Oral Answers to Questions

Kit Malthouse Excerpts

Monday 2nd July 2018 Commons Chamber

[Ruth George (High Peak) (Lab)]

6. What assessment she has made of trends in the level of financial hardship experienced by universal credit claimants.

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

The best way to help people financially is to help them into work, and universal credit will get 200,000 more people into work. Our recent survey evidence shows that people on UC and in work had an average increase in reported earnings of £600 a year. There was also an 8% fall in the number of people on incomes of £10,000 a year or less.

[Ruth George]

The DWP’s own survey also found that after nine months on universal credit, 40% of claimants were falling behind with their bills or experiencing real financial hardship. This is a problem not of the initial waiting period but of ongoing insufficient income. The Secretary of State has tested and learned about hardship levels. How will she fix them?

[Kit Malthouse]

As my right hon. Friend the Secretary of State said earlier, the close and constructive relationship between work coaches and their clients should enable them as a team to get through any hardship that arises. The hon. Lady is attempting to build a career on bashing universal credit, but she never does so in context. We have chosen to fight poverty in a different way. We have chosen to fight it with work rather than with welfare. She never points out that, under the last Labour Government, the number of households where no one worked almost doubled.

[Stephen Kerr (Stirling) (Con)]

Earlier on, the Minister for Disabled People, Health and Work, my hon. Friend the Member for Truro and Falmouth (Sarah Newton), mentioned scaremongering by the Opposition. I can confirm that that scaremongering causes grave anxiety among my constituents. Will the Minister confirm that, for example, an advance payment does not involve rates of interest and that it is reimbursed by deductions made over a period of months?

[Kit Malthouse]

My hon. Friend is exactly right. I was pleased to be able to sit with him in a meeting with some of his third sector organisations, including his local food bank, his citizens advice bureau and his local refuge, to try to scotch some of the mythology that has been created around universal credit. Wherever universal credit has been in place for some time, it receives universal praise from work coaches on the frontline and very high satisfaction levels from the people who are using it.

[Gavin Newlands (Paisley and Renfrewshire North) (SNP)]

7. What progress her Department is making on the roll-out of universal credit.

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[Damien Moore (Southport) (Con)]

21. What steps the Government are taking to improve employment opportunities for people with family responsibilities.

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

Universal credit supports parents into work through better incentives, and through simplifying and smoothing their transition into the workplace—with UC work will always pay. Furthermore, the Government now provide more support than ever before to help parents with the costs of childcare; under UC people can now claim 85% of their costs, which compares with 70% under tax credits.

[Mary Robinson]

Will my hon. Friend join me in welcoming the figures from the House of Commons Library showing that since 2010 the number of children living in workless households in Greater Manchester has fallen by 7.2%? Does he agree that that is in no small part thanks to the record number of jobs created by this Government?

[Kit Malthouse]

It will not surprise Members to know that I am more than happy to celebrate the results of that research and to thank my hon. Friend for the work she does in her constituency in promoting this, not least in being a champion for Manchester airport, where thousands of her constituents work, and where there is a strong capacity for growth and yet more jobs.

[Mr Speaker]

Enunciation from Lichfield—Mr Michael Fabricant.

[Michael Fabricant]

I will be very precise, Mr Speaker. Does my hon. Friend agree that the key to getting people out of poverty is work? Given that this Government have created 1,000 new jobs every single day since 2010, we have produced the key to unlock that door.

[Kit Malthouse]

My hon. Friend has absolutely put his finger on the button. As I said in an earlier answer, in this country we have tried fighting poverty with welfare in the past and failed. The Labour Government spent some £150 billion on tax credits and hardly moved the poverty indicators at all. We have chosen the route of work as the way to human dignity, prosperity and control for people and their families. I celebrate with him the success of the entire country, and not least his constituency.

[Damien Moore]

By delivering record numbers of jobs, reducing taxes, increasing childcare provision and raising wages, does my hon. Friend agree that it is this Conservative Government who are delivering for families?

[Kit Malthouse]

We are indeed delivering for families. I know it is a joy to many in this House to hear a voice of optimism from Southport at last, from a new Member who works closely with his local business community, recommending that its prosperity lies at the heart of that of many of his constituents. We know that outcomes for children, in particular, are significantly improved if the adults in the household are working and that children in workless families are more than twice as likely to fail to achieve at school.

