Oral Answers to Questions
Kate Osamor Excerpts(6 days, 7 hours ago)
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Alison McGovern
The hon. Gentleman is right to raise the condition of children living in poverty in this country. That is why, as I mentioned earlier, the child poverty taskforce is doing extensive work on the issue.
Kate Osamor (Edmonton and Winchmore Hill) (Lab/Co-op)
According to the 2022 Migration Observatory report, over 200,000 children are likely to be in families with no recourse to public funds. As the 2022 Work and Pensions Committee report highlighted, those families face particularly tough circumstances without access to benefits. Will the Minister confirm whether the child poverty taskforce is engaging directly with affected families to understand the challenges they face?
Alison McGovern
The child poverty taskforce is considering all children across the UK in all aspects of our child poverty strategy. We recognise the distinct challenges of poverty faced by children in particular groups, such as migrant children, disabled children and others. We are engaging directly with families affected by poverty. We recognise that the causes of child poverty are deep rooted and we will look at all levers to make change.
DWP Risk Review Team
Kate Osamor Excerpts(2 years, 10 months ago)
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Derek Twigg (in the Chair)
Before I call Kate Osamor to move the motion, I inform Members that this debate will conclude no later than 4.55 pm.
Kate Osamor (Edmonton) (Lab/Co-op)
I beg to move,
That this House has considered the Department for Work and Pensions’ Risk Review Team.
It is a pleasure to serve under your chairmanship, Mr Twigg. Today, I will talk about the Department for Work and Pensions risk review team, which was set up in May 2020. The DWP states that the team’s role is to
“review and take action on cases identified”
by the integrated risk and intelligence service as being “a high fraud risk.”
I was first alerted to the team’s existence in October 2021, when my constituency office began to receive contact from what would become a total of 29 constituents who had had their universal credit payments suspended indefinitely under almost identical circumstances. Those constituents are all Bulgarian nationals and tend to have either settled status or pre-settled status. Time and again, my office was told that the cases were under the management of the risk review team, with little to no further explanation of the reason, apart from some claims of suspicion of fraud. Constituents told me that their claims were suspended for months on end—as long as 11 months, in the worst case. Although that particular constituent’s claim has now been restored, they have received no compensation for the hardship caused.
The DWP provides no timeframe for the completion of the reviews, nor a right of appeal. A significant number of those constituents are single mothers who work part time. This situation has left them in a completely crippling financial position and pushed many into serious destitution—relying on food banks, facing eviction from their homes and racking up serious amounts of debt. One constituent, whom I will call Maria, is a constituent of mine only after she lost her home in Liverpool as a result of having her benefits suspended, and subsequently moved to Edmonton.
From the cases my office has been handling, a number of constituents have since had their universal credit payments restored and backdated, as there was no evidence of any wrongdoing.
Jim Shannon (Strangford) (DUP)
I congratulate the hon. Lady on securing this debate. I have constituents coming regularly into my office—you probably do as well, Mr Twigg—asking for help on this matter, although they may not be Bulgarian. Those constituents say that the DWP has asked them for information. I always ask, “Well, have you got that information?” to which they reply, “We are not quite sure.” Does the hon. Lady think that when an application is refused, whatever the reasons may be, the Department should make officers and staff available to help that person to get the right information and respond? The people she mentioned had their benefits restored, but they would not have had to wait had it been done right the first time around.
Kate Osamor
The hon. Gentleman makes a valuable point, which I will come to later. I back everything that he has said, because the claimants need much more support. For many claimants, English is their second language, so the more support the Department can give them, the better.
We have seen few claims disallowed for reasons of constituents failing a habitual residency test, and none that we have seen have had their claims closed for fraud. All that raises a series of questions for the Minister. How many fraudulent claims have been discovered by the risk review team? What justification is being used for the original investigation and suspension of claims? Has the Department undertaken an equality impact assessment to ensure that the process is not resulting in direct or indirect discrimination? I ask those questions because, sadly, there did not appear to be much information publicly available about the risk review team, and the Department appears reluctant to enlighten me further. I wrote to the Minister about these issues on 26 November 2021, and I received a response only yesterday evening. I am very grateful for that response, despite having to chase the Department nearly four times.
