Welfare Reform and Work Bill Debate
Full Debate: Read Full DebateLord Freud
Main Page: Lord Freud (Conservative - Life peer)Department Debates - View all Lord Freud's debates with the Department for Work and Pensions
(8 years, 7 months ago)
Lords ChamberMy Lords, this is an interesting group of amendments. If I heard correctly from each of the speakers, the thrust of it is that government should be entitled to a whole range of information that will best inform it across the piece as to how to tackle a range of issues. Specifically, the group of amendments seeks to add to the reporting requirements to Parliament: the progress of children at five in areas of cognitive, personal, social, emotional and physical development—likewise for children living in disadvantaged households; the health and well-being of children living in workless and long-term workless households; and maternal nutrition in workless and long-term workless households.
The noble Lord, Lord Ramsbotham, referred to a range of matters. In particular he spoke about the collection of disadvantage that you get: homelessness, mental health, fuel poverty and low income—it is that collection of issues which makes more difficult the life chances of individuals. A number of speakers emphasised the importance of education—the noble Baroness, Lady Manzoor, picked up again the point she made in Committee about key stage 1 for education, and the noble Baroness, Lady Hollins, spoke about the importance of health and well-being boards. I understand that the Office for National Statistics produces data on national well-being and on the well-being of children; I think it reported in 2014 and again just last year. It is interesting that a whole range of data goes into those measures. It is said with regard to children that there are something like seven domains and 30-odd measures of children’s well-being, which is a whole collection of stuff to have to handle and deal with.
At the end of the day, government ought to welcome the information that this collection of amendments seeks to be reported on, which is a range of information across the piece. The key issue that flows from it is what you do with it, or what strategies or interventions will flow from that collection of data which will make a difference to the life chances of young people—which is the thrust of this.
The noble Lord, Lord Ramsbotham, made the point that we do not have a collective figure for the consequences of all the changes in the tax and benefit system in recent times. I know that the IFS did a calculation of what had happened under the coalition Government with regard to tax and benefit changes and concluded that if you look at those changes—the percentage of the income of various groups of people—the lowest two percentiles bore the greatest burden. If you look at it in terms of absolute amounts, the top 10% bore the most, but if you look at it as a percentage of income, the poorest have had the worst outcome from all these changes the Government have introduced—and that is before we get into ones that are reflected in the Bill we have debated to date.
When we talk about health and well-being, we need to be clearer about our distinctions. We have the national statistics data and the background to that, which is a very broad measure. The issue around health and well-being boards’ and local authorities’ responsibility is a slightly different focus, but important nevertheless. So far as we are concerned, we can see the benefits of this range of amendments, which try to encourage the bringing-forward of data to underline just what the consequences of these policies are. I think the noble Earl, Lord Listowel, talked a moment ago about how it is all too easy for us in this Chamber to see this in perhaps rather abstract terms and not the reality. People out there have to face the reality of what these policies mean, and the collection of data of which noble Lords speak will help bring that home to government as well as to campaigners generally, so that those who bear the largest burden feel that that is understood, reflected and challenged—which is our job here.
My Lords, these amendments on Clause 4 have been grouped together quite widely. I will start by making a general point about adding to the reporting duties that the Government have already set out. The best way of securing progress by government is to have a focused set of measures. I echo the implication of what the noble Lord, Lord McKenzie, said. The more you have, the more likely you are to have a diluted effort and distraction from the key issues, which in this case the evidence tells us are worklessness and educational attainment. Of course many factors contribute to these headline measures. For example, we know that children’s health is an important factor in their educational attainment. Tackling health at work will help ensure that more adults are able to work. Therefore delivering on worklessness and educational attainment calls for a wide set of actions. However, it is important that we focus government on its core objectives that will tackle the root causes of child poverty.
First, with regard to additional statutory reporting duties, I turn to Amendment 3. With this amendment the noble Lord, Lord Ramsbotham, seeks to introduce an additional reporting duty on the Secretary of State. The report must contain data on maternal nutrition in workless and long-term workless households in England. I have already set out that our evidence review published in 2014 makes it clear that worklessness and educational attainment are the factors that have the biggest impact on child poverty and children’s life chances. We are committed to supporting families at the earliest stage and to helping parents move into work and earn more through universal credit or investment in childcare, the national living wage and increases to the personal allowance in the tax system. This is the best way to secure children’s life chances and ensure that parents are able to care for themselves, too.
