Two-child Benefit Cap and Child Poverty

Kim Johnson Excerpts

Tuesday 11th July 2023 Westminster Hall

[Kim Johnson (Liverpool, Riverside) (Lab)]

I beg to move,

That this House has considered the two-child benefit cap and child poverty.

It is a pleasure to serve under your chairmanship, Mr Pritchard. I am grateful to have the opportunity to lead this debate and raise the issue of the two-child benefit cap and its impact on child poverty. I put on record my thanks to all those who have championed this campaign in the six years since the cruel cap was introduced in April 2017, including the Bishop of Durham and the child of the north all-party parliamentary group on which I sit, who have led and supported the debate in the House of Lords and brought a private Member’s Bill to the other place on this issue. I am also grateful to the End Child Poverty coalition and all the member organisations for their “All Kids Count” campaign and for providing the statistics on the widespread effect of the two-child cap on benefits that I and others will use in this debate.

The explosion of child poverty we witness today has been the No. 1 by-product of the last 13 years of Tory austerity. The current cost of living crisis is adding unbearable pressure to an already critical situation for many families who are struggling to make ends meet.

[Mick Whitley (Birkenhead) (Lab)]

I thank my hon. Friend for the impassioned contribution she is making. Scrapping the cruel and pernicious two-child limit would be the most cost-effective way of reducing child poverty, lifting a quarter of a million children out of poverty in an instant. The Leader of the Opposition has rightly said that the next Labour Government will be laser-focused on eradicating poverty. Does my hon. Friend agree that to that end, our party should make an explicit commitment to scrap the two-child limit in the first days of the next Labour Government and, in doing so, give hope to the 2,700 young people in my constituency who are currently caught in this two-child trap?

[Kim Johnson]

I thank my hon. Friend for his contribution. I believe that the incoming Labour Government should make every effort to look at eradicating poverty in any way, shape or form. We are seeing a resurgence of Victorian diseases such as malnutrition, rickets and scarlet fever. Children are going to bed with empty bellies and going to school unable to concentrate or learn to their full potential. In recent years, we have heard many heartbreaking stories of children mimicking eating from empty lunch boxes or even attempting to erase their hunger by eating paper and erasers. Children are incredibly aware of the stigma of poverty, and the pressure can have lifelong psychological effects on top of the material impact on educational attainment, life chances and associated health problems.

[Ian Lavery (Wansbeck) (Lab)]

It is great to see my hon. Friend bringing this extremely important debate to the Chamber. In the north-east, 12,000 children and families are unable to claim the universal credit benefit because of the two-child cap. Some 5,400 are also not considered eligible because of their child tax credits and their situation with universal credit. Will my hon. Friend say what sort of impact that has on ordinary families not just in the north-east, but up and down the country?

--- Later in debate ---

[Kim Johnson]

I thank my hon. Friend for his intervention. The cap has done immeasurable damage to so many families in this country, impacting poverty and driving more families into poverty and not, as this Government anticipated, into work.

[Margaret Greenwood (Wirral West) (Lab)]

I congratulate my hon. Friend on securing this really important debate. According to the End Child Poverty coalition, more than 2,700 children were living in poverty in my constituency of Wirral West in 2021-22—that is more than 18% of the children. As my hon. Friend has touched on, we know that poverty has an impact on children’s educational attainment, happiness and life chances. Does my hon. Friend agree that this is a scandalous state of affairs, it makes absolutely no sense for us to leave this problem unattended and we must end the two-child limit as a matter of urgency?

[Kim Johnson]

I totally agree with my hon. Friend. We need to end this horrendous two-child policy and ensure all children have the opportunity to thrive and grow and not live in poverty.

Last September, when I hosted an event in Parliament in partnership with the End Child Poverty coalition and the National Education Union calling for universal free school meals to help alleviate child poverty and close inequalities in education and health, we heard from some incredible youth ambassadors. They told us of the stigma of being singled out for free school meals. One said the impact was like sitting in a classroom wearing a badge on their back saying they were poor. Another told us she remembered her mother skipping meals to make sure she and her siblings had something to eat and that now, years later, her own relationship with food and the guilt she associated with eating is still having an impact on her. Members in all parts of the House will be painfully aware of so many similar personal stories from the constituents they work with every day.

