Health and Disability Reform

Kerry McCarthy Excerpts

Monday 29th April 2024 Commons Chamber

[Mel Stride]

We are considering the issue of parity that my hon. Friend has raised. He is absolutely right to raise the issue of mental health support—occupational health support—within businesses, which is why we have consulted on that matter. I am particularly keen to see what we can do not just for large companies, but for small and medium-sized enterprises, to make sure that they engage more fully in that respect.

[Kerry McCarthy (Bristol East) (Lab)]

A considerable number of constituents have already contacted me because they are worried about what the Government are proposing; the key message they want to get across is that having disabilities or a serious mental illness is not their choice and not something they have control over. The Secretary of State mentions tailored support an awful lot in his statement. My experience is that when people with disabilities have engagement with the system and have to go through the process of making an application, being assessed and so on, that is a cause of great anxiety and often the decisions are wrong. If he is proposing more tailored support and more engagement with bureaucracy, particularly for people with fluctuating conditions such as myalgic encephalomyelitis, how is he going to get it right? He has not managed to get it right so far.

Oral Answers to Questions

Kerry McCarthy Excerpts

Monday 5th February 2024 Commons Chamber

[Paul Maynard]

The UK Government continue to uprate state pensions when there is a legal requirement for that to be done, and have no plans to change their long-standing policy or enter into new reciprocal social security agreements.

[Kerry McCarthy (Bristol East) (Lab)]

15. If he will take steps to simplify the benefits claims process for cancer patients.

[The Minister for Disabled People, Health and Work (Mims Davies)]

Understandably, such a health diagnosis can be a shock for individuals, their families and, indeed, their finances—and I am conscious of saying this just after World Cancer Day. It is important to ensure that people have the right support as soon as possible, and as part of our reforms we will simplify the system to reduce the assessment burden and improve people’s experiences of assessments.

[Kerry McCarthy]

I thank the Minister for her response, but those changes cannot come too soon for my constituent Emily, who was diagnosed with breast cancer in November, is too ill to work, and is finding the benefits system impossible to navigate. DWP officials have pushed her from pillar to post, unable to decide whether she is eligible for employment and support allowance and universal credit. She has been forced to fill in countless forms, and was even required to attend a jobcentre appointment over Christmas, despite being seriously unwell. Does the Minister agree this is simply not good enough, and that we need to put those changes in place so that people like Emily do not have to go through this?

[Mims Davies]

I am sorry to hear about Emily’s situation. I would remind others in her situation that there is a help to claim service available through Citizens Advice and also a benefits calculator on gov.uk, but I would also be extremely keen to see the details of what has happened. I would be happy to meet the hon. Lady or to look at the details, whatever she would prefer.

Oral Answers to Questions

Kerry McCarthy Excerpts

Monday 18th December 2023 Commons Chamber

[Jo Churchill]

I am delighted to congratulate not only Buckinghamshire Council but my hon. Friend on the fantastic work he does in his constituency. Upskilling jobseekers, particularly in areas such as construction where we need more domestic workers, is vital. The Department for Work and Pensions continues to support individuals into employment through back to work programmes such as the restart scheme, which provides tailored training programmes and sector-based work academy programmes similar to those mentioned by my hon. Friend. It offers training, work placements, and guaranteed job interviews, and I am committed to exploring what more can be done.

[Kerry McCarthy (Bristol East) (Lab)]

Earlier today I met Everyone’s Environment, and we talked about how we can ensure that people with disabilities benefit from some of the new green jobs and training that are coming on board. I know that the Minister’s predecessor as Minister for employment sat on the green jobs delivery group, so will she say what involvement she has had with that group to date?

[Jo Churchill]

I have already had a meeting of the inter-ministerial group on green jobs, and I have met many of those from across the disability sector. When I was a Minister in the Department for Environment, Food and Rural Affairs, I sat on the inter-ministerial groups for green jobs and for disability access. It is vital that we use everybody’s talents, because work is a force for good. Someone’s disability should not stop their talent shining, and I will not let it do so.

Oral Answers to Questions

Kerry McCarthy Excerpts

Monday 4th September 2023 Commons Chamber

[Mel Stride]

My assessment of economic inactivity is that it is falling; it has fallen by around 350,000 or more since its peak during the pandemic. That leaves us below the average rate of economic inactivity across the G7, the European Union and the OECD. We are making real progress and will continue to do so.

[Kerry McCarthy (Bristol East) (Lab)]

17. What estimate his Department has made of the number and proportion of unsuccessful benefit decisions that were overturned on appeal in the last 12 months.