I have also asked a series of written questions. In response to one of them, the Minister for welfare delivery stated that as of 24 December last year, 149,000 cases—approximately 3.74% of universal credit claims—had been suspended under the risk review process. We have found out that 3% of claimants in those cases had their benefits reinstated. However, using the argument that to do so would mean incurring disproportionate costs, the Department has so far declined to confirm what has happened to the other 97% of cases.
Let me ask the Minister some more questions. How many claims have been deemed to be fraudulent and subsequently closed? How many claims remain suspended? How many people who we have not yet heard about are suffering in silence, not just in Edmonton but across the country? This issue is especially concerning because the cases I have seen predominantly concern claimants for whom English is a second language. Many face real difficulties accessing services, and that can create barriers to communicating with the Department directly and to accessing outside advice and assistance.
Some appear to have had their claims referred to the risk review team after being unable to answer security questions over the phone. I am unsure how much assistance they are given in the process if there are language barriers. In response to written questions, the Department has stated that there is a “high risk of fraud” in these cases, and that all claims are “suspended pending contact” with the claimant and them providing the requested information. It has also insinuated that the cases are related to organised crime, and yet in our experience the majority of those who are impacted appear to be vulnerable single mums who have done nothing wrong.
I can speak only for my constituency, but the brunt of the policy appears to have fallen overwhelming on Bulgarian nationals. Charities working in the local area, such as Citizens Advice Enfield and the Edmonton Community Partnership, concur with that assessment. From the many organisations I have spoken to that have similar cases, I have heard of Romanian and Polish nationals being affected, but no British citizens or those of other nationalities. Tellingly, those affected are all EU citizens.
Thus far, the Department has said that it does not keep demographic data on nationality, making it impossible to produce conclusive proof, but I understand that the Department does hold data on claimants’ nationality at the point of national insurance number registration. While we remain in the dark about how this opaque team conducts its business, and with the cases that I know about being so overwhelmingly concentrated among Bulgarian nationals and other EU nationals, it is impossible not to suspect that potentially discriminatory practices are being carried out.
Considering the issues that I have raised, I have a series of recommendations for the Minister. First, I urge the Department to change its “guilty until proven innocent” approach. The Department clearly does not have the resources to process the cases in a timely manner. I understand that there are roughly 165 full-time equivalent staff on the team. It seems likely that thousands of people are left languishing for many months, effectively under no recourse to public funds conditions, even if they are entitled to claim benefits and have committed no wrongdoing. Claims should be suspended only if evidence of fraud is found, with the review and an initial decision made prior to that course of action.
Secondly, the team must provide proper assistance to those whose cases are being investigated. It must appreciate the barriers that may exist to providing evidence. The whole process has appeared opaque and complex to my caseworkers and me, let alone someone for whom English is not their first language.
The DWP must also appreciate the barriers to providing documents—learning lessons, for example, from the Windrush scandal—as there may be deeper reasons why claimants are unable to provide certain pieces of evidence. The Independent reported on a Bulgarian national who was subject to the risk review process and was asked to provide every page of their old passport. However, that was impossible, as the Bulgarian embassy in London reportedly takes expired passports when citizens apply for a new one. That should be urgently be looked into, and an equalities impact assessment should be carried out.
Thirdly, the DWP should provide adequate compensation to those who have had their claims wrongly suspended. I know of constituents who have had their lives turned completely upside down, in some cases losing homes and acquiring significant debt, not to mention the stress and anxiety caused by the months of waiting.
