International Investment Summit

Luke Evans Excerpts

Thursday 17th October 2024 Commons Chamber

[The Parliamentary Secretary, His Majesty’s Treasury (Emma Reynolds)]

I beg to move,

That this House has considered the International Investment Summit.

I am delighted to open this debate on the Government’s inaugural international investment summit, which we hosted at the Guildhall in London on Monday. Leaders of the world’s biggest companies, from Alphabet and BlackRock to Goldman Sachs and Novo Nordisk, came from all corners of the globe to meet Government Ministers and to listen to what our new Government had to say. Our message at the summit was clear: the UK is open for business once again. We have turned the page on the stagnation and instability of the previous Government, and in just over 100 days, this Government have put growth front and centre of our agenda and reassured investors that we will create the very best conditions for them to invest and to grow their businesses, restoring the economic stability and confidence for which businesses have been crying out for too long.

The Prime Minister and the Chancellor made it clear that the UK has an enormous amount to offer, as did all the high-profile investors who spoke at the summit, including esteemed business figures such as Larry Fink, Eric Swartz, Ruth Porat and more. We have made clear our commitment to growth and restored economic stability, and we have given businesses the confidence that they need for the long term. Businesses are safe in the knowledge that the UK at last has a Government whose central mission is to grow the economy and stimulate private investment, thereby ending the chaos and churn of the last 14 years.

As both the Prime Minister and the Chancellor have set out, increasing investment into the UK is the Government’s No. 1 priority to drive growth. Our mission-driven approach allows us to think in terms of years, not weeks, and to commit to the hard yards required to break down the silos that have too often prevented effective government and got in the way of real growth-driving change.

This is about ambitious policymaking for the long term, not sticking-plaster politics. As the Chancellor said earlier this week:

“If the challenge is growth, investment is the solution.”

I am delighted to say that, as a result of the stability dividend introduced by this Government, we announced a record-breaking £63 billion of shovel-ready investments across the country—more than at any previous summit, and more than double the total of last year’s summit—from global companies such as Eli Lilly, ServiceNow, Holtec and many others.

[Dr Luke Evans (Hinckley and Bosworth) (Con)]

I welcome the Government’s success. Could the Minister tell us the proportion of that investment that came into play before the election?

[Emma Reynolds]

The agreements were reached in the lead-up to the summit and at the summit itself. I am glad that the hon. Gentleman joins us in congratulating the new Government on securing £63 billion of shovel-ready investment. I lost count of the number of Prime Ministers, Chancellors and Home Secretaries we had under his Government. I was working in the private sector at the time, and I often heard from businesses that said they did not have the stability, or even the predictability, of Government policymaking.

[Dr Evans]

Will the Minister give way?

[Emma Reynolds]

I will not have a cross-Chamber discussion with the hon. Gentleman. I am sure he will make a contribution to the debate.

This Government are determined to increase the number of good, well-skilled jobs, to embrace the opportunities of technology and innovation, and to improve productivity across the country. At the international investment summit, we demonstrated that the UK has tremendous strengths. We have a dynamic, ambitious and globally connected economy that has long been at the forefront of global exploration, invention and innovation. We have a global language, a central time zone and a renowned legal system. We have a high-spending consumer market that benefits from an open economy. We have trade deals with over 70 countries, and we have world-class talent supported by our globally recognised higher education system, with four of the world’s top 10 universities.

One of my favourite moments of the summit was a panel chaired by our fantastic Secretary of State for Culture, Media and Sport on the creative industries and sport. I was delighted to have a photograph with Gareth Southgate, which I showed to my boys when I got home. In all seriousness, Gareth Southgate talked about how the Premier League was once just an idea and how it has been built and marketed into a world leader, creating great investment into our economy. I am sure the whole House will support that sentiment—

Carer’s Allowance

Luke Evans Excerpts

Wednesday 16th October 2024 Commons Chamber

[The Minister for Employment (Alison McGovern)]

I beg to move an amendment, to leave out from “society” to the end and add:

“; believes it is essential that carers are provided with the support they need at the time they need it; condemns the previous Government for failing to address the scandal of demands for repayments of Carer’s Allowance; and welcomes the Government’s review into how these overpayments have occurred, what best can be done to support those who have accrued them and how to reduce the risk of these problems occurring in future.”

