(6 years, 4 months ago)
Commons ChamberThe 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.
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?
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.
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?
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.
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.
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?
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.
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.
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.
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?
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.
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?
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.
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?
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.
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.
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?
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?
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.
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?
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.
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?
(6 years, 5 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
It is a pleasure to serve under your chairmanship, Mr Hollobone. I am pleased that the hon. Member for Lanark and Hamilton East (Angela Crawley) has raised the question of support for mortgage interest and I congratulate her on securing the debate. However, she seems to have developed a number of misapprehensions about the scheme, how it operates, and, in particular, how the system works.
It is worth restating the principles behind the change in the policy. Back in 1948 when the policy was introduced, the housing market was a different place and mortgage products were a different thing. In those days, it was unheard of for people to take mortgages into retirement, there was no such thing as an interest-only mortgage and the average house price was about £1,700. In the intervening decades, the housing market has changed significantly, yet this part of the benefits system remained unreformed and unchanged to reflect the reality we now face.
Back in 2015, when the reform was announced in the Budget, it was deemed to be appropriate and fair to reform the system to reflect the fact that there had been significant changes in the housing market and, as the hon. Lady outlined, to transfer this payment from a welfare payment in the benefits system to a loan. It was also decided that from a cosmetic point of view, as far as possible, there should be no change in how people see the scheme operate. It was recognised that the original scheme was designed to maintain people in their own homes and, exactly as the hon. Lady says, to ensure that they did not go into the private rental sector or lose their homes because of temporary unemployment. Back in 1948, this was meant to be something temporary for a few months or perhaps a couple of years, not the 20 years for which some people have been on it.
It was decided—we have carried this out in the execution of the scheme—that there should be as little disruption as possible to the recipients of these payments in the reformed new system. On a day-to-day basis, recipients of support for mortgage interest should see no difference between the old and new scheme.
The only difference is that when the property is sold or transferred at the end, perhaps even after the owners of the house have died, the amount of accumulated loan is recovered from that property. That is the only difference. On a day-to-day basis, the payments will still be made at exactly the same rate, with the same frequency, in the same way and with the same purpose of maintaining people in their own homes.
Let me cover some of the issues that the hon. Lady raises. On numbers, there is a significant acceleration in the number of people deciding either way. The bulk of people have now made a decision in principle. Large numbers of people are now in payment of the new support for their houses and quite a lot of people are in the process of getting through the system. The numbers are looking better and better. We expect to be on timetable for the transition to be complete later this year. We will publish statistics on SMI on a regular basis to keep the House updated.
Secondly, the hon. Lady raised Serco’s involvement. Let us be clear: Serco is not administering the loan. It was contracted only to provide information to individuals.
The sitting was suspended for 11 minutes, so the debate can last until 4.41 pm. I call the Minister.
Thank you, Mr Hollobone. I was going through a number of the issues that the hon. Member for Lanark and Hamilton East raised about support for mortgage interest, and I had reached the involvement of Serco, about which she raised concerns. Let me be clear: Serco does not administer the loan scheme. Serco was contracted merely to provide some of the initial information about the scheme—the initial correspondence, the follow-up phone calls to give people information about it, and the booklet to inform people how it works.
Does the Minister not accept that the issue is with the timescales and the lack of notice? Have the Government learned no lessons from the changes to the state pension age? What assessment has been made of the number of women affected by those changes who are also affected by this change?
I do not accept that there has been a lack of communication. If anything, we have over-communicated about the scheme. We went out of our way as a Department to ensure that literally hundreds of thousands of letters were sent and hundreds of thousands of telephone calls were made. We are still trying to contact some people, given the lack of clarity about the data we need to make those contacts. We are taking this in a very steady and sensible way.
Everyone is given plenty of time to make a decision—everyone is given up to six weeks from the loan offer to decide whether they want the loan. Once the loan documents are issued and sent off and a loan offer is made, people get six weeks to make a decision. We signpost people to the Money Advice Service or Citizens Advice if they need any kind of financial advice, because neither Serco nor the Department for Work and Pensions can offer such advice. As I said, there is a communication phase, which Serco handles, and the execution and administration of the loan is done entirely by DWP operations.
Does the Minister accept, though, that six weeks is in real terms quite a short time in which to get the relevant and necessary financial advice? Relying on services such as Citizens Advice—voluntary, third sector services that are often financially strapped—to give people the necessary financial advice about their future seems a bit irresponsible on the Government’s part.
I do not accept that sending people to Citizens Advice or the Money Advice Service for advice is irresponsible. That is exactly what those organisations are there to do, and they do it very well on a daily basis. Do not forget that the six weeks are from the loan offer—the point at which someone says in principle that they would like to have a loan. They then have six weeks in which to decide, execute the documents and send them back. There is a whole period before that in which people gather information and discuss the matter with their financial advisers and, indeed, with Serco if they need more information on which to make a decision. Do not forget that the communication process started in July last year, so it has been ongoing for quite a while, and tens of thousands of people have successfully made a decision either way.
The Minister seems to indicate that affected individuals receive correspondence from his Department before the Serco letter. That is not what my constituents tell me, so will he place that correspondence in the Library for us to review?
No, people do not receive correspondence prior to the Serco letter. An initial letter and an information booklet are sent out by Serco to warm them up to the change that is coming, and there is then a variety of follow-up information. Once someone has had all the information and thinks they are in a position to make a decision, they are in effect handed over to the operations people in the Department, who proceed to execute the loan—or otherwise—and load them on to the system for payment. As I said, tens of thousands of people have successfully made the transition, and many people are now receiving payment of the new support for mortgage interest.
I want to move on to a couple of other issues. The hon. Member for Lanark and Hamilton East mentioned vulnerable recipients. We have taken particular care over those who are vulnerable and those who might not have the mental capacity to make financial decisions on their own. In those cases, the timeframe for execution, resolution and transition has been significantly extended. We are working with people either who we know are vulnerable or who were identified during the process as vulnerable to ensure that they have an appointed financial adviser, deputy or whatever it might be to make those financial decisions for them. That process is much longer; we are able to extend it to be pretty much as long as they need to make the position clear.
The hon. Lady raised a particular constituency case. I urge her to reassure her constituents that the new scheme is designed to maintain them in their home. On a day-to-day basis they will see absolutely no change whatsoever. They can stay in that home for as long as they like—for the rest of their natural life. The only change for them is if they sell that house or it is inherited by someone following their death and there is any equity in the house, the accumulated loan will be recovered from the proceeds. If there is no equity, we write the loan off. Do not forget that it is a very low-cost loan: the interest we charge is the same as that charged to the Government on their debt. It is in statute that it is a low-rate loan. We recognise that this is a disruption and change for people, but as we take the scheme forward we will try to make it as painless as possible.
We expect that a number of people will decide not to take the loan but to try to go it on their own, making their own mortgage payments. We are hearing anecdotally that people are either managing to make the rest of their mortgage payments or turning to family for assistance. However, if in three or four months’ time they do not think it is manageable, they think they have got themselves into trouble or they are in arrears on their mortgage because they have not been able to make payments, it is open to them to come back to us and reapply for SMI. If they are in trouble, we will be perfectly willing to backdate that to the date of change for them, to 6 or 7 April, to clear their arrears and ensure that we do not put anyone in a difficult position.