Last year the Joseph Rowntree Foundation annual report on UK poverty showed that child poverty in families with more than two children increased from 33% to 47% between 2012-13 and 2019-20, reaching levels not seen since before 1997. In my constituency, 11 children in a class of 30 are living in poverty, and of the 1,400 children in households in receipt of universal credit, 444 are not eligible for extra support due to having two or more siblings born after 6 April 2017.

[Rachael Maskell (York Central) (Lab/Co-op)]

My hon. Friend mentioned the Joseph Rowntree Foundation, which is based in my constituency. It has done work not only to demonstrate that the two-child limit is having an impact on children but also that the benefits base is not focusing on the essentials and the essential costs. On top of that, the broader rental market area is not paying the way on private rent either. Families in my constituency are struggling with the accumulation of cuts and the drawback that the Government have put in place. Does my hon. Friend understand why this Government are punishing children and families in such a way?

[Kim Johnson]

I do not know why the Government are punishing children and forcing them into poverty. It is a crying shame.

These families are disproportionately affected by increases in the cost of living and, as has just been mentioned, are treated punitively by the benefits system. Some 1.3 million children across the country are currently losing out under the cap, with their families losing on average £3,235 directly out of their pockets. With new stats due on Thursday 13 July, the Child Poverty Action Group and Save the Children predict the number will rise to 1.5 million.

[Beth Winter (Cynon Valley) (Lab)]

CPAG has estimated that over 4 million children live in poverty, and that figure is due to rise. More than 5,000 children in my constituency—a third of the children living there—live in poverty. The Welsh Government are currently consulting on their draft child poverty strategy 2023 and there is a big debate in Wales about how we tackle not only child poverty but poverty more widely. Wales is very clear, as Minister for Social Justice Jane Hutt has said, that the two-child limit must be scrapped. Is it not right, and time, that the UK Government listened to the devolved nations and did just that?

[Kim Johnson]

I thank my hon. Friend for the intervention and the Welsh Government for rolling out universal free school meals, and I support her and the Welsh Government in saying we need to end the two-child cap.

Does the Minister really believe it is acceptable for children to suffer more just because of the number of siblings they have? The two-child cap on benefit payments is cruel and ineffective. Larger families are punished, leaving them struggling. A majority—some 55%—of the families affected by the policy are already in work. Black and ethnic minority families and single-parent families are disproportionately impacted, as well as families who rent. The two-child limit creates a huge hole in budgets that simply cannot be plugged by working additional hours. The Government claim that the policy helps to push parents back into work, but after six years, they still cannot provide a single shred of evidence that that is actually the case. The truth is that the policy does nothing to remove barriers, and research from the University of York shows that in some cases, the cap is counterproductive in helping parents back to work.

[Mary Kelly Foy (City of Durham) (Lab)]

I thank my hon. Friend for securing this important debate and for all her campaigning on the issue. I completely with her points about poverty and children suffering, but I have a slightly different concern about this punitive policy. Does my hon. Friend agree that it is an absolute disgrace that the rape clause is still in effect? I ask the Minister not to ignore that point. Why is the clause still on the statute book, and why will the Government not repeal it?

[Kim Johnson]

I thank my hon. friend for raising that important point, and I will come to it later.

Last year, 1,830 mums were forced to declare that they were raped in order to be eligible for extra support for their children—compelled to disclose horrific and personal details. The anguish that this demand creates for women has been found to have an impact on their decisions to terminate pregnancies. Just take a second to consider that. Imagine a woman having survived such a deeply traumatic ordeal, to then be faced with a Government policy that makes her feel she can no longer carry on with her pregnancy. It is so deeply cruel and damaging that we have to ask whether the Ministers who devised that heartless policy had an ounce of compassion between them.

We know that lifting the cap would immediately raise 250,000 children out of poverty, and a further 850,000 out of deep poverty. Campaigners call it the single most effective intervention that would tackle child poverty immediately. It would cost this Government just £1.3 billion. Consider that against the £37 billion that they wasted on a failed test and trace system, the £5 billion that they found for the defence budget in March, or the £9 billion tax cut to corporations and the pensions giveaway for the 1% that they so generously granted in the last Budget.