Let me begin by paying tribute to the right hon. Member for Kingston and Surbiton (Ed Davey). It is excellent that he has brought this subject to the House. I heard what he said about family carers as opposed to unpaid carers, and while I do not want to get involved in a big linguistic debate, I think he made an important point that will be recognised by many carers up and down the country. When we are making policy, we should always listen to those with direct experience. I think that the right hon. Gentleman made his point on behalf of millions of people, and it is good that the House has heard it.

Many people will be personally acquainted with this issue. There are 5 million carers in the UK and about 1 million people are receiving carer’s allowance, so this debate is extremely important. According to the latest census, just under one in 10 people in England and Wales provide unpaid care, but the subject of carers is not at the top of the political agenda nearly as often as it should be.

[Dr Luke Evans (Hinckley and Bosworth) (Con)]

When I was a clinician, people did not even realise that they could be labelled as carers and could apply to be carers, and were unaware of the gateway that that would provide. Might the Government consider doing some work to make more people aware that they are undertaking caring responsibilities, so that they can then obtain the support that is actually out there, if they only knew?

[Alison McGovern]

That is a very good point, and the hon. Gentleman’s experience as a clinician is welcome. The Secretary of State has considerable experience of working with carers, and I will alert her to his comments, because I think she would appreciate what he has said.

We must never think this is not an issue that does not affect us all. Many of us will become carers—if not now, at some point in our lives. This affects all of us, and everyone’s life is different. Support for family carers needs to be tailored so that it works for the individual and takes into account the different circumstances that people face. When you are caring for someone, that is a huge part of your life, and it never stops. Even if you are working, you are still thinking about that person for whom you are caring day in, day out. It is not just a physical job; it is a mental, intellectual job, and that is why the issue of stress and how carers are treated is so important.

Health and Disability Reform

Luke Evans Excerpts

Monday 29th April 2024 Commons Chamber

[Mel Stride]

The hon. Gentleman raises a very important point about mental health, and I can reassure him, as I reassured my right hon. Friend the Member for Norwich North (Chloe Smith), that we will continue to work very closely with the DHSC on the proposals as they emerge. In response to an earlier question, I mentioned that the Chancellor has brought forward funding for 400,000 additional NHS talking therapies, for example, which may be an important part of what we develop.

[Dr Luke Evans (Bosworth) (Con)]

Compassion has to be at the heart of this consultation. I have seen patients who had to be reassessed repeatedly, which does not seem fair, but I have also seen patients who do not engage with services and do not take medication, yet are signed off, which is not compassionate either. One practical way forward is to bring DWP closer to GP surgeries, so that people can have their hand held when they get to a diagnosis, whether it is of anxiety or a physical complaint, or whether they are recovering from an operation. Will the Minister consider that in the consultation? DWP joining up with primary care would be a fantastic way to help GPs help their patients—and to help the DWP.

[Mel Stride]

I thank my hon. Friend for a sensible set of questions. He refers to the importance of bringing GPs together with advice and support to get people into work. That is very much the focus of our fit note reforms, upon which we have a call for evidence at the moment.

Oral Answers to Questions

Luke Evans Excerpts

Monday 24th April 2023 Commons Chamber

[Mims Davies]

The reality of the policy that the hon. Gentleman mentions is about fairness for the taxpayers who support the most vulnerable and making sure that we have a welfare and benefit system that works. We will spend around £276 billion through the welfare system in 2023-24, including £124 billion on people of working age. I would again point people towards the cost of living website and the benefits calculator on gov.uk and I would ask him to note that the benefit cap was raised this year as well.

[Dr Luke Evans (Bosworth) (Con)]

9. What assessment he has made of the importance of the role of carers in implementing the health and disability White Paper.

