Disability Support

Kate Green Excerpts

Wednesday 19th December 2018 Commons Chamber

[Debbie Abrahams]

Yes, and I shall come to exactly some of the points my hon. Friend raised. He managed to get quite a bit into that intervention.

What CIAs have been done so far? Back in March this year, the Equality and Human Rights Commission published its report on the cumulative impact of tax and welfare reforms. The report looked at the effect, since 2010, of tax, welfare, social security and public spending on people with protected characteristics as set out in the Equality Act 2010. It included assessments of the impact on disabled people. The EHRC looked at the measures introduced in both the 2012 Act and the Welfare Reform and Work Act 2016, including the move to personal independence payments from disability living allowance; the cuts in support to the employment and support allowance work-related activity group; the introduction of universal credit, which involved the removal of the severe and enhanced disability premiums; the freeze in the uprating of social security support payments; and more. The EHRC analysis found that, by 2021, households with at least one disabled adult and a disabled child will lose more than £6,500 a year—that is 13% of their income. Households with six or more disabilities lose almost £3,150 a year, and disabled lone parents, predominantly women, with at least one disabled child lose almost £10,000 of their net income.

[Kate Green (Stretford and Urmston) (Lab)]

My hon. Friend is outlining analysis of the loss of income experienced by disabled people, but I know that she will also want to acknowledge the work of the Social Metrics Commission led by Baroness Stroud from the other place, which has also identified the additional costs that are experienced by disabled people and which has properly, or more accurately therefore, portrayed the poverty that they experience compared with some of the measures that we have been able to use previously. Does she agree that a cumulative assessment is about drawing together many different ways of measuring the impact of cuts, changes and access to public services and the additional costs that disabled people and their families experience?

[Debbie Abrahams]

My hon. Friend makes an absolutely essential point. I will come on in a moment to the poverty that disabled people are experiencing by virtue of the additional costs that they face. She is right that a whole range of different methods can be used and we need to look at all of them to ensure that we can fully understand the impacts on disabled people.

[Debbie Abrahams]

Absolutely. Again, my hon. Friend makes an essential point. The UN Committee investigating breaches in the UN convention on the rights of disabled people found those issues as well.

That was the EHRC’s cumulative impact assessment back in March. Although October’s Budget made some changes to universal credit, it restored, as analysis of the Office for Budget Responsibility showed, just half of what was cut in 2015, and only marginally helped those disabled people who are able to work. For those too ill to work, analyses by Policy in Practice shows that they will be financially worse off compared with when they were on legacy benefits. Importantly, today’s Work and Pensions Committee report confirmed the issues that many of us have already raised about the proposed managed migration of disabled people onto universal credit and said that it needs to be stopped. Furthermore, we need to ensure that the so-called natural migration that results when there is a change of circumstances needs to be properly looked at.

Apart from the changes in universal credit, there were absolutely no other measures for disabled people in the Budget. In fact, the OBR report showed that disabled people were set to lose more social security support by 2022. For example, personal independence payment spending is to be £1 billion less in 2022 compared with March this year.

I am sure that the Government will say that they are helping disabled people to improve their living standards by getting them into work. However, just over 51% of 4 million disabled people of working age are in employment compared with 81% of non-disabled people—a disability employment gap of just over 30%, a figure that has barely narrowed since 2015 when the Conservative party manifesto pledged to halve that gap. As we also know, there are more than 8 million households with at least one person in work that are living in poverty. Work is not, as is frequently said by Government Members, a route out of poverty.

Last year, the Government set more modest ambitions with a new target to get 1 million more disabled people into work, but even this needs a radical rethink. There are many reasons why the disability employment gap has hardly been reduced in the last three years, including the lack of information and advice for employers, but we must remember that discrimination against disabled workers is still quite prevalent. In a recent survey, 15% of disabled people revealed that they had been discriminated against when applying for a job, and one in five while they were in work. Information is not enough to address this; it needs leadership and cultural change.

[Kate Green]

Does my hon. Friend therefore agree that a cumulative impact assessment would also identify the lack of access to legal aid when people may need to take forward discrimination cases in employment?

[Debbie Abrahams]

Absolutely. I was going to mention employment tribunals, which I think have fallen by 80% since the cuts to legal aid. A cumulative impact assessment would enable us to see the impacts there.

With the best will in the world, the Disability Confident scheme just does not cut it. There needs to be a commitment to expand and properly resource access to work. Supporting under 34,000 disabled people a year at and into work is a drop in the ocean when there are over 2 million unemployed disabled people who want to work. But as we know, not all disabled people are able to work. The consequence of the inadequate support made available through our social security system is that 4.3 million sick and disabled people are living in poverty. As my hon. Friend the Member for Stretford and Urmston (Kate Green) mentioned, disabled people are twice as likely to live in persistent poverty as non-disabled people; 80% of disability-related poverty is because of the additional costs that disabled people face by virtue of their disability, and these have been estimated at £570 a month on average.

The cuts to social security mean that more and more disabled people are becoming isolated in their own home as their mobility vehicles or personal support are taken from them. Many are struggling to pay their rent or mortgage. Their health conditions have deteriorated and other conditions have developed, including mental health conditions, as they face the relentless stress and anxiety resulting from a social security system that is hostile, unsupportive and even dehumanising.

The sanctions regime that has affected over 1 million disabled people since 2010, the work capability assessment and personal independence payment assessment processes are all part of this. Quite frankly, it is grotesque that people with progressive conditions such as motor neurone disease have, until last month, been habitually forced through the personal independence payment assessment process. I understand that there are still issues with that, although it was meant to have stopped last month. I would be interested in the Minister’s response to that point.

