Oral Answers to Questions
Lindsay Hoyle Excerpts(1 month, 1 week ago)
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Mel Stride
The hon. Gentleman specifically raises long covid, which is one of many health pressures in our society and post covid in many other countries that were also affected by the virus. We have a number of approaches, including universal support, which places people in employment and gives them critical support for up to 12 months. We also have WorkWell, and we are looking at occupational health and what tax incentives we might put in place to encourage employers to do more on that front. We are doing a great deal.
Alison McGovern (Wirral South) (Lab)
Arguably, the biggest barrier to growth in the UK and to turning around the Prime Minister’s recession is the supply of labour. Following the Chancellor’s “Back to work Budget” in the autumn and all the measures unveiled since then, some of which the Secretary of State has just reeled off, did the Office for Budget Responsibility upgrade or downgrade its forecast on employment growth in the Budget 12 days ago?
Jo Churchill
There are the wages paid through the rise in the national living wage, my hon. Friend’s local jobcentre and the range of access to support. I am sure we will be discussing all these issues tomorrow at the roundtable with seafood processors that I will be attending along with the Minister for Legal Migration and the Border, my hon. Friend the Member for Corby (Tom Pursglove).
Sir Stephen Timms (East Ham) (Lab)
A large number of people in Banff and Buchan are economically inactive. They are not claiming benefits so they are not eligible for employment support from jobcentres, but the Select Committee recommended last summer that such people should be eligible. Would that not be in their interests and in the interests of employers struggling to fill vacant posts at the moment, and therefore supportive of much-needed economic growth?
Mel Stride
May I welcome the hon. Lady to her place? In answer to her question, I will simply point out that there was much speculation before the spring Budget about whether the housing support fund was going to be extended. In my opinion, the Chancellor took exactly the right approach, and the fund has now been extended for a further six months.
Kirsty Blackman (Aberdeen North) (SNP)
Research from the Trussell Trust reveals the devastating truth: more than half of people receiving universal credit ran out of food in January and could not afford more, and 2.4 million universal credit claimants have fallen into debt because they could not keep up with essential bills. Will the Secretary of State back the Trussell Trust’s joint campaign with the Joseph Rowntree Foundation, and commit to legislate for an essentials guarantee in universal credit to reduce food bank use and ensure that everyone has a protected minimum amount of support in order to afford life’s essentials—yes or no?
Paul Maynard
I am not sure whether the hon. Gentleman is volunteering himself for a post-Commons career, but there are many job opportunities for pensioners across the country. Indeed, many people working on attendance allowance in my part of Blackpool are in their 70s and 80s, and they are doing a fantastic job. We put an awful lot of effort, not just through the mid-life MOT but through the older worker support in our jobcentres, to make sure that we match jobseekers to the right job for them.
Gill Furniss (Sheffield, Brightside and Hillsborough) (Lab)
Time and again, pensioners have been let down by this Government. They suspended the triple lock, breaking a key manifesto promise; their disastrous mini-Budget knocked hundreds of billions of pounds from pension pots; and their failure to get a grip on the cost of living means that pensioners are mainly living in cold homes over the winter and have a choice between heating or eating. Against this backdrop, is the Minister at all surprised that almost one in five pensioners are now living in poverty?
Mims Davies
I thank the hon. Gentleman for raising a distressing case. The DWP is committed to assessing people as quickly as possible. I am happy to look into that particular situation to see why, in this case, the support the claimant was entitled to did not come promptly. Prioritising the reduction of processing times to maximise the number of assessments completed without affecting quality is key, but I am very happy to take that case away.
Vicky Foxcroft (Lewisham, Deptford) (Lab)
The Department for Work and Pensions has a staggering 288,000 outstanding PIP claims. The average clearance time is currently 15 weeks. People are waiting almost four months for a decision, which can have a significant impact on physical and mental health. What is the Minister doing to improve clearance times, so that people are not left in limbo, worrying about whether they can afford the extra costs associated with their disability or long-term health condition? The Government urgently need to get a grip.
Mel Stride
I will of course look closely at the report that my right hon. Friend refers to; indeed, I reached out to him recently to invite him to the Department to discuss that and other matters. With regard to long-term sickness and disability, we are working on an array of interventions, including occupational health support within businesses; WorkWell, bringing together medical interventions with work coaches; universal support to help people into work, and to stay in work with that support; and fundamental reform of the work capability assessment, such that the OBR says that 371,000 fewer people will go on to those benefits going forward.
Liz Kendall (Leicester West) (Lab)
In the Budget, the Chancellor said that he wants to end national insurance contributions because the
“double taxation of work is unfair.”—[Official Report, 6 March 2024; Vol. 746, c. 851.]
People’s NICs records help to determine their entitlement to the state pension, so if national insurance is scrapped how will they know what pension they will get?
The Minister for Disabled People, Health and Work (Mims Davies)
I am delighted about the regional roundtables, including in the leisure and hospitality sector, oil and gas, and education, among others. They are informing the sector work of the menopause employment champion, and her one-year report is now available, showcasing a variety of stakeholders’ perspectives, and outcomes for women who need support.
Kirsty Blackman (Aberdeen North) (SNP)
The Resolution Foundation highlights that scrapping the two-child limit would be one of the most efficient ways to drive down child poverty rates, and would lift 490,000 children out of poverty overnight. Surely one child growing up in poverty is one child too many. The Secretary of State should reverse course on this, and the Labour party should also commit to scrapping the two-child limit. Does the Secretary of State agree that no child should grow up in poverty, and will he take action to ensure that that stops now?
Oral Answers to Questions
Lindsay Hoyle Excerpts(2 months, 3 weeks ago)
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Mel Stride
May I first recognise the fantastic work my hon. Friend does on financial resilience? The Government have, through very difficult times, come forward with £104 billion of cost of living payments between 2022 and 2025. I would point my hon. Friend to one particular scheme: the help to save scheme encourages low-income households to save and we have recently extended that by 18 months, until April 2025.
Mr Speaker
I call James Sunderland. Not here. I call the Chair of the Select Committee.
Sir Stephen Timms (East Ham) (Lab)
I agree with the Secretary of State about the cross-party success of auto-enrolment, which has doubled the proportion of eligible employees saving for retirement, but we know that the current regular auto-enrolment contribution of 8% of earnings is not enough to deliver the standard of living in retirement that most people hope for. Does the Secretary of State recognise that that minimum level of contribution will need to be increased?
Mel Stride
The contribution rates of the employer and employee are a very important matter, and we keep both under review.
Jim Shannon (Strangford) (DUP)
Thank you, Mr Speaker.
When I was 16, my mother took me to Danske bank—or Northern bank as it was then—and opened an account for me. When I was 18, my mother phoned up the pension man in Ballywalter and told him I needed a pension. My mother has been a big guide in my life. What would the Secretary of State say to encourage the young people of today to take their mother’s advice on opening bank and pension accounts and planning for the future?
Mel Stride
I think the response to that is, always take your mother’s advice. I always did—and look where it got me. At the age of 16, I would have thought the hon. Gentleman would have been saving into a piggy bank, putting his little pennies in a porcelain pig. I direct him to the gov.uk website, where there is a plethora of information for young people and those of all ages about saving and what the Government are doing to assist.
Mr Speaker
The good news is that Mrs Shannon is still giving him advice. I call the shadow Minister.
Gill Furniss (Sheffield, Brightside and Hillsborough) (Lab)
One of the simplest ways to get people saving for the future is by ensuring that they are enrolled in a pension scheme, but all too many are currently excluded from auto-enrolment, particularly women, who are twice as likely to miss out. The Government have known about this problem for years. They first proposed widening the criteria in 2017. Last year, thanks to a private Member’s Bill, the Minister was given the power to do just that, but still we have seen no update on when this will be implemented. Can the Secretary of State shed light on when these vital changes will take place?
Mel Stride
As the hon. Gentleman will know, we keep all benefits under review. I point him to various things that we have done to ensure that we look after those lower-income families, including increasing the national living wage by about 10% in both of the last two years; the increase in the local housing allowance to the 30th percentile announced at the last fiscal event, which will be worth about £800 a year for about 1.6 million people; and, of course, the tax cuts that the Chancellor was able to bring forward, which for an average earner are worth £450 a year.
David Linden (Glasgow East) (SNP)
Rather than deal with the known policy failures within the benefits system, the Government seem to be more focused on penalising people through, for example, the two-child cap. Last week, the Labour party joined the Conservatives in prioritising lifting the cap on bankers’ bonuses rather than the two-child cap on working women. Does the Secretary of State take comfort in the fact that his cruel legacy will be protected by the Labour party?
Mel Stride
I am not going to get involved in the crossfire between the Scottish National party and the Labour party, other than to say—[Interruption.]
Mr Speaker
Order. I do not need a continuing argument and disagreement. I am sure that when the questions come to an end, you can speak outside.
Mel Stride
Thank you, Mr Speaker. The two-child cap is there for good reason: so that families in those circumstances are taking the same kind of decisions that others—the taxpayers funding benefits—have to take.
Jo Churchill
The welfare system is there to be a strong safety net. It is not about a singular issue, because no households are the same. It is about wraparound care and dealing with people on an individual basis. It is about making sure that where children need support—for example, with free school meals—we provide it.