[The Minister for Disabled People, Health and Work (Tom Pursglove)]

Our aim is to make the right decision as early as possible in a claim. In 2022-23, there were 80,000 social security and child support appeal tribunal hearings, with 50,000 overturned. We recognise that the overturn rate at appeal is high. However, the numbers must be seen in the context of overall decisions. The majority of appeal tribunal hearings relate to PIP. Since PIP was introduced, 8% of initial decisions have been appealed and 4% overturned at a hearing.

[Kerry McCarthy]

The Minister is being very selective in his use of statistics. The most recent tribunal stats show that an increasing number of cases, the vast majority, are being overturned—something that is certainly borne out by my constituents contacting me. Why are we not getting it right first time? Surely it is a huge waste of resources to be taking so many cases to tribunal?

Disability Benefits: Assessments

Kerry McCarthy Excerpts

Monday 4th September 2023 Westminster Hall

[Justin Tomlinson (North Swindon) (Con)]

It is a pleasure to serve under your chairmanship, Mr Mundell, and to follow the Chair of the Work and Pensions Committee, who is very proactive and thorough in his work. I know from my time as a Minister that the Department takes his views very seriously and constructively. I pay tribute to my hon. Friend the Member for Carshalton and Wallington (Elliot Colburn) for leading the debate, which is of particular interest to many thousands of our constituents, who will be watching it closely, particularly as it comes just ahead of the White Paper.

Before I turn to the assessment process for disabilities, I want to support the point from the hon. Member for Oldham East and Saddleworth (Debbie Abrahams) about supporting the most vulnerable. This is a very complex issue, and there is a huge amount of work to be done. I welcome the fact that the Committee will look in detail at the issue, but there is one very easy fix that would help with all applications. Whether someone is on universal credit or is going through the work capability assessment or PIP process, they should have—if they wish—a named, trusted third party. If, for any reason, they have not returned forms or telephone calls by a certain time, there could be an automatic message to the trusted third party to say, “We haven’t heard back from this person.” In some cases, that may help. There is much more that needs to be done, but I wanted to flag that point.

Turning to the coming White Paper, which this debate is well timed for, there are many lessons that can be learned. We have to be careful about some of the requests we can be tempted to make. If we contrast today’s PIP to DLA—the original legacy benefit—DLA was, in effect, all on the claimants. The forms are still long and complex now, but they were much longer and more complex, and it was all down solely to the claimant. For many people that was fine, but for many others it did not cover all their challenges.

I will come on to the problems with PIP, but there are bits that have worked. For example, the assessment will often tease out things that a claimant may not realise are issues. With PIP, around 32% or 33% of claimants will get the highest rate of support, whereas under DLA it was around 16%. In cash terms, that is around an extra £10 billion a year to support the most vulnerable people in society—a record amount.

We have seen the most marked improvement with people with hidden disabilities. Someone with a mental health condition is now six times more likely to get the highest rate of support than under the old legacy benefits. In many cases, people are aware of their physical health condition and will raise it in their assessment, but the set of questions that are asked then tease out the wider impact in their day-to-day life. That identifies the mental health challenges that people are facing, adding additional points and putting them higher up in the levels of support.

Covid was the trigger for many of our blue sky thinking ideas to become practice very quickly. We had started to engage with stakeholders to talk about the use of telephone and video assessments. There was a nervousness at the time, and we imagined that we would probably have to wait until the White Paper before we could even test the water. However, because of covid, physical assessment centres had to close. We took a decision that we would, in effect, pause those already on benefits, but there were still new people requiring support. We then tested out telephone and video assessments in order to do assessments where there was not sufficient written evidence. They actually proved very popular with stakeholders. I would be interested to know from the Minister how that has progressed since then.

Telephone and video assessments are convenient for people who have issues physically getting to a location. We heard of an example where an assessment centre was not accessible, and there had been a breakdown in communications to warn the claimant in advance of the challenges of getting into the assessment centre. I suspect this point will be echoed by many colleagues today, but these assessments also allow claimants to link up to those with specialist knowledge of their primary health conditions. Pre covid, there were a number of assessors in each assessment centre, and they had to be master of all. They had to have reasonable knowledge of anything that was presented in that geographical location. However, with telephone and video assessments, we could have the motor neurone disease expert based in Dundee doing a video assessment from up there.

