50s who are not working? How does he propose to get those people back to work? We are the party of work, and we have heard a lot of myths today from Conservative Members. We believe in well-paid, good-quality work. The clue is in the name of our party. What will the Government do for those women, and for those young people with disabilities?
Nigel Huddleston
That is quite amazing. I opened my speech by saying, “Let’s focus on the facts.” Is Labour really claiming to be the party of employment? Every single Labour Government in history have left office with unemployment higher than they began with.
The Secretary of State for Work and Pensions outlined how we will help the very people whom the hon. Member for Bristol South (Karin Smyth) mentions. Far from saying that everything is fine and that people have never had it so good, we are being honest with the public by saying, “We know that you have been through an incredibly difficult time.” That is precisely why we intervened to such an extent, providing over £450 billion of support during the pandemic and since. It was out of necessity. That support was needed. It is important that we are honest with the British public that the money clearly needs to be paid back. We have higher taxes out of necessity, but as my hon. Friend the Member for Folkestone and Hythe said, we reduce taxes out of choice when we can. We increase them out of necessity, and we reduce them out of choice. The Opposition do not have that philosophy.
From April 2024, we are further reducing national insurance contributions, and employees across the UK will see their national insurance contribution rate cut from 10% to 8%. Alongside the cuts we already made to NICs at the autumn statement, this is a total annual tax cut of £900 for the average worker on £35,400 a year. Self-employed national insurance will be cut further too, to 6%; 2 million self-employed will also get a tax cut, worth, on average, £650 a year. Those measures will incentivise, encourage and support more people into work or to work longer hours. The OBR says that, when combined with the autumn reduction, our national insurance cuts will mean the equivalent of 200,000 more people in work, filling one in five vacancies and adding 0.4% to GDP, and 0.4% to GDP per head.
This latest cut to NICs is the latest step towards our long-term ambition to end the unfairness that means that if somebody gets their income for having a job, they pay two types of taxes—NICs and income tax—but if they get it from other sources, they pay only one. When it is responsible and when it can be achieved without compromising high-quality public services, we will continue to cut NICs, making work pay. I believe that my neighbour, my hon. Friend the Member for The Cotswolds, outlined the precise wording from the Chancellor yesterday on that.
Of course, this should be seen in the context of our overall record on jobs, which is impressive. Since 2010, more than 2.5 million more people are in work. That is equivalent to 800 jobs created every day of the Conservative- led Administrations.
Nigel Huddleston
Yes, I hear my hon. Friend but, as I have said, there are some challenges in moving to a household system. There will be a consultation and I am sure that he and others will participate in that, and we will have further discussion in the House.
Nigel Huddleston
I do need to make some progress and respond to comments, and my right hon. Friend the Secretary of State was extraordinarily generous in taking interventions earlier on.
Nigel Huddleston
I am afraid that I cannot take any more interventions, as I have to respond to other colleagues’ questions.
My hon. Friends the Members for Christchurch, for The Cotswolds and the right hon. Member for Leeds West (Rachel Reeves) and others talked a lot about the tax burden. It is important to point out that, taken together, this Budget package and the autumn statement will reduce the tax burden by 0.6% in 2028-29. The tax burden is forecast to be lower than expected in the autumn. The tax system is competitive, when compared with other European nations, such as Germany, France and Italy, which have much higher tax-to-GDP ratios.
The hon. Member for Glenrothes (Peter Grant) and others raised the point about green policies and green energy. Of course, the UK has halved its emissions since 1990, which is faster than any other G7 country. Since September alone, companies have announced plans for £30 billion of new energy investment, and the Budget delivers on the green industry support announcements in the autumn statement 2023, including an additional £120 million for the green industries growth accelerator and other measures.
My hon. Friend the Member for Redditch (Rachel Maclean), who is my constituency neighbour on the other side, not only proudly quoted Margaret Thatcher, which of course always goes down well among Conservative Members, but gave her considered insight into mental health and resilience. She also mentioned productivity, as did several other Members, which was a key theme of the Chancellor’s speech yesterday.