[The Minister for Disabled People, Health and Work (Tom Pursglove)]

Unpaid carers can play a vital role in supporting disabled people to live active lives, including through working when they are able to do so. The White Paper sets out how we will create a better experience for disabled people, people with health conditions and their carers when applying for and receiving health and disability benefits.

[Dr Evans]

I am grateful for the Minister’s answers, because carers are integral to looking after people up and down the country, especially with an ageing population who are living longer and with more frequent and difficult disabilities. Will he make sure that they are at the centre of the White Paper, because if this policy is to succeed, we need to support our unpaid carers.

[Tom Pursglove]

My hon. Friend is absolutely right. The insight and experience of carers and their feedback were invaluable through the Green Paper process in helping us to come up with our final White Paper proposals. As we move forward into the implementation stage, it is key that we continue to sustain that engagement and focus on meeting the aspirations of carers and the disabled people they care for. I also want to look at this issue from the other end of the telescope, in looking at what more we can do to support those with caring responsibilities to access employment if they want to do so, because from a health and wellbeing perspective, there is real value for them in that too.

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[Guy Opperman]

We do not feel that in any way whatsoever. I will write to the hon. Lady setting out the legal and statutory basis behind the policy.

[Dr Luke Evans (Bosworth) (Con)]

T2.   A key area that we need to consider is people who have a diagnosis and then try to return to work. One way that we can solve this is potentially having DWP or jobcentre workers in primary care to help support people from diagnosis to desk. Is that something that Ministers will consider in the White Paper?

[The Minister for Disabled People, Health and Work (Tom Pursglove)]

My hon. Friend is a passionate advocate of the join-up between health and work, and work as a determinant of better health outcomes for people. It is important to note that a number of jobcentres and Health Model Offices have work coaches working with GP surgeries to provide employment support to customers with health conditions. That is a valuable approach, and we are determined that the Work Well partnerships programme that was announced in the Budget will build on this to design an integrated approach to work and health with that proper join-up on the ground reflective and responsive to local needs. I shall take on board his observation as we look to shape that.

Health and Disability White Paper

Luke Evans Excerpts

Thursday 16th March 2023 Commons Chamber

[Tom Pursglove]

I appreciate the hon. Gentleman’s thoughts on statutory sick pay. If there are particular ideas or suggestions that he would like me to consider, I would be very happy to do so.

[Dr Luke Evans (Bosworth) (Con)]

I am really pleased that the Government are dealing with the issue of an ageing population and the difference between good health and poor health. The reality is that many people will live with long-term health conditions. I have seen at first hand that when someone has a heart attack or a stroke, they struggle to get back into the workplace. Is this part of changing the environment to make sure that people have support all the way through, from diagnosis to desk? If so, how will my hon. Friend ensure that the environment is compassionate and supportive all the way through to getting people back into work?

[Tom Pursglove]

Compassionate and supportive is precisely the approach that I see when I carry out my visits and look at the employment support that is being provided. As I said, I was at the NHS talking therapies service in Tower Hamlets yesterday, and I saw that for myself. It was inspirational to hear the testimony of people who have been through that service about the difference that it has made for them. It has supported those with mental health conditions, in particular, by seeing work as a real determinant of better health outcomes for them and supporting them to work.

My hon. Friend knows more than many Members in this House just how valuable better health is for people. The work that he has done in his professional life means that he has a lot of experience in this area, which I am keen to pick up. I know we are due to meet, and I would be keen to hear his ideas.

Oral Answers to Questions

Luke Evans Excerpts

Monday 6th March 2023 Commons Chamber

[Mims Davies]

I thank the hon. Lady for her point. I am assured by the Minister for Disabled People, Health and Work that constructive conversations are ongoing and that this matter is being taken seriously. I am sure that he will have the hon. Lady’s question.

[Dr Luke Evans (Bosworth) (Con)]

11. What steps his Department has taken to support disabled people with increases in costs.

[The Minister for Disabled People, Health and Work (Tom Pursglove)]

Six million people receiving an eligible disability benefit received a £150 disability cost of living payment last year, and they will receive a further £150 payment this year. Those on a qualifying means-tested benefit will also receive up to £900 in cost of living payments.