I stress that this change is about increasing sustainability and fairness, balancing the interests of the taxpayer against those of someone who is in extremis and needs assistance but nevertheless is in ownership of what could be a very valuable capital asset. In other parts of the benefit system, we do not necessarily allow people to accumulate capital assets. If someone applies for housing benefit, we look at their assets and if they have between £6,000 and £16,000 in cash in the bank, whatever it is that affects it. SMI is specifically about protecting people’s homes and ensuring that they are maintained in those homes for the long term.
Does the Minister accept that through housing benefit most people forced into the private rented sector are paying someone else’s mortgage? Is it not a tad hypocritical to say that someone in hardship or who will not otherwise be able to work again should not have their mortgage paid when those in the private sector, often renting from private landlords, are paying mortgages through housing benefit?
I do not accept the equation the hon. Lady is creating between the two. Those on housing benefit are being supported by us with a legally enforceable rental liability. It might be to a private landlord, a housing association or a council—who knows? They have a rental liability and we want to maintain them in their home, so we will support them in that through housing benefit.
Through SMI, if someone gets into extremis, we want to maintain them in their home and support them in their mortgage, subject to capital limits. All we are saying is that if someone stays on SMI for some time and therefore profit accumulates in their home, once they sell it some or all of that very low-interest, low-cost loan should be recovered so we can recycle that into support for other people in search of housing, in need of support and housing benefit or, indeed, in need of SMI. That seems only fair and reasonable.
We reckon that the overall saving for the taxpayer will be £150 million, plus or minus—we will see where we get to. Overall, in fairness, given how the housing market has changed and that SMI was only ever meant to be a temporary support—only for us to find people who have been on it for decades, and about half the people on SMI are pensioners, so there is likely to be significant equity locked into the property being supported—it seems reasonable that, when that house is sold, the taxpayer should recover some or all of the money advanced to maintain that person in their home.
Critical for us is that the scheme achieves exactly the same objective as the old benefit payments. People who need support for their mortgage can rely on the state to support them while they get back on their feet, or whatever it might be, and maintain them in their home. The hon. Lady’s constituent can be reassured that SMI should not change their status at all. If they take the loan, we will do our best to support them to stay in their home for the foreseeable future.
Question put and agreed to.
(6 years, 6 months ago)
Commons ChamberHousing benefit has been paid direct to tenants since 2008. Universal credit replicates that so we would not expect to see a change in landlord behaviour.
I am very disappointed with that answer because, having had meetings with a number of residents associations and landlords, I already know that the private sector is fairly loth to let houses to people on housing benefit. The same applies to universal credit, the reason being that the payment goes direct to the tenant. I urge the Government to at least have a default, if both sides agree, for the payments to be made to the landlord.
It is deeply disappointing when Members of this House trade their principles for perceived political advantage, as the hon. Gentleman seems to have done on universal credit, having of course previously been a strong supporter of the coalition Government’s reforms. He knows full well that direct payments to landlords are available. I have myself met the two most prominent residential landlord organisations very recently and, if he looked at the data, he would see that the proportion of working-age recipients of housing benefit and universal credit in the private rented sector seeking support has not really changed over the past 10 years.
It is reported that the Law Centres Network says cases are now common in which eviction proceedings come to court after the Department for Work and Pensions has failed to pay rent directly to the landlords of universal credit claimants, even though it says on a claimant’s journal account that a direct rent payment has been made. What action is DWP taking to address this issue as a matter of urgency?
As the hon. Lady will know, we have taken significant action to try to improve the situation upfront, not least by providing an additional two weeks of housing benefit for people transitioning to universal credit. People can receive a 100% advance and help with budgeting support, and of course a direct payment is available if landlord or tenant require it.
Universal credit continues to support victims of domestic violence to claim benefits through a range of measures. These include special provisions for temporary accommodation and same-day advances. Work coaches will also signpost domestic violence victims to expert third-party support.
I am grateful for the Minister’s response, but the Government have still not committed to assessing the operation of split payments or collecting data. Will they commit to looking at specific areas of new universal credit roll-out, such as Leigh, which has also been highlighted as a hotspot by the local police, to ensure that we are adequately safeguarding victims?
Obviously we take domestic violence enormously seriously at the Department, and we certainly believe that we should play our part in detecting and seeking to combat it. We will keep the position under review. As we have said, we remain open-minded on the issue of split payments. If the Scottish Government proceed with their wish to introduce them, we will note what progress is made, and will review the issue in due course
The Child Maintenance Service is working hard to improve its recovery efforts and will be increasing the number of individuals assigned to the financial investigations unit. The Child Maintenance Service is working much more closely with Her Majesty’s Revenue and Customs to make sure that we have as full a picture as possible of people’s earnings and to ensure that people take responsibility for their children.
Dupuytren’s contracture, or miner’s claw, as it is commonly known, is a progressive condition that causes the fingers gradually to curl up, occasionally requiring amputation. It is a very common disease among former miners, and the Industrial Injuries Advisory Council has made it clear to the DWP that there is a link between the use of percussive tools and miner’s claw. Why has the Secretary of State chosen to ignore that expert advice, and will she explain why the condition has not been added to the industrial injuries disablement benefit list of conditions?
A number of my constituents have reported difficulty with the Child Maintenance Service on issues such as undeclared income and missing payments. What is being done to ensure that complaints about the CMS are dealt with in a timely manner?
It is typical of my hon. Friend that the welfare of children in his constituency should be uppermost in his mind. As I said previously, we are putting significant extra resources into the financial investigations unit and into making sure we are able to track down as much of the income as possible of parents who should be paying for their children. I am pleased to tell my hon. Friend that I recently instituted monthly meetings with the Child Maintenance Service to ensure that it lives up to the high standards of customer service that we expect.
(6 years, 6 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
It is a great pleasure to serve in front of a fellow Liverpudlian, Mr Hanson, and, unusually, to appear in a debate where the majority of Members present are native Liverpudlians. It cannot happen that often, but perhaps it will happen more often in future. I also congratulate my neighbour and right hon. Friend the Member for Basingstoke (Mrs Miller) on securing this important debate, and on the leadership that she has shown on the issue recently. She has invested an enormous amount of political capital and energy into driving the agenda and pushing it up the political priority list; she is to be commended for that.
The Government take this matter extremely seriously. We welcome the inquiries by the Women and Equalities Committee into sexual harassment in the workplace and in public places, and the International Labour Organisation’s initiative on ending violence and harassment in the world of work. We all have a responsibility to bring an end to inequality and injustice and to do that, we must work together across gender, social, political and national divides.
Sexual harassment can have a significant impact on those who are subjected to it. Nobody should be subjected to unwanted conduct of a sexual nature or be put in a compromising situation, and the law in the UK on harassment, sexual assault and rape is clear. Whether it is in the workplace, on the street, or part of domestic or sexual abuse, unwelcome advances that intimidate, degrade or humiliate are an abuse of power. The simple truth is that sexual harassment, in any situation, is unacceptable.