We know that the money is there to help struggling families, if we can only find the will. Poverty is a political choice, and time and time again this Government have chosen giveaways for the rich and scraps for the rest of us. Inflation is being driven by corporate greed creating record profits for the super-rich. The Government would like us to believe that there is no money to meet basic needs and support struggling families, but the reality is that it is just being hoarded by the 1%.

We are seeing the biggest drop in spending power in 70 years. Total spending on public services is set to be 12% lower in 2027-28 than in 2010, yet the wealth of UK billionaires has more than trebled since the Tories have been in government. With skyrocketing rent and energy bills eating into people’s pay packets, disposable income is being squeezed more and more. The record rise in food prices is pushing millions more into food insecurity.

There is a simple fix for this: enhanced workers’ rights to ensure that work pays enough to live and raise a family. That way, we can ensure that not a single child in this country goes hungry, and no child gets left behind. The evidence is there for all to see. Punishing families for having more than two children does not push parents back into work; it only drives more children into poverty. Tory austerity cuts were nothing less than an ideological drive to rig the economy in favour of the few at the expense of the many, and children in my constituency and across the country are now paying the price. The impact of growing up in poverty can be lifelong. We cannot wait for a new Labour Government to provide these children with a future; this Government must listen now and lift the two-child cap.

This debate is not the first time that I and many of my colleagues here in Westminster Hall today have raised these issues in this House over the years. We know the tired and misleading lines parroted by the Government, pointing to a rise in employment and a drop in absolute poverty over the course of their leadership of the country, so before the Minister gives his reply, I want him to consider the bleak reality of this situation. Work is no longer a route out of poverty. The Tories have undermined workers’ rights and trashed the very concept of work, to the extent that seven out of 10 children living in poverty in this country are in working families. Just let that statistic sink in for a minute: over two thirds of the children who live in poverty in the fifth richest country in the world are struggling because their parents’ wages are not enough to live on and raise a family.

In response to my question to the Prime Minister last month about the two-child benefit cap, the Prime Minister responded in his usual manner, by claiming that his Government had lifted 400,000 children out of absolute poverty since 2010. I am sure that Members in this Chamber would all agree that, on the face of it, that sounds like a really great achievement and one worth celebrating. However, as the Prime Minister and his Government well know, that statistic is misleading and does not take into account the impact of inflation, which is an approach that can only be described as being grotesquely out of touch during a cost of living crisis, when we see security tags put on basic necessities such as nappies and baby milk.

Economists and organisations such as the Institute for Fiscal Studies use “relative poverty” as a much more accurate measure of the reality of the trajectory in poverty, and this measure clearly shows the deepening trend in child poverty that we see every day in our constituencies. I ask the Minister not to take us for fools today. We are here because we know the desperate reality facing so many of our constituents. We are here to demand better for them. We will not continue to go round in circles debating meaningless numbers while the Government continue to bury their head in the sand and ignore the struggles of the people they were elected to represent.

I thank the Minister again for responding to this debate and the arguments that we have made, and I hope that he can feel the strength of feeling in this Chamber today about the facts of poverty.

--- Later in debate ---

[Guy Opperman]

With respect, I do not accept that the figures are rising week in, week out. The simple point is surely this: over the past two years, the taxpayer has contributed £94 billion of support to vulnerable households, and that support is ongoing. For example, the energy price guarantee will remain in place as a safety net and a support for households until March 2024. The cost of living payment, which I can go into more detail on, features a further £150 payment to 6 million people, over and above existing benefits, which have gone up by 10%. Over £900 will go to 8 million households on means-tested benefits over the course of the year. The first £301 payment to those on means-tested benefits was made in April.

For pensioners, an additional £300 on top of the winter fuel payment is being paid to over 8 million pensioner households. Such a degree of support has never been provided before, and whatever people’s views are of this Government—positive or otherwise—they have stepped in to the tune of £94 billion with cost of living support over the past two years. As I say, the first £301 payment was recently issued to local people up and down the country.

[Kim Johnson]

Will the Minister give way?

[Guy Opperman]

I will for the last time—I am attempting to answer some of the points.

--- Later in debate ---

[Kim Johnson]

Although I appreciate that £94 billion has been issued to the most vulnerable, we are in a crisis. Energy, rent and food are spiralling, so the money people have in their pockets is not going far enough. Does the Minister agree?