Alison McGovern (Wirral South) (Lab)
Further to the Minister’s response, the Prime Minister has been asked similar questions about child poverty in recent Prime Minister’s questions. He usually responds that since 2010, the Conservatives have lifted 1.7 million people out of absolute poverty, which, as you know Mr Speaker, tracks living standards from a fixed point in time. Can the Minister tell me how many more people, on average, Labour lifted out of absolute poverty annually, compared with the 1.7 million since 2010 that the Prime Minister regularly claims?
Mims Davies
I am very sorry to hear about the hon. Lady’s constituent. Our aim is always to make the right decision as early as possible in the claim journey, and I would be keen to see the full details of that particular situation. On decisions, it is important to consider the context: 2.9 million initial decisions following an assessment have been made between June 2018 and July 2023; 5% have resulted in a completed tribunal hearing, with 3% overturned. I would be very keen to see what has happened in the case that the hon. Lady mentions.
Vicky Foxcroft (Lewisham, Deptford) (Lab)
As my hon. Friend the Member for Newport East (Jessica Morden) has just highlighted, the Department is in chaos and that is having a huge impact on claimants’ lives. As of October, there were 294,000 new personal independence payment claims waiting to be processed, with a further 445,000 claimants awaiting an award review. As of November, 24,339 people were awaiting Access to Work decisions. We are talking about hundreds of thousands of disabled people left in financial limbo, with tens of thousands waiting to start work. What message does the Minister think these huge backlogs send to disabled people, and how does she finally plan to get a grip of them?
Mel Stride
I thank my hon. Friend for highlighting all the good work that has gone on in his constituency. I believe he opened a jobcentre only as recently as 30 January in his constituency. He is a doughty campaigner for and supporter of employment in his patch. He asks whether I will visit his constituency. I would certainly like to consider that, but my hon. Friend the Employment Minister might also visit, because she just said she was particularly keen to do so.
Antony Higginbotham
Burnley and Padiham has so much going for it—with the rest of Lancashire, our area is the manufacturing powerhouse of the United Kingdom—but still has stubborn levels of economic inactivity among people who could be contributing to economic growth and having financial security, which we all want them to have. What more can we do to help those people? In particular, can my right hon. Friend do more to join up with other Departments so that areas such as Burnley, which might have structural problems, get more intensive support?
Jo Churchill
We know that social media helps, and that 40 to 50-year-olds in particular enjoy engaging with a digital platform when they are looking for work. We have had instances in the past of people thanking us when they have been given interviews online. It is important that posts are accessible and we are working to ensure that this is the case. I would point customers of any age to the JobHelp website, which has a host of useful information. I am keen to see if we can roll out such progress further.
Mr Speaker
I do find that a strange grouping, but not to worry, Minister. Well dealt with! How you got from Cumbria across the country like that is amazing.
Mr Barry Sheerman (Huddersfield) (Lab/Co-op)
Mel Stride
I thank my hon. Friend for her question, because autism is an issue of great importance to the House and to her personally. I know about the work that she is doing with Ryan Gibbs, Becca Pierce and Shelly Rankin Jones. She will know that the Buckland review was instigated in April 2023 and will conclude relatively shortly, with a report being published online. I look forward to visiting her disability jobs fair in Holyhead at the end of this week.
Liz Kendall (Leicester West) (Lab)
This morning the Office for National Statistics published the long-awaited updated figures from the labour market survey. Can the Secretary of State now confirm that our employment rate is even lower than previously thought, and that there are at least 200,000 more people out of work due to long-term sickness? We thought that the cost of health-related inactivity was an additional £15 billion a year since the pandemic, but given these new figures, can he tell the House how much more his Government’s failure is costing taxpayers every single year?
Mr Speaker
Order. I remind Front Benchers that this is topical questions, which are meant to be short and punchy, and they should stick to the rules. Do we understand each other?
Mel Stride
The hon. Lady refers to the latest weighted numbers just released by the Office for National Statistics, which show that unemployment as a percentage is lower than originally forecast. She cannot get away from the fact that there are 330,000 fewer people in economic inactivity since the peak. As a result of our work capability assessment reforms, the Office for Budget Responsibility has scored us as having 371,000 fewer people on long-term sickness benefits than would otherwise have been the case.
The Minister for Employment (Jo Churchill)
Like my hon. Friend, I am excited about the jobs and opportunities at Sizewell. Local jobcentres have been engaged with Sizewell C, and I understand that a local partnership manager will be designated to promote opportunities, and to find people for 1,500 apprenticeships and thousands of jobs. We will invest in local skills through sector-based work programmes and the like.
The Minister for Disabled People, Health and Work (Mims Davies)
If the hon. Gentleman has specific examples, I would be keen to hear from him and to look into them.
Sir Stephen Timms (East Ham) (Lab)
Will the Secretary of State point out to the Chancellor that many councils have used the household support fund to pay £3 per day per child during the school holidays to families entitled to free school meals, and that if the fund closes at the end of March, those families will be straight into hardship in the Easter school holidays?
Oral Answers to Questions
Lindsay Hoyle Excerpts(4 months, 1 week ago)
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Mims Davies
I thank my right hon. Friend, and I hope I am the Minister for getting things done in this brief, as I have been in all my other briefs in my almost five years at the DWP. I will be leaning very much into those details. I will be very clear with the House that the focus on youth transitions is really important for the sector and for the individual people we are talking about. I agree with my right hon. Friend, and I will be looking into that in the new year.
Vicky Foxcroft (Lewisham, Deptford) (Lab)
It is a pleasure to welcome the new Minister to her post. After a week of no news, I was starting to worry that the Prime Minister was not going to appoint anyone. I think she is aware of the huge Access to Work backlog her predecessor failed to tackle. Over the last year, it has reduced by only 942, with a staggering 24,339 still waiting, so hardly a dent has been made. What will she do to speed this up and ensure that thousands of disabled people are not left waiting months to start work?
Jo Churchill
I have already had a meeting of the inter-ministerial group on green jobs, and I have met many of those from across the disability sector. When I was a Minister in the Department for Environment, Food and Rural Affairs, I sat on the inter-ministerial groups for green jobs and for disability access. It is vital that we use everybody’s talents, because work is a force for good. Someone’s disability should not stop their talent shining, and I will not let it do so.
Jim Shannon (Strangford) (DUP)
Thank you very much, Mr Speaker. I thank the Minister for that response. Many of the long-term unemployed have disabilities. Some of them cannot work, but some wish to work, and they need flexible hours because they do not know the times and days that they will not be able to work and will be off. What can be done to help those who have disabilities get into work, so long as their health can dictate when?
Alison McGovern (Wirral South) (Lab)
All we hear from the Secretary of State on employment is smoke and mirrors, but thankfully the OBR has published the numbers. We have just heard what he believes is happening with employment because of his policies, but when the OBR looked at his policies, did its forecast show the employment rate, compared with today, to be going up or down in 2024-25?
Mims Davies
I thank my hon. Friend for making that point. As someone who was self-employed for not far off 15 years, I understand where he is coming from. Our work coaches at Jobcentre Plus offices engage with claimants to support access to skills provision. They get a comprehensive range of support, which includes apprenticeships, skills bootcamps, vocational and basic training skills, and careers advice, so that they can work in a way that suits them. Less than 1% of workers on zero-hours contracts want more hours—it is more about caring or other flexibilities—but I am happy to look at the points he has raised in the Chamber today.
Sir Stephen Timms (East Ham) (Lab)
Last week, Uber came to Parliament to brief MPs on partnerships it has set up to support its drivers, including its recognition agreement with the GMB trade union. All Uber private hire drivers are now auto-enrolled into a pension, but legal uncertainty means that that is not the case for Uber’s competitors. Is it not high time for the Government to bring forward their employment Bill, which was promised after the Taylor review, to provide a level playing field for employers and to tackle these problems of insecurity in the gig economy?
Mims Davies
As we have heard from the Secretary of State, 400,000 fewer children are in absolute poverty, and we thank our food banks for the work they do in supporting our communities. We do take this seriously. We have added food security questions to the family resources survey, and we will absolutely look at that. I would point to the hon. Member’s constituency having been allocated an additional £8 million in the last household support fund for exactly those families.
Liz Kendall (Leicester West) (Lab)
On Friday, pupils at Shaftesbury Junior School in my constituency gave me the lovely Christmas earrings that I am wearing, which they made themselves using computer-aided design. I am so proud of all their achievements, especially when more than a third of Leicester’s children are growing up in poverty, with all the challenges that brings. As my hon. Friends have said, figures from UNICEF show that under this Government the UK has had the biggest increase in child poverty out of the world’s 40 wealthiest countries. My question is simple: what is the Minister going to do about it?
Mims Davies
We will absolutely not follow Labour’s lead—let us look at their record. People might be worried ahead of Christmas. Cost of living payments, the household support fund, the benefits calculator and help for households are all out there. I want the people watching now to know that support is there. Progression will vary depending on circumstances; we have a tailored approach. We have 37 district progression leads to help exactly those families that the hon. Lady talks about.