Workplace harassment is unlawful under the Equality Act 2010, which provides a remedy for harassment specifically in employment and other paid work, the provision of services, the exercise of public functions, the occupation, disposal or management of premises, education and associations such as private clubs. The Government believe that the criminal law also provides protection against violence and harassment for both men and women in the working environment and elsewhere. However, we keep the legislation under review to ensure it works as intended, and on all these matters we await with interest the outcome of the Select Committee inquiries.
On an international basis, we know that violence and harassment is a crucial barrier to women’s economic engagement and to gender equality worldwide. We know that if women had the same role in labour markets as men, up to an estimated $28 trillion, or 26%, could be added to global GDP in 2025—but we also know that it is not about the economic argument alone. Violence and harassment of women is an endemic human rights abuse, which prevents women from reaching their potential and living the life that they choose.
We have a responsibility to act as a global leader. We have strong laws on violence and harassment in the UK, but as my right hon. Friend said, many countries around the world do not have such protections. My right hon. Friend the Secretary of State for International Development has been clear that we should be proud to put British values on this issue at the centre of our international development work. She has launched a global call to action on gender equality and has put women’s economic empowerment at the heart of her Department’s economic development strategy.
We are working to tackle violence against women and girls around the world. Through our “What Works to Prevent Violence Against Women and Girls” programme, we are working in 12 countries across Africa and Asia to demonstrate the economic cost of violence and to understand the most effective approaches to prevention. The programme will reach up to 100,000 people worldwide. In Bangladesh, it involves working with textile workers to address violence against female garment workers in four factories in Dhaka. It provides workplace training to male and female workers to raise awareness and build skills, and works with managements to develop workplace politics and systems to address violence.
We are putting the economic empowerment of women and girls at the heart of the Department for International Development’s economic development strategy, which was launched earlier this year. It focuses on trade as an engine for poverty reduction and investment in sectors that can unlock growth. All our economic development work will tackle gender discrimination and will deliver safer, more secure work with higher returns for women. We are having a real impact: between 2011 and 2015, we helped 36.4 million women gain access to financial services and helped 3 million women to improve their land and property rights across the world.
My right hon. Friend the Member for Basingstoke rightly spoke about our stance at the ILO convention in Geneva later this year. The Government are committed to ending violence and harassment against workers worldwide. I assure her that we are fully engaged in discussions at the International Labour Organisation to develop measures that, if agreed, would provide an international legal framework in this area. My officials recently met CARE International, the CBI and the TUC to hear their views on the proposed measures. They will be attending the ILO conference in Geneva later this month for the first of two committee discussions on the proposed instrument.
The Government are already in a strong position to champion the need for international provision—particularly in the light of our leadership on modern slavery and gender-based violence initiatives. We recognise that there is a potential benefit in closing the gap in international law. In negotiating a new instrument, the UK will be looking for sufficient alignment with UK criminal and civil protections, on which the UK is already in a strong position. The definitions and scope of any instruments need to be reasonable and justifiable for all parties, and they must allow for practical implementation and enforcement. Our stance generally is constructive, and we are listening.
My hon. Friend the Minister is choosing his words very carefully in talking about the negotiations and discussions that will be going on towards the end of the month. He is talking about the development of an instrument, but in my remarks I clearly said it is important to have a convention, which would have far more weight than recommendations. Will the Government support a convention?
As I say, we are going to the conference with an open mind about what may come from it. We are generally supportive of the initiative on ending violence and harassment at work, which the ILO is undertaking. We need to be assured that what is produced is consistent with British practice and law, and is justifiable. Much of the devil of that work will be in the detail—particularly on some of the definitions. We definitely support an international push—we can assist it in ways other than just having an international initiative—to improve the situation of workers across the globe.
The UK is proud to be a global leader in efforts to eradicate violence against women and girls in all its forms, including through our leadership on efforts to eradicate modern slavery—one of the worst forms of abuse. I am proud that, in my time as deputy mayor for policing, I produced the first ever violence against women and girls strategy in a global capital city. That work was commended by the United Nations.
Everyone should be able to go to work without fear of violence or harassment, no matter who they are, where they work or what they do. The Government will continue to press for real progress through instruments such as the sustainable development framework and organisations such as the ILO, to help make this a reality worldwide.
Question put and agreed to.
I would normally commence the next debate in these circumstances, but unfortunately the Minister is not here, for obvious reasons—the debate starts at 4.30 pm. I therefore have to suspend the sitting until 4.30 pm.
(6 years, 8 months ago)
Written StatementsLater today I will publish “Workless households and educational attainment statutory indicators”, an annual report pursuant to Section A1A of the Life Chances Act 2010 as amended. “Improving Lives: Helping Workless Families”, published on 4 April 2017, set out this Government’s vision to improve outcomes for children who grow up in workless families and face multiple, associated disadvantages. To track our collective progress in improving outcomes for disadvantaged families, my Department made a commitment to publishing the latest data on seven additional non-statutory national indicators each year.
The annual report ‘Workless households and educational attainment statutory indicators’ will be available here later today:
https://www.gov.uk/government/publications/workless-households-and-educational-attainment-statutory-indicators-2018.
The “Improving Lives: Helping Workless Families” indicators will be available here later today:
https://www.gov.uk/government/publications/improving-lives-helping-workless-families-evidence-base.
[HCWS596]
(6 years, 8 months ago)
Ministerial CorrectionsThe employment rate for women stands at 70.9%, which is also a record high. Unemployment is down to the joint lowest level since 1975, and 876,000 vacancies are open to people in search of employment, which is also close to a record high. [Official Report, 21 March 2018, Vol. 638, c. 151WH.]
Letter of correction from Kit Malthouse:
An error has been identified in my speech.
The correct response should have been:
The employment rate for women stands at 70.9%, which is also a record high. Unemployment is down to the joint lowest level since 1975, and 816,000 vacancies are open to people in search of employment, which is also close to a record high.
(6 years, 8 months ago)
Commons ChamberGood morning, Mr Speaker. [Interruption.] The Government are committed to action that improves children’s long-term outcomes by tackling the root causes of poverty and disadvantage. In April 2017, we published nine indicators that track progress in tackling the disadvantages that can affect families and children, and we aim to update them annually. The next publication is due shortly.
Order. Members should not chortle; the Minister is a courteous fellow and should be respected.
Given the huge costs financially and socially of family breakdown to people both in and out of work, what is the Minister doing to improve the family indices across society and to reduce family instability?
I congratulate my hon. Friend on his constant and vigorous campaigning on the issue, and particularly on the importance he attaches to fatherhood and family stability. The Government agree with him about that, and a number of programmes are designed to move the dial on the nine indicators that we have published. For example, alongside the fight against worklessness and the troubled families programme, we are specifically investing £39 million in a programme to reduce parental conflict and increase family stability.
The Minister may be in a bit of a time warp this morning, but is the Secretary of State on a different planet from the Children’s Commissioner for England? Will she talk to the Children’s Commissioner about child poverty in our country and look at this morning’s report, which links child poverty and low educational expectations? Get on with it, man!