Backdating payments does not make up for the impact of the process. Of all the cases my office has dealt with, only one constituent has received any compensation. They were granted a consolatory special payment of £200 because of delays in a mandatory reconsideration decision and the outcome of the risk review action. That sum is nowhere near enough to make amends for the seven months in which they waited for more than £10,000, which they were entitled to receive during that time. We need a proper compensation scheme for those who have been seriously affected by the way that the risk review team has conducted its business.
Lastly, and crucially, the DWP must be more transparent. More than 140,000 claimants have been affected by the risk review team. There must be greater awareness of the way in which it operates. Currently, it appears to be operating with impunity. Guidance should be published on how the team works in identifying and investigating cases. The DWP should also make public how many cases remain suspended, and what percentage of those have been closed after the Department came to the decision that it believed the claim was indeed fraudulent.
Transparency and scrutiny are essential for good governance. Any new policy that may cause negative consequences must be identified and then, ideally, addressed quickly. The hardship being caused to my constituents, which I have spoken about today, may not be an intentional effect of this policy but, for one reason or another, they are getting trapped in this net. It is imperative that we understand why. I urge the Minister to take on board the stories that I have relayed today and to urgently review the operations of the risk review team, with the seriousness that the situation deserves, before many more lives are torn apart.
Oral Answers to Questions
Kate Osamor Excerpts(3 years, 9 months ago)
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Justin Tomlinson
We have increased, in real terms, by £3 billion the support provided to those with disabilities and health conditions, through disability benefits. All of our assessors have at least two years’ experience and extensive training. The Department monitors closely the quality—this is carried out independently—and 92% of claimants have found their experience either satisfactory or better.
Kate Osamor (Edmonton) (Lab/Co-op)
The Parliamentary Under-Secretary of State for Work and Pensions (Will Quince)
In April 2020, legacy benefits were increased by £600 million, and they will increase by a further £100 million as part of the Government’s annual uprating exercise. Support is also available for legacy claimants migrating across to universal credit. Since July 2020, a two-week run-on of housing benefit, income support and income-related employment and support allowance and income-based jobseeker’s allowance is paid to eligible claimants to provide additional support to move to UC.
Kate Osamor [V]
Nearly 2 million sick and disabled people claiming ESA have missed out on £1,000 this year, at a time when they are facing increased costs. The Minister will know that for many of them a transition on to UC would see them significantly worse off. Will he review the Chancellor’s decision to continue to discriminate against those disabled people on legacy benefits? Almost a year into the crisis, what possible justification is there for this two-tier system?
Will Quince
The temporary UC standard allowance uplift was introduced to support those facing the most financial disruption due to the pandemic. Legacy benefits were uprated by CPI—the consumer prices index—last year and will be uprated again by CPI as part of the annual uprating exercise. Claimants on legacy benefits can make a claim for UC if they believe they will be better off. I encourage anybody to go on gov.uk and use one of the independent benefit calculators to check carefully their eligibility, because on applying for UC their entitlement to legacy benefit will cease.
Oral Answers to Questions
Kate Osamor Excerpts(3 years, 10 months ago)
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Will Quince
The universal credit system and tens of thousands of dedicated, incredible DWP staff have processed an unprecedented number of claims—over 3 million since mid-March. It is not just my hon. Friend who is saying this; the IFS slammed Labour’s pledge to scrap UC as uncosted, as well as,
“unwise…expensive, disruptive and unnecessary.”
The Government believe that work should always pay and we need a welfare system that helps people into work, supports those who need it and is fair to those who pay for it. Remember: no Labour Government have ever left office with unemployment lower than when they started.
Kate Osamor (Edmonton) (Lab/Co-op)
The Minister for Disabled People, Health and Work (Justin Tomlinson)
Although face-to-face work capability assessments remain temporarily suspended, we are conducting paper-based assessments where possible. We have also introduced telephone assessments and are trialling video assessments. We closely monitor processing times, and are prioritising new claims and changes of circumstances.