David Linden (Glasgow East) (SNP)
The actions that we take to lift children out of poverty say an awful lot about our values. In Scotland, we have lifted 90,000 children out of poverty, with measures such as the game-changing Scottish child payment. Here in London, we have a Westminster Government, supported by the Labour party, wedded to a two-child policy that pushes 250,000 children into poverty. What does the Minister think it says about Westminster’s values on child poverty that they are wedded to a two-child policy with a rape clause?
Paul Maynard
That is certainly something I need to look into. When people raise the issue of specific pension schemes, I am always conscious of just how many thousands of scheme members are potentially watching, so I do not wish to speak off the cuff and raise hopes that I may not be able to fulfil. However, I shall be happy to meet the right hon. Gentleman to discuss the circumstances in greater detail and see what can be done.
Virginia Crosbie (Ynys Môn) (Con)
Mel Stride
My hon. Friend is being too modest in laying all the progress at the door of the Select Committee, because it was she in particular who pushed for those reforms to childcare within universal credit, and I believe that she was quite rightly name-checked by the Chancellor in his Budget statement. We of course have the back to work plan, the extension of restart, the doubling of universal support, the greatest-ever increase in the national living wage and the reductions in employee national insurance, all of which are there to drive further employment.
David Linden (Glasgow East) (SNP)
During the recent covid inquiry, the former Health Secretary, the right hon. Member for West Suffolk (Matt Hancock), said that statutory sick pay was “far too low” and that if he had a magic wand, he would fix it. Given that the Secretary of State has the magic wand, as the Minister responsible for this, when is he going to fix it?
Jo Churchill
It is fantastic to hear of the job opportunities created by Lidl in South West Bedfordshire. I know my hon. Friend will be working hard with Lidl and his local jobcentre to make sure the vacancies are filled with local talent. Jobcentres can work closely with large employers, as I have recently seen at Morrisons, which has a specific neurodiversity pilot to bring people into the job market. The barriers that restrict neurodiverse people are often challenges around confidence and so on. Jobcentres are a brilliant force for good, and I recommend that everybody engages with them on bespoke schemes for neurodiversity or any other focus on tackling long-term unemployment.
Mike Amesbury (Weaver Vale) (Lab)
In 2010 there were 117,000 16 to 24-year-olds on long-term sickness and health benefits. That figure now stands at a massive 235,000. Why is that, and what are the Government doing about those appalling figures?
Autumn Statement Resolutions
Lindsay Hoyle Excerpts(5 months ago)
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Several hon. Members rose—
Mr Speaker
Order. Before I call John Redwood to speak, I inform the House that I apologise that I was absent at the beginning of today’s sitting due to a change in flight times after spending the last 30 hours meeting my counterparts in Israel and the Occupied Palestinian Territories following the devastating crisis in Israel and Gaza. I thank my counterparts for meeting me at this sad and difficult time.
My advice for Back Benchers is to take up to eight minutes. If we can try to work to that, we will get everybody in on the same basis.
John Redwood (Wokingham) (Con)
I have my business interests declared in the Register of Members’ Financial Interests.
Underneath the exchanges of words, I welcome the outbreak of agreement, given that the Labour party now strongly supports the idea of helping more people into work. I suspect that the Opposition will not vote against the main items in the autumn statement because they understand that the Government have had success in keeping so many people in work and promoting employment over the years, despite some extremely difficult situations. They also understand that that is an important thing for a responsible Government to do, and not just to get the benefit bill down. As Labour has eloquently said, life can be so much more worth while when people have suitable work, suitably supported, that gives them a sense of purpose and of contributing to their communities.
I wish to draw brief attention to the issue of getting inflation under control and the inadequacy of forecasts by the Office for Budget Responsibility and the Bank of England. It is extremely difficult for Ministers to conduct consistent policy when the forecasts are zinging around so much and giving different and often misleading ideas of what is feasible and what is not. I welcome the other place’s most recent report on the Bank of England, which highlights how the Bank has been unable to come up with realistic inflation reports over the last three years and has therefore taken inappropriate action. First, it loosened monetary policy in the covid recovery phase, and now its monetary policy is too tight as it seeks to adjust its past mistakes. I hope that the Bernanke review will get on with the important task of adjusting the Bank’s models and coming up with a better answer to help guide our counsels, and particularly those of our Ministers.
I find it odd that we have a Monetary Policy Committee that is not interested in money and credit. As the other place’s report suggests, perhaps it should look at putting money and credit into its thinking—more diversity of thought is recommended—and into the models to try to get them to work. What is the point of the committee sitting around trying to make decisions if the main data it is using—namely, what it thinks the inflation rate will be—can be massively out? It thought that the inflation rate would stay at a pretty consistent 2%, when it was en route to 11%. That was why, for many months, the Monetary Policy Committee did not take appropriate action to rein in potential inflation. Now it is pretty sure that inflation will come under control, but it still has had difficulties and is constantly having to change its inflation forecasts in the meantime, as has the OBR.
The review rightly points out that when looking at money and credit in the economy, we need to look at the experience elsewhere in the world. Of the five most important central banks of the world, including the Bank of England, those in Asia have lived through exactly the same big escalation in food and energy prices as a result of the dreadful war in Ukraine. The two major central bank economies in Asia are very vulnerable, because they import a lot of food and energy, but their inflation stayed around 2%, whereas the three western central banks, including the Bank of England, took much more aggressive monetary action, printing a lot of money and buying an awful lot of bonds, and experienced the inflation rate going up to around 10%. They should pause and ask why.
The review also rightly says that the Bank of England should be more accountable to Parliament—not to the Government, in any way to prejudice its independence—because it is in the process of losing us the most colossal sums of money. Successive Chancellors have guaranteed the Bank of England against all losses from their bond buying programmes, which started under Labour at the end of the first decade of the century and were escalated by the current Government in response to covid. We are now looking at a possible loss of £170 billion, based on the latest figures that it has revealed. Every penny of that has to be paid by the Treasury on behalf of taxpayers as and when it is incurred.
There is absolutely no need for the Bank of England to make those losses bigger and more immediate by wading into the markets at the moment and selling those bonds in a hurry, at very depressed prices—prices that the Bank has deliberately depressed in order to get interest rates higher. It could follow the European Central Bank, which wisely is not selling its bonds at a loss in the market but is awaiting their retirement when they fall due for repayment, when the losses will be less but it can still shrink the balance sheet, which is the main thing it wishes to do.
I hope the Government will look at that, because it has always been a dual-controlled policy: the bond buying required the signatures of successive Chancellors of the Exchequer. It is a matter of legitimate concern for this House when the losses are so colossal, and there is a direct impact on all public expenditure figures, public borrowing and so forth, excluding the Bank of England. As many in the debate will know, we look at the figures both cum the Bank the England and ex the Bank of England. The ex the Bank of England figures look very poor indeed.
I welcome measures in the autumn statement to promote more growth, which is crucial. The way to get inflation down faster is to promote more capacity, so any measure that gets us more capacity is welcome. That is why I am particularly keen that we be much kinder to the self-employed and small businesses. They can do more work immediately, but some of the tax penalties still weigh on them, preventing them from getting self-employed status or winning contracts, or preventing small businesses from growing quickly enough. I repeat my urging for Ministers to look at that: more capacity would be the best way to get inflation down.
I will put in one final plea to Ministers to find some money to cut the taxes on energy. They are making us extremely uncompetitive and are keeping inflation higher for longer. It would be a win-win to get some of the taxes on energy down.
Richard Thomson (Gordon) (SNP)
Against a pretty horrendous economic backdrop, it was with bated breath and no little trepidation that we on the SNP Benches waited to see what the Chancellor would drop. The backdrop is certainly about as far removed as anyone could ever have hoped it would have been going into such a crucial period. Not only is GDP per capita still not above 2019 pre-pandemic levels, but the UK is expected to suffer the biggest fall in living standards since records began in the 1950s. Most people are expected to be worse off in 2027 than they were in 2019. Real incomes are also expected to be lower in 2027 than they were in 2019. A typical household will be worse off by approximately £694 per annum by 2027-28 as a result of the policies of this Conservative Government who are so adamant, in the face of all outcomes and facts, that they get the big decisions right. That is certainly not borne out by the outlook for the economy under their stewardship.
Sadly, there was nothing at all in the Chancellor’s statement that offered any kind of meaningful change for the millions of people in Scotland and elsewhere who are really struggling right now against that economic backdrop. Last week’s announcements were a clear reminder for people in Scotland, if any were needed, that we cannot hope to build a fair, dynamic economy while being tied to UK Governments who, through their actions, do not reflect the preferences, choices or values that people consistently express at the ballot box when they go to vote.
On the statement, there is the old proverb about the couple who stop for directions and are told, rather unhelpfully, “I wouldn’t be starting from here.” Let us not be in any doubt: we certainly would not wish to be starting from here. We would not wish to be labouring with the aftermath of Brexit, which has permanently given the UK economy the effect of trying to drive a car with the handbrake wedged firmly on. We certainly would not be coming off the back of the catastrophic Budget driven by the right hon. Members for Spelthorne (Kwasi Kwarteng) and for South West Norfolk (Elizabeth Truss), which blew up the economy. Despite that, and in spite of everything, the Chancellor did have slightly more headroom—about £20 billion—than had been forecast. The question was: how would he seek to put that to work?