My hon. Friend the Member for Thurrock (Dame Jackie Doyle-Price) and others made important points about the role of local government and local government finance. On 24 January, the Government announced an additional £600 million for local authorities in England. Taking into account that additional funding, the final local government finance settlement for 2024-25 is a 7.5% increase in cash terms on 2023-24.
Several hon. Members mentioned the importance of house building, which of course is a priority for this Government and a central part of our plans for growth. We are on track to deliver 1 million new homes in this Parliament, and have already delivered more than 233,000 homes on average each year since 2019.
The hon. Member for Bristol South said that there is nothing in the Budget for the people of Bristol South. I respectfully suggest that the national insurance cuts that we announced in the Budget will impact thousands of her constituents. She may not appreciate or value that, but I assure her that her constituents will.
Karin Smyth
My point was about the changes that we do not yet really understand in the Budget, and their effect on women in particular. Will there be an equality impact assessment showing how these changes will affect women?
Nigel Huddleston
As the hon. Lady knows, there are always tax information and impact notes—impact assessments —as part of the budgetary process.
My hon. Friend the Member for Folkestone and Hythe, in his very strong contribution, reminded us of not only the context in which we took power in 2010, which was far from the golden legacy that the Opposition received in 1997 when they took power, but the challenges that we have faced in power over the last few years. He was also very enthusiastic, as I am, about the opportunities and progress of the creative industries. That is exactly why we have focused on them, and provided more support measures in the Budget, following on from several measures over the last few years. The creative industries are vital to our economy and future growth, growing on average at about double the normal pace of the economy.
I have to call out the comments of the hon. Member for Warwick and Leamington (Matt Western) regarding the West Midlands Mayor, Andy Street, who has done so much to grow and attract investment in the west midlands. I gently remind the hon. Gentleman that the Labour council is not without its problems in Birmingham.
State Pension Triple Lock
Karin Smyth Excerpts(1 year, 12 months ago)
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Laura Trott
We absolutely recognise that this is a very difficult time for pensioners. That is why we put a substantial package of support in place, which I will come on to later.
The Secretary of State set out, when opening the debate, that the results of his uprating review will be announced alongside the autumn statement on 17 November. To nobody’s surprise, I will not be pre-empting the outcome of that review today. However, reflecting the debate this afternoon, it is important to highlight how pensioners have been supported since 2010.
The yearly amount of the basic state pension has risen by over £2,300 in cash terms, rightly highlighted during the debate by my hon. Friends the Members for South Cambridgeshire (Anthony Browne), for Torbay (Kevin Foster) and for Heywood and Middleton (Chris Clarkson). Average weekly pensioner incomes have increased by 12% in real terms and as a result absolute pensioner poverty has fallen by 400,000 since 2010.
We are forecast to spend over £134 billion on benefits for pensioners in 2022-23. That amounts to 5.4% of GDP.
Karin Smyth (Bristol South) (Lab)
If everything has been so good since 2010, why did the Government stand on a manifesto commitment in 2019 to protect the triple lock? What was the point of that?
Laura Trott
We have been absolutely clear about our record since 2010. I have been clear that I cannot pre-empt the decisions of the Secretary of State. The point is that we on the Government Benches have put plans in place to help pensioners this winter. We are not waiting until next April.
Oral Answers to Questions
Karin Smyth Excerpts(3 years, 1 month ago)
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Gerald Jones (Merthyr Tydfil and Rhymney) (Lab)
Karin Smyth (Bristol South) (Lab)
The Secretary of State for Work and Pensions (Dr Thérèse Coffey)
As was announced by the Chancellor at the March Budget, the £20 temporary uplift will come to an end within the next month.