Kate Osamor [V]
In its latest briefing, the Child Poverty Action Group has highlighted the plight of universal credit claimants whose work capability assessments have been delayed indefinitely because they require a face-to-face assessment. These claimants have gone months without hundreds of pounds of extra support, which they need. What assurances can the Minister provide these claimants about when they will be able to access this element of universal credit?
Justin Tomlinson
We are doing absolutely everything we can to ensure that claimants are accessing the support as quickly as possible, which is why we introduced at pace telephone assessments and now video assessments. Wherever possible, we are also conducting paper-based assessments. We continue to do all we can, and we will return to include face-to-face assessments as soon as it is safe to do so.
Universal Credit and Working Tax Credit
Kate Osamor Excerpts(3 years, 11 months ago)
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Kate Osamor (Edmonton) (Lab/Co-op)
I support the motion. My constituents have felt the impact of the pandemic particularly harshly. We have seen some of the highest rates of infection in the country, and the unemployment rate has shot up almost 12%, which is double the national average. As of last August, 16,000 households in Edmonton relied on universal credit and another 11,000 households remained on legacy benefits such as employment and support allowance. Those 11,000 households have been ignored by the Government and have received no £20 uplift. The Government must reconsider that arbitrary decision.
Every week I hear from constituents who are struggling to get by, even with the uplift. The £20 may be nothing to the Cabinet or to the Prime Minister, who complained that he could not afford to live on a salary of £160,000 a year, but for thousands of families across the country, that £20 a week is the only thing that stands between them and the food bank, or being able to pay their rent or heat their home. One of those people is my constituent Sarah, who claims universal credit and has a seven-year-old child. Universal credit only just covers Sarah’s rent and bills. If this cut goes ahead, she will have to choose between falling behind with her rent and staying warm. That is a choice no one should have to make.
That is why it is important to understand the uplift in context. It barely made a dent in the cuts to benefits the Government have made over the last 10 years. Even with the £20 uplift, UK unemployment and in-work benefits rank as some of the least generous in Europe. Only last week, the Prime Minister was asked by my right hon. Friend the Member for East Ham (Stephen Timms) about the £20 cut. In response, the Prime Minister said that he wanted to focus on jobs, not on welfare. Can you imagine how my constituents felt, hearing such a callous reply? This is not a choice between helping people in work and helping the unemployed, because people both in and out of work are claiming universal credit. Many are in low paid work, or may be unable to work due to illness or disability.
This motion argues for a change in priorities. By making this reckless cut to universal credit, the Government will be taking money out of the pockets of the people who need us the most during the biggest recession for hundreds of years. I ask the Minister to cancel the cut and to apply the £20 uplift to the thousands of people in receipt of legacy benefits.
Covid-19: DWP Update
Kate Osamor Excerpts(4 years, 7 months ago)
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Kate Osamor (Edmonton) (Lab/Co-op) [V]
May I remind the House that back in March, when I wrote to the Secretary of State to ask what emergency measures were in place to allow the Department to cope with the increase in new universal credit claims, I was told that the Department would redeploy staff and review priority of work? The Secretary of State has repeated that today. However, I am afraid to say that, months into the crisis, I still have constituents who are being told that the waiting time is eight hours when calling the claim line. As a result, many have been forced to use food banks for the first time. Given the ongoing issues that my constituents are experiencing, will the Secretary of State give resolving the technical and capacity issues the highest priority by providing clearer guidance to the public and the hard-working DWP staff on the correct process for making digital and non-digital universal credit claims?
Dr Coffey
We did have telephony issues, but I am led to believe that they have been significantly addressed, particularly with the “Don’t call us—we’ll call you” campaign. I recommend that the hon. Lady considers asking her constituents to use the journal when necessary. I appreciate that they do not all have internet access, but the average waiting time should now be considerably lower. The last I heard, it was, on average, about five minutes. I ask her to look into that.