[Kerry McCarthy (Bristol East) (Lab)]

That would be particularly useful for people who have fluctuating conditions that may vary from day to day or manifest differently—somebody with ME, for example, can have very different symptoms, experiences and health from another person with the same condition. I endorse the hon. Member’s point; I suppose if I had to ask him a question, I would ask whether he thinks it would be valuable for those people.

[Justin Tomlinson]

Absolutely. It would be valuable twofold. I talk to a lot of the assessors, and I know we are all going to highlight where there are challenges, but something like 95% of claims go through. Satisfaction is still relatively high for those claimants; as I said, we are spending £10 billion. The vast majority of assessors want to get it right first time and want to have that knowledge and support, so if we can allow some assessors to specialise, they can develop their training with charities and health organisations with specific knowledge of the area. That will increase the chance of getting the decision right the first time.

Not everybody presents with one single health condition, so it may be that people would have a hybrid assessment in two parts. There would be a general assessment, which in many cases would pick up things on the mental health side that people did not realise were having an impact on their day-to-day life; there would also be a specific assessment of the primary health condition. As the hon. Member for Bristol East (Kerry McCarthy) so clearly articulates, where people have fluctuating health conditions we really need the knowledge to ensure that we are looking not just at one particular day but, as the guidance says, at the typical impact over a one-year period.

During covid, we had a significantly reduced workforce. All our health assessors have a medical background and then have extensive training, and they were the first port of call for secondments to the NHS to provide the covid jab, so we had an incredibly depleted workforce. That really focused our mind on the volume of assessments. At Work and Pensions oral questions earlier today, I raised a point about whether lessons have been learned on extending the severe conditions criteria. When we looked at it, we estimated that about 250,000 to 300,000 assessments, with a change, could be lifted out of the system every single year. That would speed up the process for those who remain and would obviously be beneficial for those 250,000 to 300,000 people.

At the moment, PIP does not look at individual conditions—it is about the menu of health conditions that have an impact on someone’s daily life—but I think that, in some cases, we can do so. We have shown that with the changes to the special rules for the terminally ill, which will look at health conditions. I will give one example, but no doubt there are many organisations that would lobby for a change in respect of particular health conditions.

Motor neurone disease is a horribly degenerative disease, and there is a pretty clear trajectory once someone has been diagnosed, so I have never understood why on earth we assess people who have it. From the moment they have been diagnosed, we should be able to say, “We expect their condition to go like this,” and then provide an automatic level of support. They would start at the lower level immediately after diagnosis and, as their condition, sadly, deteriorated, they would automatically move on to the highest level. If, sadly, their condition deteriorated more quickly, they would be able to contact the PIP assessors, speak to the MND specialist team, have a light-touch conversation—a GP’s note would probably be sufficient—and be automatically upgraded.

[Justin Tomlinson]

Absolutely, and that was one of the drivers behind our changes to the special rules on terminal illness. From the point of diagnosis, PIP is a gateway benefit that will unlock extra help from local authorities, so it will certainly speed up that process.

Before the Minister panics and thinks that he would need an office akin to Fort Knox because every single health group would lobby him and say, “These rules should apply to our particular health challenge,” let me say that the way around that is to look at the Industrial Injuries Advisory Council, which already operates within the DWP. In effect, that is a separate, independent body of medical and scientific experts with far greater brains than mine. They are the ones who decide which health conditions qualify for industrial injuries benefits. We could apply the same principle and, as medical care and scientific knowledge evolved, they could update the guidance. That could potentially lift 250,000 to 300,000 people out of the process and help some of the most important people. Since the changes on terminal illness came into force, we have seen all pluses and little else. I hope that the Minister’s commitment to trying to pilot initiatives in this area will continue, ahead of the White Paper.

Many colleagues have mentioned the appeals process. There are different ways of looking at the statistics but, by and large, for the vast majority of people who are successful in the appeals process, either at the mandatory reconsideration stage or at the end, that is because of additional evidence that is presented. We have to look at why that additional evidence is being presented so late in the day. There are many things that could be done. The Department could be more proactive in chasing up sources that have supportive evidence. Getting evidence from a GP is a bit of a postcode lottery. Some GPs will reply to a claimant immediately and give chapter and verse; some are much slower. Some will seek to charge. Some do not necessarily have the right information.

Where someone has already gone through a work capability assessment, which is very similar—I know there is potentially a review of whether we should have two separate assessments, but this is the case as it stands today—there will already be a lot of information on a similar system, and we should at least ask the claimant whether they would like us to look at that information. Remember that it is the claimant’s information and we should not do that automatically, but we should ask to bring that information over.

