Social Security

Kit Malthouse Excerpts

Monday 5th February 2018 Commons Chamber

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

I beg to move,

That the draft Social Security Benefits Up-rating Order 2018, which was laid before this House on 15 January, be approved.

[Mr Speaker]

With this it will be convenient to consider motion No. 2:

That the draft Guaranteed Minimum Pensions Increase Order 2018, which was laid before this House on 15 January, be approved.

[Kit Malthouse]

With the forbearance of the hon. Member for Oldham East and Saddleworth (Debbie Abrahams) for any prior confusion, I move the motion. In my view, you will pleased to hear, Mr Speaker, the provisions in both orders are compatible with the European convention on human rights.

The draft Guaranteed Minimum Pensions Increase Order 2018 is an entirely technical matter that we attend to each year in this House and I do not imagine that we will need to spend much time on it today. The statutory instrument provides for contracted-out defined benefit occupational pension schemes to increase members’ guaranteed minimum pensions that accrued between 1988 and 1997 by 3%.

I turn to the rates that are included in the draft Social Security Benefits Up-rating Order. The Government continue to stand by their commitment to the triple lock guarantee, which means that, this year, the basic state pension and the full rate of the new state pension will go up by the increase in prices, at 3%, as outlined in the autumn Budget on 22 November last year. We will increase the pension credit standard minimum guarantee by more than the growth in earnings to match the cash increase in the basic state pension, and we will increase benefits to meet additional disability needs and carer benefits by 3% in line with prices.

The Government’s continuing commitment to the triple lock for the length of this Parliament means that the basic state pension rate for a single person will increase by £3.65 to £125.95 a week from April 2018. As a result, from April 2018, the full basic state pension will be £1,450 a year higher than it was in April 2010. We estimate that the basic state pension will be around 18.5% of average earnings—one of the highest levels relative to earnings for more than two decades.

In 2016, the Government introduced the new state pension for people reaching their state pension age from 6 April 2016 onwards, with the aim of making it clearer to people at a much younger age how much they are likely to get and providing a solid base for their saving and retirement planning. We are committed to increasing the new state pension by the triple lock for the duration of this Parliament. As a result, the full rate of the new state pension will increase by 3% this year, meaning that, from April 2018, the full rate of the new state pension will increase by £4.80 to £164.35 a week—around 24.2% of average earnings.

The benefits of the triple lock uprating will also be passed on to the poorest pensioners through an increase in the standard minimum guarantee in pension credit to match the cash rise in the basic state pension. That will be paid for through an increase in the savings credit threshold. To match the cash increase in the basic state pension, the standard minimum guarantee will rise by 2.29%, which exceeds growth in earnings of 2.2%. That will mean that, from April 2018, the single person threshold of this safety net benefit will rise by £3.65 a week, to £163.

On the additional state pension, this year, state earnings-related pension schemes will rise in line with prices by 3%. Protected payments in the new state pension will be increased in the same manner. Consistent Government support for pensions has seen the percentage of pensioners living in poverty fall dramatically in the past few decades; it is now standing close to the lowest rate since comparable records began.

[Kate Green (Stretford and Urmston) (Lab)]

The Minister will know that state pension is deducted from pension credit, leaving those pensioners no better off than if they had not contributed to qualify for a state pension. Because state pension is also taxable if other income is brought into the household, the pensioner may have both to pay tax on it and to see it deducted from their pension credit. Therefore, they could be worse off than if they had not contributed to qualify for a state pension. What are the Government doing to address that long-standing inequity?

[Kit Malthouse]

Significant measures have been taken by the Government to deal with pensions and, in particular, pensioner poverty over the last few years. We have seen that fall from something approaching 46% to around 16% in the last few years. One measure, in particular, that will have benefited many millions of pensioners is raising the personal tax threshold. That has taken millions of people out of the tax system altogether and particularly those, such as pensioners, who are on a fixed income.

I turn to disability benefits. The Government will continue to ensure that carers, those who cannot work and those who have additional needs as a result of disability get the support that they need. We continue to follow the principle in our welfare reforms that more of the money should get to the people who need it most. That results in disability living allowance, attendance allowance, carer’s allowance, incapacity benefit and personal independence payment all rising by 3% in line with prices from April 2018. Disability-related and carer premiums paid with pension credit and working-age benefits will also increase by 3%, as will the employment and support allowance support group component and the limited capability for work and work-related activity element of universal credit.

All in all, the Government will spend an extra £4.2 billion in 2018-19 on uprating benefits and pension rates. With that spending, we are upholding our commitment to the country’s pensioners by maintaining the triple lock on their state pension, helping the poorest pensioners who count on pension credit, and providing support to disabled people and carers. I commend the orders to the House.

--- Later in debate ---

[Kit Malthouse]

This has been a lively debate—certainly more lively than it has been in the past. Doubtless many of the arguments made—not least as much of the debate was about what is not in the order rather than what is in it—were exactly the same as those made last year. Therefore, I do not propose to detain the House for too long. A number of Members raised a series of detailed points, which I will try to address in writing, if I may, should I fail to address them in my speech.