I cannot overstate the importance of ensuring that we focus on measures that tackle the root causes of child poverty and not be distracted by others that do not do so. Of course, the issue raised by the noble Lord, Lord Ramsbotham, is important. The Government take action. They provide advice for parents on maternal and infant nutrition via NHS Choices and Start4Life. Government also operates the Healthy Start vouchers scheme, which provides low-income people with vouchers that can be spent on milk, plain fresh and frozen fruit and vegetables, and infant formula. It already publishes the results from the National Diet and Nutrition Survey, which includes results by age and gender. There are a variety of reasons why adults have poor diets, and it is important that we look at the whole picture, which gives us valuable information and helps shape interventions. I therefore cannot support this amendment.
Through Amendment 4, the noble Lord, Lord Ramsbotham, seeks to expand the duty placed on the Secretary of State to include a duty to report on the progress of children and disadvantaged children living in England at age five in their cognitive, personal, social, emotional and physical development. It is vital that all pupils thrive and develop in their early years. Monitoring children’s personal development is already a core function of every education setting. This monitoring then enables teachers to tailor their support based on how each individual is progressing. I assure your Lordships that we do not take this issue lightly. As the Prime Minister said during his speech about children’s life chances—quoted by noble Lords—we want,
“stable families and good parenting, because we know the importance of those early years in setting children up for a good life”.
There are two key issues at the heart of the life chances reforms—action on work and action on education. Lives can be transformed by focusing on these two most significant drivers of poverty. The Bill will start to realise the vision set out by the Prime Minister when he said that,
“we can rescue a generation from poverty and extend life chances right across our country”.
We all know that the end of key stage 4 is a vital juncture in a young person’s education. It represents the culmination of primary and secondary schooling and provides a consistent point at which to measure attainment across all young people. Pupils who fail to achieve at the end of key stage 4 are at high risk of not being in employment, education or training, so the Secretary of State is committed, through the life chances measures in the Bill—
My Lords, I get what the Minister is trying to say but unless there is a comparator at key stage 1, by key stage 4 it will be too late—the children will be 16 years old. If the Government really are to assess the development of children from the ages of five to 16, there is a need for that assessment to start at key stage 1. If there is an issue, they can be given support much sooner so that they have much better outcomes at 16. That will not happen if we do not have information from key stage 1.
As the noble Baroness knows, we have a lot of information about how pupils progress. The point is that it is necessary to have something that absorbs all that rather than having detailed measures at each point. The earlier processes have to be right to attain the achievements at the key target date. I have spoken in this House before about “targetitis”. If you give hospitals 220 different targets, for instance, which is what happened a decade ago, nobody knows what on earth they are looking at, whereas if you focus on the two things that really matter and not on the culmination of a lot of measures, you drive coherent behaviour through the targets that are set, and that is exactly what this strategy does.
I have already made the House aware that the measures that we have include key stages 1 and 2. Annual reporting at different stages of primary schooling already provides significant detail of the progress and attainment of disadvantaged pupils. Monitoring personal development in the way that the noble Lord suggests—
My Lords, these reports include the Department for Education and the Department of Health, as well as the Department for Work and Pensions. Who is making these reports and to whom are they going?
The whole point is that these reports are published. It is a forcing mechanism to make sure that the relevant Secretaries of State and the relevant departments of government work together to tackle the fundamentals that produce these outcomes.
Returning to the educational issue, if we made this change to the Bill, it would increase the burden on primary schools and send a signal to schools that Parliament does not trust them to carry out their core functions. That is why I cannot support this amendment.
Amendments 5 and 6 look to expand the reporting duty placed on the Secretary of State so that his annual report containing data on children living in workless households and long-term workless households in England must include data on the health and well-being of these children.
It goes without saying that the Government want the best for our children. We want all children to have the opportunity to have fulfilling lives and to realise their potential, and clearly their health and well-being is an integral part of that. However, we can achieve this aim, which is one that we all share, only by tackling the root causes of child poverty, and I will not parrot what I have already said on this point. Our evidence review shows clearly that worklessness and educational attainment are the two factors that have the biggest impact.