As the hon. Gentleman will know, all hon. Members should be engaged in the battle against poverty. We in particular have chosen to take a different approach. Pleasingly, the Children’s Commissioner has identified that low educational attainment is critical to the future employment and economic prospects of all children. That is why we are focused on it as one of the two planks of Government policy on the matter, why we have concentrated so hard and why we are so pleased that so many more children are going to good and excellent schools.
My hon. Friend is absolutely right, and is a renowned champion of those in poverty in his constituency. It is interesting to note that nearly three quarters of children in poverty move out of poverty when their parents move into full-time work. We must capture and use that in our constant fight against poverty.
I have seen reports of the new analysis this morning and, obviously, we are more than willing to have a look. However, such reports—there have been several in the past few weeks—tend to accept in the small print that forecasting poverty in the future is a very inexact science and often leads to odd results, not least because they often do not take behavioural change into account. The whole thrust of the Government’s welfare reforms has been not just to ensure that we get assistance and money to people efficaciously, but to effect behavioural change because we know that accessing work is by far and away our most potent tool in the fight against poverty.
School breakfast clubs play a key role in tackling child poverty, including helping parents get to work. Will my hon. Friend join me in welcoming the announcement last week of £26 million investment in school breakfast clubs and commit the Department to supporting them across the country?
Absolutely. My hon. Friend is a doughty champion of school breakfast clubs and has established one in his constituency. He is on the right lines and we support him in his efforts.
There is no question of unfreezing the benefit cap because it is encapsulated in primary legislation. It might be interesting for the hon. Lady to know that, in the year after the benefit cap was imposed, 100,000 children moved out of poverty altogether. I am surprised that she has not welcomed the news that was announced last week that, as the Secretary of State said, more than 1 million people have moved out of absolute poverty. That shows the greater usefulness of the absolute poverty indicator compared with those for relative poverty, which the EHRC used in its report.
Today, we have learned from independent analysis from the Scottish Government the full impact of the UK Government’s cuts on levels of child poverty. Later this week, the Scottish Government will be publishing their plans to do what they can, using the limited powers of the Parliament up the road, to address this looming crisis, but what are this Government doing to address child poverty?
As I outlined in my earlier answers, this Government believe that the two routes out of poverty are education and work. We have seen, in essence, a jobs miracle in this country over the past few years, with millions of people moving into work since 2010. It is absolutely the case that children in workless households achieve less, have less good welfare and have more mental health problems, so moving people into work is critical. I have seen reports in the media of the evidence the Scottish Government have brought forward this morning, and we will look at it carefully. I am always aware that one foundation of nationalism is to blame everyone else for problems, and I look forward to seeing the Scottish National party’s proposals in Scotland and whether they will actually work.
Of course we know that 68% of children living in poverty do so in working households, so the Minister’s rhetoric simply does not match the reality. We also know from the research today that the root cause of child poverty and its predicted rise comes directly from the cuts to the reserved benefits in respect of the benefit freeze and the two-child limit. So when will his Government face up to reality and act to stop children being hungry, because everyone knows that it is this Government’s responsibility?
This Government have moved heaven and earth to help those on lower incomes: with the introduction of the national living wage, they have had the fastest pay rise in 20 years; we have taken millions out of paying tax altogether with the rise in the personal allowance; and we have given parents up to £5,000 of assistance by increasing their access to free childcare up to 30 hours a week. There is an enormous amount done, but an awful lot still to do. As I say, we have yet to see any concrete proposals from the SNP on its much-vaunted plans to deal with poverty in its own patch, and we look forward to seeing them.
Such an obligation already exists.
If that is the case, can the Minister explain what the lead time is in respect of someone having to declare that change in income? What would be recommended—for example, would it be one month or two months?
Paying parents who are in the Child Maintenance Service must declare changes in income immediately if they vary by more than 25% of the previously declared level. Of course every paying parent is subject to an annual review, where adjustments are made to the payments if required.
My hon. Friend raises an extremely important point. As he may know, we have just finished a consultation on what greater powers we can take to ensure proper and efficient recovery for those in receipt of support. We are looking at a series of measures, not least integrating our information systems much more closely with those of Her Majesty’s Revenue and Customs, so that we have a fuller picture of people’s income. We will be looking at proposals to make estimates of unearned income and, indeed, imputing income from asset values for those who attempt to conceal their income but still hold very significant assets. In the final analysis, we may well take powers, depending on the results of the consultation, to deny people a passport—and remove their passport—if they refuse to pay.
As Members would expect, we make constant assessments of the level of poverty in the UK, given that our primary purpose as a Department is to stimulate and support social mobility and give people the tools and assistance to build a better life. There are 1 million fewer people living in absolute poverty since 2010, and working families are around four times less likely to be in relative poverty than working-age adults in workless families.
Even though they are in work, many families in my constituency of Crewe and Nantwich are struggling to feed their children. That suggests that work is no longer an escape route out of poverty. The Institute for Fiscal Studies predicts that child poverty will increase from the 4.1 million recorded in the Government’s latest figures to 5.2 million by 2022. The Government originally claimed that universal credit could lift 350,000 children out of poverty. How many children do they now expect to lift out of poverty, and by when?
I hope that no one in the House is complacent about poverty, particularly child poverty. As I said in answer to earlier questions, and as my right hon. Friend the Secretary of State has said, we are entirely focused as a Department on doing what we can to try to deal with these issues, but they are complex and deep-seated, so the solutions will be, too. Having said that, we believe that there are two primary causes and two primary solutions, the first of which is work and the second education. We are throwing everything we have at that to try to improve things. If we look back at the results thus far, we see 1 million fewer people in absolute poverty, 300,000 fewer children in absolute poverty since 2010, and half a million fewer working-age adults and 100,000 fewer working-age lone parents in absolute poverty since 2010.
The copious character of the briefing is in one sense very impressive, but unfortunately exceeds the time available for its delivery.
With your permission, Mr Speaker, I wish to pay tribute to a stalwart in Coventry who for many years helped the homeless. Mike Parker started the Coventry Open Christmas shelter in 1992 to provide warmth, food and shelter. His funeral was today. The shelter started as a one-night one-off and developed into a long-running campaign. It helps hundreds of homeless people in Coventry every year. Mike Parker helped to ensure that those who were lonely and hungry had somewhere warm and friendly to go. He will be sorely missed in Coventry.
Now for my question: will the Government look into ending the freeze on children’s benefits, lift the two-child limit on tax credit and fix universal credit to help to lift in-work households out of poverty?
May I, too, salute the hon. Gentleman’s constituent? I did not know him, but he sounds like a remarkable man. I am sure he will be missed by those who loved and knew him.
The hon. Gentleman asked about the two-child limit. In our welfare reforms, we have tried to establish for those who require assistance through the welfare system the same choices that are made by those who do not have that kind of assistance. Having said that, we have ensured that nobody who currently has more than one child will suffer, and of course all children will continue to receive child benefit, irrespective of their status.