There is also overwhelming evidence of the inaccuracies—some have called them lies—in these assessment reports. Why have the Government not been able to act on this? With over 70% of assessment appeals successful, whatever contract management processes the Government have in place, are clearly not fit for purpose. All these Government social security changes will have a huge toll on the health, wellbeing and even the longevity of disabled people.

A peer-reviewed study by my former colleague Ben Barr and his colleagues showed the detrimental mental health effects of the work capability assessment, including it being independently associated with an increase in suicides. On top of this, the Government’s own data reveal that the death rates for people on incapacity benefit and employment support allowance are 4.3 times higher than in the general population, people in the ESA support group are 6.3 times more likely to die than the general population, and those in the work-related activity group are twice as likely to die as the general population. I reported these figures back in 2015. People on IB and ESA are poorly; they are not feckless as too many people have tried to suggest. But again, the Government did not listen and went on to push disabled people in the support group and originally assessed as not fit for work through another work capability assessment process into the WRAG, and then cut their support by £1,500 a year in 2016.

--- Later in debate ---

[Luke Graham]

We are looking at a 38% increase in cash terms, but if the compound inflation rate over the same period is taken into account, this would come out as less than 38%. I am happy to go through the calculations with the hon. Lady separately, but we would still find a real-terms increase in the benefits that are being paid out.

On all these policies, we, as constituency MPs, see people who come into our offices. They come to see me and my staff in my Alloa office and in my Crieff office, and we see some of the human impact of the changes made in welfare. I support looking at how we assess the impacts on disabled people, because we are putting in a considerable amount of money. My hon. Friend the Member for Ayr, Carrick and Cumnock (Bill Grant) made the point about the amount being spent on disabled benefits, and we are one of the highest spenders in the developed world, which should be applauded, but if the money is not getting to the right people at the right time, we need to see exactly how it is being administered and how our services are being delivered on the frontline right across our country.

Like other Members here, I have hosted debates on Disability Confident, which is a fantastic scheme. The hon. Member for East Kilbride, Strathaven and Lesmahagow (Dr Cameron) talked about how MPs should be signing up for that. My office is a member of the scheme and the same applies to colleagues from right across the House. The Minister visited the Glenalmond Timber Company in my constituency, and I hope everyone will be able to join me in congratulating Jed Gardner, its production manager, who now has Disability Confident leader status—the first in Scotland. I hope everyone will congratulate him on the fantastic work being done in Methven to give people with disabilities opportunities to work. When I visited the company and when the Minister did, too, we could clearly see the impact this has on not only individuals, but their family and friends. So some incredibly positive work is being done by this Government, although there are also areas where we need to review and assess continually.

Furthermore, in my constituency, we recently held a joint event with my hon. Friend the Member for Stirling (Stephen Kerr) on Disability Confident in Alloa, which the local community and the DWP attended. It was hosted in Inglewood House, which, I am glad to say, signed up to the Disability Confident scheme immediately following that event. Again, that is an incredibly positive action, showing that companies in Clackmannanshire, Perth and Kinross are taking Government initiatives from the green Benches here and applying them in a daily way where we can see real improvement in our constituents’ lives.

As I said, I have a number of concerns about how the assessment is taking place, and I would support looking at having an assessment of how these things are being delivered. I hope to work with my Government colleagues on how that would be done. I hope that such an assessment would be independent, or certainly objective, to make sure that our constituents, our Government and ourselves will have the best possible view on how these disability benefits are being delivered.

[Kate Green]

Does the hon. Gentleman agree with the recommendation in the Work and Pensions Committee’s report published this week that, while someone is waiting for a work capability assessment, it is unreasonable of the Department not to pay universal credit, because that is leaving people high and dry?

[Luke Graham]

The short answer is yes. I led the inquiry on universal credit in the Public Accounts Committee, and I refer all Members to the inquiry and subsequent report, where we identified the strengths and shortfalls of the UC system. I hope that Government colleagues have read that report and taken those recommendations into account.

I wish to make one or two final points before summarising. We have talked a lot about statistics. One concern I have—this is often not appreciated in this House—is that the devolution of certain levels of statistics around the country means we often have different levels of government in the UK producing different statistics, which makes like-for-like comparisons quite difficult. When preparing for this debate and for the mental health debate that was pulled, I struggled to get figures from the Library, because in Scotland we are now not going along with certain NHS quality-for-delivery frameworks. Even if different parts of the United Kingdom and different levels of government use different methods, we have to find a statistical method to find a uniform measure so that we can have a meaningful debate in this place. Otherwise, we are not comparing apples with apples and we cannot get a real view of how services are being delivered for our constituents.

In that same vein, the devolution of welfare powers has been debated in the past, and I am sure that the debate will be ongoing in this place in the coming years. I have a real concern about the devolution of welfare powers—not because I think that all powers should remain here and I want to sit on the green-Bench throne, but because when we speak to the most vulnerable people in our constituencies, as I know every Member does, we find out that adding another agency or two into the equation would make it even more difficult for them to get the help that they need.

I support this issue, because we should have an objective assessment of what these changes are doing for our constituents and for the most vulnerable people. We are spending the money, but we have to make sure that it goes to the right place. For too long, benefits have been a party political issue. When it comes to disability and helping the most vulnerable people in society, we can look past our party affiliation and deliver for our constituents.