The hon. Member for Oldham East and Saddleworth (Debbie Abrahams) raised a couple of issues I want to address. First, she asked when the Government will produce a cumulative impact assessment of all welfare reforms. The Treasury published a cumulative distributional analysis alongside the Budget, in November last year, showing the impacts on household income of tax, welfare and expenditure, so I would point her to that. She also asked about the new state pension communications, as did a number of other hon. Members. She will be pleased to know that, following the National Audit Office report last year, from which she quoted, the Department for Work and Pensions launched an online “Check your State Pension” service.

[Debbie Abrahams]

rose—

[Kit Malthouse]

I will carry on. The service has had 7 million views since February 2016. Notwithstanding that, there is obviously more work to do on communications.

The hon. Member for Airdrie and Shotts (Neil Gray) asked why bereavement support payments have not been uprated. A bereavement support payment is not a cost-of-living benefit and is paid in addition to means-tested benefits to protect the least well off, so it is not necessary to uprate it in line with the cost of living. Unlike bereavement allowance and widowed parent’s allowance, bereavement support payment is paid in addition to other benefits to which the recipient is entitled, helping those on the lowest incomes the most. The hon. Gentleman will know that the up-front payment for those with children has been increased from £2,000 to £3,500.

[Neil Gray]

Will the Minister give way?

[Kit Malthouse]

I will not; I do not really have time and the hon. Gentleman and his friends had plenty to say during the debate.

A wider point was raised by several Members that for me distils the difference between the Government and Opposition on this issue. There seems to be on the Opposition Benches a kind of Stockholm syndrome attachment to the old benefits system, despite the fact that it is obviously a fraud perpetrated on the poor, more often than not designed to keep them poor rather than to give them the tools and ladders to climb so that they can take control of their own lives and financial control of those of their families into the future. I understand and would never seek to doubt Opposition Members’ motivation to do the best by their constituents and the rest of the country, but for some reason they seem to think that that motivation applies only to them, rather than to Government Members as well. I reassure the House that the motivation of every Conservative Member of Parliament is the betterment and welfare of our fellow citizens, which is what the order is designed for. With that, it gives me great pleasure to commend the orders to the House.

Question put and agreed to.

Resolved,

That the draft Social Security Benefits Up-rating Order 2018, which was laid before this House on 15 January, be approved.

Pensions

Resolved,

That the draft Guaranteed Minimum Pensions Increase Order 2018, which was laid before this House on 15 January, be approved.—(Kit Malthouse.)

Smart Meters Bill (Programme) (No. 2)

Ordered,

That the Order of 24 October 2017 (Smart Meters Bill (Programme)) be varied as follows:

(1) Paragraphs (4) and (5) of the Order shall be omitted.

(2) Proceedings on Consideration and any proceedings in legislative grand committee shall (so far as not previously concluded) be brought to a conclusion two hours after the commencement of proceedings on the Motion for this Order.

(3) Proceedings on Third Reading shall (so far as not previously concluded) be brought to a conclusion three hours after the commencement of proceedings on the Motion for this Order.—(Richard Harrington.)

Marriage in Government Policy

Kit Malthouse Excerpts

Tuesday 30th January 2018 Westminster Hall

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

It is a pleasure to begin my Front-Bench career under your beady eye, Mr Rosindell. I congratulate my hon. Friend the Member for St Ives (Derek Thomas) on securing this debate and pay tribute to the work that he has done over the years on this issue, which is deeply important to him. I also thank hon. Members for a sensitive and thoughtful debate.

The Government are committed to supporting families, and it is right to draw attention to an issue that affects a wide range of Departments as well as mine. This debate was called in connection with Marriage Week, which takes place between 5 and 14 February. That provides a good opportunity to celebrate the commitment and connectedness that a stable relationship brings to a family.

The Government’s view is that families are fundamental in shaping individuals and that they have an overwhelmingly positive effect on wider society. Growing up in families where parents are collaborative and communicate well gives children the environment they need to develop into happy and successful adults. The vital institution of marriage is a strong symbol of wider society’s desire to celebrate commitment between partners.

The institution of marriage can be the basis of a successful family life and many people make this important commitment every year. Marriage can lay the foundations for parenthood and is emblematic of the love and security that parents need to raise a child. The Government will continue to champion and encourage stable families that provide nurturing environments for children. That is why we are focused on helping families and children, to enhance the educational and employment opportunities available to the young and to reinforce the benefits that parental collaboration will undoubtedly have.

Although the Government support the positive impact that the stability of marriage can bring to family life, this debate is also an opportunity to celebrate the fact that relationships that provide the foundation for a stable and supportive family life across the United Kingdom come in different shapes and sizes. The Government recognise that a supportive family can take many different forms. Marriage plays an important role in our society, but we are committed to supporting different, and equally important, types of families, too.

[Sir Desmond Swayne]

How many different forms? Is a family any collection of people who happen to share a fridge?

[Kit Malthouse]

No, but it is clear that the key issue for a family unit is long-term commitment to each other, whether that is a religious, legal or emotional commitment.