[Guy Opperman]

The Government have stepped forward and provided £94 billion of support, worth on average approximately £3,300 per household, because they wish to address those particular problems. We are trying to help individuals on an ongoing basis for that reason.

I will try to make some progress. The hon. Member for Liverpool, Riverside made much of the question of tax. She will know that the richest 1% pay a massive proportion of UK tax and effectively have never paid as much as they presently do. Changes to taxable thresholds were a coalition policy, to be fair to the Liberal Democrats. When we started in government in 2010, low earners paid tax on low earnings as well as trying to take their money home. The taxable thresholds have risen repeatedly so that low earners no longer pay tax in that way; in other words, we have a very progressive policy that assists people who are struggling. Between 2016 and 2023, the number of couples in employment with children increased by 713,000, which is a 3.4% increase in the employment rate for that groups. In the circumstances outlined, child benefit continues to be paid for all children in eligible families, with an additional amount for any qualifying disabled child or qualifying disabled young person also payable regardless of the number of children in the household.

Universal credit offers additional help with eligible childcare costs and is also available regardless of the total number of children in the household. We believe we have a balanced system that provides strong work incentives and support for those who need it—all benefits have been uprated by more than 10%—while ensuring fairness to the taxpayer and the many working families who not only pay the bills we are talking about but do not see their incomes rise when they have more children.

The Government believe the policy to support a maximum of two children is a proportionate way to achieve these objectives. Similarly, the benefit cap provides both a strong work incentive and fairness for hard-working tax-paying households. It encourages people to move into work wherever possible. The work incentive introduced by the Government will also support people to move into work and increase their earnings, which will significantly increase the likelihood of a household not being affected by the cap. Universal credit households with earnings of £722 a month are also exempt from the cap.

I finish on a couple of key points. Clearly, there is a massive amount of cost of living support. However, I respectfully say that universal credit should be lauded and supported. I do not believe it is Labour party policy to scrap the two-child policy, but whatever happens there is no question that the legacy system that could not in any way cope with variable earnings and allow people to progress in work has been rightly replaced by universal credit, which allows people to work while also being constantly supported and in a position wherein they are never worse off under universal credit.

In conclusion, I welcome the contribution of the hon. Member for Liverpool, Riverside to the debate and I share her concern that children should be supported by the social security system. I respectfully suggest that there is ample evidence showing that that is the case. We are very much of the view that—whether it is through the 10% benefits increase, the £94 billion of support to vulnerable households, the uprating of the national living wage or the work of jobcentres up and down the country to support in-work progression—there is support out there.

Question put and agreed to.

Cost of Living Increases: Pensioners

Kim Johnson Excerpts

Monday 21st March 2022 Commons Chamber

[Kim Johnson (Liverpool, Riverside) (Lab)]

It is clear from the absence of Conservative Members that this Government do not care about pensioner poverty, but even before the pandemic, people in Liverpool, Riverside and constituencies across the country faced significant financial difficulties, with the roll-out of universal credit, the impact of the bedroom tax, the increase in unscrupulous employers using precarious zero-hours contracts, and the stagnation in welfare benefits and pensions. It is a sad indictment of this nation that our pensioners now face the prospect of real-terms reductions in their state pension, with cuts of hundreds of pounds a year.

The Government, having failed to take action on household energy bills, now propose to make people take out a loan—to be spread over five years—to cover the spiralling cost. That is wholly unacceptable. Pensioners face the prospect of a crippling cost of living crisis, with petrol, food and energy bills skyrocketing, and an increase in food banks.

While inflation is set to increase to over 8% and home energy bills to skyrocket by more than 50%, what have this Government chosen to do? Have they chosen to go after the billionaires, or the oil and gas giants, which tell people to wrap up in layers or hug a cat to keep warm? No, they have chosen to place the burden on those least likely to be able to afford it. This Government have once again chosen to attack the worst off, offering a pitiful 3.1% increase to pensioners and those on benefits.

Twelve years of austerity cuts—a political decision—have meant that one in five pensioners is living in poverty and half a million more are living in debt. They are living in poorly insulated homes and paying more for energy on prepayment meters, which means that the small amount of money they have has to stretch further. My constituency has some of the highest levels of in-work poverty in the country, and almost one in five people in my constituency is over 60.