As we have already heard, the majority of children living in poverty live in households in which at least one person works, so why does the Minister refuse to end the freeze on the majority of in-work social security support and to provide the support that working families so desperately need?
We believe that the solution for working families is universal credit and that people should take control of their own lives and work hard so that they can build a life for themselves and their families. That is exactly what we are trying to achieve through our welfare reforms.
My right hon. Friend raises an interesting point. A fair amount of analysis of that idea is currently going on. As soon as we have a conclusion, we will let him know.
Will the Minister confirm what he and the Government think is the most useful measure of poverty? Is it absolute or relative poverty, and can he tell us why?
My hon. Friend displays her normal mental acuity in putting her finger on the point here. She is completely right: relative poverty is a poor indicator of how people are faring. For example, if everybody’s wages were to double overnight tonight, absolute poverty would plummet, but relative poverty would stay exactly the same.
My hon. Friend is absolutely right: using relative poverty produces perverse results. What is he doing about it and what is a better measure?
My hon. Friend made a remarkably good speech about this just a week or so ago, and I congratulate him on his foresight. He is absolutely right: relative poverty as currently measured suggests that there are quite a lot of poor people in Monte Carlo, which, of course, is not an intuitive picture that people would have. As a Department, we are looking at other measures. We believe that absolute poverty, which currently stands at an all-time low, is a better indicator. Of course material deprivation, which asks specific questions about how people live, holds some promise as an indicator that the public might appreciate.
I am disappointed to hear the Minister be so facetious about a subject as important as child poverty. At the last count, 72% of households whose benefits were capped were those of lone parents and 77% of those lone parents had a child under five. They can escape the cap by working at least 16 hours a week, but are then hit by the cuts to work allowances in universal credit, which trap many in poverty. According to Government figures released last week, more than half a million children are currently in poverty in lone-parent families where their parent—usually the mother—is either in full or part-time work. If the Government really believe in making work pay, will they reverse the cuts to work allowances?
I know that the hon. Lady likes to present herself as some kind of latter-day mahatma and as the only person in this House who cares about poverty, but, of course, that is not true. Many of us—as councillors, voluntary workers, social workers and so on—have spent many years fighting poverty, so it would be helpful to the general tone of debate in this House if she were not quite so accusatory. Our view, and the Office for National Statistics points this out, is that 100,000 fewer work-age lone parents are now in poverty and that their biggest problem—the biggest thing that assails them—is childcare. The 85% payment for childcare under universal credit and the increase in availability to 30 hours will give the greatest assistance to lone parents.
Impact assessments of policies in the Act were published in 2015. Evidence shows that work is the best route out of poverty. The welfare reforms are designed to incentivise people to make the choice to move into work and to give them the tools and assistance to progress.
Does the Minister agree with his colleagues in Westminster Hall last week who were still trying to blame the financial crash of 10 years ago in making it a justification for these reforms? Will he finally admit that the reforms are in fact an ideological smash and grab on the poorest in society by a Government obsessed with rolling back the size of the state?
One of the really disappointing things about the debate on welfare and benefit reform in this place has been the persistent defence of the old benefits system, which was effectively a fraud perpetrated on the poor designed to trap them into being so. I would have hoped that the hon. Gentleman would welcome the fact that in the three years to 2016-17 the number of children living in poverty in Scotland was down by 24% compared with the three years to 2009-10, with relative poverty down in the same period too.
With unemployment soaring at 9.3% in France and 11% in Italy but only at 4.3% in the UK, does my hon. Friend agree that one of the best ways of staying out of poverty is getting a good, educated job?
Order. The Minister is treating us to a combination of his intellect and his eloquence, and his ministerial colleague, the hon. Member for Hexham (Guy Opperman), is engaging in a rather undignified finger-wagging exercise with the hon. Member for Blyth Valley (Mr Campbell). It is very unseemly and very unfair on the cerebral Minister at the Dispatch Box. Mr Opperman, Mr Campbell: calm yourselves. Take some sort of soothing medicament and you will feel better.
My hon. Friend the Member for Lichfield (Michael Fabricant) is exactly right. Time and again when we visit Jobcentre Pluses—I would recommend that people do so—we hear heartwarming, encouraging and inspiring stories of people who have got themselves out of poverty by working and being educated and trying hard. Our entire objective is to give them the tools and assistance to do so.
My hon. Friend raises an important point, not least because we are approaching the deadline for the switchover of SMI from a benefit to a loan. He is absolutely right—this change is specifically designed to keep people in their homes. I urge people to ignore the scare stories being put around, look at the paperwork, take the phone call that has been made and ensure they make a good decision in time.
Had the Secretary of State read the full article that she refers to on Channel 4’s FactCheck, she would have seen that it said that our numbers were in fact correct.
Well, it did. I recommend that the Secretary of State rereads it.
In less than two weeks’ time, support for mortgage interest will change from a benefit to a loan. Government figures released on Friday show that, even at this late stage, the DWP has still not managed to contact 40% of claimants by phone to explain the change, and 30% of all claimants have already declined a loan. A large proportion of claimants are pensioners, and Age UK is warning that many may instead try to manage by cutting back on essentials such as heating. Why have the Government failed to give claimants adequate notice, and will they call a halt to this policy, which risks inflicting hardship on thousands?
We have been communicating the changeover with approaching 500,000 pieces of paper since last July, and well over 350,000 telephone calls have been made to the something like 90,000 people in receipt of this benefit. There are specific provisions, post the changeover, to deal with people who perhaps attempt to manage on their own and feel that they cannot do so in that, post the deadline, they can reapply for support and backdate it to 6 April if they so wish.
The hon. Lady raises an important point. She will know—I was asked this question in a Westminster Hall debate last week—that we have attempted to deal with this issue with some sensitivity. The undertaking I have given to her hon. Friend the Member for Glasgow Central is that if she believes there are particular issues with the system in place for dealing with this, we are more than happy to look at them. I would be more than happy to meet the hon. Lady as well to discuss it.
Will my hon. Friend give an example of a policy that has been strengthened, or indeed dropped, as a result of being subject to the family test?
My hon. Friend raises a very important point, and one with which I have been grappling since I was appointed to this position. He will know that a number of programmes across the Government are aimed at strengthening families, not least the troubled families programme, which has seen an investment of something like £982 million. On new initiatives, he may have heard me mention in my answer to my hon. Friend the Member for St Austell and Newquay (Steve Double) that we are investing—newly announced in the Budget last year—£39 million in a programme designed to reduce parental conflict. That has been done on the basis of looking for parenting programmes that will create more stability and therefore happier outcomes for families.
As the right hon. Gentleman knows, triggering cold weather payments is done on the basis of absolute temperature: it has to fall below 0 °C for a length of time. I must confess that, as someone who is married to a Canadian, I know only too well the effects of wind chill and the significant difference it makes. If he will allow me, I will take away that issue and have a look at it.
I welcome the comments from my hon. Friend the Minister for Disabled People, Health and Work about getting more people with disabilities into work. Given that there are 650 potential employers in this House, what more can be done to improve disability employment in the House and in our offices around the country?