It is an unfortunate fact of life that marriages, like other relationships, can and do break down, but the Government have been clear that even when a family has separated, both parents still have a positive role to play in the lives of their children. Evidence shows that parental collaboration has a direct and positive impact on children’s outcomes. They tend to have better health and emotional wellbeing and higher academic attainment if they grow up with parents who have a good relationship and manage conflict well. That is why we are committed to supporting healthy relationships between parents, whether married or cohabiting, together or separated, in the best interests of children.

We have already made good progress. Between April 2015 and March 2017, we invested £17.5 million in relationship support services, as my right hon. Friend the Member for Chingford and Woodford Green (Mr Duncan Smith) pointed out. More than 48,000 couples have participated in counselling and more than 17,000 practitioners have been trained to help families in difficulty. We could not have achieved that without our delivery partners in the Relationship Alliance—part of a broad range of stakeholders who contribute valuable insight and expertise.

In the light of the strength of the evidence about the damaging impact of parental conflict on children, my Department is working with local areas to implement a new reducing parental conflict programme, which will increase access to face-to-face, evidence-based interventions to reduce parental conflict. As announced in “Improving lives: Helping Workless Families”, our new programme will focus on vulnerable families, including those who are workless, because they are three times more likely to experience relationship distress.

Given the time remaining, I will turn to the four broad themes raised by hon. Members. First, several hon. Members mentioned the suspicion that there was an element of cultural cringe at the mere mention of marriage. I reassure them that that will not be the case from my point of view. The Department is working hard to embed the family test across Government, as my right hon. Friend mentioned, and to offer advice to other Departments that are instituting it. It has been developed with our partners in the Relationship Alliance, and we will continue to push that forward.

On the relationships and sex education consultation that is coming out later this year, I understand that that will or should mention the importance of commitment, with a specific mention of marriage as an element of that.

Secondly, the Government’s support for stability in relationships will be an enormous departmental focus for us, not least because of the connection between relationship instability and worklessness. In last year’s Budget, we announced that we would spend an extra £39 million on that programme over the next few years. I welcome hon. Members’ contributions to its development. We are also developing a quality of relationship tracker—a relationship distress indicator—against which we will hopefully be able to measure performance.

Thirdly, my hon. Friend the Member for St Ives and others mentioned a ministerial working group. I would be more than happy to address that with ministerial colleagues. I think the Cabinet Office is the most effective Department for looking across Government at where we can put something together. I will write to my opposite number there to look at that.

Finally, several hon. Members raised the issue of financial support for marriage and whether it is enough, whether it is targeted properly and whether it should be exclusive to marriage or for commitment more widely. Although it would be dangerous to stray into Treasury matters at this early stage of my career, I am happy to write to Treasury Ministers to point out that although uptake of the marriage allowance has been successful to some extent—something like 2.6 million families now take part—hon. Members present feel that more could be done.

My door will always be open to hon. Members who are behind the strengthening families manifesto. Before becoming a Minister, I had a useful meeting with the all-party group about our crossover of interests around children’s interests, on which we are all focused.

In the preparation for my marriage, I was given a piece of advice. The chap who was preparing us said, “Kit, you have to remember that the day you get married is the day that courtship really starts.” That lesson has stuck with me for the rest of my life.

Funeral Expenses Payment

Kit Malthouse Excerpts

Monday 22nd January 2018 Written Statements

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

I am pleased to announce that it is my intention to lay regulations in the House later today that will make some enhancements to a number of the eligibility conditions relating to the social fund funeral expenses payments scheme, and simplify the process for making a claim. The scheme makes a contribution to paying the costs of funerals being arranged by people on qualifying benefits.

The changes, which we plan to bring into force on 2 April, were the subject of a public consultation exercise in summer 2017 which generated an overwhelmingly positive response for our proposals. This package of proposals will, among other things, enable claimants to receive contributions from charities, relatives or friends without them being deducted from the overall sum payable toward funeral costs. In future, claimants will have six months from the funeral date in which to make an application for help with funeral costs instead of the current three months. They will also have the option of submitting any evidence needed in support of their claim electronically.

[HCWS416]

DWP Data

Kit Malthouse Excerpts

Tuesday 21st July 2015 Commons Chamber

[Priti Patel]

The hon. Gentleman raises a number of points. It is right that the Department reviews complex individual cases, including those in which claimants have died, to ensure that all processes have been followed correctly. As I have said on previous occasions to Scottish National party Members, I am happy to look at specific cases. On the point about sanctions, unemployment benefits have always been conditional, and benefits sanctions have been part of the system for the last four decades, as is right and proper. As regards the appeal and the publication of the data, I have already said that we will, as requested, publish all aspects of the data in the right format as is required of the Department.

[Kit Malthouse (North West Hampshire) (Con)]

I welcome the Minister’s pledge to publish the data in the autumn. Does she agree that, if we are to form a judgment, it is very important that comparative data are published, not least longitudinal data for the cohorts involved, to see whether the situation is improving, and perhaps some international comparisons?

[Priti Patel]

My hon. Friend is absolutely right, and we will publish all the relevant data in this area.