Department for Work and Pensions: Members’ Representations
Kate Osamor Excerpts(5 years, 11 months ago)
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Kate Osamor (Edmonton) (Lab/Co-op)
I beg to move,
That this House has considered representations by Members of Parliament to the Department for Work and Pensions on behalf of constituents.
It is a privilege to serve under your chairmanship, Sir David. I am grateful to have been allocated this debate. I wish to raise the serious and worsening effects that the practices and policies of the Department for Work and Pensions are having on those needing welfare support, and the ability of the advice sector and staff, including those in my office, to support claimants. I could raise numerous points, but I will focus on universal credit. I must praise the work of MPs, third-sector groups and the Work and Pensions Committee in exposing the unfolding catastrophe of universal credit, and repeatedly forcing the Government to rethink their approach. Universal credit’s three main objectives are to reduce poverty, to make work pay and to simplify benefits.
Why do I need to raise the serious and worsening effects of DWP practices and policies? Let us be clear: the challenges that our constituents face are immense. Since being elected, I have witnessed at first hand a Government Department that has been increasingly uncompromising and punishing of claimants. That has been ever so evident in the woeful implementation of universal credit and its callous roll-out.
Janet Daby (Lewisham East) (Lab)
I thank my hon. Friend for securing this significant debate. Does she agree that the five-week delay in universal credit is supporting people to get into debt rather than out of it, and that the Government should rethink how that is affecting the lives of real people?
Kate Osamor
My hon. Friend makes a valuable point, which I will come to later. I thank her for her contribution.
There is considerable anxiety among the 16,630 house- holds in Edmonton accessing at least one kind of social support that will be replaced by universal credit. By August 2018, around 2,750 households in Edmonton had been moved to the new system. Many of my constituents have reported multiple significant problems in dealing with universal credit, from understanding the new system, to the transition to universal credit, the excruciating application process, receiving payments, which are mainly late, and the ongoing support—in short, the entire system.
My constituents are not alone in their assessment of universal credit. The National Audit Office said that the universal credit programme was
“driven by an ambitious timescale”
and had
“suffered from weak management, ineffective control and poor governance.”
According to the Child Poverty Action Group, difficulties with claiming universal credit mean that currently one in five applications fails.
A vulnerable constituent of mine made a claim for universal credit in July 2018. It was initially incorrectly refused, even though he had provided all the necessary documentation. Only after challenging the decision was his application accepted in September 2018. Despite the appeal being upheld, he did not receive any universal credit payments until December 2018—almost five months after his initial claim. Let that sink in: it was five months after the initial claim, and he was an extremely vulnerable person.
Emma Dent Coad (Kensington) (Lab)
Does my hon. Friend agree that the bureaucracy facing claimants, including appeals, is too much to bear for people going through such difficulties, and that our constituency staff teams are constantly asked for help that they are unable to give?
Kate Osamor
My hon. Friend makes a valuable point. I will come on to the demand for the legal representation that vulnerable people need.
As I said, my constituent, who was a very vulnerable person, received his first payment five months after his initial claim, and that was only after the relentless persistence of my office. I cannot convey the hardship that my constituent went through in those five months. He was let down by a shoddy assessment of his application.
In areas such as Edmonton, with such high levels of inequality, the suffering has been more intense and more widespread. My role is to fight for equality for all. Achieving equality is not just the right thing to do; the evidence is clear that more equal societies are better, healthier and safer. Such societies have fewer health issues and social problems, are less internally divided, and are better able to sustain economic growth.
On 11 January this year, three single mums defeated the DWP at the High Court over issues with universal credit. They were missing out on hundreds of pounds a year because of the farcical way the DWP calculates income. Lord Justice Singh and Mr Justice Lewis ruled that the DWP had been wrongly interpreting the universal credit regulations. In their judgment, they described the universal credit income assessment process as “odd in the extreme”. Can the Minister confirm whether the Secretary of State will appeal that High Court judgment?