We recognise that, as the evidence review pointed out, child ill-health is also a driver of poverty. We are absolutely committed to reducing health inequalities in terms of access and outcomes, and we are working across government to ensure that ill health does not hold our children back from fulfilling their potential. The Government have already put in place a well-developed reporting framework—the public health outcomes framework—that supports health improvement and protection at all stages of life, especially in the early years. The framework includes a large number of indicators on children and young people’s health and, along with the NHS outcomes framework, sets a clear direction for children’s health that allows anyone to hold us to account.
We are committed to improving access to better services and to promoting early intervention to address children and young people’s mental health issues before they worsen. We are investing £1.4 billion in that over the next five years, and we have invested more than £120 million to introduce waiting time standards for mental health services—the first time that we have done that.
If we concentrate our actions and resources on the root causes of child poverty, such as worklessness and education, that will be the springboard from which everything else will follow. While the Government recognise the importance of tackling child ill-health, these amendments would ultimately distract the Government’s focus and finite resources from what is most important for our children’s future life chances. For these reasons, I cannot support the amendments of the noble Lord and the noble Baroness.
Amendment 7, tabled by the noble Lord, Lord Ramsbotham, would require separate reports for measures of worklessness and educational attainment. We are already committed to reporting on these measures and believe that it is sensible to deal with them together as they are jointly fundamental to improving life chances.
Amendments 9, 10, 12, 13 and 14 are consequential on Amendment 7 and therefore, in the Government’s view, unnecessary.
Once again, I thank noble Lords for their contributions but, on the basis of what I have said, I urge the noble Lord to withdraw his amendment.
Before the noble Lord sits down, will he reassure the House about the future of health visitors? Clearly, they have a very important role in the welcome things that he has just said. The Government have done a great job in recruiting and developing the workforce, but now that responsibility for health visitors has been moved to local authorities, which must fund them, there has to be a concern that in the current atmosphere for local authorities we may go backwards and health visitors will not be commissioned to do the work that is so necessary in relation to what we have just been discussing. Perhaps the noble Lord would consider writing to noble Lords who are interested in this area about the mechanisms that exist to ensure that that does not happen.
My Lords, I am very grateful to all those who have contributed to this short debate. I am particularly grateful to the noble Lord, Lord McKenzie, for summing up what people said.
I listened very carefully to what the Minister said, and I am grateful to him for repeating what he has said before about the Government’s concentration on worklessness and educational achievement as being the main causes. However, I do not think that they are unique causes. The health and well-being, not just of the children but also of the families, and particularly the mother, is something that is a huge cause of the subject that we are looking at, and it ought to be added to worklessness and educational attainment.
It is all very well saying that we are going to do a great deal and going to improve the child mental health treatment processes in the National Health Service, but that comes at an enormous cost. The National Health Service cannot afford to do all this at present; otherwise, it would already have done it. I am very concerned that health and well-being in particular are being excluded from the terms of the Bill. They ought to be before everyone who is considering the issues of which the Bill is made up, particularly tackling the problems of worklessness and educational attainment, both of which have mental health as one reason—not the only reason—that they are there.
I am in something of a quandary. In many ways, I would like to test the opinion of the House on each of these three amendments, because I think that they are each important. However, if I may, I would like to withdraw Amendment 3 and not move 4 and test the opinion of the House on Amendments 5 and 6, which deal with health and well-being, which are, I think, the guts of all this issue.
My Lords, let me go straight to that question while it is fresh in my mind. It is, of course, possible to be poor while both parents are in work, particularly under the present legacy system. That is why we are bringing in universal credit—to make that much harder. We are not arguing about the level of poverty; it is about what is likely to happen to the life chances of that child compared to both parents being at that level of income and out of work and in work. That is the argument I have been trying to make all afternoon, with, I think, some resistance.
Under Amendments 8 and 11, noble Lords seek to expand the reporting duty placed on the Secretary of State so that his annual report to Parliament must include data on children living in low-income families where one or both parents are in work. Their amendments would add the terms “low income” and “in work” to the list of terms to be defined in the annual report.
I have already gone on enough about the centrality of worklessness and educational attainment. Alongside these statutory measures, the Prime Minister has announced that we are committed to publishing a life chances strategy in the spring, which will set out a comprehensive plan to fight disadvantage and extend opportunity, including a wider set of non-statutory measures on the root causes of child poverty such as family breakdown, problem debt, and drug and alcohol addiction.