[Dr Luke Evans]

People in Bosworth will be grateful for the disability support they have, but a key challenge that I saw as a GP was getting people who are disabled back into work. We know that work is good for their welfare and their wallet, so what more can we do to create a conducive environment, from diagnosis all the way through, for those suffering from a disability to get back into the workplace?

[Tom Pursglove]

My hon. Friend is absolutely right to raise that issue. We are committed to supporting people into work and, importantly, to retain roles once they have them. We recognise, working across Government, that for many disabled people work is a determinant of better health outcomes. No doubt we will continue to take on board feedback about what more we might do in that space, and I would be delighted to have a conversation with my hon. Friend, based on his experiences, about the support we already provide and where we might go from here.

Social Security (Additional Payments) (No. 2) Bill

Luke Evans Excerpts

2nd reading
Tuesday 21st February 2023 Commons Chamber

[Mel Stride]

The hon. Gentleman will be aware that a series of payments were made last year right up until the autumn. The energy price guarantee and various other payments of which he will be aware will help millions of our fellow citizens come through what is a difficult period. The household support fund administered by local authorities is available, particularly for those who have not benefited from the assistance that I am setting out.

[Dr Luke Evans (Bosworth) (Con)]

The third iteration of the household support fund has come through. I went down to the Hinckley hub to see how people there were getting on. They expressed their thanks to the Government for this important fund. They have the accountability to be able to give funding to people in extreme circumstances when they need it. It is not heavily red-taped and regulated, so they can use it how they see best to help their clients. Is that something that the Department for Work and Pensions will take forward?

[Mel Stride]

My hon. Friend is entirely right, and I am pleased to hear his personal experience of the measure. He is right to point out that there is great flexibility in how it can be administered by local authorities. We place a particular emphasis on making sure that that assistance goes to those who may not have benefited from the measures I am outlining, but who are still in need.

In addition to the taper, we recognise that pensioners need additional support where it is appropriate. My Department has thrown itself into promoting the uptake of pension credit. The Minister for Employment, my hon. Friend the Member for Hexham (Guy Opperman), did such sterling work as the Pensions Minister and, more recently, the Under-Secretary of State for Work and Pensions, my hon. Friend the Member for Sevenoaks (Laura Trott), has promoted pension credit with such vigour on social media and radio that there has been a 73% increase in applications for pension credit compared with this time last year.

My Department has an excellent record on unemployment. Disabled employment is up by 1.3 million since 2017. We have arrived at our target for the employment of disabled people a full five years earlier than originally planned.

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[Mel Stride]

The right hon. Gentleman raises a valid point and we looked at instances where anomalies can occur in what is known in the legislation as the “qualifying period”. The reality is that we cannot iron out all the possible hard edges, but we did break the payments into three for this financial year, rather than the two that we had last year, so that in the event that the circumstances he described were to occur, there would at least be other periods in which someone could qualify. There is also the household support fund, which has already been referred to and is for just the kind of circumstances that he described.

[Dr Luke Evans]

I am glad that the Secretary of State has looked at how to break up the payments. Will he ensure that people who find themselves with an anomaly can swiftly speak to someone to make sure that such issues are resolved quickly? When someone is struggling with their finances, one of the biggest sources of heartache and stress can be trying to get some of these payments.

[Mel Stride]

My hon. Friend makes a characteristically excellent point. Anybody will be able to go on to the gov.uk website for further information, and we will have additional resources in place to ensure that people are manning telephones to answer the type of queries that he and the Chair of the Select Committee, the right hon. Member for East Ham (Sir Stephen Timms), have raised.

The Government are on the side of the most needy. We demonstrated that first in the pandemic, through the furlough scheme and the support that we provided for businesses; and secondly, as I have outlined, with the £36 billion of direct payments last year to support those most in need. As I have set out, this Bill will bring forward yet further support in the coming year to help millions.