I will start with the few positives I can find. The uplifting of benefits by 6.7% in line with the higher rate of inflation really is the least the Chancellor could have done. It will still leave too many people struggling and wondering how they are going to pay their bills. It was the very least that should have been done on uplifting the rate. Uplifting the local housing allowance was important. My party called for, and we welcome, allowing rates of housing benefit to be paid at rates that more closely match where the market actually is. A freeze in whisky duty certainly does not undo the damage of the spring Budget, where a 10.1% levy was whacked on the spirit, but at least it makes things no worse.
If the House will permit me, I would like to take the opportunity, while I have a captive audience on the Treasury Bench, to explain why whisky duty matters. The Scotch whisky industry supports 10,000 jobs in Scotland and 42,000 jobs across the whole of the UK. It also represents 25% of total UK food and drink exports. One would think that this is an industry that the Government would want to look after, nurture, take care of and give every possible opportunity to succeed. The level of duty affects domestic consumption and also affects the investment that goes into supporting those jobs. But here’s the rub: it also impacts how other jurisdictions in key markets, particularly the Asian markets, react, because many of them take their cue from the level of duty set by the UK Government. If they see the UK Government setting a rate of duty where there is a gigantic differential between indigenous spirits such as Scotch whisky and other drinks in the market, then they have absolutely no qualms about following suit. That depresses potential sales in key emerging markets and reduces the opportunities we have to drive growth and innovation in that key sector at home.
As for the bigger picture, nothing in the Chancellor’s statement offered meaningful change to the millions of people out there who are suffering at the moment. What the statement did offer was a clear reminder that, as I have said, the key powers over the commanding heights of the economy will do nothing for Scotland while they continue to remain under the control of Governments who do not share the values that people vote for. Sadly, as the soaring cost of household bills outpaces the limited help that was on offer in the statement, the reality is that what was offered is far too little, coming far too late for the squeezed majority of households.
The SNP set what I thought were some pretty basic fundamental tests for the statement: a relatively small number of asks that could nevertheless have made a big difference. We asked for a £400 energy rebate, something that the UK Government have sadly failed to provide although energy bills continue to be roughly double what they were in 2021—and moreover, the day after the statement the energy price cap was increased by a further 5%. We challenged the UK Government to match the council tax freeze by the SNP Government in Edinburgh, which will put a disproportionately high amount of money into the pockets of the lowest earners. We also challenged them to match the game-changing Scottish child payment of £25 a week, another measure that is putting thousands of pounds into the pockets of those who need it most. That payment was highlighted in a recent blog by the London School of Economics as one of the key reasons why the level of child poverty in Scotland—although far too high—is still significantly lower than it is in any other part of the UK.
The UK Government could also have given some respite to hard-pressed homeowners, many of whom are looking down the barrel of significant increases in their mortgage payments as a result of higher interest rates. They could have done that by introducing mortgage interest rate relief, but they chose not to do so.
For my part of Scotland, the north-east, we challenged the UK Government to match what the Scottish Government are doing in kick-starting the energy revolution, the green transition that we need—to match the £500 million set aside purely for the north-east—but we got nothing, although we know how crucial that energy transition is to ensuring fairness, retaining human capital and prosperity, and delivering the changes that not only our economy but our planet needs.
We are invited to believe that the goal of the statement was growth. Let me draw attention to two key areas in which the UK Government have, in my view, been found to be badly wanting. The first is capital spending. There are obviously pressures to maintain existing assets, as we all know from the emergence of the problems that reinforced autoclaved aerated concrete has caused in many public sector buildings constructed over the past 40 years. We can see the waste caused by overspending: the horrendous waste of money represented by some of the stations in central London on the Elizabeth line, a railway that did go ahead, and by the cancellation of HS2 and the bits of that line that did not go ahead. However, we need to recognise the importance not just of private sector capital expenditure, but of the key driving, galvanising force that capital expenditure from the Government and the public sector can have. It drives and encourages investment from the private sector, and, crucially, it increases the productive capacity of each and every one of us. It is therefore unfathomable that the UK Government should cut the Scottish Government’s capital budget by 6.7% between 2023-24 and 2027-28—a figure that will potentially become even higher if inflation persists at its current levels—all the while refusing to devolve long-term borrowing powers.
Secondly, there is a persistent negative when it comes to research and development. There are parts of the UK that punch pretty well above their weight in that regard, most obviously the south-east of England and London but also Scotland. However, there are other parts, such as the regions of England and also Wales, where R&D spending is significantly below the share of GDP, and also below the share of the population that might be expected to be able to attract it. Beyond that, the UK’s investment in research and development consistently lags that of EU competitors such as France and Germany, which is a major drag on long-term growth and economic opportunities for all our constituents.
Looking through the additional spends and revenues forgone as a result of the statement, it seems to me—I am happy to be proved wrong—that the Government are committing more to returning full business rates to the combined authorities in Greater Manchester and the west midlands than they are to research and development or anything that might drive that forward. Lest anyone assail me, I have absolutely no grudge against the west midlands of England or the Greater Manchester combined authority—more power to them! I do not know whether the Greater Manchester combined authority extends to Chorley, Mr Speaker—
Richard Thomson
Perhaps some reflected benefit will come through. Those authorities are entitled to every penny that they can get back from this Government, and I wish them well in that endeavour, but it pales in comparison with the strategic importance of research and development, in policy terms and numerically. Until the Government get to grips with the long-term lack of investment in our public sector, our human capital, our physical capital and our R&D, we can expect the country to lag behind.
It is no secret that I come here as a supporter of Scottish independence. I would dearly love to see Governments in Scotland being able to make their own budgets, constrained only by the limits of their own resources, their own choices, their own imaginations and their own political mandates, and with restrictions placed on them by nowhere else. But until that day comes, we are stuck with what this Government and potential UK Governments come forward with, which, I have to say, we find badly wanting.
Mr Ranil Jayawardena (North East Hampshire) (Con)
The House, on both sides, wants to get Britain growing, and that is a great statement of intent. I am delighted that the Opposition parties agree with the Government and the Conservative party on that. I hope they will also agree that it is important that people keep more of what they earn, because they have earned it, they deserve it and that is how we will create the right work incentives to grow the economy in the years ahead. I want to put on record my support for the changes to national insurance, which will be a really important step in delivering exactly that. The fact that 27 million people will be getting a tax cut and that someone employed on a wage of £35,000 will be £450 better off is an excellent step in the right direction, and I hope there will be more to come.
I also welcome the changes for the self-employed, because it is crucial that we focus not only on those employed in large businesses but on those who work for themselves. They are the strivers who get up every morning looking for new opportunities, not only for themselves but for their families and for our wider economy. It is also important for both groups, whether they are employed or self-employed, that there is fairness in the system, and that is why it is right that welfare is looked at again. It is important that this country has a safety net. Across the House, everyone agrees with that simple premise. Those who fall on hard times, those who find themselves in difficulties and those who have particular needs that mean they cannot work at a point in their life deserve our support, and I know that the country is with us on that. But those who do not seek work are the people that the Government are rightly looking at again. I know that the people out there who we work for, the people who pay taxes, are on the Government’s side as we ensure that those who do not seek work are not provided with the support of generous taxpayers across this country.
I also give credit to the Government for the abolition of the lifetime allowance, which was announced earlier than the autumn statement. Again, this is an important statement of intent because it creates the right incentives for people to be able to work in this country. That includes people who want to work longer, given that our health is consistently better and that we can work well into what was traditionally seen as retirement. By seeking to reverse the change, the Labour party is wrong. It would price out—tax out—doctors, policemen and teachers from public service at their peak. Labour’s plan to restore the lifetime allowance would cripple those who want to continue working and contributing to our economy and society, which is something that we should be welcoming; I certainly do.
I said that I hope this is a starting point and that the Government will go further—I believe it is crucial that they do. Although childcare is an important issue for many people in this country, family-friendly taxation is arguably more important. Many people choose to use informal forms of childcare, and many people want to spend more time with their children during their early years. Indeed, 74% of women polled say that they want to spend more time with their children, particularly before they start school, and two thirds want to spend all their time with their children before they start school, but they cannot because the support is not there in the tax system. That makes us an outlier—families are taxed about 26% more in this country than in our OECD counterparts. It is a question of fairness. Individuals pay less tax than the OECD average, but families pay more. I hope the Government will look at that in the months ahead. Indeed, I hope they will look at the excellent report from the Centre for Policy Studies, to which I happened to contribute, outlining some of the options.
The SNP spokesman, the hon. Member for Gordon (Richard Thomson), talked about the squeezed middle. It is crucial that tax thresholds—particularly the 40p threshold—are reviewed. It is wrong of the SNP to say that it is here in defence of the squeezed middle, when the squeezed middle are the ones being taxed the hardest north of the border.
We must go further, too, to prove that we are different from the SNP, and that we recognise that people who strive to progress in their career, who strive to earn more money, should be rewarded. I am led to believe that, had the 40p threshold remained index-linked from the time of Nigel Lawson, it would now be in the order of £80,000, so there is much further to go to make sure the threshold does not affect police sergeants, teachers with 10 years’ experience and the like. That was not its intended purpose. Again, if we are keen to make work pay, and if we are keen to create the right incentives in our economy for people to try to secure more hours, to secure a promotion or to set up their own business, we need to make sure the tax system reflects that.