The cost of living crisis is impacting constituents in Liverpool, Riverside, with 85% experiencing more expensive energy bills and nearly 70% paying more for fuel and transport. Nearly one third of the constituents I represent have lost income due to the cut in universal credit. The 54% increase in fuel costs will push more constituents into financial crisis at a time when the profits of gas and oil giants have soared. Can the Minister tell us what is stopping the Government capping energy price rises, as France has, at 4%?

The condition of housing stock is a real concern. One in five homes headed by someone aged 60 or older is so poor that it impacts their health and wellbeing. Last year, almost 9,000 people died in England and Wales because their homes were too cold and damp. We are the fifth richest country in the world; elderly people should not be dying because they are unable to heat their homes. Everyone deserves to grow old in dignity, but here, in the fifth richest country in the world, we are forcing the oldest generations into desperate poverty and making them choose between heating and eating. The Government must choose to protect the people they are here to serve, and not the wealthy companies that have benefited financially through the pandemic. Will the Minister commit to Labour’s plan for a windfall tax on energy giants to ensure the cost of living crisis is borne by those with the broadest shoulders?

The Minister mentioned earlier that the Government are doing their best, but their best clearly is not good enough. They need to accept the catastrophe they are causing, tax the billionaires and energy giants to cushion the living costs of those most in need, and reinstate the triple lock immediately. The ugly truth of the matter is that thousands of people will not survive the cost of living crisis unless the Government act immediately.

DWP Estate: Office Closures

Kim Johnson Excerpts

Thursday 17th March 2022 Commons Chamber

[David Rutley]

DWP has too much estate. Recent calculations estimate there is capacity for 158,000 people, but the maximum headcount is forecast to be around 97,500 people. We need to ensure that we use that estate as effectively as possible, both for our colleagues and for the taxpayer. We want to refocus colleagues to work in clusters so that they can most effectively support customers and claimants, but at the same time help them to improve and develop their careers.

[Kim Johnson (Liverpool, Riverside) (Lab)]

Many of the closures are in disadvantaged areas, including Liverpool, which cannot afford to lose good-quality public sector jobs. Can the Minister explain what he is doing to support those areas?

[David Rutley]

As I have said to other hon. Members, our top priority right now is working with the staff and supporting them through the changes. Most of the colleagues affected will be moving to other facilities that are really close by. In terms of the impact on the specific communities involved, typically the number of staff involved in a particular area is quite small. However, we will seek to see what we can do to improve. I do not have the details in front of me, but I am sure there will have been new, front-facing Jobcentre Plus offices put in place in Liverpool, because that is our commitment to help more people to get into work.

Social Security and Pensions

Kim Johnson Excerpts

Monday 7th February 2022 Commons Chamber

[David Rutley]

We recognise that these are challenging times, and that is why, as I said to the hon. Member for Strangford (Jim Shannon), the Chancellor set out last week what we are doing to support vulnerable people with the rising costs of energy. We are taking steps to recognise and lean into the peaks in the inflationary pressures that we are seeing not just in the UK, but globally. We recognise the impact that global increases in energy prices are having on household finances. As the Chancellor announced recently, from 1 April the energy price cap will rise from £1,277 to £1,971—an increase of almost £700 in energy bills for the average household. We are introducing crucial and timely measures to help with the increased costs, as part of a comprehensive package of support worth £9.1 billion in 2022-23.

[Kim Johnson (Liverpool, Riverside) (Lab)]

More than 30 leading anti-poverty groups, including the Child Poverty Action Group, the Joseph Rowntree Foundation and the Trussell Trust, have warned that this motion will drive the most vulnerable deeper into poverty and misery, and they call on the Government instead to uplift benefits by 6%. Does the Minister accept that that needs to happen?

[David Rutley]

As I have been setting out in my opening remarks, we are taking forward this step in combination with a raft of other measures to help residents in this country face the challenges ahead. In fact, as part of the three-point plan, we have a £200 discount on energy bills this autumn for domestic electricity customers in Great Britain that will be repaid automatically over the next five years. There is a £150 non-repayable rebate on council tax bills for households in bands A to D in England; that is 80% of households. Of course, there is £144 million of discretionary funding for local authorities to support households who need support but are not eligible for the council tax rebate.