Universal credit is complicit in the Government’s punishing austerity policy, which has increased child poverty to 4 million and rising. The Institute for Fiscal Studies predicts a 7% rise in child poverty between 2015 and 2022. Some sources predict that, if policies remain the same, child poverty rates will reach as high as 40%. In a recent report, the UN special rapporteur on extreme poverty and human rights, Professor Philip Alston, expressed his dismay that one fifth of the UK population—14 million people—were living in poverty, 1.5 million of whom are destitute and unable to afford basic essentials. His report described the immense growth in food banks and the queues outside them, people sleeping rough on the streets, and the growth of homelessness. It is utterly unacceptable that in 2019 millions of people live without food security.
By continuing the roll-out of universal credit, the Government are making it clear that the human cost of austerity is not a priority for them. In recent days, DWP Ministers have been talking of extra funding for universal credit—£1.5 billion to help people by allowing advances of up to 100% on day one, if individuals require it. Let us be clear: that is not extra money in the pocket of those barely getting by; it is debt, pure and simple. The gap between legacy and universal credit payments means that claimants who take up advances start their claims in debt to the DWP. Advances only complicate the process and should not be necessary in the first place.
To make matters worse, the Citizens Advice reported that claimants on universal credit were more likely to have debt problems than those on the legacy system. However, DWP Ministers seem to think that saddling claimants with debt from the start of their claim is a solution to the problem of poor design. The Government pledged an extra £4.5 billion for universal credit across the next five years in the last Budget. However, the benefits freeze is set to continue until April 2020, and there is no guarantee that it will not continue after that, no matter what soundbites emerge from the Secretary of State. The IFS has also made it clear that there are welfare cuts still to come of more than £4 billion per year until 2022-23, which spells more and more insecurity for those who can least withstand it. The Government continue to flatter themselves about ending austerity, but unless they restore humanity into the welfare system, I can only determine that it is a soundbite exercise.
In Edmonton, we are seeing the continued grinding down of local support services and the continuing impoverishment of the constituents who I was sent here as a Member of Parliament to represent and serve. Serving their interests and seeking to aid them is my primary goal, but the scale of issues with accessing universal credit means that Members’ offices are overwhelmed with pleas for help. I have seen an increase in the volume of cases, a large proportion of which are complex and need legal and specialist representation that is harder and harder to find. As a consequence of the DWP’s policies and approach, and in the context of austerity, I—like other MPs—am approaching the point when it will be untenable to make adequate representations on behalf of my constituents.
A key obstacle that my constituents face in accessing universal credit is the overemphasis that the system places on digitisation. According to Neil Couling of the DWP, the system relies heavily on digitisation to process claims and, as a result, less than 1% of claimants lose out. I find that hard to believe, because the reality of digital skills in the UK paints a very different picture. According to the Office for National Statistics, one UK adult in 10 has never used the internet, one in five lacks basic digital skills and 20% of disabled adults have never used the internet. Even a DWP survey reported that 30% of UC recipients found the online process either “very difficult” or “fairly difficult”, while 43% said that they needed more support with setting up their claim. Ipsos MORI’s 2018 UK consumer digital index agreed with DWP findings that an estimated 1.2 million benefit claimants have low digital capability or no digital capability. At times, my staff have had to set up email accounts and give basic IT training to my constituents.
In short, the design of universal credit is fundamentally flawed. It systematically disadvantages or excludes the millions of people in the UK without good digital skills. The over-reliance on digitisation has meant more and more people coming to my office because of issues that they face with universal credit or that originate in problems with universal credit. Given that 30% of universal credit recipients found the online process either “very difficult” or “fairly difficult”, and 43% said that they needed more support with setting up their claim, will the Minister accept that it is time to stop and rethink the over-reliance on the digital process?