Dr Coffey
The hon. Gentleman may not be aware that we have been funding Citizens Advice to assist people in making potential claims for universal credit. To that end, we estimate that about half the people still on legacy benefits would be better off with universal credit and we want to encourage people to consider carefully how they go about that. However, we believe that people progressing in work, as well as getting back into work, is the best way to tackle poverty.
Karin Smyth
The circumstances of this cut are very different from those to which the Secretary of State alluded. In Bristol South, people are not happy about the cut and businesses, which will lose £11 million from the local economy, are not happy with it, either. The Secretary of State should not be happy with the situation. There is time for her to change her mind. Will she do so?
Guy Opperman
I was delighted to meet The People’s Pension with my hon. Friend a couple of years ago and see the fantastic work that it does. It has more than 5 million members and is one of the largest providers in this important market. I am sure that we will continue to work with it as we expand automatic enrolment, take it to the first £1 earned and lower the entitlement age as we bring forward the 2017 automatic enrolment changes.
Karin Smyth (Bristol South) (Lab)
The Secretary of State for Work and Pensions (Dr Thérèse Coffey)
This summer, we launched our national disability strategy, setting out more than 100 practical actions and a long-term vision for reform that will make a real difference to disabled people’s everyday lives. Our strategy sets out the actions, ambition and accountability in helping disabled people to overcome the remaining hurdles. We will publish annual reports setting out progress and further actions, and the Minister for Disabled People, Health and Work will chair cross-Government meetings to hold our ministerial disability champions to account for delivery across Departments.
Just as you praised a recent sporting achievement, Mr Speaker, I would like to pay tribute—fresh from the Paralympics GB homecoming yesterday and the celebration on the Terrace just now—to all our amazing Paralympians. I was able to cheer them on in Tokyo and talk to them about aspects of the national disability strategy and the daily barriers that they face. In addition to praising Emma’s remarkable success in winning her championship, I say well done to Alfie Hewett and Gordon Reid, who won the gold medal at the Paralympics for wheelchair tennis doubles. They flew straight to the USA, and I am pleased to say that on the same night they also won the grand slam. Those are fantastic sporting achievements—well done to them.
Karin Smyth
I join the Secretary of State in those comments; it was a pleasure to bump into some of those athletes and Ms Balding this morning in Westminster Hall. It was lovely to see them here—well done.
The latest figures show that 50% of personal independence payment mandatory reconsiderations result in a change of award. This is causing huge stress and anxiety to vulnerable people in Bristol South and additional work for advice agencies. What sanctions have been applied to the private companies that are wrongly assessing the applicants?
The Secretary of State for Work and Pensions (Dr Thérèse Coffey)
I am conscious of what the hon. Lady has said. Over the past couple of years, we have tried to improve the decision-making stages along the way. One of those important elements involves mandatory reconsiderations, and how we take what we have learnt into the initial decision making, which is still done by DWP civil servants on the advice of assessors. We have further plans, as set out in our Green Paper, which we published before the summer recess, and I am sure that the hon. Lady will take a close interest in that progress.
Oral Answers to Questions
Karin Smyth Excerpts(4 years, 5 months ago)
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Justin Tomlinson
Rightly, we target support at those most in need—those with low incomes—and they could, through universal credit, receive an additional £1,950 per year through the universal credit carer’s element, plus the extra £1,040 universal credit standard rate increase, which is the equivalent of the jobseeker’s allowance rate. I would encourage the claimant to look at all available support that they are entitled to.
Karin Smyth (Bristol South) (Lab)
The Minister for Disabled People, Health and Work (Justin Tomlinson)
The access-to-work support has prioritised payments, including those to key workers, and where possible is making payments the same day. Key worker and new employee applications are being cleared urgently. Additionally, I am pleased to announce access-to-work recipients can now email claim forms as a reasonable adjustment.
Karin Smyth [V]
On 4 May, the Secretary of State assured the House that the Government would provide an automatic extension of PIP awards that are due to expire during the coronavirus virus pandemic. Can the Minister confirm that this extension applies to all claimants, including those who received an award following an appeal?