Universal Credit and Child Tax Credit: Two-child Limit

Kate Green Excerpts

Tuesday 27th November 2018 Westminster Hall

[Kate Green (Stretford and Urmston) (Lab)]

I congratulate the hon. Lady on securing the debate. Does she agree that this obscene policy is fuelled by the Government’s abolition of the child poverty target, which would have compelled them to look at such policies and realise that they could not possibly be compatible with such a target?

[Alison Thewliss]

Absolutely. I will return to the issue of the policy’s objectives and how unmeetable they are, given the child poverty that will result from the policy.

It is absolutely clear that nothing in the policy fits with the Government’s objective of giving people a more stable family life. In fact, it plunges families further into uncertainty and crisis, and puts them under tremendous strain.

It is also clear that it will be children who lose out as a result of this policy. It is estimated that this policy will affect—in time, when transitional protections run out—around 3 million children. The Church of England estimates that in my constituency alone 1,600 families and 5,500 children will be affected, which amounts to 36% of the children there. I cannot begin to say what impact this policy will have on the health, education and life chances of those young people.

--- Later in debate ---

[Kate Green]

rose—

[Alison Thewliss]

I am coming to the end of my remarks; I am sure that Members will get in later with what they want to say.

All of this policy is illogical and bad for the economy. In other parts of my casework, I see working people being denied leave to remain with their families. I see EU nationals being scunnered and moving away from the country that they had called home, due to this UK Tory Government’s Brexit shambles. On DWP policy, I see people being discouraged—actively discouraged—from having children. Who will participate in the labour market in the future? Having children is an economic good. Who will look after the Minister and his family when he is old and in need of care? The UK Government should wise up to the demographic time bomb they are creating with this policy and so many other policies that make no sense. The “Unhappy Birthday!” report produced by End Child Poverty, the Child Poverty Action Group and the Church of England states:

“If you set out to design a policy that was targeted to increase child poverty, then you could not do much better than the two-child limit.”

I would like to know what assessment the Minister has made, other than the numbers released in April, of the impact of the two-child cap on all the areas I have mentioned in my speech—not just one or two of them, but all of them—because there are still too many flaws in the two-child cap, as I have laid out, and as I am sure other Members will wish to. I want to know how he can roll this policy out without that assessment having been done. The assessment has been left to the third sector, the Church—as the hon. Member for Stretford and Urmston (Kate Green) pointed out—and to so many other organisations. The Government have not taken on this work; they have left it to others to do, which is absolutely unacceptable. They need to know what the impact of their policies will be on the ordinary people we represent.

I also want the Minister to explain why he is pressing ahead with extending this policy to all families come February next year, because, on the basis of this policy, people could not reasonably have planned the children that they have had. It is completely unreasonable to expect somebody in good times to think, “Perhaps six or seven years after I have had my child, I might—might—be made unemployed and I might need to claim universal credit.” That would not be in their head; that is not how people make decisions about their families. It is an absolutely flawed notion that people can do that. I want the Minister to pause and reflect, and to tell us that he can pause the policy, stop it rolling out further and end it for good.

--- Later in debate ---

[Rushanara Ali (Bethnal Green and Bow) (Lab)]

It is always a pleasure to serve under your chairmanship, Mr Streeter. I congratulate the hon. Member for Glasgow Central (Alison Thewliss) on her tireless campaign on this very important subject and on securing today’s debate.

The issue sits in the context of the wider debate about universal credit, which will affect 1 million homeowners, slightly fewer than 750,000 households on disability benefits and 600,000 single parents. On universal credit, two in five households will lose about £52 a week in payments, and across many constituencies entire families will be severely affected—if they are not already. In areas where universal credit has already been rolled out, food bank use has increased by 52%. As the hon. Lady said, as part of the 2015 package, from April 2017 low-income families with a third or subsequent child lost their entitlement to additional support through child tax credits.

[Kate Green]

Does my hon. Friend agree that contrary to what the hon. Member for Glasgow Central (Alison Thewliss) suggested, Labour did not support the two-child limit? We abstained on the Second Reading of the Welfare Reform and Work Bill but voted against Third Reading. Does she agree that we should place that on the record?

[Rushanara Ali]

I concur. It is really important that the Scottish National party, the Labour party and other parties that oppose the policy continue to work together, so that we can protect families. More families will be affected from February next year, as universal credit is rolled out, and the retrospective element, which the hon. Member for Glasgow Central mentioned, will be devastating. No family could have prepared for a policy that was to be applied retrospectively; nor is it right that children should be retrospectively punished in that way. This, in short, is a punishment of children, and it is totally inhumane. No Government should be standing up for such a policy. Given that the Minister has recently taken on his role and the policy was not his idea, I urge him to reflect carefully on what is being said and on the representation being made to him, to ensure that the policy is reviewed and reformed.

If the Government are concerned about family size and think that families should not be as large as they are, just as with teenage pregnancy, public education exercises can be more successful than punitive measures that punish children. In developing countries, where there is a case for encouraging smaller families because families cannot provide, family sizes have been brought down through education and women’s empowerment, but that is a different debate from what is happening here.

Philip Alston the UN’s special rapporteur on extreme poverty and human rights recently said of the two-child limit that it is “in the same ballpark” as China’s one-child policy, because it punishes people with more than two children. Reports also state:

“The UK government has inflicted ‘great misery’ on its people with ‘punitive, mean-spirited, and often callous’ austerity policies driven by a political desire to undertake social re-engineering rather than economic necessity, the United Nations poverty envoy has found”.

It cannot be right that in one of the wealthiest economies of the world, our children face hunger and punishment.