In addition, those who have done the right thing all their lives by saving hard and putting their hard-earned money into their family home should not be penalised. It is crucial that the Government look again at lifting the inheritance tax threshold from £325,000 to perhaps £1 million, as was proposed by the former Chancellor, George Osborne, in 2007. This would simply do what the Conservative party says it has always wanted to do, and I hope the Front Bench will look at that in the months ahead.
I am conscious of time, so I will move on to spending reductions and capital receipts. When the Government cancelled High Speed 2, I wonder whether they considered privatising the operation, rather than selling off the land piecemeal. There is an opportunity here to build infrastructure for the future, but for the private sector to do it and for the Government to get a capital receipt now. I hope the Government would welcome that, because it is wrong to stymie infrastructure for the future, but it is right that taxpayers’ money is best spent on road projects across this country.
There is a huge amount of spending across Government. One example is in the Department for Transport, where a huge amount of money is being spent on so-called active travel. This is the left getting what it wants, which is everyone moving from their own private transport into Government-controlled transport, or being forced to walk or cycle in 15-minute neighbourhoods. That is not what the people of this country want. They do not want blanket 20 mph speed limits, so those are the sorts of cuts we should seek.
Oral Answers to Questions
Lindsay Hoyle Excerpts(5 months, 2 weeks ago)
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Mel Stride
I cannot comment on the specific case that the hon. Gentleman has put forward, other than to say that what he has described is of concern to me and I will want us to look into that extremely carefully. I will be happy to make sure that he has the appropriate time with the appropriate Minister—I think the Minister for Employment—to look into those matters.
Mel Stride
I completely agree with the hon. Gentleman that one child in destitution is one too many. One person in poverty is one too many. One person who is unemployed and badly wants a job to support their family is one too many. The question we have to ask is how best to go about improving those situations. I say it is through encouraging people into work and through those cost of living transfer payments for those targeted through universal credit, which his party originally opposed, so that we can help those who are most vulnerable and most in need.
David Linden (Glasgow East) (SNP)
The cost of living crisis is plunging many families into destitution. We know from the JRF that 1.8 million households and 1 million children were plunged into destitution last year. Will Secretary of State use the upcoming autumn statement to bring forward the mortgage interest tax relief and action to tackle soaring food prices, and to reintroduce that £400 energy bill rebate? Otherwise, more and more children will fall into destitution. He has the power—will he respond at the autumn statement?
Mims Davies
I absolutely agree that, in the hon. Gentleman’s constituency and more widely, it is absolutely right that young people get the opportunities they deserve. In fact, since September 2020 the DWP’s youth offer has seen over 600,000 starts. As I mentioned earlier, our comprehensive support for young people now encompasses those from age 16.
Alison McGovern (Wirral South) (Lab)
The Minister began answering these questions by claiming credit for having better youth unemployment figures now than in the aftermath of a global financial crisis, which seems to me to be a low ambition. As she has heard, we have problems with inactivity and we have more young people who are not doing anything. What account can she give for the fact that, even after 13 and a half long years of Conservative Government, we have worse youth unemployment than Ireland, Norway and the Czech Republic, and that here it is double what it is in Germany and treble what it is in Japan? What on earth has gone wrong?
Tom Pursglove
I am always happy to meet colleagues to discuss such issues. It is fair to say that the Chancellor of the Exchequer has put a real emphasis on this policy area in his previous spending announcements; no doubt he will have heard the hon. Lady’s comments in advance of the upcoming autumn statement. When we consider initiatives such as Work Well—our work in respect of occupational health and the consultations on that—we see that a lot of effort and energy have gone into recognising that retention is just as important as job starts.
Vicky Foxcroft (Lewisham, Deptford) (Lab)
In his conference speech, the Secretary of State said there would be a revolution in employment support for people with health conditions and disabilities. Does this revolution include a backlog of 22,432 people waiting for an Access to Work decision, with an average delay of 48 days? Ministers need to get a grip of support for disabled people, rather than vilifying them. The Government’s lack of real action often prevents disabled people from working. Labour has a plan for delivery, so instead of endless reshuffles, why does the Minister not ask his boss to call a general election now?
Guy Opperman
With no disrespect to the hon. Gentleman, we have committed to that, which is why there is the £900 further cost of living payment, a doubling of the winter fuel payment and the highest state pension we have ever had. This Government are passionately supporting our pensioners and our most vulnerable on an ongoing basis.
Gill Furniss (Sheffield, Brightside and Hillsborough) (Lab)
New figures on pension credit update have shed light on the catastrophic failure to get money to the people who desperately need it. Up to 880,000 pensioners are now missing out. Thousands of households would be so much better off and able to keep the heating on and food on the table this winter. Underpinning the figures is a huge drop in uptake among the under-75s, with a fall of up to 20%. With so many new pensioners seemingly unaware of their entitlement to pension credit, will the Government stop burying their head in the sand and get a grip now?
Guy Opperman
I think the clue is in the name: it was a temporary jobcentre during covid. I am happy that the specific Minister will write and further explain the situation.
Stephen Morgan (Portsmouth South) (Lab)
The Minister for Employment (Guy Opperman)
My hon. Friend is a doughty champion for Kettering. He will be aware that 20.9% of working-age people are inactive, down 0.7 percentage points from last year and down 2.7 percentage points from 2010, showing that our drive to get more people into jobs is paying off. The UK now has a lower inactivity rate than the US, France and Italy. We are doing more every single day, but we are also aware that there is more to do.
Liz Kendall (Leicester West) (Lab)
The health of our nation is critical to the health of our economy, but after 13 years of this Government, both are in a dire state. The Secretary of State should know that the number of young people out of work due to long-term sickness has doubled on the Government’s watch, predominantly driven by poor mental health. Labour’s plan will recruit 8,500 more mental health staff, with support in every school and hubs in every community to tackle these problems early on. Because I am feeling generous today, Mr Speaker—
Liz Kendall
I would like to make the Secretary of State an offer. If he is serious about getting Britain working, why does he not swallow his pride, do the right thing and adopt Labour’s back to work plan?
Liz Kendall
I am afraid that the Secretary of State is living in cloud cuckoo land. Record numbers of people are out of work due to long-term sickness. We are the only country in the G7 whose employment rate has not gone back to pre-pandemic levels. It is not just young people but the over-50s. The Office for Budget Responsibility said that the rise poses a serious risk to our prospects for growth and the stability of the public finances. Where on earth is the Secretary of State’s plan to sort it out? Perhaps I am being a bit unfair, because it turns out that the Government can get the over-50s back to work, but only if they are former Prime Ministers.
Mr Speaker
Order. I have been through this time and again. When Front Benchers want to have an argument, they need to come in earlier please, and not soak up the time of Back Benchers, whom I now need to get to urgently.
Liz Kendall
Will the Secretary of State have a word with the current occupant of No. 10, and ask him to put as much effort into saving other people’s jobs and livelihoods as he does attempting to save his own neck?
Mel Stride
I thank my hon. Friend for his typically astute question and for his advice in this area over a number of months. We have gone out to consultation on the work capability assessment. We have not come to our conclusions on how to move forward, but right at the centre of that will be a strong belief that if people can work, with our support and encouragement, that is the best of all outcomes.
David Linden (Glasgow East) (SNP)
The freeze on local housing allowance is having a devastating impact on housing providers. Scotland’s Housing Minister wrote to the Secretary of State on 25 May to make that point and to make the case for restoring it to the 30th percentile. Why has he not replied? Will the Government use the autumn statement to raise it back to the 30th percentile?
Sir Stephen Timms (East Ham) (Lab)
Those Trussell Trust figures published last week made grim reading. Does the Secretary of State recognise that if working-age benefits are uprated by less than September’s rate of inflation in April next year, there will inevitably be another big surge in food bank demand and destitution?
Sir Julian Lewis (New Forest East) (Con)
On a point of order, Mr Speaker. May I take advantage of a rather quiet news day to ask if there is any way in which I can place on record the appreciation of right hon. and hon. Members for the wise advice, quiet efficiency and unfailing courtesy of Mr Peter Barratt, who recently left the service of this House after more than 30 years?
Mr Speaker
I made a statement last week to thank Mr Barratt for all his service, so it has not gone unnoticed and has certainly not been forgotten.
Oral Answers to Questions
Lindsay Hoyle Excerpts(7 months, 3 weeks ago)
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Mel Stride
My hon. Friend will be pleased to know that since 2010, youth unemployment has fallen by over 40%, which is the mirror image of what happened under the last Labour Government when it rose by over 40%. On his specific question, I point him towards the youth offer, which we have recently announced we will be expanding to even more young people.
Alison McGovern (Wirral South) (Lab)
I thought the Secretary of State understood that, while unemployment is at a historic low, economic activity is the big challenge before us, particularly when it comes to regional economic inactivity and the huge, near 10-point gap across the regions. The east midlands, London, the north-east, the north-west and the west midlands all have higher inactivity rates than the south-east. The Tories have had 13 years to close that gap, so can I ask the Secretary of State: is his plan really to make levelling up a reality by leaving it to Labour?