The Government will always stand alongside those most in need; the Bill is yet another example of just that. Let the record show that this Government, more than any other, understand that the hallmark of a civilised society is that it looks after those most in need.

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[Jonathan Ashworth]

Mr Bumptious needs to calm down. That is the reality of the policies that he supports, which have put more children into poverty on his watch as a Work and Pensions Minister.

Those policies meant that poorer working families entered the crisis with less resilience, less protection and less to fall back on than they otherwise would have. Before the pandemic, the lowest-income households were four times as likely to have no savings as the highest-income households. Today, we face a situation where not only child poverty has increased in relative terms under the Government, but child destitution—where children’s families do not have the means to properly heat their homes, put food on the table, buy toiletries or even provide a decent bed to sleep in at night—is now at half a million. In all our constituencies, demand for food banks has exploded, and there are now also bedding banks, baby banks and even 13,000 so-called warm banks where the vulnerable gather so they do not need to shiver in their homes.

We have all heard stories from our constituencies, such as at the Wesley Hall food bank in my constituency, of fresh food being turned down because mothers in work cannot afford the electricity bill associated with keeping the fridge running. We have heard stories of families saying no to fresh vegetables, because they cannot afford to boil them on the cooker hob. We have heard stories of pensioners using tea lights to try in vain to heat tins of beans.

None of that, by the way, is because people cannot add up or run a household budget, as some headline-chasing Tory MPs lecture us—not the Secretary of State, I concede, but some of his colleagues. In my constituency, the poorest people are some of the best at arithmetic. They go up and down the supermarket aisles, constantly adding up the cost of everything and taking items out of their basket to avoid the indignity of having insufficient funds available when they get to the checkout.

People are turning to food banks because, after 13 years, wages have become so inadequate, housing costs so severe, childcare bills so impossible, social security cuts so deep, and debts chased by the DWP so crushing that, combined with the price of shopping and energy bills going up, families simply cannot afford to survive on the income that they have. The safety net is now so threadbare that in food bank Britain, hunger, the cold and the constant dread of the bailiffs have become a way of life. That should not be a way to live.

Yesterday, the Office for National Statistics reported that 21.9 million people are spending less on food and essentials because of the increase in the cost of living. It said that 50% of disabled people and 50% of parents with a dependent child are cutting back. That is reality of the crisis and of the dismal, devastating poverty that many of our constituents face.

Let me deal with the specific measures that the Government are proposing. First, the Secretary of State rightly mentioned the inflation-proofing of benefits this year, although it is not in the Bill. We welcome that and we pushed him on it—as did, in fairness, many hon. Members on both sides of the House. To be frank, to have done anything else would have been unconscionable. He did not outline, however, that the Government are again freezing the housing allowance rates and the cap on childcare allowances in universal credit. We will see whether that changes in the Budget; I understand that the Government may be looking at that. If they make that change, we will welcome it as another example of them pinching one of our policies—I look forward to it. However, the impact of not inflation-proofing some of these allowances will be to hold families further in poverty.

Secondly—though not in the Bill, but again connected to it and mentioned by the Secretary of State—there are the energy price cap and the universal energy bills support scheme. However, the £400 discount on energy bills of course ends from April, and the Government are reducing the generosity of the energy cap from April, costing the average household an extra £500 on their energy bills. So there we have £900 extra on energy bills that households will have to find. Talk about giving with one hand and taking away with the other. Of course, not every household has been covered by the energy cap—

[Dr Luke Evans]

Will the right hon. Gentleman give way?

[Jonathan Ashworth]

Let me just finish this point.

Not every household has been covered by the energy cap because, for example, the thousands of people who live in social housing with district heating schemes were not covered by the energy cap. That means that some of the very poorest people, social tenants and private renters, many of whom are on the means-tested benefits that are the subject of this debate, are facing increases in their energy bills this April of sometimes even as high as 400%. It means that residents on the St Matthews estate, the St Peters estate and the St Marks estate in Leicester—places where there is already deep hardship and deprivation—could see huge increases in their gas bills, because the Conservative Government refused to include district heating in the energy price cap. That omission will push many more children into poverty in Leicester, London and across the country.

