Oral Answers to Questions

Kit Malthouse Excerpts

Monday 5th February 2018 Commons Chamber

[Nic Dakin (Scunthorpe) (Lab)]

3. What assessment she has made of the effect on employment and support allowance claimants’ income of changes to support for mortgage interest.

[The Parliamentary Under-Secretary of State for Work and Pensions (Kit Malthouse)]

All claimants will be offered a support for mortgage interest loan paid at the same rate that is currently available as part of their benefit entitlement. There will therefore be no impact on their income. Claimants will pay back the loan only on the sale or transfer of the property, when the loan will be recovered from any available equity.

[Nic Dakin]

My constituent, who is registered blind yet has paid into the system all his working life, asks how it can be fair that tenants continue, quite rightly, to get support now, but 100,000 or more people like himself are losing that interest support with their mortgages. It is not good enough to say that they will get it back at the end. This is affecting people now. People are worried about their futures and worried about their incomes now. It is not good enough.

[Kit Malthouse]

Mortgage support is being offered at exactly the same rate as currently. The only difference is that it is now being deferred as a loan recoverable against any equity available in the house should it be sold in the future. Current participants in the scheme should see absolutely no difference unless and until they sell or transfer the house, at which point the taxpayer will recover the support offered.

[Jessica Morden (Newport East) (Lab)]

21. This change to support for mortgage interest will hit very hard thousands of low-income households, half of whom are pensioners. Does the Minister acknowledge that this change has not been well publicised and that, at the very least, the Government should pause and communicate what it will actually mean for people financially?

[Kit Malthouse]

We have to recognise that we are dealing with support for people who are accumulating what is often a very significant capital asset, and it seems only right that when equity becomes available the taxpayer is able to recover some or all of the support. There has been significant communication on the scheme with the people who are participating in it, and that is continuing. There will be between four and six written communications, and people will be invited to call a telephone number where they can obtain information from a third-party adviser before we get to April, when the scheme comes into play. I am confident that the people who are participating in the scheme at the moment will have enough information. Certainly, large numbers are making a decision either way at the moment.

[Carol Monaghan (Glasgow North West) (SNP)]

I have been contacted by a number of constituents about this issue, including a Mr Milne, a veteran who is surviving just now on a meagre state pension. He fears that this change will force him to sell his house or to have it repossessed. What assessment has the Minister made of the impact of this change, particularly on pensioners?

[Kit Malthouse]

There is absolutely no reason for anybody to fear forced sale or repossession of a house, not least because the scheme is specifically designed to avoid exactly that. If Members have specific cases where constituents have concerns about the operation of the scheme, I will be more than happy to take them up. If the hon. Lady writes to me about that case, I will provide a response.

[Lucy Allan (Telford) (Con)]

4. What steps the Government are taking to ensure the continuation of funding for supported housing.

[The Parliamentary Under-Secretary of State for Work and Pensions (Kit Malthouse)]

We have recently completed consultations on the funding models for short-term supported housing and sheltered housing, and will provide a response in due course. We will come forward with our proposals for long-term supported housing by 2020.

[Lucy Allan]

My hon. Friend is making some useful and valued changes. Will he assure the House that accommodation costs for short-term supported housing such as women’s refuges will continue to be funded at existing levels, with the new grant to local authorities being ring-fenced?

[Kit Malthouse]

It is typical of my hon. Friend that she has the welfare of her most vulnerable constituents at the forefront of her mind. I can confirm that the current proposal on which we have just consulted is that the section 31 grant paid to local authorities for provision of refuges and other short-term supported housing will be ring-fenced.

[Mr Clive Betts (Sheffield South East) (Lab)]

The Government’s proposals are an improvement on their initial proposals, but one element has brought criticism from virtually all providers, and that is with regard to short-term supported housing. My Select Committee has recommended that for emergency very short-term accommodation of around 12 weeks, there should be a ring-fenced grant to local authorities. The Government have changed the definition of short term from 12 weeks to two years, which all providers have condemned. Will the Government think again and bring accommodation lasting two years into the welfare system?

[Kit Malthouse]

We are in receipt of a significant number of responses to the consultation, which only closed a couple of weeks ago, and we will consider those over the months to come. I would be more than happy to meet the hon. Gentleman to discuss those concerns with his constituents if they wish to do so.

[Mary Glindon (North Tyneside) (Lab)]

The Government have promised that all short-term provision currently funded by the welfare system will continue to be funded at the same level by local authorities until 2020, but will the Minister confirm that there will be no cut in funding after that?

[Kit Malthouse]

Given that I am not a Treasury Minister, I am not in a position to confirm that, but it would certainly be our aspiration to provide the current level of support, or indeed enhanced and better performing support, which is the purpose of the changes, in the future.

[Colin Clark (Gordon) (Con)]

6. What assessment she has made of the effectiveness of universal credit in helping people into work.

--- Later in debate ---

[Karen Lee (Lincoln) (Lab)]

15. If she will make an estimate of the number of children who will no longer be living in poverty as a result of the roll-out of universal credit.