Universal Credit

Kate Green Excerpts

Monday 5th November 2018 Commons Chamber

[Ms McVey]

My hon. Friend raises a good point, and that is why we worked in partnership with Citizens Advice across the country—so it could help people get on to universal credit. We felt it was the correct thing to do. It works with the most vulnerable people—it knows them—and is a trusted independent group. That is why we chose it to work with.

[Kate Green (Stretford and Urmston) (Lab)]

I welcome the announcement on reducing the deduction rate for the repayment of debt, but 30% of someone’s benefit is still quite a lot to be paying back on debt repayment. Will the Secretary of State take seriously the suggestion in the report of the Work and Pensions Committee last week that debt advice becomes a core part of the universal support offer?

[Ms McVey]

The hon. Lady, who knows a lot about this subject, is correct about the debt advice and the support that is available. We are building in measures to help more people to obtain debt advice. They often do not like asking for it as such, so we are going to change the term to “money advice”. Many people do not like to admit that they are in debt, even if they are.

Let me clear up one point. We are not talking about 30% of the entire benefit; we are talking about 30% of the standard allowance. Obviously, that does not include housing or childcare. It is a significant reduction in the rate, led by calls from the Trussell Trust.

Oral Answers to Questions

Kate Green Excerpts

Monday 15th October 2018 Commons Chamber

[Kate Green (Stretford and Urmston) (Lab)]

Under managed migration, claimants of legacy benefits will effectively have to apply anew for universal credit, and some vulnerable claimants may not realise and lose transitional protection as a result. Will the Minister look again at how those claimants can ensure that they retain their transitional protection?

[Alok Sharma]

The Secretary of State, other Ministers and I are having detailed engagement with the various health groups that the hon. Lady is talking about. We are, of course, looking at the recommendations made by the Social Security Advisory Committee.

Universal Credit and Welfare Changes

Kate Green Excerpts

Thursday 21st June 2018 Commons Chamber

[Ms McVey]

I thank the right hon. Gentleman for mentioning work coaches in such a positive way, because they are doing a significant amount of work, and I hear only praise wherever I go. The system needs to give people support, whether with IT or debt. Support is definitely there for IT—£200 million has gone to local authorities. The jobcentre can point claimants in the right direction, so I ask them please to go via the jobcentre in these situations.

[Kate Green (Stretford and Urmston) (Lab)]

Last week, I met a constituent at my surgery who had received just £11 for four hours’ work as a result of less generous earnings disregards and a sharper clawback of council debts than under legacy benefits. What estimates has the Secretary of State made of those features in terms of the continuing employment benefits that she has talked about? Can we help her to approach the Chancellor, as he prepares his autumn Budget, to ask him to put money into the universal credit system to improve the earnings disregards and to lower the rate at which other debt is recovered?

[Ms McVey]

The hon. Lady has a great deal of knowledge in this area. I am more than happy to meet her so that we can ensure that we have continuous learning and continuous improvement. I am looking closely at the debt repayment that she talks about. I am very much focused on that at the moment. I would love to meet her.

Oral Answers to Questions

Kate Green Excerpts

Monday 26th March 2018 Commons Chamber

[Ms McVey]

Zero-hours contracts or flexible contracts—whichever way people want to see them—are at 2.8%. This year, over 90% of jobs are permanent. From 2010, there have been 75% permanent and full-time jobs. Most of those this year are professional.

[Kate Green (Stretford and Urmston) (Lab)]

A number of childminders in my constituency are reporting problems with late payment from their customers who are in receipt of universal credit, partly because of the waiting time for the first payment and partly because of bureaucratic requirements. Will the Secretary of State or one of her colleagues meet me to discuss this pressure on childminders?

[Ms McVey]

We would be happy to meet the hon. Lady, who does so much in this area. What I will say, however, is that I do not understand why Opposition Members voted against advance payments up to 100%, why they voted against the two-week home payment and why they voted against the extra support we are giving.

Social Security

Kate Green Excerpts

Monday 5th February 2018 Commons Chamber

[Kit Malthouse]

With the forbearance of the hon. Member for Oldham East and Saddleworth (Debbie Abrahams) for any prior confusion, I move the motion. In my view, you will pleased to hear, Mr Speaker, the provisions in both orders are compatible with the European convention on human rights.

The draft Guaranteed Minimum Pensions Increase Order 2018 is an entirely technical matter that we attend to each year in this House and I do not imagine that we will need to spend much time on it today. The statutory instrument provides for contracted-out defined benefit occupational pension schemes to increase members’ guaranteed minimum pensions that accrued between 1988 and 1997 by 3%.

I turn to the rates that are included in the draft Social Security Benefits Up-rating Order. The Government continue to stand by their commitment to the triple lock guarantee, which means that, this year, the basic state pension and the full rate of the new state pension will go up by the increase in prices, at 3%, as outlined in the autumn Budget on 22 November last year. We will increase the pension credit standard minimum guarantee by more than the growth in earnings to match the cash increase in the basic state pension, and we will increase benefits to meet additional disability needs and carer benefits by 3% in line with prices.

The Government’s continuing commitment to the triple lock for the length of this Parliament means that the basic state pension rate for a single person will increase by £3.65 to £125.95 a week from April 2018. As a result, from April 2018, the full basic state pension will be £1,450 a year higher than it was in April 2010. We estimate that the basic state pension will be around 18.5% of average earnings—one of the highest levels relative to earnings for more than two decades.

