Employment and Support Allowance

Debate between Lord Stoneham of Droxford and Baroness Buscombe

Thursday 18th October 2018 Lords Chamber

[Baroness Buscombe]

My Lords, first, I will respond to the noble Baroness by referencing passported benefits, which are of course the responsibility of each government department. It would be impractical for the DWP to undertake an exercise to uncover who might have been entitled to those other passported benefits. However, we are talking to other departments to make them aware of the issue. In terms of compensation, it is important to make it very clear that no one saw a cash reduction when they were transferred to ESA. This is about extra money that they might have been entitled to. Also, it is really important to explain that we are learning lessons from this. The key lesson is that it is a mistake to try to prepopulate information without being in touch with claimants. It is very important for us to make sure, when we are changing benefits or introducing new benefits, that we do so in a way that involves working with claimants so that, rather than trying to be clever with a seamless process, we actually engage. That is what we are doing now, with what will be 800 people working with claimants to get this right.

[Lord Stoneham of Droxford (LD)]

My Lords, this announcement is a stark warning that a botched transition, which very sadly took place under the coalition, can leave vulnerable people thousands of pounds out of pocket for years to come. As the noble Baroness, Lady Sherlock, has just said, in the move to universal credit, we must take more care. What lessons are the Government learning from this mistake for the big changes to come and what new safeguards are they putting in place? In particular, will the Government amend the proposed Universal Credit (Transitional Provisions) (Managed Migration) Amendment Regulations 2018 so that claimants are transferred automatically from legacy benefits such as income-related employment and support allowance to universal credit?

[Baroness Buscombe]

First, I want to make it clear that we are constantly looking at how we can make our procedures more robust. In fact, our Permanent Secretary is in discussion with the Public Accounts Committee about how we can do this. The key lesson that we have very much taken on board in developing our processes and our thoughts on managed migration is—as I have just said, and I will repeat it—that it is important that we engage properly with the claimants and that we do not have a system that is entirely automatic without the opportunity to understand up-to-date data, information and circumstances with regard to each and every claimant. That is to ensure that claimants do not lose out on benefits to which they are entitled, unlike the legacy benefits, which about 700,000 people are not receiving. That is about £2.4 billion because there is not sufficient contact.

Local Welfare Assistance

Debate between Lord Stoneham of Droxford and Baroness Buscombe

Monday 11th December 2017 Lords Chamber

[Baroness Buscombe]

No, my Lords. The Government believe that councils are best placed to decide how to support local welfare needs. Local authorities in England will receive more than £200 billion to deliver those and other community services between this year and 2019-20, and will have the certainty to plan ahead through our four-year funding settlement.

[Lord Stoneham of Droxford (LD)]

According to the report from the Centre for Responsible Credit, in one year, my own city of Portsmouth has reduced the amount it spends on welfare assistance from £700,000 to £30,000. Do the Government intend to review the impact of these sorts of changes? If not, why not?

[Baroness Buscombe]

It is important that I stress again that, under the national system, there are strong safeguards in place. We expect local authorities to concentrate the funding on those facing the greatest difficulty in managing their income and to enable a more flexible response to an unavoidable need, perhaps through a mix of cash or goods and aligning with the wider range of local support that local authorities’ devolved administrations already offer. In short, the funding is to allow them to give flexible help to those in genuine need.

Benefit Rate Freeze

Debate between Lord Stoneham of Droxford and Baroness Buscombe

Monday 30th October 2017 Lords Chamber

[Baroness Buscombe]

My Lords, as I have said to noble Lords opposite, we do care, but we are absolutely clear that work is the best way to get children, in particular, out of poverty. That is why we want to incentivise work, which is the best route, but we need to focus on making sure that people see their wages rise and take home more of their pay packet once they are in work. Our reforms include increasing the national living wage for workers aged 25 and over, cutting income tax for over 30 million people and extending free childcare for working parents.

[Lord Stoneham of Droxford (LD)]

My Lords, the Government never anticipated that inflation would be double what it was when they originally introduced this freeze on working-age benefits. If they are prepared to look again at public sector pay, why will they not look at working-age benefits?

[Baroness Buscombe]

I think I said that we are already spending over £95 billion on benefits for people of working age, but we have to ensure that that is fair also to the taxpayer and that it encourages people into work. Before we brought in the Welfare Reform and Work Act, the inflation rate, for example, for most working-age out-of-work benefits, such as jobseeker’s allowance, went up by 21% between 2008 and 2015, while earnings rose by 12%. We want to incentivise work, which we know is the best route out of poverty.

Pension Protection Fund and Pensions Regulator

Debate between Lord Stoneham of Droxford and Baroness Buscombe

Thursday 13th July 2017 Lords Chamber

[Baroness Buscombe]

I entirely accept what my noble friend has proposed; I am very much hoping that this will be part of the many issues covered in the White Paper.

[Lord Stoneham of Droxford (LD)]

Surprisingly, the section of the Conservative manifesto on protecting private pensions did not mention George Osborne’s policy of enabling people to cash in their pensions, which was introduced without very much consultation. Today’s FT says that this change is not,

“a palpable fiasco, but the early signs do not look promising”.

So what are the Government doing to protect people from being duped—or was this simply a short-term measure to raise tax revenue?

[Baroness Buscombe]

My Lords, I too read the article in the Financial Times this morning. The truth is that these pension freedoms are proving very popular. However, they raise important issues around the operation of the market and how we support consumers, so we will be working with the Financial Conduct Authority on the next steps to address this issue.