We should be proactive in encouraging claimants to bring a trusted colleague with them to the assessments. That is within the rules, but how assessors allow it is very inconsistent. Some assessors will encourage the colleague to speak. Some will tell them, “No, you’re not being assessed; you are just there to provide moral support.” We need consistent guidelines. In my opinion, they should be allowed to speak. I have sat in on a lot of assessments; a lot of people are understandably overwhelmed, and arguably do not do themselves justice in what they say. Sometimes, when a person has had a condition for so long, they just take it as the norm that, for example, they no longer sleep at night. Their partner who is woken up by their not sleeping at night would probably be better at articulating that. We should be doing that.

We also started testing phoning claimants at the mandatory reconsideration stage and asking them to tell us, in their own words, why they disagreed with the decision. One speaker mentioned earlier that the mandatory reconsideration success rate is only about 11%. My understanding is that when we piloted proactively speaking to the claimant, that figure went up to about 40%; when I talked to assessors doing that at the time, they felt they could go even further. We would invariably find that a claimant’s GP had told them something but they had not provided us with the information, or had not been able to get it, and we could chase the GP on their behalf and get that information.

We also allowed people to be lifted out of the system. In the past, people had in effect to take their chances. They had to wait for the MR, and once they triggered the independent appeal the Department could not come back and say, “Now you have provided us with this evidence, we agree with you and wish to do that,” because they were stuck waiting for the judge, which can be up to a 12-month wait. We changed the rules so we could lift people out, but if people still did not agree with us they had the right to stay in the process. All those measures that can help lift people out of the process would be very welcome.

I also want to highlight the need for us to start signposting support and help. PIP is geared up to identify people’s challenges and then to identify society’s financial contribution towards the impact on their daily lives, but we stop there; we do not signpost people on PIP to additional support that may exist in their communities. I visited many wonderful and innovative mental health pilots across the country—we will all have done loads of visits in the summer recess, seen something and thought, “Gosh!”—but time and again people said to me, “Our problem is that we can’t find enough people to come and test these things out.” Yet the PIP database has the list of all the people who have been identified as having a mental health issue. I am not saying that they should have to do it, but at the very least we should be writing and saying, “Right, you’re in this particular postcode. These are the local charities and organisations, this is the local authority, and these are the local health pilots to do with your primary condition, or menu of conditions, that may be of interest to you.” I think that would be hugely beneficial to many of the people who go through the system.

[Kerry McCarthy]

Recently, I did a Zoom surgery with a constituent who is in receipt of benefits, and she said that what would help her most would be having extra hours of childcare and being able to send her child to nursery for an extra day a week. It could be argued that she could spend her PIP money on buying those extra childcare hours, but it is an expensive business, and she needs her PIP money for other things. Is that—whether there is the potential for that extra support—something the hon. Gentleman has taken into account in terms of signposting? She has been offered somebody who can come into her home and do her cleaning and everything like that, but what she really needs is a bit of respite.

[Justin Tomlinson]

The hon. Lady highlights the point that every single claimant will have their own individual challenges and opportunities. The better the signposting that we give, the bigger the menu of different avenues that can be explored to look at that. That is an important point.

In conclusion, I will make an appeal to the Scottish Government. I regularly met my Scottish counterparts and the Scottish officials, who I must say were absolutely fantastic. As we sought to devolve more and more of the DWP work, our officials and the Scottish officials worked brilliantly. We had very constructive meetings, particularly where the Scottish Government found it challenging to do things as quickly as they had hoped, because it transpires that anything to do with the DWP is a lot more complicated than it seems.

Without a doubt, Scottish colleagues were full of great enthusiasm and ideas, but they sometimes felt that they had to do things differently for the sake of doing things differently. I understand that that helps to strengthen their argument for being their own independent nation—I get that—but these are some of the most vulnerable people in society. I was so frustrated when we made the changes to the special rules for terminal illness—which were, in effect, what the vast majority of stakeholders and health organisations asked for—but the Scottish Government decided, wrongly, to design an even more complicated system than the one that they were rightly seeking to replace. I therefore make this appeal: please continue to work with us constructively, but please do not always dismiss everything as having to be different. Sometimes even we can get it right—even if by accident.

Oral Answers to Questions

Kerry McCarthy Excerpts

Monday 19th June 2023 Commons Chamber

[Mel Stride]

The hon. Lady is absolutely right that economic inactivity lies right at the centre of those elements that will determine our economic success in the years ahead—the others being the levels of inflation and interest rates, and other matters. On what has actually happened, we reached a record low level of economic inactivity just prior to the pandemic. It then spiked up. We have now reduced that spiked-up figure by about 300,000, with a reduction of 140,000 in the last quarter alone.