Universal Credit and Working Tax Credits

Kim Johnson Excerpts

Wednesday 15th September 2021 Commons Chamber

[Kim Johnson (Liverpool, Riverside) (Lab)]

This cut to universal credit is perhaps one of the most callous and cruel policies this Government have proposed, and we have a long list to choose from. After more than a decade of brutal austerity measures and chronic Tory mismanagement, absolute poverty and child poverty were soaring even before the devastating impact of the pandemic. In my Liverpool, Riverside constituency, where child poverty, relative poverty and absolute poverty already soar above the national average, it amounts to more than 3,200 families and nearly 6,000 children.

This draconian Tory Government are dangerously out of touch with the reality of millions. They have no comprehension of the reality of poverty, of missing meals and going cold. They claim that the need for fiscal responsibility overrides the need for just and fair policies, as if the two are mutually exclusive and as if economic prosperity cannot exist without inequality and poverty. The cut of £1,000 from the pockets of those most in need is the ugly face of that ideology of class warfare—let us call it what it is.

As a black, working-class woman born and raised in Liverpool, I know full well the impact of this class warfare. Thatcher’s policies of managed decline in the 1980s threaten to pale by comparison with the cruelty of this Tory Government. The bare, honest truth is that this cut is not fiscally competent. Hitting workers’ spending power with cuts to universal credit, a rise in national insurance contributions, a public sector pay freeze and a personal income tax freeze is not the economic competence that the Tories claim. It is the opposite.

Instead of taking money out of the pockets of those most in need, the Government must wake up to the reality facing millions of families who will be pushed into Dickensian levels of poverty and misery. I call on Members on both sides of the House to cancel this cut.

[Madam Deputy Speaker (Dame Rosie Winterton)]

Before I call the Front Benchers, I should say that they have agreed to cut down their contributions to allow everybody to get in.

Covronavirus, Disability and Access to Services

Kim Johnson Excerpts

Thursday 15th April 2021 Westminster Hall

[Kim Johnson (Liverpool, Riverside) (Lab) [V]]

It is a pleasure to serve under your chairmanship, Sir Graham. This pandemic has been one of poverty and inequality. Pre-existing health, housing, employment and income inequalities have combined to form a perfect storm for disabled people.

In my role on the Women and Equalities Committee, I have listened to so many heartbreaking and shocking stories of the barriers that disabled people have faced during the pandemic. Disabled people have overwhelmingly been abandoned without the basic support they need to survive or live in dignity—from the suspension of local authority’s legal responsibilities to provide basic social care, to the reduction of access to activities and day centres, to an increase in isolation and loneliness, and difficulties in accessing healthcare, education and even food.

Mencap’s “My Health, My Life” report into inaccessible healthcare during covid highlighted some truly shocking realities faced by people with a learning disability during the pandemic. Some people with a learning disability were told that they may not receive life-saving treatment. Some were encouraged to avoid hospital and were asked to consent to DNRs. Overstretched and under-resourced hospitals meant there was a reduction in learning disability nurses, and some acute learning disability nurses were redeployed to other units.

While we welcome the Government’s commitment in their written response to the report to more funding for local authorities, their reference to the recent hike in the social care council precept raised concerns that they intend to place the burden for social care on those least able to pay for it. Such an approach is both unfair and completely unable to meet the scale of the challenge. This Government are in denial of the social care crisis that we are facing.

Can the Minister explain how this Government can claim a levelling-up agenda while forcing the costs of the crisis in social care on to the worst-off through this regressive taxation? About 60% of people in the UK who have died from coronavirus are disabled. Will the Minister please explain in clear terms why the Government have not taken up our report’s recommendation for an independent inquiry into the disproportionate deaths and adverse outcomes for disabled people from the pandemic? Also, why did the Government reject the recommendation for a statutory code of practice on the public sector equality duty?

We are having this debate in the most tragic of circumstances. What will it take for this Government to act? Disabled people’s lives must be valued equally. This Government have a responsibility to take action against the disadvantage and discrimination that put the mental and physical health of disabled people at risk. To do that, the Government must commit to full and transparent engagement with disabled people and groups about their concerns during the pandemic when forming a proposed national strategy for disabled people, upholding the principle of “nothing about us without us”.