I have said before that work is the best route out of poverty but I want to restate our arguments about the centrality of tackling worklessness. The risk of a child being poor is dramatically reduced if at least one parent works. According to the latest statistics, the risk of being in relative poverty for a child in a working family is 13%, compared to 37% for a child in a workless family. So a child in a workless family is almost three times as likely to be in poverty as a child living in a family where at least one adult works. Perhaps those are the figures for which the noble Baroness, Lady Sherlock, was asking.
Last year, we published an analysis on the transitions into and out of poverty. What we found was staggering, although some might say that it was obvious. Of the children who are in poor workless families, 74% will leave poverty altogether if their parents move into full employment. The analysis also made clear that the more work parents do, the more likely they are to leave poverty, with 75% of children from poor families in part-time employment leaving poverty if their parents enter full-time employment. I remind noble Lords that we have a package of reforms to encourage people to work. These policies include the national living wage and changes to the personal tax allowance, which will allow people to keep more of what they earn. Furthermore, over 30 million individuals will see a tax cut as a result of the changes we will make in this Parliament. Some 570,000 individuals will be lifted out of income tax altogether by 2016-17 and, as a result of the introduction of universal credit, more people will enter work due to improved financial incentives. We have a vibrant and growing economy, and last year real pay grew by 2.1%.
On the question from the noble Baroness, Lady Hollis, on support for women, we are supporting families through the national living wage, which is expected to have a stronger positive impact on the female workforce, boosting the wages of three in 10 female employees by 2020. Our childcare reforms will provide support to women who want to find employment, helping them to increase their income.
We have discussed before that two-thirds of children in relative poverty are from working families, but let me go over my argument. I am not convinced that it will convince the noble Baroness, Lady Lister, but I must try. It is correct that the latest figures published in the HBAI show that 64% of children in relative poverty are from a family where at least one adult is in work. This proportion has grown over the last couple of decades due to the improved progress in tackling poverty in workless families. In 1996-97—the earliest period for which data are available—around 60% of children in relative poverty were from workless families, which is around 2 million children, and around 40% of them were in working families, which is around 1.5 million children. During the 2000s, there was progress in reducing the number in poverty in workless families by focusing spending on tax credits, but this had the unintended consequence of weakening work incentives that resulted in hardly any change in the number of children in in-work poverty, which stood at 1.3 million in 2009-10.
My Lords, if the Minister will allow me to say this, he is misrepresenting the statistics. It may be a statement about children in poverty, but in particular the number of lone parents in that period who were in work went up from barely 50% to some 65%. Therefore, tax credits made work pay for them.
It may have made work pay for some people, but it had the effect that, while it was possible, through income transfers, to drive down the out-of-work poverty of children, which is what they were designed to do, it had virtually no impact on in-work poverty. That brought that policy to a reductio ad absurdum: you could not do it without undermining your work incentives because you were raising the level of the benefit structure and it was beginning to knock up the income scale. That was the problem; that is what the data show.
In-work poverty, combined with falling levels of children in poverty from workless families, led to a greater proportion of children in poverty being from those workless families. This meant that, from 1996-97 until the end of the last decade, the proportion of children in poverty from working families actually went up from four in 10 to six in 10. That is the reality of the situation today. I can see that there is some ideological difference to be found over that analysis.
The evidence review, raised by the noble Baroness, Lady Lister, highlighted the importance of low earnings, but emphasised the impact of working a lower number of hours, rather than the impact of low-paid work. On the question of how we will know about the levels of poverty—in work and out of work—I reassure her, as I already have, that we will have that data in the HBAI. It will continue to be available. Indeed, those in-work poverty figures in the HBAI can always be broken down by whether the family is in full-time or part-time employment.
I described why having two separate systems worked so poorly. We are introducing universal credit exactly to address those disincentives. I can tell noble Lords that I have spent the most enormous amount of personal time trying to get this structure so that we do not have these odd disincentives, which are really undermining for society. Universal credit is the best way to give people the incentive to enter work: it reduces poverty by making work pay and making sure that people do not lose out as they start to earn more, which is the terrible discontinuity in the legacy system. It provides an effective route out of poverty, while supporting the most vulnerable households. We already see the evidence under universal credit that people are working more and are better off in work.