[Kerry McCarthy (Bristol East) (Lab)]

19. What assessment he has made of the adequacy of waiting times on (a) personal independence payment and (b) employment support allowance claimant inquiry lines.

[The Minister for Disabled People, Health and Work (Tom Pursglove)]

The Department recognises that wait times for the PIP and ESA inquiry line have been too long. To reduce waiting times, we are recruiting more staff and, in the short term, are diverting staff to support better performance. PIP recruitment is expected to reduce waits by the end of summer, while ESA waiting times have improved significantly in recent weeks.

[Kerry McCarthy]

I am glad to hear that action is being taken, although it sounds like it will be quite a long time before it starts to have an effect. I have a constituent, Shani, who has been trying to get a copy of her PIP award letter so she can reapply for a disabled person’s bus pass. She says she has tried to call the PIP hotline on many occasions, but that, “The phone just continually rings out. I’ve tried for hours and it doesn’t matter what time of day I call, it just rings.” I know other MPs’ offices are experiencing the same. May I urge the Minister to act sooner and try to bring recruitment forward so constituents such as mine do not have to wait?

[Tom Pursglove]

I would be very grateful if the hon. Lady could share the details of that specific case with me, so I can take them away to look at. What I can say, hopefully to reassure the House, is that we are seeing 600 additional agents recruited for PIP from April and for ESA 160 additional agents will be put on telephony through both recruitment and redeployment.

Local Housing Allowance

Kerry McCarthy Excerpts

Wednesday 15th March 2023 Westminster Hall

[Hywel Williams (Arfon) (PC)]

I beg to move,

That this House has considered the Local Housing Allowance.

I am grateful and delighted to be able to lead the debate, and to do so under your chairmanship for the first time, Ms Elliott. I am glad to be here.

Housing represents a large cost to many people, but it is becoming increasingly unaffordable. The aim of the local housing allowance, of course, is to help those renting in the private sector, but it is becoming less and less effective because the level of support is increasingly out of step with the actual housing market. Since 2012, LHA rates have been decoupled from the 30th percentile of rents. Some hon. and right hon. Members will perhaps remember when it was coupled to the lower half of the market, rather than the lower third, but there we are—it is now the 30th percentile. Decoupled, it is instead uprated by consumer prices index inflation, 1% or even 0%.

That, in turn, has led to a growing gap between the actual rents that people pay and the amount of housing support that they can receive. It was therefore very welcome —but long overdue—when, in March 2020, in response to the pandemic, the Government increased LHA rates to realign them with the lowest 30% of rents at September 2019. Suddenly, we were returned to the status quo ante. However, that relief was very short lived: inexplicably, the Government froze LHA again in November 2020. Indeed, the Institute for Fiscal Studies said that the policy was

“arbitrary and unfair, and its consequences will only become more bizarre over time.”

Freezing the LHA has two broad consequences. First, the rise in rents is decreasing the amount of housing in the private rented sector available to those claiming housing benefits. Secondly, the support that low-income renters get with housing costs will be related not to the current level of rents in their area but rather to the rents of 2019. A moment ago, I used the word “inexplicably.” However, the Government’s thinking might well be quite obvious. Most commentators see it plainly as a short-term money-saving exercise—short term and short sighted, as the annual cost of maintaining the LHA level in cash terms was forecast to be £840 million in 2022-23, which would gradually fall to £345 million by 2025-26.

The alleged saving is illusory when one factors in the wider economic and social damage that the decision is causing. Previous analysis from Crisis showed that the annual cost of restoring LHA to the 30th percentile would be around £1.1 billion. That would in turn lift 32,000 people out of poverty and save a further 6,000 people from homelessness, which would produce savings of £5.6 billion—a cost of £1.1 billion, a saving of £5.6 billion. Some £5.5 billion of that saving would be on homelessness services, and £124 million on temporary accommodation. Over a three-year period, after the costs are deducted, that would save the UK Government £2.1 billion. That is why one must take the broader costs into account.

That sum is itself not to be discounted—it is a large amount of money—but most importantly, restoring the LHA to the previous level would save vulnerable people and their children from untold misery. That is the real gain. I would say it is unnecessary misery—unless, God forbid, we think that the cut in LHA is in fact an arm of disciplining the poor. Despite that evidence and the growing pressure on the Government, it was bitterly disappointing to see them maintain a freeze on LHA in the 2022 autumn statement. Although I listened very carefully to the Chancellor’s jolly festival of optimism at lunchtime, I did not detect a single word of comfort about LHA.