Justin Tomlinson
Obviously, PIP is different from access to work. There was an issue for those on fixed-term, short awards, but we have now addressed that, and those claimants will continue to get an automatic six months’ extension if it is due in the next three months.
Universal Credit and Debt
Karin Smyth Excerpts(5 years, 5 months ago)
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Karin Smyth (Bristol South) (Lab)
It is a pleasure to serve under your chairmanship, Sir Henry. I also wanted to mention childcare payments, but I will write to the Minister separately and concentrate my remarks on tax credit debt.
Three weeks ago, I was told in an answer to a parliamentary question that 255,000 claimants—one in six universal credit claimants—had received a deduction for alleged historical tax credit overpayments. Last week, in widely reported coverage, Citizens Advice stated that the figure was actually 410,000, which is closer to a quarter of all claimants. Will the Minister clarify that point and say which figure is most accurate? Even the lower figure of a quarter of a million overpayments and the associated debt, as a result of problems within HMRC that are perhaps years old or involve arbitrarily fixed rates that do not reflect people’s wider circumstances, are a real problem. Crucially, many people do not know that they can challenge that overpayment, and its impact is considerable.
I urge the Minister to put in place a new minimum repayment threshold for all non-fraud overpayments or other DWP debt. That threshold should genuinely reflect living costs and not discourage claimants from seeking work. There must be flexibility to consider individual circumstances, and claimants should be encouraged to complete income and expenditure forms, and only be asked to pay what they can afford. No family should ever receive less than their standard allowance or be worse off in employment, and no family should be forced into greater debt by the actions of the DWP.
Social Security and Employment Support for Disabled People
Karin Smyth Excerpts(5 years, 8 months ago)
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Sarah Newton
The hon. Lady makes an important point. We know that too many people have been missing out on billions of pounds’-worth of benefits. That is why I hope she will welcome the fact that universal credit and the personal relationship that people have with their work coaches will enable them to understand the full range of benefits available to them. Citizens Advice, working in partnership with jobcentres, will be able to signpost more people to get more support, and I hope Opposition Members will spend some time in their jobcentres to understand the range of services and signposting that is now available from work coaches.
Karin Smyth (Bristol South) (Lab)
These are very small changes in the right direction, but they recognise that the system does not work. To enable us to better understand the impact of Government policy on ill and disabled people, will the Minister commit to publishing constituency data on the number of UC50 forms that are issued to claimants and the number that are returned? Without proper detailed information, we will not be able to understand the impact on our constituents.
Sarah Newton
I will take that suggestion away and see whether we can collect that data and whether it is possible to provide it on a constituency basis. I challenge people who say that the whole system has failed because, from the information we have, we can see that millions of people are benefiting from these benefits and that more money is being spent every year. It is important that people have the confidence to come forward and access the benefits to which they are entitled. We remain committed to reforming the work capability assessment, which was brought in by the Labour Government in 2008, and we have taken a lot of time to consult a lot of people. Although everyone can agree that it needs to change, there is no consensus on how it can change. We are continuing that work, because I am determined to see these improvements made.
Department for Education
Karin Smyth Excerpts(5 years, 8 months ago)
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Karin Smyth (Bristol South) (Lab)
It is a pleasure to follow the hon. Member for Colchester (Will Quince).
The West of England combined authority, which includes my Bristol South constituency, is one of the areas currently producing a local industrial strategy in a bid to help to boost productivity. Early analysis of the evidence base for the strategy has shown gaps in educational and training provision compared with future business needs and that the job market does not work well for all residents, particularly those with low or no formal qualifications. The attainment gap is larger in the west of England than nationally, with 16 to 17-year-olds more likely not to be in education, employment or training, and there is significant inequality across the geographical area. These inequalities in education need to be addressed to improve future productivity. The local industrial strategy will be successful only if it is inclusive and supports opportunities, but how will that be achieved? I will confine my remarks to the policy areas that I think are critical to reducing inequality and improving social mobility: early years, further education and apprenticeships.