Everyone has the fundamental right to live in safety and in dignity, with full access to health, social care and education. The report and the evidence we have heard has shown that we have failed disabled people by not upholding these basic rights during the pandemic. The report must be a turning point. The Government must investigate their failures, involve disabled people in developing a national strategy to uphold, protect and strength the rights of disabled people, and commit to significant and progressive funding to tackle our crisis in social care and ensure that disabled people can live in safety and in dignity.

Social Security

Kim Johnson Excerpts

Tuesday 2nd March 2021 Commons Chamber

[Kim Johnson (Liverpool, Riverside) (Lab) [V]]

I welcome the opportunity to speak in this important debate and recognise the thousands of Liverpool constituents affected by asbestos-related diseases. I would like to start by paying tribute to the fantastic work of the Merseyside Asbestos Victim Support Group, which has assisted thousands of victims in obtaining welfare benefits and civil compensation, as well as providing invaluable community support for victims and dependants of meso and other asbestos-related conditions.

I welcome this move to increase payments in line with inflation, and the uprating being applied to all disability benefits. However, while I welcome the fact that it has been regular practice to agree the uplift, we must make moves to ensure that the annual uprating of the schemes is placed on a statutory footing and that more is done to ensure parity of payments to dependants. Can the Minister tell us what the Government’s latest estimate is of the cost of providing equal payments to dependants, at a time when covid has left cancer patients waiting longer for diagnoses, treatments and surgery as well as facing the heightened health risk of contracting the virus itself? The automatic uplift is especially welcome in this difficult context.

Coronavirus has revitalised our focus on occupational health hazards, and I would like to take this opportunity to pay tribute to the incredible key workers who are continuing to lay their lives on the line every single day to keep our country running and to care for those in need, and especially to the thousands who have sadly paid the ultimate price. The pandemic has also highlighted the vital role of the Health and Safety Executive in keeping us safe at work. However, cuts over the last 10 years by the Tory Government have seen the number of health and safety inspectors drop by a third. Those cuts have left workers at risk in unsafe conditions.

Despite figures released by Public Health England last month showing that there had been 3,500 covid outbreaks in workplaces including offices, factories and construction sites since last July, the Government have defended their decision not to place covid in the highest risk category, and the HSE enforcement database has revealed that no covid-related prohibition notices have been issued since the pandemic broke out. A decade of devastating cuts has turned the Government’s health and safety watchdog into a lapdog, and without better funding and increased enforcement, which can only come from placing coronavirus in the highest risk category, workers’ lives will continue to be at risk.

The TUC has called covid

“the most serious workplace safety hazard in a generation”.

More than 10,000 workers have died from the virus and many others are now living with long-term health problems as a result of it, yet the Government have so far made an extra £14 million available to the HSE during the pandemic, which does not even begin to scratch the surface of the cuts of more than £100 million in the past decade. I want to take this opportunity to call on the Government to recognise the need to keep workers safe in their workplaces and to take significant steps to provide the HSE with the funding and powers it needs to keep our key workers safe as they work to keep us safe.

Covid-19: Child Maintenance Service

Kim Johnson Excerpts

Thursday 21st January 2021 Commons Chamber

[Kim Johnson (Liverpool, Riverside) (Lab) [V]]

I congratulate the hon. Member for Motherwell and Wishaw (Marion Fellows) on securing this very important debate. 

Given the immense pressure our welfare system has been under as a result of coronavirus, it is understandable that thousands of Child Maintenance Service staff were redeployed to help the team at the DWP to process universal credit applications and payments to meet the unprecedented demand during the pandemic. I thank them for all their hard work during this very difficult period. However, the Government neglected to consider the difficulties it would cause to single parent households. In reducing the CMS to skeleton staff, children and single parents, 90% of whom are women, were left without protection. Hundreds of thousands of receiving parents are being left to struggle with missed payments that are not being chased up. Missed payments are spiralling into hundreds of millions and many families are now struggling to cope. Can the Minister tell us what plans the Government have to make up the backlog of receiving parents who have arrears owed to them, especially with the added financial difficulties due to the pandemic?

Last year, a survey of single parents conducted by leading charity Gingerbread uncovered that three quarters of single parents have had—[Inaudible.] to food banks or charities to survive. Only 16% had received the full amount of maintenance they were due each month. On average, single parents are owed more than £9,000 in back payments. The Government need to get a grip on this situation urgently and ensure that parents who owe child maintenance pay their fair share.