Mims Davies
It is vital that those on low incomes, or indeed those who are keen to work more, see the incentives. In the spring Budget, we announced an ambitious package of measures to support people to take up work and, importantly, to progress by making sure that they are always better off. We are also supporting them with a significant investment in childcare and, of course, the largest ever cash increase to the national living wage, taking it up to £10.42. I would say to those people that they should look at the benefits calculator on gov.uk, because they will always be better off in work.
Sir Stephen Timms (East Ham) (Lab)
Rents have risen very sharply over the past couple of years, but the support for people claiming means-tested benefits to pay their rent, determined by local housing allowance, has not changed at all since 2020—it has been completely frozen. I wrote to the Secretary of State about this over the summer. Is the Minister able to give the House any assurance that the forthcoming benefit uprating statement will include a realistic increase in local housing allowance?
Laura Trott
My hon. Friend is absolutely right on that, and I praise all the work he has done in his constituency on pension credit. We are trying to do exactly what he sets out: encourage as many people as possible to claim this important benefit, at a time when they are going to need it most. I note that across the House good work has been done in individual constituencies.
Matt Rodda (Reading East) (Lab)
As inflation rises, being able to top up pension contributions is vital for many part-time workers, who would otherwise not be able to claim the full state pension. However, a Daily Mail investigation showed that the Government are failing to accurately record people’s top-up contributions. Pensioners are terrified that their money has simply disappeared, so when will the Government get a grip of this terrible problem? When will Ministers show that they understand the pressure on families and pensioners due to the cost of living crisis?
Sarah Green (Chesham and Amersham) (LD)
The Minister will know that one challenge with PIP is how to accurately assess fluctuating conditions. More than half a million people in the UK are living with Crohn’s disease or colitis, but fewer than 3% are in receipt of PIP. Past applicants have said that while fatigue is the most disabling symptom, they feel that that is the least represented symptom in their assessments. [Interruption.] Would the Minister consider introducing a fatigue rating scale to PIP assessments to more effectively capture what is, for many, the most debilitating component of their condition?
Mr Speaker
Minister, the reason I was coughing was that the question was rather long.
Tom Pursglove
I am grateful to the hon. Lady for her interest in this issue. Through the White Paper reforms, we have advocated for a number of tests and trials, including one that focuses specifically on better capturing fluctuating conditions. I would be keen to have conversations with her about that. The Government are committed to working with charities and those that are interested, including disabled people, to ensure we get those reforms right.
Tom Pursglove
Like the hon. Gentleman, I am passionate about the positive difference that Access to Work makes in terms of opening up employment opportunities for people. He will be aware of the passports that we have introduced to help better understand people’s needs and passporting that between jobs and between, for example, education and employment. I refer him back to the steps that we have taken to see improvement in the journey times, but we will continue to work tirelessly to make sure that people get the Access to Work help as quickly as possible.
Vicky Foxcroft (Lewisham, Deptford) (Lab)
In January, it was found that the Access to Work backlog had trebled since February 2020, rising to more than 25,000. In June, the Minister claimed additional resource was being put into Access to Work. Will he inform the House exactly how many additional staff are working to clear the backlog and when he expects it to return to pre-pandemic levels? His Government say that they want to get more people into work, yet disabled people are missing out on jobs because of unacceptable delays at the DWP.
Guy Opperman
The Government are committed to a sustainable long-term approach to tackling poverty and supporting people on low incomes. We will spend around £276 billion through the welfare system in 2023-24, including around £124 billion on people of working age and children.
David Linden (Glasgow East) (SNP)
The Minister seems to forget that the two-child limit impacts people who are on in-work benefits. The only exemption to the two-child limit is if a woman can prove that her third or a subsequent child has been born as a result of rape. How many people has the Minister’s Department asked to prove that they have been raped in order to get an exemption to the two-child limit?
Mel Stride
I would be very happy for either myself or the relevant Minister to meet my hon. Friend or my right hon. Friend the Member for Witham (Priti Patel).
Ms Karen Buck (Westminster North) (Lab)
We all want to see both unemployment and economic inactivity as low as possible, but the Office for National Statistics, quoted approvingly by the Minister a few minutes ago, reports that this spring’s quarter showed a large fall in the number of people moving from economic inactivity into employment, and that the net movement from employment to economic inactivity was the largest since the covid autumn of 2020. Given that this is the Department’s priority, what assessment has he made of why this is going wrong?
Mel Stride
I thank my hon. Friend for his question. I very much welcome the Court of Appeal’s decision in July, meaning that the national disability strategy is lawful. The Government are now able to continue with the important work of implementing that long-term strategy, and I can confirm that my hon. Friend the Minister for Disabled People will shortly come forward with further details of some of the individual commitments we will be making around that strategy.
Liz Kendall (Leicester West) (Lab)
Thank you, Mr Speaker, and I thank the Secretary of State for his kind words. However, whatever he says about economic inactivity, it remains a serious problem in this country, with the UK lagging behind all other G7 countries in terms of workforce participation since the pandemic. Indeed, last month, the number of people off work due to long-term sickness hit an all-time high. What is this Government’s response? The Chancellor tells the over-50s to get off the golf course, and the DWP Secretary tells them to literally get on their bike. Is not the truth that this Government’s failure to cut waiting lists, sort social care and have a proper plan for reforming our jobcentres is harming individuals and our economy as a whole?
Laura Trott
Obviously this is without looking at the individual case, but it is important to note that the threshold has gone up significantly, so it is worth questioning whether the hon. Lady’s constituents are now eligible. If not, applications to the household support fund can be helpful, and local councils may be able to offer housing benefit support. If there is an individual case that she would like to write to me about, I am happy to respond.
Mr Speaker
That completes the questions. Those who wish to leave should do so.
Cost of Living Support
Lindsay Hoyle Excerpts(10 months, 1 week ago)
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The Minister for Disabled People, Health and Work (Tom Pursglove)
With permission, Mr Speaker, I will make a statement on the progress of delivery of cost of living support.
The Government understand the pressures that households face in the current climate. We are all familiar with the global factors that are the root causes of costs being higher, including President Putin’s illegal war in Ukraine and the aftermath of the pandemic. We are committed to delivering on our priority to halve inflation, which will help ease those pressures for everyone and raise living standards.
Alongside that important work, we continue to implement our wide-ranging and significant package of cost of living measures to support the most vulnerable during 2023 and 2024. We have increased benefits and state pensions by 10.1%, and increased the benefit cap by the same amount so that more people are helped by the uprating. For low-paid workers, we have increased the national living wage by 9.7% to £10.42 an hour. That represents an increase of more than £1,600 to the gross annual earnings of a full-time worker on the national living wage. That increase, and the increases we made to the national minimum wage in April, have given a pay rise to about 2.9 million workers.
To help parents, we are undertaking a significant expansion of childcare, including a rise, later this month, of nearly 50% in the maximum amount of childcare payments for people on universal credit. For the most vulnerable, the £842 million extension of our household support fund into 2023-24 means that councils across England can continue to help families with the cost of groceries, bills and other essentials. Taking into account the extra money that we have provided through Barnett funding for Scotland, Wales and Northern Ireland, who can decide how they allocate that money, we have committed an extra £1 billion. That is on top of what we have provided since October 2021, and brings total funding to £2.5 billion.
With energy bills being one of families’ biggest worries, the energy price guarantee will also remain in place as a safety net until the end of March 2024, should energy prices increase significantly during that period. Since that energy bills support began in October 2022, the Government have covered about half of a typical household energy bill this past winter, and by the end of June will have saved a typical household around £1,500. We are also building on and extending the one-off cash payments we provided during 2022-23 that saw us make more than 30 million cost of living payments, including a £150 disability cost of living payment to 6 million people, up to £650 for more than 8 million households on means-tested benefits, and an additional £300 on top of the winter fuel payment for more than 8 million pensioner households. Those payments put hundreds of pounds directly, and at pace, into the pockets of millions of people.
However, we recognise that cost of living pressures continue, particularly for the most vulnerable households. That is why we continue to provide targeted support to help those most impacted by rising prices throughout this financial year, including more support for people on means-tested benefits such as universal credit, with up to three cost of living payments totalling up to £900. The Government have already delivered the first £301 payment to 8.3 million households—support worth £2.5 billion. The two further payments of £300 and £299 will be made in the autumn and the spring, and pensioner households will get an additional £300 on top of their annual winter fuel payment this winter, as they did last year.
I am pleased to be able to confirm to the House that from today, to help with the additional costs that disabled people face, more than 6 million people across the UK on eligible extra-costs disability benefits will start to receive a £150 disability cost of living payment. Those cash payments, which we estimate will be worth around £1 billion, will be automatically transferred into people’s bank accounts, with those eligible for the support not needing to take any action. By the end of Monday 26 June, we plan to have made 99% of payments to those already eligible—that is millions of payments being made in just seven days. Most remaining already eligible people will receive their payment by 4 July. We estimate that nearly 60% of individuals who receive an extra-costs disability benefit will also receive the means-tested benefit cost of living payment, and more than 85% will receive either of, or both, the means-tested pensioner payments.