Despite the housing benefit freeze, rents continue to rise. In the 12 months to January 2023, private rents, in Wales at least, increased by 3.9%, the highest annual percentage change since records began in 2010. The damage being done is quite clear. The Bevan Foundation reports that in the last month only six of the 22 local authorities in Wales had any properties available at or below the LHA rates. The actual numbers are stunningly bad. During the first two weeks of February, only 32 properties in Wales were available at or below LHA rates—just 32 properties for the entire country and just 1.2% of the properties advertised on the formal rental market. In my local authority of Gwynedd, 187 properties were advertised for rent, but only 10 were fully covered by the LHA rates. People should remember that Gwynedd is—if Members will allow me this term—one of the “better” areas, with 10. Many places have none whatsoever.

There is broad consensus across the housing and homelessness support sector in favour of unfreezing the LHA and restoring it to the 30th percentile. Voices such as Crisis, the Select Committee on Levelling Up, Housing and Communities, the National Residential Landlords Association and Welsh anti-poverty organisations—such as the Bevan Foundation, which did the research I mentioned earlier—say that, and I echo those calls. The Chancellor should unfreeze local housing allowance and uprate it to the 30th percentile of market rents as we begin to address the unaffordability of housing.

Last year, I asked the Government in a parliamentary question whether they had made an impact assessment of the decision not to uprate the LHA and about the impact on the proportion of homes available in Wales that would be covered in full by LHA. I was told that no such assessment had been made. That is making policy in the dark. If we do not know what we are dealing with, how can we make policy? I ask the Minister, given that the growing gap between real rents and LHA rates in Wales is plain to see, how the Government can justify not making such an assessment and whether she will do so? That seems to me to be an obvious step to take.

Such an assessment might highlight the way that the LHA freeze perpetuates homelessness and housing insecurity. The shortfall means that people claiming housing benefit are forced to move into properties that are not fully covered by what they receive from the DWP and, often, properties of terrifyingly poor quality. Many hon. Members will have seen the sorts of cases we get—I get them regularly—that involve houses that are essentially unfit for people to live in.

Crisis Wales has said that

“too many people and families are being forced into homelessness because housing benefit simply isn’t sufficient to keep a roof over their heads”.

It is a fundamental failure. Policy in Practice found that for every 10% increase in the number of households experiencing a gap between the LHA rate and rent, the proportion of households in temporary accommodation will rise by 1%. The cause and the effect are quite obvious, I think; there is a congruity and a causality there. There are just more people in temporary accommodation.

Between 2015 and 2022, the number of households that required assistance to avoid homelessness in Wales increased by approximately 9,000, while the estimated number of rough sleepers increased by 69%. The evidence is there if the Government choose to look; if they choose otherwise, and not to look—if they choose to pass on the other side of the road—they will of course not see it. The Bevan Foundation also notes that it is not a coincidence that this all took place at the same time as LHA rates were frozen. Even now, we can see a slow increase in homelessness, with 158 more people in temporary accommodation in Wales between November and December of last year. That is in just one month. I say again that that is at a substantial and unneeded cost to the public purse.

I have another question for the Minister. Will she now assess how much local authorities could save in housing people who are homeless by unfreezing LHA rates, to enable them to sustain tenancies? That is an obvious piece of research, and the answers would be illuminating.

Housing insecurity can also lead to further pressure on other essential costs, such as energy and food, with serious consequences for mental and physical health. That is likely to be one contributing factor in the shocking statistic that 61% of people in Wales report that their mental health is negatively affected by their financial position. The LHA freeze means that emergency discretionary funding, such as discretionary housing payments or DHPs, are being used to plug the gap. Again, Welsh local authorities spent the highest sum of their allocated DHPs in 2020-21. The latest data show they are on course to do the same this year, with a 4% increase in the number of DHPs being spent on local housing allowance shortfalls.

That is all in the context of austerity, of course, as the reduction in DHP funding available to Welsh local authorities in the last financial year amounted to a 27% cut, which follows a reduction in the previous year of 18%. The cuts resulted in the Welsh Government topping up DHP funds last year by £4.1 million. That is the knock-on effect. I again put it to the Minister that there is a fundamental problem when local authorities are using their emergency allocations, and the Welsh Government have to top up the funds due to successive cuts. Does the Minister think that is sustainable in the long term? I do not think so, but I am interested in her opinion.