As with Amendment 2, which we discussed earlier, these amendments would reintroduce an income-based relative poverty measure, which, as I have tried my best to explain—perhaps not as successfully as I might—do not tackle the root causes of child poverty. The Government are concerned with focusing our efforts and attention on those areas that will make a real difference to children’s lives, and concentrating on those root causes.
Resources are finite. It is crucial that we prioritise our actions to make the biggest difference for children. Statutory income measures cause the Government to focus their action and resources on direct and incremental increases to family income, but that does not necessarily drive any real change and is detrimental to the things that we think are vital—noble Lords know what I think they are.
Let us focus on the things that matter and drive the actions that will give our children the future they deserve. Let us not be distracted by measures that detract from that aim. As I said, we will continue to publish the HBAI figures so that we will know exactly what is happening. I therefore urge the noble Baroness to withdraw the amendment.
My Lords, I am grateful to all noble Lords who spoke in support of the amendment. I am grateful to the Minister, who at least went into more detail. As he expected, I was not convinced by his arguments, because I still have not really heard a convincing explanation of why there should be no accountability for what is happening. He said that we must focus on the things that matter, but surely what is happening to, for instance, the lady referred to by the noble Earl, Lord Listowel, matters? My noble friend Lady Sherlock talked about those who work such long hours that they do not see their children. We know from research at Bath University that children care about that. It talked about children and lone mothers in particular: they are glad when their mother gets paid work, but it affects them. They hardly see their mother. That time squeeze on such families is important. These things matter as well.
I do not necessarily think that this is ideological, as the Minister said. At the beginning he said that it is not the level of poverty that matters, but what is likely to happen to the life chances of children—as if these were totally separate things. The whole point, as the Social Mobility and Child Poverty Commission and the driver analysis said, is that life chances are affected by income poverty. Therefore, we need to know what is happening to the life chances of children, regardless of the employment status of their parents. I will not go into the detail of the trends; it is pretty much what the Minister said in Committee. I do not think that that is the point; the point is that there should be government accountability about what is happening to those who, as the Minister likes to say, are “doing the right thing”—although I am not so sure it is always doing the right thing—and who are in paid work.
I am disappointed. What the Minister said at the end suggests, if we are focusing on what matters and we do not focus on the poverty of those whose parents are in paid work, that that therefore does not matter. That says volumes. I do not suppose that low-paid parents are sitting at home watching this debate—they are probably out there working—but if they read about it or hear about it, they would say, “Don’t we matter? Don’t the hours I am putting in for little pay matter? Don’t the Government want to report on what is happening to people like me? Doesn’t it matter?”. I think that it matters enormously. However, I will not push our luck and test the opinion of the House, so, regretfully, I beg leave to withdraw the amendment.
These amendments seek to rename the reformed commission as the Life Chances Commission, rather than the Social Mobility Commission, and to amend the duties placed on the commission to promote and improve life chances instead of social mobility. The two concepts—social mobility and life chances—are different although there are, of course, areas of overlap between the two. The Prime Minister’s speech earlier this month demonstrated the importance this Government place on improving children’s life chances. The statutory measures of worklessness and educational attainment and the Government’s life-chances strategy will drive action that will make the biggest difference to children’s life chances. Together, they will provide transparency and enable anyone to hold the Government to account.
The Government also place great importance on improving social mobility and providing equality of opportunity for all citizens. Our proposals for the reformed commission will enable it to have a single-minded focus on social mobility and play a crucial role in its scrutiny and advancement. That is about ensuring that everyone has the opportunity to realise their potential in life, regardless of their background. Perhaps those in Oxford do not need quite as much looking after as others. The commission will also have a new duty to promote social mobility in England, enabling it to engage with a wide range of partners, including government, business and the third sector. This will be crucial to tackling the institutional biases and cultures that prevent individuals fulfilling their potential. Through our new statutory life-chances measures and strategies and the reformed Social Mobility Commission, the Government will drive action and enable scrutiny on these two vital issues. I therefore urge the noble Baroness to withdraw the amendment.