This Government will always protect the most vulnerable, but we are also helping to improve living standards for everyone by getting more people into, and progressing in, better-paid jobs. That is the surest and most sustainable way to raise incomes and grow the economy. The number of people in employment has increased to a record high, but by removing the barriers that stop people from working, we are reducing the number of people who are economically inactive—those who are neither working nor actively looking for work. It is encouraging that last week’s labour market statistics show a further fall in inactivity of 140,000, or 0.4%, on the quarter.
We are tackling inflation to help to manage the cost of living for all households and providing extra targeted support for those that need it. The disability cost of living payments, landing in millions of bank accounts from today as part of our wider support package, underline our commitment to supporting disabled people. That is reflected in how we are stepping up our employment support for disabled people and people with health conditions; ensuring people can access the right support at the right time and have a better overall experience when applying for and receiving health and disability benefits; and transforming the health and disability benefits system so that it focuses on what people can do, rather than on what they cannot. It is also reflected in the fact that we expect to spend over £78 billion in 2023-24 on benefits to support disabled people and those with health conditions, which is 3.1% of GDP.
With the Government’s significant package of cost of living support, worth over £94 billion in 2022-23 and 2023-24, we are ensuring that those most in need are protected from the worst impacts of rising prices, putting more pounds in people’s pockets and providing some peace of mind to the most vulnerable in society.
Oral Answers to Questions
Lindsay Hoyle Excerpts(10 months, 1 week ago)
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Mel Stride
My hon. Friend the Minister for Employment recently visited the hon. Gentleman’s constituency to look into those matters and reported back very favourably. I am grateful to the hon. Gentleman for raising that important point.
Sir Peter Bottomley (Worthing West) (Con)
While my hon. Friend the Member for East Worthing and Shoreham (Tim Loughton) and I have represented Worthing and district, we have survived the equivalent of eight coalmines closing in the town. Flexibility matters.
Let us remember, looking back at the youth opportunities programme and the employer assistance scheme, that it is enterprise that makes the biggest difference. Will my right hon. Friend emphasise that? In tribute to Lord Young of Graffham, let us make sure that we combine individual enterprise and public enterprise with private partnerships.
Mims Davies
Mr Speaker, may I just confirm that the LHA rates were boosted by a £1 billion funding increase in 2020? I may have said 2010, so I apologise to the House, but that significant investment is maintained.
I recognise that rents are increasing, as the hon. Gentleman has said, and that it is a challenging fiscal environment and difficult decisions are having to be made. He has mentioned the most vulnerable. For those of working age or with disability benefits, those benefits have been increased in line with inflation for 2023-24. The benefit cap has also increased, but I want to reassure the House that I understand this is a real concern for many of our constituents of all sizes of house, and I am focused on addressing those challenges.
Mr Speaker
We are only on Question 2, so I am a little worried about how long it is taking. I call the shadow Minister.
Ms Karen Buck (Westminster North) (Lab)
The Government’s mortgage crisis is about to be the next blow to hit renters, because so many are renting from those with buy-to-let mortgages. Already, 49%—almost half—of children in privately rented homes with parents receiving universal credit are in absolute poverty, to take the Government’s preferred measure, and as we know, many of those parents work. Since then, rents across the country have risen by 9.5%, but the local housing allowance has risen by 0%. What does the Minister think is going to happen to low-income families with children in the private rented sector this year?
Tom Pursglove
I am hugely appreciative that my hon. Friend extended that invitation for me to come along and visit the Belgravia Waitrose branch. It was incredibly inspiring to see that dedicated team, who are part of the wider customer service family within that business, achieving so much and providing brilliant service to their customers. It demonstrates that not only is it right for businesses to engage in disability employment, but it has had a great impact on those employees and on the community as a whole. That demonstrates what can be achieved with the right Government support, working with businesses to increase those opportunities and support people.
Vicky Foxcroft (Lewisham, Deptford) (Lab)
Let us be absolutely clear: the 2019 Conservative manifesto promised a radical strategy for disabled people before the end of 2020. It finally emerged in summer 2021 but was found to be illegal. It was quietly replaced by the disability action plan in December 2022, but six months on we still have very few details. We do not know whether it will be co-produced, and ultimately it is unlikely to result in any changes before the next election. How many years does the Conservative party need to take meaningful action? I will tell the Minister who is disappointed: disabled people after 13 years of this Conservative Government.
Sir Stephen Timms (East Ham) (Lab)
Very little data is being published on the outcomes of the restart programme in Don Valley or anywhere. There was a one-off statistical release last December, but nothing regular at all. In the past, we have had monthly data from the Work programme, and we still have regular updates from the Work and Health programme. Does the Minister recognise the value of regular publication of outcome data for the flagship restart programme?
Mel Stride
It is not appropriate to dismiss completely the significant downside of covid—we spent £400 billion supporting the economy during that—the significant impact through energy price spikes of the war or the deleterious impact of the last Labour Government, to whom the hon. Lady refers. The simple fact is that since 2009-10, there are 1.7 million fewer people in absolute poverty after housing costs, and 400,000 fewer children and 400,000 fewer pensioners in that position.
David Linden (Glasgow East) (SNP)
The reality is that after 13 long, cold years of Conservative rule, people have never worked harder, but never felt poorer. We know that 2.6 million people on fixed-rate mortgages are about to see their fixed rate expire, which will see their mortgage rates go up. Has the Secretary of State made any assessment as to how many staff in his Department will struggle to make ends meet when their mortgages skyrocket under this Conservative Government?
Laura Trott
What an invitation—I would be delighted to attend. I commend my hon. Friend on all his work in his constituency. Older persons fairs are important and effective. I held a pension credit one on Friday in Swanley, and I recommend them to Members.
Matt Rodda (Reading East) (Lab)
Sadly, the figures also show that hundreds of thousands of pensioners are still missing out on pension credit. To make matters worse, this large group of pensioners is also missing out on the Government’s £900 cost of living payment, because receiving pension credit acts as a gateway to other help. Could the Minister explain why the Government designed their cost of living payments in that way? Could she explain what she will do to fix the problem, which the Government themselves created?
Mel Stride
The hon. Gentleman refers to a smorgasbord of different policy areas across several Departments, including housing, skills and matters in the purview of the Department for Education, as well as my Department. However, I have heard what he says, and I will take it away and consider.
Alison McGovern (Wirral South) (Lab)
The Bank of England sets interest rates independently, but economic inactivity and the wider state of the labour market is a feature of our economy that will influence whether the Prime Minister is able to meet his promise to halve inflation. Can the Secretary of State tell us exactly what targets have been agreed by his Department with the Treasury on the role of the labour market in reducing inflation?
Mel Stride
I agree with my hon. Friend that a universal basic income is not the way to proceed, and it is certainly not something that the Government are considering. Our approach is to ensure that work always pays, and to incentivise work. A universal basic income would create perverse incentives, would come at huge cost, and would not be targeted at those who need the help the most.
Mr Speaker
Order. May I remind the Secretary of State that these are topical questions? Questions and answers are meant to be short and punchy. We are getting carried away. Let us see how it works now: I call the shadow Secretary of State.
Jonathan Ashworth (Leicester South) (Lab/Co-op)
I listened to the “Chopper’s Politics” podcast recently. The Secretary of State was the guest, and revealed that he was saying to his friends in their 50s who were not working:
“Why don’t you just go and serve in the local restaurant or do something in the pub?”
Well, a very prominent 59-year-old has just taken early retirement. Will the Secretary of State be voting to sanction him, or is he advising him to just go away and work in the pub?
The Parliamentary Under-Secretary of State for Work and Pensions (Mims Davies)
This Government are focused on making sure that work pays for all parents in every situation. My right hon. Friend will be pleased to know that I will take up the specific concern about nursery charging models and ensure that the matter is raised with the Department for Education.
David Linden (Glasgow East) (SNP)
Last week, I was in Aberdeen to attend the annual conference of the Scottish Pensioners’ Forum and outline why we think an independent Scotland would be the best place to grow old. In contrast, at the weekend, the former Tory leader William Hague wrote in the papers that his party should abandon the triple lock. Is that why pensioners are now supporting independence more than ever?
Tom Pursglove
The plan is in addition to the national disability strategy. We as a Government disagree with the position that the Court has taken regarding consultation. We have been given permission to appeal, and we are appealing. The disability action plan is about short-term measures that we can get on and deliver.
Mary Kelly Foy (City of Durham) (Lab)
Health and Disability White Paper
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Tom Pursglove
I commend my hon. Friend for the work she does on the ground in her constituency, working constructively with the jobcentre and employers to help facilitate employment opportunities. I am really excited about the opportunities universal support will bring. We know from existing schemes that where people are supported in taking and then retaining roles, it is hugely powerful and effective in bettering their health and employment outcomes. That is precisely what we are doing through universal support with those 50,000 opportunities. I am excited to work with my hon. Friend on implementing that in her area, and I would of course be delighted to visit and see more of what is going on on the ground.
Ms Karen Buck (Westminster North) (Lab)
No one will mourn the passing of the work capability assessment; Labour has been calling for reform of that for a long time. It needed to change, because people’s lives do not fit neatly into a binary system of work or no work. However, disabled people and those with serious health issues want and deserve support and reassurance in work and out of it, and what people fear, understandably, is that under the guise of reform their lives will be made harder and vital financial support might disappear.