The LHA freeze is not the only concern. When it comes to the calculation of LHA, it is important to note that the rates sometimes do not accurately reflect market conditions, particularly at the very local level. At present, there is no obligation on landlords to share information on rents they charge, which makes it difficult to secure a true overview of the local rental market. Furthermore, are the broad rental market areas used to calculate each area’s LHA truly representative? They can encompass large areas with multiple rental markets within them. The gradient of change in the markets might be extremely steep, and might not take hotspots of high rent into account.

For example, in my constituency of Arfon we have Bangor University and a student population of 9,000, which is very large relative to the around 20,000 people in the local area of Bangor itself. There might be a severe hotspot there. In more rural parts of north-west Wales, holiday lets might have a significant effect. In the south-east, the removal of the Severn bridge tolls has increased rents in places near the border, such as Newport. People live in the cheaper parts in Wales and drive over to Bristol for their jobs.

[Kerry McCarthy (Bristol East) (Lab)]

The hon. Gentleman mentions Bristol, where this is a massive issue, which is the reason I have come to this debate. A recent inquiry by the Bureau for Investigative Journalism and a local newspaper, The Bristol Cable, found that there were virtually no properties with LHA rates available in Bristol, as he said is the case in his patch. I share his concerns; it is happening everywhere.

[Hywel Williams]

I agree entirely with the hon. Lady. As I said earlier, this affects the entire UK. Indeed, she might be clairvoyant, because I am going to refer that particular point in Wales. My concern, of course, is with Wales, where I know what is happening best. In Arfon, as I said, we have Bangor University and the holiday lets market, and then we have the Severn bridge.

I have asked the Department for Work and Pensions if it plans to undertake an assessment of the accuracy of the mechanism and metrics used to calculate the rate at which the local housing allowance is set and allocated in Wales, and the broad rental market area boundaries, if they are relevant. I was told that those boundaries are kept under review by the rent officers in Wales, and if they decide that a boundary should change, they can submit a review to the Secretary of State for consideration. I ask the Minister: have there been any applications by rent officers in Wales to request a review of broad rental market areas in Wales? I would be interested to know. I believe the BRMA mechanism should be devolved. Housing is already a devolved matter, as are other welfare services. There is a congruence between them, and a reasonable case can be made for them to be under the same authority. We could then redesign the mechanism to be far more responsive to local circumstances.

The local housing allowance is just one plank of the large-scale reform of the housing market. That is why Plaid Cymru secured the inclusion of a welcome commitment by the Labour Government in Wales to introduce proposals for a fundamental right to adequate housing for Welsh citizens, as well as an explanation of the role that a system of fair rents could play in making the private rental market affordable for local people on local incomes. There are also new approaches for making housing affordable. The devolution of housing benefit has a key role to play in that process. Had we control of the funding of housing benefit, we would then do things differently, such as repurposing some of the money into building more social housing. That would allow Wales to move from a model of subsidy to a rent system that subsidises supply. It is a straightforward move.

Welsh Labour has committed, in the co-operation agreements with Plaid Cymru, to advocate for the devolution of the administration of benefits. I asked the shadow Secretary of State, the right hon. Member for Leicester South (Jonathan Ashworth), if he would be prepared to pledge that. He said that I was inviting him to venture into choppy waters. I think that is quite true, but I will just bowl this one at my colleague on the Labour Front Bench, the hon. Member for Westminster North (Ms Buck): will the Labour party in Westminster consider supporting devolving LHA to Wales, as Welsh Labour Members in the Senedd have asked?

To conclude, it is vital that the Government take action to end the housing crisis. Affordable, decent housing should be a right for everyone. Affordability is central to housing stability, and can then reduce stress and increase self-esteem, wellbeing, life satisfaction and a sense of security for people. It can also alleviate crowding, further reducing stress and the spread of infectious diseases. I call on the Government to take action now to address the affordability crisis by unfreezing the local housing allowance.

Oral Answers to Questions

Kerry McCarthy Excerpts

Monday 11th July 2022 Commons Chamber

[David Rutley]

Universal credit supports self-employed people and the Department ensures fairness by treating all sectors equally. I have already talked about the 12-month start-up period, which is designed to strike the right balance between supporting claimants to make a success of their business and protecting public funds.

[Kerry McCarthy (Bristol East) (Lab)]

19. What steps her Department is taking to support people in receipt of disability benefits with the rising cost of living.

[The Minister of State, Department for Work and Pensions (Chloe Smith)]

Six million people in receipt of an eligible disability benefit will receive a £150 disability cost of living payment, as well as the £400 energy bill discount. Many will also be eligible for the £650 cost of living payment for lower-income households, the first instalments of which are being paid this week.