We must remember that these families are already among some of the worst off. They are now forced to deal with cuts to this vital lifeline, often alongside further loss of income due to the coronavirus. In my own constituency of Liverpool Riverside, a massive 40% of CMS cases in the collect and pay service are not currently in payment. This is broadly in proportion to the rest of the country, demonstrating a staggering shortfall in payments to single parents.

The situation has been worsened by coronavirus, but these issues run far deeper. In June last year, we saw four single mothers launch court action against the DWP to challenge the persistent failure of the Child Maintenance Service. At that time, £354 million was owed to single parents and only 10% had been recouped by the CMS through enforcement actions. It is a child’s legal right to be supported by both parents, but we have seen the service, designed to uphold that right, failing children and leaving many in poverty. Given that almost half of children living in single parent households already live in poverty, this triple whammy—of lost income due to covid, extra costs associated with looking after children not attending school and now losing out on vital child maintenance income—is leading to unimaginable hardship.

With the economic situation worsening every day, the Government need to take bold action now to avoid families being impoverished further by UK Government failure. Can the Minister tell us how the Department is working to reconcile staff shortages with a reduced assessment period of 12 weeks to two weeks for parents with a change in their earnings, particularly given the rise in unemployment? Will the Government consider offering direct payments to single parents not receiving maintenance without it having an impact on any of their other benefits?

These payments make the difference between a family keeping their heads above water and plunging into poverty. We need to see the Government commit serious funding to our welfare system, including CMS, to ensure that single parents and their children are protected at this time of crisis and into the future.

Oral Answers to Questions

Kim Johnson Excerpts

Monday 19th October 2020 Commons Chamber

[Will Quince]

The hon. Lady is right is that she has asked this question on three occasions, and she has had three answers. The legacy benefits were increased by 1.7% in April 2020, following the Government’s announcement to end the benefit freeze. It has always been the case that claimants on legacy benefits can make a claim for universal credit if they believe that they will be better off. There are special arrangements for those in receipt of the severe disability premium, who will be able to make a new claim to UC from January 2021. But it is important—I stress this—that claimants should check their eligibility before applying to universal credit as legacy benefits will end when they submit their claim and they will not be able to return to them in the future.

[Kim Johnson (Liverpool, Riverside) (Lab)]

What assessment she has made of the effectiveness of resuming (a) benefits sanctions and (b) welfare conditionality during increased levels of unemployment as a result of the covid-19 outbreak.

[Jeff Smith (Manchester, Withington) (Lab)]

What assessment she has made of the effectiveness of resuming (a) benefits sanctions and (b) welfare conditionality during increased levels of unemployment as a result of the covid-19 outbreak.

[The Parliamentary Under-Secretary of State for Work and Pensions (Mims Davies) [V]]

Evidence suggests that active labour market policies can be even more effective during recessions. We will continue to encourage claimants to prepare and look for work where it is safe to do so. Claimants will not be subject to conditionality until they have agreed a new or updated claimant commitment. We firmly believe the best way to support claimants is through empowered work coaches who engage proactively with claimants to help them identify the options they need to build on their skills, increase their confidence and return to employment.

[Kim Johnson]

Non-existent jobs. Liverpool has had the second highest unemployment increase in the country since March 2020. Our claimant rate has more than doubled from 12,000 to 32,000, and we now have the highest unemployment rate in the country. There are a further 27,000 people on furlough in our closed hospitality sector who will either be let go or have to survive on 67% of their wages come November. With benefits sanctions being reintroduced and welfare conditionality being reinstated, what evidence do the Government have that this is benefiting claimants and preventing a return to the high unemployment of the ’80s?

[Mims Davies]

I stress to the hon. Lady that sanctions are only used when claimants fail to meet their conditionality requirements without good reason. As I said in my previous responses, work coaches will work to ensure that any requirements set are reasonable, taking into account the claimant’s circumstances and, crucially, the situation in the local labour market, while allowing them to adhere also to public health advice. We are absolutely determined to help people back into work, giving them the power to do that, and the way we can do that locally in Liverpool is through the flexible support fund and other measures.