In 2016, the Government introduced the new state pension for people reaching their state pension age from 6 April 2016 onwards, with the aim of making it clearer to people at a much younger age how much they are likely to get and providing a solid base for their saving and retirement planning. We are committed to increasing the new state pension by the triple lock for the duration of this Parliament. As a result, the full rate of the new state pension will increase by 3% this year, meaning that, from April 2018, the full rate of the new state pension will increase by £4.80 to £164.35 a week—around 24.2% of average earnings.

The benefits of the triple lock uprating will also be passed on to the poorest pensioners through an increase in the standard minimum guarantee in pension credit to match the cash rise in the basic state pension. That will be paid for through an increase in the savings credit threshold. To match the cash increase in the basic state pension, the standard minimum guarantee will rise by 2.29%, which exceeds growth in earnings of 2.2%. That will mean that, from April 2018, the single person threshold of this safety net benefit will rise by £3.65 a week, to £163.

On the additional state pension, this year, state earnings-related pension schemes will rise in line with prices by 3%. Protected payments in the new state pension will be increased in the same manner. Consistent Government support for pensions has seen the percentage of pensioners living in poverty fall dramatically in the past few decades; it is now standing close to the lowest rate since comparable records began.

[Kate Green (Stretford and Urmston) (Lab)]

The Minister will know that state pension is deducted from pension credit, leaving those pensioners no better off than if they had not contributed to qualify for a state pension. Because state pension is also taxable if other income is brought into the household, the pensioner may have both to pay tax on it and to see it deducted from their pension credit. Therefore, they could be worse off than if they had not contributed to qualify for a state pension. What are the Government doing to address that long-standing inequity?

[Kit Malthouse]

Significant measures have been taken by the Government to deal with pensions and, in particular, pensioner poverty over the last few years. We have seen that fall from something approaching 46% to around 16% in the last few years. One measure, in particular, that will have benefited many millions of pensioners is raising the personal tax threshold. That has taken millions of people out of the tax system altogether and particularly those, such as pensioners, who are on a fixed income.

I turn to disability benefits. The Government will continue to ensure that carers, those who cannot work and those who have additional needs as a result of disability get the support that they need. We continue to follow the principle in our welfare reforms that more of the money should get to the people who need it most. That results in disability living allowance, attendance allowance, carer’s allowance, incapacity benefit and personal independence payment all rising by 3% in line with prices from April 2018. Disability-related and carer premiums paid with pension credit and working-age benefits will also increase by 3%, as will the employment and support allowance support group component and the limited capability for work and work-related activity element of universal credit.

All in all, the Government will spend an extra £4.2 billion in 2018-19 on uprating benefits and pension rates. With that spending, we are upholding our commitment to the country’s pensioners by maintaining the triple lock on their state pension, helping the poorest pensioners who count on pension credit, and providing support to disabled people and carers. I commend the orders to the House.

[Debbie Abrahams (Oldham East and Saddleworth) (Lab)]

I will focus initially on the draft Social Security Benefits Up-rating Order and then move on to the draft Guaranteed Minimum Pensions Increase Order.

The uprating order provides for the annual uprating of social security entitlements excluded from the Government’s freeze to levels of social security enacted in the Welfare Reform and Work Act 2016. As we have heard, that includes attendance allowance, carer’s allowance, disability living allowance, personal independence payment, industrial injuries disablement benefit, bereavement benefits, incapacity benefit and severe disablement allowance. This year, the Secretary of State proposes to uprate those limited social security entitlements by inflation under the consumer prices index measure, which currently stands at 3%, together with the new state pension in accordance with the triple lock, and pension credit.

We will not delay the measures to increase the new state pension and the adequacy of the social security provision provided by the uprating of payments in the order. However, although I welcome the upratings contained in the order, this needs to be seen in the context of the support that is not being provided or has not been uprated, as well as the Government’s wider approach to social security. The uprating order does not include child benefit, jobseeker’s allowance, employment and support allowance, income support, housing benefit, local housing allowance rates, child tax credit, working tax credit and the majority of comparable elements of universal credit.

The Government’s decision to limit the cap on uprating to 1% between 2013 and 2015 and the subsequent freeze on the vast majority of social security payments has seen low-income households suffer a significant deterioration in the adequacy of social security support. The freeze to payments and support is having an extremely detrimental impact upon millions of people on low incomes across the UK. Over the last year, inflation has more than doubled, hitting a five-year high of 3.1% in December 2017. It currently stands at 3%.

The payments subject to uprating were uprated by just 1% last year, with the vast majority of social security payments remaining frozen. To put that into context, research by the Joseph Rowntree Foundation shows that the price of essentials has risen three times faster than wages over the past 10 years. Food prices have increased by 4.1%, transport by 4.5% and clothing and footwear by 3%. People are suffering a continued increase in the cost of living, and that is being exacerbated by wage stagnation and the rise in insecure work caused by the Government’s inadequate economic policies. Last year, in-work families on the national living wage saw minimum costs rise faster than their net income because in-work payments were frozen and any rises in pay were clawed back by tax credit reductions. While millions of families are seeing their incomes fall in real terms, the wealth of the richest few continues to soar, with FTSE 250 bosses seeing their pay rise by 11% in the last two years alone.

Despite promises to tackle these burning injustices, the income gap between the richest and poorest in our society has almost doubled. Britain’s top bosses are paid, on average, 165 times more than a nurse, 140 times more than a teacher and 312 times more than a careworker. Research from the Resolution Foundation shows that the poorest families will see their incomes drop by an average of 2% by 2021, while the richest fifth of households will see their wealth increase by 5%. It is clear that the Government’s cuts to social security support are pushing more and more people into poverty. The Joseph Rowntree Foundation has called on the Government to end the freeze to social security payments, as has the Child Poverty Action Group, which states that

“the failure to uprate benefits in line with inflation is the single biggest driver behind child poverty”.