[Kerry McCarthy]

I thank the Minister for that response, but at the time when the then Chancellor came up with that support package in May, Ofgem’s cap prediction was that a typical bill would rise to £2,800 in October. It now looks as though it could be something like £450 more than that, with yet another rise in January. What additional support will whoever the Chancellor is, or will be in a couple of weeks’ time, come up with to ensure people with disabilities can manage to pay their fuel bills?

[Chloe Smith]

The helpful thing I can add here is that disabled people can, of course, also benefit from the package previously announced in the spring statement, which continues in the format of the household support fund. Many millions of pounds have already been allocated to local authorities, which are best placed to direct help to those who need it most.

Oral Answers to Questions

Kerry McCarthy Excerpts

Monday 21st March 2022 Commons Chamber

[Guy Opperman]

The hon. Lady will be aware that the state pension rose by 2.5% last year, in circumstances in which prices were not so rising, and that it will rise by 3.1% this April. Money is also being provided in the form of the cold weather payment, the winter fuel allowance and many other kinds of support, including the £9 billion package announced by the Chancellor and administered by the Department for Levelling Up, Housing and Communities.

[Kerry McCarthy (Bristol East) (Lab)]

24. What assessment she has made of the barriers to work for tenants who are in (a) supported housing and (b) receipt of housing benefit at exempt accommodation rates.

[The Parliamentary Under-Secretary of State for Work and Pensions (David Rutley)]

We are committed to tackling barriers to work for everybody, especially those in supported housing. Through our Plan for Jobs, we are targeting tailored support at people of all ages to help them to prepare for, get into and progress in work.

[Kerry McCarthy]

I welcomed the announcement made by the Minister for Housing, the right hon. Member for Pudsey (Stuart Andrew), towards the end of last week about regulation of supported housing—that is a very good move—but at present there are people in supported housing where there is an exemption from the housing benefit limit, so they could be paying hundreds of pounds a week in rent. My local DWP branch tells me that that is a real deterrent for them to come off housing benefit or universal credit and get into work. What is the Minister doing to address the problem?

[Guy Opperman]

The income taper in housing benefit ensures that claimants will always be financially better off working than not being in work. We believe that maintaining housing benefit in these cases has allowed claimants to continue to receive more tailored financial support for their housing costs than would currently be available through universal credit.

Oral Answers to Questions

Kerry McCarthy Excerpts

Monday 17th May 2021 Commons Chamber

[Mrs Emma Lewell-Buck (South Shields) (Lab)]

What recent assessment she has made of trends in the level of in-work poverty.

[Kerry McCarthy (Bristol East) (Lab)]

What recent assessment she has made of trends in the level of in-work poverty.

[Tony Lloyd (Rochdale) (Lab)]

What recent assessment she has made of trends in the level of in-work poverty.

--- Later in debate ---

[Will Quince]

I thank the hon. Lady for her question, and I know the passion with which she raises the issue. We have measures in place to tackle in-work poverty, and we intend to go further: whether it is our 13,500 additional work coaches in Jobcentre Plus up and down our country, kickstart or restart, or our £30 billion plan for jobs, it will help tackle in-work poverty through progression in work. In addition, we have the In-Work Progression Commission, which will report in the coming months on the barriers to progression for those in persistent low pay and, importantly, set out a strategy for overcoming them.

[Kerry McCarthy]

I have lost count of the number of times the Minister said all the evidence suggests that work is the best route out of poverty. We agree, in that the last Labour Government showed how it could be done, but under this Government it is simply not true, is it? As we have just heard from my hon. Friend the Member for South Shields (Mrs Lewell-Buck), 75% of children living in poverty are in a family where at least one parent is at work. Getting a low-paid and insecure job is not a route out of poverty if parents cannot afford childcare and housing, and if their universal credit will be cut. What is the Government’s strategy for making sure that work does pay?

[Will Quince]

I thank the hon. Lady for her question, but the statistics show that full-time work substantially reduces the chance of poverty. The absolute poverty rate of a child where both parents work full time is 3% compared with 47% where one or more parents are in part-time work. That is why we are supporting people into full-time work wherever possible, for example through our comprehensive childcare offer. As I said, we had a jobs miracle before the pandemic, and, through our £30 billion plan for jobs and with the help of businesses up and down our country, we will again. Part of that is having a welfare system that encourages and incentivises work. With universal credit, that is exactly what we have.