Without a doubt, the benefits process is complex for anyone. Consequently, the DWP has helplines available under the legacy system to enable claimants and advice staff to uncover problems and find a solution. However, no such comparable arrangement is in place for universal credit. A working single mother in my constituency faced considerable issues when dealing with universal credit. A mother of three dependent children, she was wrongly advised by her work coach to end her claim for tax credit and claim universal credit instead. Unfortunately, the work coach had not grasped that universal credit was not available to claimants in Enfield with three or more children until 2019. As a result, my constituent’s claim was terminated. Although she had taken steps to apply separately for tax credit, her claim could not be processed because she was deemed to fall within the reclaim period for universal credit. Having just started a new job, she was reliant on benefit income to tide her and her children over until her wage arrived, but she was left with nothing.
She tried to deal directly with the DWP but had no success. She came to my office, but my caseworkers, too, were frustrated in their efforts to solve the problem. DWP staff incorrectly informed us that all third-party enquiries, including representations from MPs, would need to be made via an online portal, which could take more than a month to process, irrespective of the urgency of the representations. It was only after my office escalated the matter to the Secretary of State and to senior personnel on multiple occasions that matters were eventually resolved.
Universal credit left my constituent and her children in poverty. That could have been avoided if there had been key escalation points in place that she or my office could have used throughout the process. When problems emerge, the structures to remedy them are not fit for purpose. For what has proved to be a difficult system, why not introduce an escalation process such as a well-staffed helpline for claimants, Members’ offices and the wider sector? Will the Minister commit to making such changes to the system?
At the moment, the soundbite of the DWP’s approach is to “learn and adapt.” That is the height of privileged detachment. Can the Department really be serious? What are spoken of as problems to be solved as they come up are real people’s lives. What is perceived as a learning opportunity for Ministers is devastation for my constituents. I ask the Minister not to turn a blind eye to these problems, but to look back at universal credit’s three main objectives: to reduce poverty, to make work pay and to simplify benefits. Rather than ploughing ahead, is it not time for the Department to overhaul the system?
Universal credit in its current form simply is not working; it is causing greater poverty, destitution and anxiety wherever it is rolled out. The Government need to commit to a root-and-branch review of universal credit. I look forward to the Minister’s reply.
Kate Osamor
Also, on my visit to the jobcentre, there was a threat of closure and at the time, the visit got dropped, but it was not because I did not want to go there.
Will the Minister answer my question about whether a helpline will be put in place?
Justin Tomlinson
I am sorry that the hon. Lady was not a councillor. I was a councillor before, and I enjoyed it very much. I am sorry that she missed out on that opportunity. I did not pass judgment on the visit—I just said that it would be good if she could make that visit. As a Back-Bench Member, I personally benefited from such a visit.
I brought in a national helpline on personal independence payments when I was a disability Minister. The issue here is a little different. There were national, one-size-fits-all rules on PIP. Universal credit is personalised and tailored, and people need to speak, in effect, to the work coach. What is in place is a partnership manager in every single jobcentre who should be the MP’s point of contact. By coincidence, we recognised earlier this week that we suspect that not all MPs know who their partnership manager is. The Minister for Employment responsible for UC has committed to share that information and to make sure that we all have the details of those points of contact, because they are there to help.
Finally, to pick up on a few points, income inequality has fallen under this Government, having risen under the last Labour Government. The average income of the poorest fifth in this country is now up by £400 a year in real terms, while that of the richest fifth is down by £800. There are 1 million fewer people in absolute poverty, including 300,000 children. There is still much more to do. I pay tribute to the hon. Member for Edmonton and her wealth of experience; she gave a very constructive speech. I hope she can see that many of the points raised are ones that we are actively looking to address, and that is absolutely vital for all claimants and, in particular, for vulnerable claimants. I thank you, Sir David, for the opportunity to set out what the Government are doing.
Question put and agreed to.