Following the 2015 summer Budget, the Government’s flagship universal credit programme saw cuts to the work allowance. That was on top of the scrapping of severe disability premiums, the imposition of the minimum income floor for the self-employed and the limiting of child tax credit support to the first two children. As a result of those cuts and the freeze, not only is universal credit failing to make work pay, but instead of reducing poverty it is actually exacerbating it.

[Kate Green]

My hon. Friend may also be aware of the difficulties people are having claiming the childcare element of universal credit—the bureaucratic burdens which are compounding the freezes and cuts she is talking about and which mean that families cannot get the childcare support they used to be able to fund relatively easily under the tax credit system.

[Debbie Abrahams]

My hon. Friend makes an excellent point. There are many different aspects to the Government’s still inadequate response on how they will fix universal credit. She has highlighted one, and we heard earlier in oral questions about the debacle of free school meals and how more children will be deprived of free school meals.

What is the Minister’s assessment of the impact of the social security uprating cap on poverty levels? Does he accept the Child Poverty Action Group’s analysis that 1 million more children will be pushed into poverty as a direct result of the cuts to universal credit? Does he accept the Equality and Human Rights Commission’s report on the cumulative impact on disabled people, which estimates that a disabled adult will have lost on average £2,500 a year since 2010?

Despite announcing a small amount of additional investment in the autumn Budget to prop up universal credit, in reality, the Chancellor has only reintroduced £1 for every £10 cut by his predecessor. Why are the Government choosing not to uprate social security payments in a way that reflects the economic reality for those in most need? I remind hon. Members that the Child Poverty Action Group estimates that cuts to universal credit will force 1 million additional children into poverty by 2020. The social security system should prevent people from getting into debt and poverty, not make things worse.

By continuing the freeze on social security payments not included in this order, the Government are subjecting 10.5 million households to an average cut of £450 a year up to 2020. The order was a chance for the Government to recognise the desperate reality for many of the poorest and most vulnerable people in our society, but they have failed to do so. As charities across the sector have been asking, will the Minister ensure the end of the freeze on other social security payments in next month’s Budget statement?

The order allows for discretionary upratings to be made by the Minister where he deems it necessary and appropriate. I want to be clear that we welcome the Minister’s decision to include a 3% uprating to the work allowance element of universal credit in the list of discretionary upratings in these measures, but the reality of people’s lives demands more. This again raises questions about the consistency of the Government’s argument to uprate some social security payments and not others. If he believes that the work allowance element of universal credit should be uprated, as the Opposition do, will he explain why tax credits are not also being uprated by the same amount? Why the disparity?

The Government cut the work allowance element of universal credit in 2015, yet subsequently have recognised the need to uprate it through the discretionary element in the order—although not to a level that reflects the reality of the rising costs of living and previous cuts. Is that an admission that they were wrong to cut work allowances in 2015?

Moving on to the pensions element of this uprating, I welcome the uprating of the state pension via the triple lock. I am glad to see that has survived, given the Government’s indifference to it last year, but I want to put on the record concerns about the public’s levels of understanding of the new single-tier pension and the paucity of information the Government have made available. As we know, there are both winners and losers as a result of the Government’s changes and most new pensioners will not receive the full single-tier pension. Before its introduction, it was estimated that only around 22% of women and half of men reaching state pension age would be entitled to the full single-tier pension. Will the Minister update the House on that?

In addition to the numerous social security payments subject to the Government’s benefits freeze and not uprated in this order, there are some very significant further omissions. Although the state pension is being uprated, people who have frozen pensions are excluded from the uprating and will not see an increase in their state pension in line with inflation. Pensioners living abroad face very different circumstances depending on whether their country of residence has a reciprocal agreement with the UK for the uprating of state pensions. Pensioners in countries without this arrangement see their pensions frozen at their initial retirement level, which means that the value of their pension falls in real terms every single year.

More than half a million people currently have their pensions frozen, mostly in Commonwealth countries such as India, Australia, Canada, parts of the Caribbean and New Zealand, and in countries with strong family and historical links to the UK such as Pakistan and parts of Africa. The Opposition believe that their pensions should be protected in the same way that the pensions of other UK citizens living abroad are in the future, yet the Government are choosing to withhold the pension uprating in this order from 550,000 recipients living outside the UK. This is a chance for the Government to make an historic change to our pension system and support our policy to end future arbitrary discrimination against some British pensioners living overseas by uprating in line with inflation from this point. Will the Minister look again at that issue and take action to address that inequality?

Not only have the Government failed to support pensioners living abroad; they have failed to address the current injustice faced by many millions of women born in the 1950s. It is important that the Government not only recognise the real injustice that women born in the 1950s have been dealt as a result of Government changes to pensions policy, but take action to remedy this injustice.

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[Kate Green (Stretford and Urmston) (Lab)]

While I too am pleased that a number of benefits have been uprated in the Social Security Benefits Up-rating Order 2018, overall I am disappointed in it for the reasons outlined by my hon. Friend the Member for Oldham East and Saddleworth (Debbie Abrahams) and the hon. Member for Airdrie and Shotts (Neil Gray). In too many cases, in failing to offer any uprating at all of certain benefits it serves to embed meanness in our social security system, particularly against the backdrop of rising prices that we have heard about.