The hon. Lady raises what sounds like quite a complicated case in terms of entitlement. If she would like, I am more than happy to arrange for a meeting in the Department to make sure that her constituent is getting the help and support that she needs.
I am trying to help colleagues, but I would ask colleagues to help each other. A short sentence each would suffice, and then you are not denying somebody else the chance.
The abolition of support for mortgage interest has been characterised by the poor provision of information to vulnerable claimants with learning disabilities and a very low take-up of the new loan scheme. Will the Secretary of State cancel the abolition of SMIs, or at the very least delay it while these issues can be resolved?
We will not be cancelling or delaying, but we are of course sensitive to vulnerable claimants, in particular those who lack mental capacity and may need assistance or representation when dealing with their financial affairs. There is a separate process for enabling their transfer across and they will not be subject to the deadline. Indeed, our contractor, who is making contact with recipients thus far, has people who are specifically trained to identify those who may have become incapacitated or vulnerable during their receipt of the benefit to make sure they too are not subject to the current deadline.
(6 years, 8 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
It is a great pleasure to be in your capable hands this morning, Mr Gapes. I thank the hon. Member for Central Ayrshire (Dr Whitford) for securing the debate, and all Members who have participated this morning and continue to take an interest in the issues of welfare reform and work.
When the Welfare Reform and Work Act was first debated, in the summer of 2015, Ministers spoke of three principles that underpinned the legislation: first, work is the best route out of poverty, enabling people to take control of their lives and achieve their full potential; secondly, spending on welfare should be sustainable and fair to the taxpayer, while protecting the most vulnerable; and thirdly, people who receive benefits should face the same life choices as those who do not get the same support from the state. We remain committed to those three principles. Indeed, in the two years that have passed since the legislation became law, we have been putting them into practice.
Many of the measures in the Welfare Reform and Work Act that hon. Members across the Chamber have highlighted this morning form part of a package of policies through which we have been increasing incentives and support for people to find work, stay in work, build a career and progress.
Not at the moment.
With the national living wage we have been helping people to earn more. From April 2018 the Government will raise the national living wage by 4.4% to £7.83 an hour. At that point, the annual earnings of a full-time minimum wage worker will have increased by more than £2,000 a year since we introduced the national living wage in April 2016. Since April 2015, the lowest paid have seen their wages grow by almost 7% above inflation.
With increases to the income tax personal allowance, we have been helping people to keep more of what they earn. Next month we will raise the personal allowance in line with inflation to £11,850. A typical basic rate taxpayer will pay £1,075 less income tax in 2018-19 than they did in 2010-11. Compared with 2015-16, there are now 1.2 million people who, as a result of our changes to the personal allowance, will no longer have to pay any income tax at all.
I am not going to give way, because I want to address some of the specific questions, and give the hon. Member for Central Ayrshire a chance to respond.
With universal credit, as my hon. Friend the Member for Redditch (Rachel Maclean) touched on during the debate, we are providing claimants with a simpler system that ensures that work always pays. It offers families more generous childcare, and gives parents access to tailored support from personal work coaches to find, and then progress in, work. Three separate research studies have shown that universal credit is having a positive impact on employment outcomes. Compared with jobseeker’s allowance, our evidence shows that people on universal credit are 4% more likely to be in work after six months, put more effort into finding work, apply for more jobs, and do more to increase their hours and earnings. Universal credit is being introduced in a careful and co-ordinated way, allowing us to make improvements along the way. We are listening to the concerns of our stakeholders and making changes where necessary.
The topic for today’s debate invited us all to reflect on what impact this Government’s policies are having. As the hon. Member for Central Ayrshire rose to give her opening speech, the Office for National Statistics published its latest release on the state of the labour market in the UK. That release presents a striking picture, with 32.25 million people in employment as of this morning—a record high. The employment rate for women stands at 70.9%, which is also a record high. Unemployment is down to the joint lowest level since 1975, and 876,000 vacancies are open to people in search of employment, which is also close to a record high.[Official Report, 28 March 2018, Vol. 638, c. 4MC.]
The figures are particular significant when it comes to children—many hon. Members have spoken about children today. The evidence is clear: children living in households where no one is in work are five times more likely to be in poverty than those where all adults work. The chances of a child being in poverty where one parent works full-time and the other part-time is one in 20.
In 2014-15, 75% of children in families where no one is in work failed to reach the expected standard at GCSE compared with 39% for all working families, and 52% for low-income working families. We are supporting parents to find and stay in work with record spending on childcare, which will reach £6 billion in 2019-20. In England, working parents of three and four-year-olds can now get 30 hours of free childcare a week, saving those using the full 30 hours around £5,000 per year in total.
We are making good progress. Nationally, there are now about 880,000 fewer households where no one is in work, and around 600,000 fewer children living in such households compared with 2010. The number of children living in absolute poverty on a before-housing-costs basis is down 200,000 since 2010, and the UK is now the highest spending of all OECD countries as a percentage of GDP on family benefits, standing at 3.5% against an average across the OECD of 2%.
Order. Mr Gray, the Minister has made it clear that he is not giving way. He does not have to give way, so I would be grateful if you would allow him to carry on.
I have lots to get through. I want the hon. Member for Central Ayrshire to reply, and the Scottish National party has had a lot to say today.
The hon. Lady majored fairly heavily on disability benefits in her speech. We are committed to ensuring that more of the money goes to the people who need it most. We have continued to increase benefits for people with disabilities and health conditions, and we will spend £800 million extra in 2018-19 to do that once again. For people in the employment and support allowance support group, that means £720 more per year than in 2010. For recipients of the monthly rate of disability living allowance, paid to the most disabled children, it is more than £1,200 a year more.
At the same time, we are determined to break down the barriers to employment faced by disabled people. The hon. Lady spoke about the removal of the work-related activity component under ESA. The old system, as we all remember, was failing to help disabled people and those with health conditions into work. Only one in 100 ESA work-related activity group claimants leave the benefit each month. We believe that disabled people and people with health conditions deserve better than that.
We believe that the changes, working in tandem with a £330 million support package over the next four years, will provide the right incentives and support to help new claimants with limited capability for work. Taken as a whole, our policies to help people with disabilities to find employment have been making good progress. More than half a million more disabled people are now in work than four years ago, and on a before-housing-costs basis the absolute poverty rate among people living in a family where somebody is disabled is now down to a record low.
On the underpayment of ESA, the hon. Lady asked about paying back further than 2014. We are actually legally restricted from recalculating payments back beyond 2014. Statute governs that position, which we are not allowed to exceed. The hon. Lady also raised the success rate of personal independence payment claimants who go through the appeals process. It is worth remembering that the vast majority of PIP decisions do not go to appeal. Some 2.9 million PIP claims were decided on between April 2013 and September 2017, of which only 8% of initial PIP decisions were appealed against, and only 4% were overturned at appeal. A decision being overturned does not necessarily mean that the original decision was incorrect; often it is because the claimant has provided more cogent oral evidence or other new evidence that has allowed a more accurate assessment.