My Lords, I am very grateful to the noble Lords who have spoken. I feel slightly embarrassed; I am supposed to be the sociologist but it was the right reverend Prelate who quoted Max Weber. I had better go back and read my old sociology textbooks. I still do not feel that the Minister has given a true explanation. He seems to be making a distinction: the way he and the Prime Minister see it, life chances are about children’s life chances, while social mobility is about everyone—children and adults. However, children become adults and I see life chances as being about the whole life course, from cradle to grave. If that is the case, and the distinction lies in the commission’s focus being more on what is happening to adults, that worries me even more. Let us remember that this started life as a child poverty commission. In the Welfare Reform Act 2012, it became the Social Mobility and Child Poverty Commission and some of us were a bit worried about that at the time. Were we not right to be worried? Now it is not just child poverty that has been dropped, but children, too. Apparently it is not now supposed to be interested in children at all. I am not so much puzzled now as quite worried about what this means for the commission, because the Social Mobility and Child Poverty Commission has produced very valuable reports about what is happening to children in this country. The Government no longer have a statutory obligation to report on children in poverty, other than in relation to worklessness and educational attainment. We do not know what will happen to the Child Poverty Unit. It is as though children—and children in poverty—are just disappearing.
I am less puzzled than really upset about what has happened here. The complete shift of focus away from children in this commission is disgraceful. I am not going to push it now, for obvious reasons, but I hope there may be some other way that we can come back to this, though I do not know at what point this can happen or what scope there will be for the commission to try and expand its remit. I find what the Minister is saying quite extraordinary. As he himself has said, we want to focus on what matters: he is saying that children do not matter. I leave it there and beg leave to withdraw the amendment.
It might be worth my intervening on the noble Baroness, I think, in the interests of not hearing too much more vituperation—there is only a certain amount that I can take.
Amendment 24 seeks to remove carer’s allowance from the list of benefits that are included within the benefit cap. As written, the effect is that recipients of carer’s allowance with a benefit income above cap levels would still be included in the cap but their carer’s allowance payment would be disregarded from the cap. That is the way that this amendment works.
I emphasise to the noble Baroness, and to your Lordships, that this Government value the contribution which carers make to society, and shall outline the further steps that we are taking to support carers. As I indicated earlier in the process, the Government have been carefully considering the position of carers and the people who they care for in relation to the benefit cap. I am grateful for the patience which noble Lords have shown while we completed this consideration. I know that your Lordships have been keen to hear where we would come out but it is necessary to look at these things in detail and take the right time to do so. We keep all these policies under review and have been looking at support for carers with particular attention—that is, across the piece and not just here. In relation to the benefit cap, the position of carers cannot be considered in isolation from wider policy aims. Our strategy is to support and invest in carers. We have therefore looked at the evidence and considered the best way to continue to support carers in the context of wider government strategy.
We do not consider that the disregard which this amendment would create is the right approach. We want to go further; we will be exempting all recipients of carer’s allowance from the benefit cap, whether they are single or part of a couple. This approach fits within the wider government strategy to support and invest in carers. Many carers wish to enter paid employment and many have done so while sustaining the role. We recognise that in some cases, it is beneficial for both the cared-for person and the social care system if people are cared for at home. It continues to be the case that some paid employment, alongside caring, will be right for many carers. But our strategy to support carers through the Care Act and through wider investment strategies provides new, targeted opportunities for help and encouragement, where appropriate, to remain close to paid employment.
As I say, we will be exempting recipients of carer’s allowance from the benefit cap. This is of course complex and we will need to get it right. But with my assurance that to support this exemption we will bring forward an amendment at Third Reading, and then appropriate regulations in due course, I therefore ask the noble Baroness, if she has finished moving her amendment, to withdraw it.
I am always happy to spare the Minister more vituperation, as he pleaded for. I am of course delighted with what he said, with the recognition that the Government have given to the contribution which carers make and to their inability to mitigate the effect of the cap in other ways. Certainly, some carers combine paid work with caring but, as I have said, for many their caring responsibilities are too heavy for them to do that without enormous stress. I am very glad that the Minister has taken account of that, and that the Government have taken account of the very strong wording of the High Court judgment. The wording was extremely well put but extremely firm. It would have been very difficult to understand if the Government had not heeded the very strong words of that High Court judgment. At the time, it seemed that there was neither logic nor justice in the Government’s position. I beg leave to withdraw the amendment.