We see a number of specific instances in this order where the Government simply say the benefit rate “remains unchanged”—or, in other words, is frozen—despite the rise in prices. We see that, for example, for income support, for jobseeker’s allowance and—I was shocked to see—for the bereavement support grant. We also know from my hon. Friend the Member for Oldham East and Saddleworth that the consequence of the freeze and other cuts will be a very significant rise in the number of children growing up in poverty.

The consequence will be huge hardship for families. We have already seen food bank use rise tenfold over the last decade, and it will increase further. The Institute for Fiscal Studies has reported that the lowest income households are already struggling with personal debt and paying the bills; their situation will simply worsen as a result of these frozen benefits.

I have to say that the decision to impose this freeze for a period of four years is, frankly, wicked. In a civilised society, our social security system is here to meet need, and there is no way the Government can assure this House that it will do so if prices continue to rise over that period while benefits remain frozen.

Contrary to what the Government appear to believe, meanness—a lack of generosity in the system—does not improve its legitimacy. Conversely, one thing that does improve the legitimacy of the system is recognising contribution, so it is depressing that the order misses the opportunity to improve a number of the contributory benefits that it covers. We are in the ridiculous situation where some contributory benefits are being reduced pound for pound from the equivalent means-tested benefit. While this is not a new problem, it is exacerbated by the introduction of universal credit. For example, income-based jobseeker’s allowance in universal credit is not taxable, but contributory-based JSA is deducted from universal credit pound for pound, and it is then taxed into the bargain, leaving the claimant worse off than a claimant who has not contributed. We see a similar situation with widowed parents allowance, which is based on the deceased partner’s contribution record. Because universal credit brings together a number of benefits in one single payment, deductions of contributory benefits can be taken not just from the equivalent income-based component of universal credit but from other help in universal credit such as payments towards housing costs or towards the cost of raising children.

As I say, this problem is not new, but in some respects it is being made worse, and I hope that the House will uniformly agree that to penalise people who have made a contribution in this way is not actually moral. Disregarding at least a proportion of contributory benefit for the purpose of calculating means-tested entitlement would be a powerful recognition that people should be rewarded, not penalised, for making a contribution. That is important for building confidence in the social security system . It is also a matter of simple justice. I find these orders disappointing at best, and in some respects downright cruel, perverse and unethical. I urge the Minister to make good on these defects, and to do so as a matter of urgency.

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[Stephen Lloyd]

The hon. Gentleman might know that an additional aspect of the benefits freeze is that the bereavement support payment is frozen. That is just unacceptable, and I will also keep banging on about the cuts affecting single parents.

[Kate Green]

The hon. Gentleman is absolutely right to highlight how particularly unfair these freezes are to single parents. It is obviously extremely difficult for them, as the sole carer of their children, to increase their family income by increasing their working hours. Does he therefore agree that special attention should be paid to their needs in the benefit system?

[Stephen Lloyd]

I heartily agree with the hon. Lady. There are more than 2 million single parent families, which must involve many millions of children, and the effect on them will be devastating if the Government do not address this matter very quickly. If they leave it for another four years, I can barely comprehend the damage that it will do to many of those children.

I am also disappointed about the employment and support allowance work-related activity group benefit—the WRAG—which is for disabled people whom the DWP recognises as having the capacity to work but who need a certain amount of support in order to get back into work as a consequence of their disability. This is an area that I have been supporting for many years before I came into politics, because I totally share the view of many others in the Chamber that work is the best way out of poverty and the best way to boost self-respect. However, after the coalition—the Liberals would never have allowed this—the Government cut the WRAG payment by 30%. I see that that has not changed. In fact, the Government are looking at removing it completely.

I ask hon. Members to imagine that they have a disability, that they have been unemployed for six or seven years, and that they want to get back into work. They will be supported by their local Jobcentre Plus and by the DWP, but because they have been away from work for a long time, they might lack confidence. They will therefore be gently directed, guided, assisted and mentored into work. I now ask them to imagine what would happen if the DWP then said, “Oh, by the way, we are going to reduce your income by 30%.” What would that do to their self-confidence, and to their determination to stay in the work-related activity group? I can tell them that because human nature is what it is, more and more disabled people will try to move into the support group as a result of this cut, and that will cost the state more. This shows the Government’s complete lack of understanding of disability and of human nature. Bad move!

Turning to the work allowance, one of the first things that George Osborne, now editor of the Evening Standard, did after the Liberals were defenestrated in 2015 was to slash £3 billion per annum from the work allowance. When I was on the Work and Pensions Committee, along with the hon. Member for Stretford and Urmston, I was so supportive of universal credit because, despite all its clunky bits, the work allowance meant that work really did pay. By removing £3 billion per annum since then, which will continue for the next four years, work no longer pays, which is completely counterproductive. The Government have kept all the worst elements of universal credit and have dumped the best element: the work allowance.

I pointed out in DWP questions earlier that universal credit is not working for the self-employed due to the minimum income floor. People who are self-employed may earn x amount of money one month and y the next—it could be less or more—but the way that universal credit is designed can mean that, at the end of 12 months, someone who is self-employed and earned £15,000 will have received less in benefits than someone who is employed and earns £15,000 or £20,000. The Conservative party, which always trumpets itself as the aspirational party, is specifically working against the self-employed, which is absolutely daft. As we know, the Government have abolished housing benefit for 18 to 21-year-olds, and housing benefit payments in the private rented sector have been frozen since 2016.

Personal Independence Payments

Kate Green Excerpts

Wednesday 31st January 2018 Westminster Hall

[Laura Pidcock]

There are hundreds of stories of people with conditions that will not change being reassessed. That is terrible.