Universal Credit (Children)
Kate Osamor Excerpts(8 years, 7 months ago)
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Kate Osamor (Edmonton) (Lab/Co-op)
I thank my right hon. Friend the Member for East Ham (Stephen Timms) for his eloquent introduction to the debate and the Backbench Business Committee for bringing it to the main Chamber.
This debate is of particular concern in my constituency, where there is a high proportion of people claiming welfare benefits. As of April 2015, there were 14,500 people on tax credits, and it is estimated that, by 2020-21, 19,000 people will be on universal credit. According to figures from Child Poverty Action Group, reductions in work allowance under universal credit, introduced in April 2016, will result in a working single parent in rental accommodation losing up to £554 per year and in a working single parent who owns their home losing up to £2,000 per year. In both cases, this is more than double the loss suffered by working couples. The majority of these single parents are women. Once again, this is a cut that comes at the expense of women, who account for 86% of cuts to benefits and tax savings. This figure has increased, not decreased, as a result of the Chancellor’s latest Budget.
A single parent already working full time on the national living wage will have to work an extra 46 days each year—more than two additional working months—to make up what they have lost. While the Government may paint these reductions in income as an incentive to work, for single parents already in full-time work, extra hours are not realistic. Support for childcare might have increased from 70% to 85%, but this will not compensate families for the losses they will suffer as a result of the changes in universal credit. End Child Poverty estimates that 42% of children in my constituency live in relative poverty, which makes it the constituency with the sixth-highest level of child poverty. The four-year freeze on support for children under universal credit is expected to reduce the value of key children’s benefits by 12% by the end of the decade, when creeping inflation will also have added to the cost of living.
In 2011, the Government forecast that universal credit would lift up to 350,000 children out of poverty. In 2013, this figure was amended to 150,000 and the Government today refuse to give a figure. There remain significant gaps between the Government’s aim of making work pay through the new universal credit regime and the reality of families facing huge cuts to their income. I would like to ask the Minister two questions. First, will the Government review the impact of work allowance reductions on working families, particularly working single families? Secondly, will they agree to review annually the decision to freeze most key children’s benefits for four years?
As I have stated, the impact of changing tax credits to universal credits will affect families in my constituency. I am here representing them and trying to get their voices heard in the Chamber, so I ask that the Government take very seriously the effect the changes will have on families and women.
Ms Karen Buck (Westminster North) (Lab)
My hon. Friend is making a powerful case. Does she agree that we should be particularly concerned about the plight of the self-employed—an increasingly large group of income-insecure people? Does she share my concern that about 800,000 self-employed people are likely to lose £1,000 a year as a result of the cuts to universal credit?
Kate Osamor
I totally agree with my hon. Friend. There are many lone workers and people who have their own businesses in my constituency, and they have come to see me in my office to say that they are very concerned because they need to use benefits to top up their salaries. This is an issue that I hope the Government will take into account.
I conclude by asking the Minister to review the impact that work allowance reductions are having on working families, particularly single families. Secondly, will the Government agree to review annually the decision to freeze most key children’s benefits for four years?
Oral Answers to Questions
Kate Osamor Excerpts(9 years ago)
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The Parliamentary Under-Secretary of State for Disabled People (Justin Tomlinson)
I was delighted to join my hon. Friend on the visit to that fantastic charity, which has widespread support including from the Prime Minister and the deputy leader of the Labour party. Technology is key to removing barriers and I am delighted that we have the innovative technology prize—we will be announcing the winner in March—which shows that creating innovation and creating more opportunities will reduce more barriers.
Kate Osamor (Edmonton) (Lab/Co-op)
T3. I have a constituent, a single mother of three, who was declared fit for work despite having ongoing complex mental and physical health problems. Since the verdict, she has phoned my office and she says she cannot take any more. Her doctor has also increased her medication for depression. Will the Government admit that in this instance and many others they are pushing the fit for work test too far and it is having an adverse effect on people’s health?