[Luke Pollard (Plymouth, Sutton and Devonport) (Lab/Co-op)]

Ministers will know from the experience of women born in the 1950s that giving people advance notice of changes means they have time to plan. Given that in 2019 families in work with more than two children are set to lose their universal credit support for their third child, what steps is the Department taking to let people know in advance so that they have time to plan?

[Kit Malthouse]

As the hon. Gentleman knows, there are no cash losers from this policy: anybody who has an existing third child will continue to retain their support, and that will be preserved as they transition on to UC; we will continue to pay child benefit, no matter the number of children; and of course there will be significant childcare assistance for those who move on to UC.

[Chris Stephens (Glasgow South West) (SNP)]

Is it not the case that universal credit claimants with family responsibilities could face a sanction for refusing a job offer with a zero-hours contract? Is it not also the case that the Government are forcing people into insecure, low-paid work?

[Kit Malthouse]

The whole point of the new constructive relationship between work coaches and their clients is that they are able to take people’s personal circumstances into account, particularly in respect of children and childcare responsibilities. If sanctions are required, they are at all times reasonable and commensurate with the person’s circumstances. The enormous assistance that we are giving for childcare should hopefully overcome any barriers, but if the hon. Gentleman has constituency cases that he would like to bring to my attention, I would be more than happy to look at them.

[Mr Philip Hollobone (Kettering) (Con)]

12. How many people have taken receipt of the state pension in (a) 2010 and (b) 2018 in Kettering constituency; and what the change in the value of the state pension has been over that period.

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[Bambos Charalambous (Enfield, Southgate) (Lab)]

T3. Is the Minister aware of the hardship that parents face under the current regime of child maintenance non-resident parent capital rules? Will he meet me and my constituent, Elizabeth Green, to help to resolve her case, whereby her former partner has not paid a penny in maintenance in over 14 years, yet owns assets worth in excess of £5 million?

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

I am more than happy to meet the hon. Gentleman and his constituent to discuss that particular issue. He will be aware that earlier this year the Government consulted on changes to the rules about child maintenance, including a power to impute an income from assets of 8.5%, and we hope to publish the conclusions from that consultation shortly.

[Craig Tracey (North Warwickshire) (Con)]

The last jobs fair that I held in my constituency focused on Disability Confident employers, and it is great to see that more than 5,000 are now signed up nationally. What more can MPs do to encourage more employers to join this fantastic scheme?

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[Fiona Bruce (Congleton) (Con)]

Family relationship support providers such as Relate, Tavistock Relationships, OnePlusOne and Marriage Care are concerned that there could be a gap in funding—and therefore in critical services such as parental conflict resolution—after current contracts end next month and before new contracts start. How will Ministers address this?

[Kit Malthouse]

I pay tribute to my hon. Friend’s work in this area. She was instrumental in securing a £39 million commitment from the previous Prime Minister towards this area of work. She knows that we are in the process of going through a procurement process for a new parental conflict programme, of which face-to-face therapy forms about 25%. We have recently published a timetable for the procurement process. I would be more than happy to meet her and the organisations to talk about what we can do to help.

[Alex Norris (Nottingham North) (Lab/Co-op)]

T9. Universal credit is having a profound impact on local authorities, such as enormous housing revenue account pressures. Ahead of the roll-out of universal credit in Nottingham, what new resources will be made available to Nottingham City Council to mitigate this impact?

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[Mr Philip Hollobone (Kettering) (Con)]

Children in workless households are five times more likely to live in poverty than those in working households. Can the Minister tell me by how much the number of workless households has risen or fallen since the Conservatives entered government in 2010?

[Kit Malthouse]

The proportion of people in absolute poverty is now at a record low, with 1 million fewer people and 300,000 fewer children in absolute poverty since 2010. I cannot at this moment recall the number of households, but I will write to my hon. Friend with that number.

[Dan Carden (Liverpool, Walton) (Lab)]

There are just three case examiners working on 2,841 WASPI cases. The average wait for a complaint is 36 weeks, and last year 687 complaints took more than 43 weeks. Why are Ministers treating WASPI women with such disdain?