[The Parliamentary Under-Secretary of State for Work and Pensions (Kit Malthouse)]

Both hon. Ladies are right to recognise the role that welfare reform is playing in alleviating child poverty. Work is the best route out of poverty, and universal credit strengthens the incentives for parents to move into and progress in work. However, it cannot be considered in isolation: it is a key component of a broader strategy to move Britain to a higher wage, lower welfare and lower tax society.

[Diana Johnson]

Owing to policies pursued since 2010, we now have 20,700 children in poverty across Hull, and food poverty and holiday hunger are growing, including, despite what the Secretary of State says, in working families. Will restricting free school meals in universal credit create a cliff edge and make the situation even more dire in the most disadvantaged communities?

[Kit Malthouse]

Undoubtedly, as my right hon. Friend the Secretary of State said earlier, children are five times more likely to be in poverty if they are in a workless household. The Government’s entire thrust is to get as many people into work as possible, and we would never contemplate anything that would get in the way of those kinds of incentives. As my hon. Friend the Minister for Employment said, nobody will lose out under the current proposals on free school meals; in fact, there might well be more recipients in the future.

[Karen Lee]

Figures published last month show that 27% of children in my constituency live in low-income households—and these are families who rely on universal credit. Does the Minister believe that it is acceptable that families living in poverty in Lincoln have to rely on food banks, particularly when due to problems with the roll-out of universal credit?

[Kit Malthouse]

I am sure that the hon. Lady, like me, welcomes the 43% fall in the claimant count in her constituency over the past few years—[Hon. Members: “That wasn’t the question.”] On her question, as she and many Members will know, the causes and drivers of people going to food banks are complex. [Interruption.] In my constituency, for example, the food bank was established in 2006—at the height of Labour’s conduct of the economy and welfare system—but the Department needs to think carefully about some of these issues, and we will be doing so in the future.

[Michael Tomlinson (Mid Dorset and North Poole) (Con)]

I warmly welcome my hon. Friend to his place. Does he agree that, on the important subject of children living in poverty and universal credit, it is important to have a sensible, grown-up discussion and debate, rather than bandying around unqualified figures?

[Kit Malthouse]

My hon. Friend makes a strong point, and he is absolutely right. National statistics, on a number of measures, have shown child poverty falling. In particular, we have seen 200,000 children over the past few years move out of absolute poverty.

[Michelle Donelan (Chippenham) (Con)]

For too long, parents have been able to hide their earnings from their child maintenance payment calculations, creating and adding to child poverty. What action are the Government taking to stop this?

[Kit Malthouse]

As my hon. Friend knows, the child maintenance system was put in place to enable greater co-operation between parents, on the basis that that often results in a much better outcome for children, but there are parents who fail to do that, and for those circumstances, we have invested significantly in the financial investigations unit of the Child Maintenance Service. We will be consulting further on what more we can do to strengthen our enforcement powers.

[Margaret Greenwood (Wirral West) (Lab)]

I welcome the Minister to his place. When the benefit freeze was introduced in April 2016, inflation stood at 0.3%; it is now over 3%, and food prices in December were over 4% higher than a year earlier. A recent study by the Institute for Fiscal Studies showed that one in four of Britain’s poorest households are struggling with problem debt, and new figures from the End Child Poverty coalition show that in some parts of Britain, such as Bethnal Green and Bow in London and Ladywood in Birmingham, over half of children are living in poverty. Their families are no longer just about managing. Will the Government end the social security freeze that is pushing families into poverty?

[Kit Malthouse]

I would advise the hon. Lady to be slightly careful about the statistics she is using. As we heard earlier, there are some particular problems, but in that report in particular there were enormous caveats saying that the measures were not accurate and the numbers not necessarily reliable, particularly on a constituency basis. The Government are committed to a strategy to tackle poverty that involves work, and since 2010 we have 954,000 fewer households in unemployment and moved into work. That is the best thing we can do for their futures.

[Andrew Bridgen (North West Leicestershire) (Con)]

14. What progress her Department has made on the implementation of the disability confident scheme.

--- Later in debate ---

[Philip Davies (Shipley) (Con)]

The Child Support Agency was set up to pursue absent fathers who were not paying anything at all towards their children’s upkeep. Too often, the Child Maintenance Service seems to file those people under “too difficult” and just pursue people who are already paying. Can the Minister guarantee that the Child Maintenance Service will continue to go after people who are not paying anything at all towards the upkeep of their children, rather than just pursuing those who are already making a contribution?

[The Parliamentary Under-Secretary of State for Work and Pensions (Kit Malthouse)]

I can reassure my hon. Friend that that will indeed be the case, and we will shortly be consulting on what more we can do to enforce against those who are unwilling to support their children.

--- Later in debate ---

[Chris Law (Dundee West) (SNP)]

Later, we will debate benefit uprating, which will maintain a freeze on many key working-age benefits even while the consumer price index sits at 3%. We all know that the freeze is pushing people into crisis, so will the Minister take this opportunity to lift the freeze to ease claimants’ suffering—yes or no?

[Kit Malthouse]

As the hon. Gentleman knows, the freeze was enacted in primary legislation, and we would need a vote of the whole House to change it. I am afraid that it forms part of a general suite of welfare reforms that have driven an enormous number of people into work and out of poverty.

[David Hanson (Delyn) (Lab)]

rose—