The hon. Member for East Worthing and Shoreham (Tim Loughton) gave a good summary of the need to support early years education. The evidence base is strongly in favour of high-quality education between birth and the age of five, as has been well established for a number of years. I am a former governor of one of Bristol’s many nursery school and children’s centre settings that has education, not social work or childcare, as its core purpose. As a former member of the Public Accounts Committee, I remember when we looked into the entitlement to free early years education. We saw strong evidence for the sector but recognised that it was not stable and that local authorities needed more support. Local authorities and, indeed, the Department for Education had no real mechanism for identifying what was happening in the sector or whether it was being managed well.
The Education Committee and the Treasury Committee are looking into the provision of the additional childcare element, but we need somehow to get the Government to look across Departments and join up the policy objectives and the money so that we can be clear about what is wanted from the sector. I recently met some of my local headteachers, some of whom have been teaching for 30 years, and they have never seen so much of their workload given over to picking up the crises families are going through. The question for the Department is what is its early years policy objective and how is it going to get to grips with it and with the local government cuts that are having such an effect, particularly on the maintained sector.
Several colleagues have spoken about further education, which is absolutely the other key driver of social mobility. It offers everyone a second chance and the opportunity of lifelong learning that the economy and individuals need. The funding cuts to post-16 education have been really quite severe, particularly since 2010. FE funding has been the hardest hit since that peak, resulting in closures, job losses and, critically, cuts to the student numbers that are needed so much. The post-16 transition time is vital. We really need to get to the point where we consider that point as important as the transition into school and the transition from primary into secondary education. The cuts to further education are a barrier to that happening, so I absolutely support the call to increase the funding rates for 16 to 18-year-olds.
I support the letter of the chief inspector of schools to the Public Accounts Committee in which she, too, supported the increase in the base and a welcome look at the accountability across the different bodies that are involved in further education to try to improve their performance, to improve what they are trying to do and to share information.
The Public Accounts Committee also looked at the sustainability of the sector. The area reviews are coming to an end, and I do hope that the Committee will look again at what is happening in this sector. We have seen some good leadership in this sector with regard to financial sustainability, but, again, I ask the question: what does the Department want to achieve for its money in further education? I worry about whether the sector has been made financially sustainable and what on earth we are left with in terms of the teaching in some of those settings to help on that productivity and skills gap, which is so crucial.
When the right hon. Member for Harlow (Robert Halfon) was a Minister, he came to Bristol South, looking at the importance of a good further education provider in a constituency such as mine, which has many similarities to Harlow in terms of supporting young people into those better opportunities.
I support part of what the Government are trying to do with apprenticeships, because of the post-16 situation in my constituency. Since becoming an MP, I have championed apprenticeships as a route, or a ladder, to greater opportunities. I am about to hold my third apprenticeships and jobs fair on Thursday. This year, I have managed to work with the council and the Department for Work and Pensions to cohere the work that is being done in my constituency around the people of Bristol South. I hope that the fair is again a great success. Again, we are not seeing the apprenticeship policy really doing what it needs to do to improve life chances.
In conclusion, we have a good overview on this matter. Again, I thank the National Audit Office for its briefing—I went to one this morning. We know what the Department is spending its money on, but we are not really clear about its objectives and about how it is achieving better outcomes for young people. We are also clear that we have a skills gap, a productivity problem and a population who are desperate to fill those jobs, which can give them better life chances. The Department’s vision is to prioritise support particularly for disadvantaged people in disadvantaged areas, but, I am afraid, it is not working in my constituency. I am keen to work with the Government to make sure that it improves.
Disability Support
Karin Smyth Excerpts(5 years, 10 months ago)
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Karin Smyth (Bristol South) (Lab)
I very much want to thank my hon. Friend the Member for Oldham East and Saddleworth (Debbie Abrahams) and the Backbench Business Committee for bringing this debate before Parliament, because it allows us to shine a spotlight on the experiences of our constituents who are living with a long-term illness or disability and who are relying on financial support from the Government.