There are extensive concerns about the suitability of PIP assessors—that was a clear theme throughout the correspondence—who often do not have the medical expertise to assess claimants with particular medical conditions. A midwife, for example, may assess a claimant with mental health problems, but they will not know every sign and symptom of every mental health condition, as they are not qualified. That calls into question the accuracy of the assessment.

Constituents have told me how brutal and gruelling the medical assessments are, as they lay bare the claimant’s disability and how they cope with it, but they are based on a medical model of disability rather than a social one. One person put it brilliantly: they said the assessment was like a functionality test, and that it did not capture or consider how someone can live their life each day. The fact that assessors do not take notice of professional medical assessments from doctors or psychiatrists, and that that information is considered only at tribunal stage, is not even questioned. Assembling that information at assessment stage is such a waste of energy for people, especially since doctors charge for medical assessment letters. In my view, that cost should be met by the state, not by the person making the claim.

[Kate Green (Stretford and Urmston) (Lab)]

rose—

[Laura Pidcock]

I will take one last intervention, then I must press on.

[Kate Green]

I am extremely grateful to my hon. Friend for giving way. Does she agree that the costs that pile up at tribunal are in part a function of a mandatory reconsideration system that, again, does not look at additional evidence properly?

[Laura Pidcock]

That is right. I will come on to mandatory reconsiderations in a second.

The outsourcing of the assessment process is very much part of the problem. Some 60% of assessment reports completed by Capita healthcare professionals and sent to the DWP were judged to be of an “unacceptable” standard. Neither Capita nor Atos has ever met the DWP contractual target that no more than 3% of reports should be found unacceptable. I wonder what it would take for those companies to lose a contract with the Government. No action is taken, because the Government are ideologically wedded to the outsourcing model, despite such poor results. Incredibly, I have read that those companies pay people bonuses for completing extra assessment reports, which in my view incentivises rushing and contributes to inaccuracies. Many feel as if they have been lied about in their reports—that is all part of the same inadequacies. I have even had reports of healthcare professionals who conduct the assessments asking claimants if they have thought about killing themselves. While I understand that it is a difficult subject to broach, sensitive language needs to used when dealing with such topics; otherwise, it can be damaging and triggering for that person.

If a claimant is not awarded the points they think they are entitled to, or they are told that they are not entitled to PIP, they must challenge the DWP’s decision through a mandatory reconsideration. Constituents of mine, and many people who have been in touch, have said that the process is completely pointless due to the DWP not reviewing medical evidence or investigating whether the decision maker’s report was accurate. Actually, DWP workers feel unable to challenge the assessor’s report. Advice and support agencies also state that hardly anyone has their decision overturned at that stage. I cannot help but think that is just another stage in the process to grind people into submission.

If the mandatory reconsideration process is unsuccessful, the decision must go to tribunal, putting tribunals as well as claimants under enormous pressure. Advice and support agencies say that they are under a great deal of strain, trying to deal with the demand from people seeking representation. Latest figures show that 68% of PIP decisions are overturned on appeal, so the DWP’s systems are clearly not working. That is completely indefensible: all that trial and trauma for claimants to be proved right, if—it is a big if—they manage to go that distance. People have reported that they have to wait over a year for a tribunal date.

What is very clear is that the assessment process is working against claimants entitled to the benefit. Many campaigners believe that the companies who provide medical assessments are heavily encouraged to hit targets by the Government in order to cut the welfare budget, and I believe them. Perhaps it is because there is an ambivalence to these people, or—more likely—because the Government do not see it as the state’s role to provide that support.

Oral Answers to Questions

Kate Green Excerpts

Monday 18th December 2017 Commons Chamber

[Caroline Dinenage]

My hon. Friend is absolutely right to raise this matter. If we look at progress since 2010 across all four of the most commonly used measures of poverty—relative, absolute, before housing costs and after housing costs—without cherry-picking any of the statistics, we see that people are no more likely to be in poverty today than they were in 2010. Indeed, on three of the measures the likelihood of being in poverty has reduced, and the incomes of the poorest 20% have increased in real terms by more than £300.

[Kate Green (Stretford and Urmston) (Lab)]

20. CPI—consumer prices index—stands at 2.8%, food inflation is at 4.2%, its highest for four years, and the big six energy companies have announced price increases of between 8% and 15% this year. That comes against a backdrop of freezes on working age benefits, so is it surprising that people are having to go to food banks?

[Caroline Dinenage]

The Government are committed to building an economy that works for everybody, which is why we have committed to raising the national living wage—we are talking about an increase of 33p. This will be equivalent to a 9% increase in the national living wage since its introduction in 2016. It represents an increase to a full-time minimum wage worker’s annual earnings of more than £600.

Universal Credit

Kate Green Excerpts

Thursday 23rd November 2017 Commons Chamber

[Mr Gauke]

We will have that guidance out in December, so we will be moving quickly on that. This is designed for those who have previously been on housing benefit with an alternative payment arrangement. Of course where work coaches, as they engage with new claimants, identify that the right approach is for an alternative payment arrangement to exist—in other words, the money goes to the landlord—they can take that forward.

[Kate Green (Stretford and Urmston) (Lab)]

I very much welcome the announcement about the housing benefit run-on, and I was even more pleased to hear the Secretary of State say it would not be an advance but an award. Can he say why it will not be available to those who have not previously been in receipt of housing benefit? As he will know, rent arrears have been one of the features of UC that has caused the most difficulty and high levels of debt.

[Mr Gauke]

This housing benefit transitional payment is designed for those people who have previously been on housing benefit, so a claim is already there. That is why we have done this, but may I thank the hon. Lady for her welcome for this policy?