The devil is always in the detail, so I have a few questions for the Minister. The PIP assessment is designed for a totally different purpose from the WCA; how will he reconcile those completely different systems? What will happen in future to those people who do not currently receive PIP—those on the limited capability for work and work-related activity element of universal credit, and particularly those with short-term and fluctuating conditions? Unless it is the Minister’s intention that some 750,000 people will lose £350 a year, an alternative needs to be in place; what will that alternative be?
Do the Government believe that it is fair that the hundreds of thousands of people with disabilities that prevent them from even engaging in work-related activity should receive less financial support through UC than people who are entitled to PIP, and if so what is the basis for that justification? If the intention is to allow work coaches to use discretion in all such cases, how will we ensure consistent decision making and decision making that is based on a proper understanding of serious health conditions and their impact on daily life? What provision is made within the Department to ensure that capacity for that is in place?
As transparency and openness are so essential in building confidence, will the Minister now publish the report on the operation and effectiveness of sanctions? By publishing the White Paper, the Government have started this debate; the minimum we need now is openness and clarity about how those ideas are intended to work in practice.
Tom Pursglove
My right hon. Friend speaks with passion and authority on these issues, and he has a wealth of experience of delivering meaningful change in the welfare system that has improved the lives of millions of people. This is the next chapter—the next step in that journey—and one thing I know for sure is that I shall want to draw on my right hon. Friend’s experience and expertise and hear his ideas about how we can get this right. Like him, I am excited about the opportunities that universal support can provide in matching people to roles and supporting retention, with all the wraparound care and support that goes with that. There is a great deal of best practice from which we can learn. I was in Tower Hamlets yesterday, and saw a fantastic example involving NHS talking therapies. I want to ensure that more people are able to engage with that sort of support.
Marion Fellows (Motherwell and Wishaw) (SNP)
Why do this Government intend to expose more disabled people to the punitive benefits sanction regime? It does not work, and the automation of sanctions will make the position even worse.
Why was there no guidance in the White Paper on statutory timescales for reasonable adjustments to enable more disabled people and those with long-term conditions to work? The SNP and many stakeholders continue to call for urgent improvements to end the payment gap. Why is there no mention of that? Why will the Government not ensure that flexible working is a day one right by default, rather than the onus being on the worker? Why is there no uplift for legacy disability claimants who were missed out during the pandemic? PIP assessments are already failing many disabled people and forcing them into challenging decisions which are ultimately overturned. Why is more being added to PIP assessments?
Will the Minister consider using dignity, fairness and respect as the White Paper proceeds into legislation, as the Scottish Government do?
Tom Pursglove
I appreciate my hon. Friend’s welcome for our proposed reforms. I have not seen the article to which he refers, but I will certainly have a look at it once I have left the Chamber, and I shall be happy to speak to him separately about it.
Sir Stephen Timms (East Ham) (Lab)
There are very welcome measures in the White Paper, although a lot of the detail is still missing. The work capability assessment is to be scrapped, starting in three or four years’ time, and replaced with
“a new personalised health conditionality approach”
to assess entitlement to what the Minister just referred to as the “health top-up” in universal credit. That sounds like a new assessment of some kind. Can he tell us what it means?
Budget Resolutions and Economic Situation
Lindsay Hoyle Excerpts(1 year, 1 month ago)
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Richard Drax
I will not, because we do not have time and others wish to speak.
Because of pandering to the green lobby and unachievable targets, oil and gas companies face punitive tax rates such as the 50% corporation tax rate and a 35% windfall levy. As the war in Europe has reminded us, energy security is paramount. Over-reliance on supply from overseas has left many countries—not just us—vulnerable to fluctuation in prices and supply. Regrettably, we are a long way from ending our reliance on fossil fuels, so surely it is common sense to encourage investment here at home, not to increase our carbon footprint by importing from abroad.
Before I conclude, I must mention defence. While the extra £11 billion over five years is to be welcomed, it is not nearly enough, with little—if any—of that money going to our conventional forces. This at a time when the world is increasingly unstable. Arbitrary figures for defence spending plucked out of thin air by both sides demean our armed forces and us in the House. In the face of some very real threats, a thorough appreciation needs to be undertaken and the defence budget set accordingly. To be an effective NATO partner, we need the mass to sustain a prolonged and major confrontation. Right now, we do not have it.
I conclude on a point of caution. As I hinted strongly at the start of my speech, this over-reliance on Government to provide the solution to everything must stop. It is simply unsustainable. Our Conservative Government would do well to recall the words of JFK in his inaugural address:
“Ask not what your country can do for you—ask what you can do for your country.”
Ashley Dalton (West Lancashire) (Lab)
Thank you, Mr Speaker, for the opportunity to make my maiden speech in this debate. It is a particular honour to be called to do so by a fellow Lancastrian and my constituency neighbour.
I take my place as my predecessor, Rosie Cooper, leaves frontline politics. A servant to West Lancashire for over 17 years, Rosie conducted herself with the utmost dignity and respect throughout her tenure as a Member of Parliament. Despite facing some of the most heinous and challenging circumstances anyone in this place could face, Rosie displayed great resilience and continued to serve West Lancashire with grace and diligence.
Everyone in this place entered politics to make a difference. As Rosie leaves to take up a new role in the NHS, which I know is so important to her and her politics, she can genuinely say she made a difference. Through the British Sign Language Act 2022, which was brought about by her private Member’s Bill, Rosie secured equitable recognition for people who use BSL as their primary language—a group of people that in the most recent census was 22,000-strong. I know that they and many others are truly thankful for her hard work and unwavering commitment.
You will know, Mr Speaker, that on the way into my constituency you pass a road sign that reads simply “In West Lancashire we’ve got it all”, and it is no exaggeration. With a Roman market town, villages recorded in the Domesday book, the growers and farming communities of the Lancashire plain, and a 1960s new town, West Lancashire truly does have it all.
Look back at the gingerbread women of Ormskirk—women in the 1700s who knew their own worth, and with a recipe so successful it is still used today, took their place in Ormskirk’s economy; and look forward to the innovators and community builders of the future being moulded by the thriving Edge Hill University. West Lancashire’s story is one of making your mark.
For me, West Lancashire’s best asset is its people. The people of West Lancashire represent what it means to be British. They are hard-working, innovative and, most of all, ambitious. But all too often, their ambition is frustrated by a lack of opportunity. I hear stories from my constituents in Skelmersdale—Skem—that they feel trapped and confined by their circumstances. It is a great sadness that for many people in Skelmersdale, their ambition for their children is that they leave Skem—that they get out to get on. Opportunities that exist in Manchester or Liverpool are opportunities that should be accessible to folk in West Lancashire, but they simply are not. West Lancashire is brimming with potential but is literally being left behind.
During the by-election, while I was out campaigning, Sandra stopped me in the street to talk about what is important to her. She probably recognised me from the hundreds of leaflets that she had had through her door. Sandra was really proud of her grown-up children working hard to provide for their own families, but she told me that they were each working two or three jobs and were barely able to just get by. As proud as she is of her children, Sandra told me that getting by should not be this hard. When the best that hard work can deliver is just getting by, something has gone wrong.
Yet, like the gingerbread women of the 1700s, West Lancashire still dares to succeed. There are people like Paula and Maureen, who started the Sewing Rooms in Skelmersdale, a social enterprise to tackle social exclusion and train and employ women in the textiles industry. In the face of a global pandemic, they made masks. When faced with a cost of living crisis, they developed, made, and sold thermal cooking bags that use little to no energy to cook hot food. On the back of that success, they have won the contract to design and make the kit for the Great Britain gymnastics team at the Special Olympics world games in Berlin this year. There are people like 19-year-old Rossi Forrest, who sold me my Christmas tree last year from the new nursery and garden centre in Bickerstaffe that he started from scratch. And people like Jo, who sells pyjamas and underwear on historic Ormskirk market, and whose thermal vests and long johns kept me warm during a long—very long—winter by-election.
Across West Lancashire, people are working hard and daring to succeed. But in the face of a cost of living crisis and a stagnating economy, it is too often an uphill struggle. It should not be this hard. This Budget was an opportunity for the Government to show that they believe in West Lancashire as much as I do. Instead, it is another sticking plaster on 13 years of economic failure, with small businesses and sole traders once again expected to fend for themselves. The people of West Lancashire are ambitious, but their ambition is not being matched by government. While wages are down, mortgage repayments are up. Whilst living standards are down, the tax burden is up. When my constituents need an economy that is moving, we are at a standstill. This is not a Budget for Sandra. It is not a Budget for Paula and Maureen. It is not a Budget for Rossi, and it is not a Budget for Jo, either.
Politics is often spoken about in abstract terms, as though it is something that happens to someone else, somewhere else, separate from our communities. When I stand to speak, 100 years since the first women were elected to this place and nearly 300 years since the gingerbread women of Ormskirk made their mark, I speak with the voices of Sandra, Rossi and Jo, and all the other people of West Lancashire, because the politics in here must meet the ambition of the communities out there. What we choose to do shows where our priorities lie. Our priorities are born out of what we stand for. On the Labour Benches we stand for meeting the ambition of the people of West Lancashire and beyond, not for getting by but for getting on.