Support has dwindled for these people in recent years, including for the nearly 6,000 people in Bristol South who are currently claiming employment and support allowance because they are unable to work owing to illness or disability. The national evidence is already clear. “The cumulative impact of tax and welfare reforms” report published earlier this year by the EHRC found that changes to taxes, benefits, tax credits and universal credit announced since 2010 affect the poorest the hardest, with ill and disabled people being among the worst hit. It is not just a loss of income, shocking as it is, that has an impact on disabled people; there is something very wrong with the Government’s instructions to the staff at the Department for Work and Pensions and the culture that has been created. The number of constituents in Bristol South who have been forced to appeal and initially refused ESA or personal independence payments is appalling, as others have mentioned.
Fantastic work is being done by South Bristol Advice Services, based in Withywood. It does a great job in supporting those who need help, but the determination required simply to make a claim is often too much for those suffering with long-term conditions or life-changing illnesses. There is little evidence of compassion in the system. Sadly, universal credit is making that situation worse in both financial terms and the complexity of the claim process. The Government have already admitted that the most disabled people’s incomes will not be fully protected, and I am already seeing constituents who are losing out simply because of a change in circumstances.
Promises about future backdated transitional payments ring hollow when a person cannot afford the rent because their universal credit claim is in disarray three months after moving to a bungalow adapted for their disability. Rent arrears have spiralled. In one case, a blind constituent was informed only in writing that universal credit now included an element for rent. No one contacted her to inform her verbally.
I want to pay tribute to the persistence and resilience of my constituents who daily face the challenge of their medical conditions and who must also deal with the current benefits system. I applaud those who have come to accept that a mandatory reconsideration and an appeal to Her Majesty’s Courts and Tribunals Service are just part of the claims process. My constituent who informed me that he has completed his third successful appeal has my admiration and respect. However, there are far too many others who simply do not carry on with their claims, who get ground down by the bureaucracy, who miss out on vital financial support and whose health, as others have mentioned, suffers greatly as a consequence.
Of course the Government should commission an independent cumulative assessment of the impact of changes in the social security system on sick and disabled people, their families and carers, but they should also act now, immediately stopping the roll out of universal credit to ill or disabled people.
Universal Credit and Welfare Changes
Karin Smyth Excerpts(6 years, 4 months ago)
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Ms McVey
I am certainly not blind to hardship. We all come into this House trying to prevent hardship. Conservative Members believe that poverty and hardship are prevented by getting people into work and supporting them in work to allow them to fulfil their dreams, hopes and ambitions. That is what we do. As I said, we have provided significantly more money for the most vulnerable, particularly for those with disability and health conditions. We want to support people into work and reduce poverty.
Karin Smyth (Bristol South) (Lab)
As a former member of the Public Accounts Committee, I am very conscious of how much that Committee—and, indeed, the House—relies on National Audit Office reports. I remind the House that the Department does agree with the NAO on the veracity of those reports. Where there are issues, then the Department can follow them up in the Public Accounts Committee.
May I ask about the habitual residency test, which is connected with universal credit claims? I have a constituent who has been refused advance payment due to a delay in her partner’s residency test, and it is not clear when that will be completed. It would be helpful to understand the timescales for the residency test. Can the Secretary of State confirm whether, if the partner fails the residency test, an entirely new claim will have to be made?
Ms McVey
We do not agree with all the conclusions in the NAO report because it did not take into account the impact of the changes. We agree with some of the conclusions, such as the fact that we should continue with the roll-out and speed it up and on the progress made. The habitual residence test ensures that someone is legally entitled to a benefit. Verification was increased in 1994 and tightened in 2004. If someone fails the habitual residence test, they can reapply three months later when they can show that they have links to the country.