In a forensic speech, my hon. Friend the Member for Brentwood and Ongar (Alex Burghart) dissected the case against welfare reform very ably. In particular, he pointed towards the benefits cap, which a number of Members have criticised. Of course, the numbers show that the benefits cap has been extraordinarily successful as an incentive to get into work. Over the last couple of years, tens of thousands of people have come out from under the benefits cap, because of course it does not apply once someone moves into work. The amount at which they are capped has dropped significantly too.
My hon. Friend the Member for Redditch asked about older claimants and when an impact assessment was likely to be approved. I am informed that we will publish the evaluation of the two Jobcentre Plus interventions for older claimants in the spring of 2018—I assume before the summer recess. Those will look at the impacts of sector-based work, academy and work experience interventions.
The hon. Member for Inverness, Nairn, Badenoch and Strathspey (Drew Hendry) raised the issue of reassessments for those who are terminally ill. He will know that in both PIP and ESA we have a fast-track process for any claimants who have fewer than six months to live. In ESA we introduced a severe conditions criteria last autumn, which means that people with the most severe degenerative conditions will not need to be reassessed. It is more complex in the case of disease, but if those individuals qualify for the highest level of ESA under the support group, and there is no possibility of improvement, they do not need to return for reassessment. I am more than happy to keep that under review and have another look at it in future.
Finally, the hon. Member for Glasgow Central (Alison Thewliss) raised the rape clause, which is an issue on which she has campaigned. Obviously, it is a very difficult and sensitive issue, which we are more than happy to keep under review. As she knows, a third-party model has been put in place, but if particular issues are being experienced by women accessing that model, I am more than happy to look at it again. As she also knows, there are particular circumstances in Northern Ireland. My undertaking to her this morning is that I am happy to meet her, if she wishes to discuss it with me, to try to find a way through this issue.
It has been an interesting debate, although it has put the House into two polar opposite groups: those who thought that welfare reform was required, and those who did not. One of the things that I have found most disheartening about such debates since I was appointed to my job is the implicit defence by those who are opposed to welfare reform of an old benefits system that was frankly fraudulent. It was trapping people in poverty, and insisting that it was trying to help them when, in fact, it was holding them back.
We believe in treating everybody with dignity, and giving them the power to take control of their lives and find their own way forward, for them and their families, in work. We believe in giving them all the tools that we can to do that, whether they are disabled, single parents, families, or older people who wish to access work. The way to a dignified future for everybody is to give them control, not to make them vassals of a welfare state.
(6 years, 9 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
It is a pleasure to serve under your chairmanship, Sir Henry. I, too, congratulate my hon. Friend the Member for Mitcham and Morden (Siobhain McDonagh) on securing this import debate and on her powerful analysis of the situation. Eight years ago, David Cameron said the Conservatives would be
“the most family-friendly Government you’ve ever seen in this country”.
Less than two years ago, the current Prime Minister stood on the steps of Downing Street and proclaimed that she would fight against “burning social injustices” and
“make Britain a country that works not for a privileged few, but for every one of us.”
What we have heard so far today throws some stark reality on that. This debate is another reminder of how reality fails to match the Government’s rhetoric.
My borough of Enfield, where I have lived for the past 20 years, and where my hon. Friend the Member for Enfield, Southgate (Bambos Charalambous) has lived all his life, is generally thought of as a leafy borough with a very solid foundation for employment, manufacturing, the service sector and logistics. It has always been said, and I have said many times, that it is a great place to live and bring up a family. However, Enfield is in the midst of a worsening child poverty crisis. Four in 10 of Enfield’s children—almost 34,000—live below the poverty line. The borough is the 11th most impoverished area for children in the UK.
My constituency and neighbouring Edmonton are also two of the top 20 constituencies in the country with the fastest growing levels of child poverty, and Edmonton is in the top 10, as my hon. Friend the Member for Mitcham and Morden mentioned. As the End Child Poverty coalition has said, low-income families are struggling to put
“food on the table, heat their homes and clothe their children.”
We should feel anger and shame that that is the situation. Last year, Enfield had the fourth highest rate of food bank usage in London. Is it any wonder that this is happening when wages are flatlining, with one in three jobs in Enfield being paid less than the living wage? I ask hon. Members to look at yesterday’s edition of the Enfield Independent, our local paper, which says that eviction rates are the highest in the capital. Levels of homelessness acceptances in Enfield have risen more than 80% in the past two years.
My hon. Friend referred to my constituency surgery, which I do every Friday afternoon from 3 o’clock. Anyone who turns up will be seen, even if they have not made an appointment, because people are desperate. A huge percentage of the problems relate to housing. Many hard-pressed local families are trying—and often failing—to cope with soaring rents and a lack of affordable and social housing. But under this Government, house building has fallen to its lowest peacetime rate since the 1920s. The number of affordable homes in Enfield increased by just over 300 in the three years to 2016. For most families, what is called affordable is not affordable, as we have already discussed. On top of all of this, most benefits for working families have been frozen, which has cut families’ real incomes. There is a serious shortage of genuinely affordable childcare.
I am proud that the last Labour Government introduced Sure Start, the transformative early years programme giving young children the best start in life. When Labour left office in May 2010, there were 24 Sure Start centres in Enfield. Now there are just five. Government cuts to these vital education services are a scandal and our most disadvantaged children are paying the price. As Save the Children has said, the consequences of a lack of quality early years education for children living in poverty are lifelong and
“it harms not only their quality of life, but their ability to learn and develop at a crucial stage in their lives.”
The lack of Government action to address these issues is in stark contrast to the leadership shown by Sadiq Khan, the Labour Mayor of London, who is championing the London living wage to support low income families.
The Minister may make an intervention if he wishes.
The Mayor is investing £15 million to buy homes for homeless Londoners and recently he launched the capital’s largest living rent scheme, to offer more Londoners a genuinely affordable home. He is supporting early years hubs, delivering on his promise to improve access to high-quality, affordable early years education for the most disadvantaged families in the capital. However, the child poverty crisis is a national issue that demands a co-ordinated, national response from the Government.
I urge Ministers to restore targets to end child poverty. The Government must support local authorities as they attempt to address the worst effects of child poverty in their areas, instead of gutting their budgets. Enfield Council alone has had its central Government funding slashed by £161 million since 2010, with another £35 million in cuts due by next year. The Government need to fix their broken housing policy and help to make sure that all families in Enfield, particularly those on low incomes, have the chance to live in a safe, secure and genuinely affordable home. Universal credit still needs to be fixed to ensure that it does not drive even more families into debt, arrears and eviction, and the Government need to take steps immediately to provide more good-quality childcare and early years education.
Child Poverty Action Group rightly says that poverty
“damages childhoods; it damages life chances; and it damages us all in society.”
I am proud that the last Labour Government lifted 1 million children out of poverty. They addressed this issue and, to a large extent, they succeeded. It is time that, rather than making the situation worse, this Government got their act together for these children or moved over and let someone else do it.
It is a great pleasure to appear before you, Sir Henry. I begin by congratulating the hon. Member for Mitcham and Morden (Siobhain McDonagh) on securing this important and very relevant debate, not least because I spent 16 years as a representative in central London, both as a councillor and as a London Assembly member—where I shared a constituency with the hon. Members for Westminster North (Ms Buck) and for Hammersmith (Andy Slaughter)—so I am well acquainted with some of the problems. Indeed, I started my career as a councillor as deputy chairman of the housing committee on Westminster City Council, dealing with the heavy investment that we made in the Mozart estate in Queen’s Park at the end of the 1990s, as the hon. Member for Westminster North may remember. This issue has been of importance to me in the past and remains so.
I emphasise from the outset that the Government are committed—the hon. Member for Mitcham and Morden referred to this—to building a country that works for everyone, where no one and no community are left behind. I completely agree that we must continue to provide appropriate support for the least well-off and the disadvantaged in our society, so that we can make a meaningful and lasting difference to their lives and outcomes and those of their children.
However, I was disappointed to hear the hon. Lady say, as I think she did on the record, that work is no longer the route out of poverty. The Government believe that work offers families the best opportunity to get out of poverty and become self-reliant. That is why we are undertaking the most ambitious reform to the welfare system in decades—so that it supports people to find and stay in work.
The evidence about the impact of worklessness on children’s outcomes, in both the short and the long term, is clear. In 2014-15, 75% of children in workless families failed to reach the expected standard at GCSE, compared with 39% for all working families and 52% for low-income working families.
No, I am short of time. As adults, children who grow up in workless families are more likely to be workless themselves, compared with children who grow up with working parents, which creates an intergenerational cycle of disadvantage. It is therefore vital that we continue with our policies to encourage work and to address the often complex employment barriers faced by many disadvantaged families.
A number of hon. Members raised concerns about working families who are in poverty. However, the evidence is clear. Adults in workless families are four times more likely to be in poverty than those in working families. Children living in workless households are five times more likely to be in poverty than those in which all the adults work. Children in lone-parent families are three times less likely to be in poverty if their parent is in full-time work. And the chances of a child being in poverty if one parent works full time and the other part time is one in 20.
We are making good progress. Nationally, there are 954,000 fewer workless households and 608,000 fewer children living in such households now, compared with 2010. In London, there are 197,000 fewer children in workless households than there were seven years ago. By 2016, the number of children in long-term workless households in London was less than half what it was in 2010. The latest data shows that the London employment rate has increased by 7.1 percentage points since 2010. Comparable national figures show a slightly lower increase of 5 percentage points, so London is doing better.
Universal credit is at the heart of the reforms and the positive change that the Government are committed to driving. Through universal credit, the welfare system is, for the first time, providing working people with the opportunity to progress in work and to work more hours so that they can increase their earnings and become financially secure. Once fully rolled out, it will boost employment by about 250,000 and generate £7 billion in economic benefits a year.
We are also committed to tackling poverty by helping people with the cost of living. The national living wage, rising to £7.83 an hour in 2018-19, has given the UK’s lowest earners their fastest pay rise in 20 years. The right hon. Member for Enfield North (Joan Ryan) referred to the London living wage in glowing terms with regard to the current Mayor, but of course that project was started well before he came to office. Indeed, I am pleased to say that the largest expansion of the London living wage came when I was responsible for it at City Hall, between 2012 and 2016. However, that is not the only measure that we have taken. We have cut income tax for more than 30 million people and taken 4 million low earners out of income tax altogether. A typical basic rate taxpayer will now pay £1,000 less in tax compared with 2010.
Universal credit, with its generous childcare offer, has been designed to support parents to work after the birth of a child. Working parents on universal credit can have up to 85% of their childcare costs reimbursed, which is worth up to £1,108 a month for someone with two or more children. That is in addition to their entitlement of up to 30 hours of free childcare a week.
Hon. Members have raised serious concerns about child poverty rates, including the key findings in the End Child Poverty report, which came out a couple of weeks ago. Let me take this opportunity to emphasise that whichever way we look at child poverty rates—relative or absolute, and before or after housing costs—the headline national statistics published by the DWP show that in London all are lower than they were in 2010. Across the country, 600,000 fewer people are in absolute poverty now, compared with 2010—the figure is at a record low—and 200,000 fewer children are in absolute poverty.
Let me turn to the figures used by End Child Poverty. Those are projections based on Her Majesty’s Revenue and Customs data from 2014, and even the academics who produced the analysis have pointed out the limitations in the method. More recent data, published by Her Majesty’s Revenue and Customs since the report, shows that rather than rising, the proportion of children in low-income families in London fell in 2015 to an estimated 19%, compared with 24% in 2014. Indeed, every parliamentary constituency saw falls between 2014 and 2015. That includes some of the areas highlighted by the report. For example, in Bethnal Green and Bow there was a fall of 12 percentage points and in Poplar and Limehouse a fall of 11 percentage points. There was a fall of 6 percentage points in Hackney South and Shoreditch, as there was in Westminster North and in Enfield North. The data and the projection from the data in 2014 were immediately contradicted by the data subsequently published for 2015.
Let me deal quickly with some of the specifics that were raised. The hon. Member for Barnsley Central (Dan Jarvis) raised the issue of child poverty targets. Some hon. Members will remember that there was recognition by the Government in the past that making a long-term difference to the lives of disadvantaged children required an approach that went beyond a focus on the welfare system. That is why the Government repealed the income-related targets set out in the Child Poverty Act 2010 and replaced them with new statutory measures of parental worklessness and, critically, as my hon. Friend the Member for Hornchurch and Upminster (Julia Lopez) mentioned, children’s educational attainment. That is vital; all the evidence points to its being critical to long-term welfare and prosperity. Those are the two areas that can make the biggest difference.
A number of hon. Members raised issues about housing. The Government have recognised that there is an issue with the housing market, and a huge amount of work is going on at the newly named Ministry of Housing, Communities and Local Government. On standards, we agree that everyone deserves a decent home. That is why the numbers of homes that have been brought up to standard in both the public and the private sectors have increased very significantly, and the numbers that are below standard now lie at record lows. On housing generally, hon. Members will know that a significant amount of extra money has been put into the Government house building programme. That now stands at £9 billion, and no doubt there will be more initiatives to come from the Ministry of Housing.
We are also supporting, I believe, the Homes (Fitness for Human Habitation and Liability for Housing Standards) Bill, promoted by the hon. Member for Westminster North. It will give tenants the right to take legal action against landlords who do not fulfil their duties.
It was slightly disappointing to hear from the Opposition a fairly stout defence of the previous benefits system. As far as I can tell, that was a fraudulent system, perpetrating a lie upon the poor. It was designed to trap them in poverty. That is why we saw very little change in long-term poverty, which is what we are dedicated to tackling. I can reassure hon. Members that we are not complacent and particularly not in London, and we will be doing our best over the years to come to try to address the problems that have been raised.
(6 years, 9 months ago)
Commons ChamberAll 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.
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.
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.
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.
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?
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.
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.
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?
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.
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?
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.
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?
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.
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.
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?
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.
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?
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.
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?
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.
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?
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.
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?
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.
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?
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, 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?
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.