I give way to my fellow Leicestershire MP.

[Dr Evans]

I am grateful to my near constituency neighbour. On his point about the changing of the dates, could I ask what Labour’s plan is? Would it therefore keep the cap in place, and if so, how much would that cost and for how long would they do so?

[Jonathan Ashworth]

My right hon. Friend the Member for Doncaster North (Edward Miliband) has outlined how we would impose a windfall tax to maintain an energy price cap in place, and the hon. Member knows that full well.

The Government’s answer to rising energy bills, rising food prices and inflation outstripping wages is the Bill before us. Of course, the £900 in itself is welcome, and we concede that it is more than last year, but it is again a flat payment for disabled people and pensioners at a time when inflation has been running at 10%, so in real terms the payments this year are worth less than last year’s for pensioners and disabled people.

The point about this being a flat payment was put to the Secretary of State’s predecessor last year, and there are still a number of problems that we raised last year and that we hoped would have been rectified this year. The point is that the cost of living payment does not distinguish between large families and single-person households. The payment is the same regardless of household size, even though we know that larger households have higher spending needs—particularly those with children—which is why universal credit payments are higher for couples than for single people, and children are recognised in that system. In fact, larger households with children are likely to have 50% higher energy costs. All in all, that means that a couple with children will be £400 worse off, even after the cost of living payment.

There are also cliff edges involved with the cost of living payment being tied to receipt of means-tested benefits, meaning that somebody who earns just £1 above the limit could lose out on £900. This is at a time when the Government are saying they want to incentivise people to increase their hours or move into well-paid work to lift them off receiving universal credit, yet they have built into the system for next year a disincentive, even though they are telling people they will have to go for more interviews with their work coaches or face their benefits being cut. That is why the Treasury Committee recommended that to reduce the cliff edge, the DWP should consider spreading out the payments into more than the three payments and looking to look at a tapering scheme if they do this again. Perhaps the Minister, in summing up, could offer us her opinions on that Treasury Committee report.

Thirdly, and this is again related to the interaction of means-tested benefits, there is the point made by the Chair of the Work and Pensions Committee, my right hon. Friend the Member for East Ham (Sir Stephen Timms). Households with a nil award for their UC could, because of the way in which UC is calculated, lose out. The Secretary of State said that the Government have tried to iron out some of these harder edges, but they could not iron out all of them. Is he really telling us, “Computer says no”? Surely, he can look at that again. This problem impacted about a million households last year with the cost of living payment, 7,000 of which were impacted because they were sanctioned at the time. Are we really saying that many families could be impoverished because of the cold bureaucracy of the universal credit IT system?

Again, as with last year, not all low-income households will be eligible. Resolution Foundation analysis has found that four in 10 of the poorest fifth of households—2.4 million households—do not receive means-tested benefits, so they are ineligible for the cost of living payment. Very similar points were made in the relevant debate last year, and it is disappointing that many of the points that were put from across the House have not been rectified in this Bill. The justification from the then Secretary of State last year was that the Government needed to get on with it quickly, and we accepted that justification, so it is just a shame that they have not been able to find solutions this year.

None the less, we are not going to divide the House. The cost of living payments are welcome as far as they go, but let us be clear that they are not a long-term solution to years of social security freezes and cuts or to a systematic failure to grow our economy inclusively, make our economy more productive and sustainably raise living standards. They are not a solution for the thousands of families who rely on district heating schemes in many cities, such as London or my own Leicester constituency. Today, we are living in food bank Britain, with more children in poverty. Tory politicians can tell Britain’s families just to live on 30p dinners, but this is set to be the worst Parliament on record for living standards and all of our constituents know it.

Social Security and Pensions

Luke Evans Excerpts

Monday 6th February 2023 Commons Chamber

[Guy Opperman]

This set of orders will increase state pensions and benefits and statutory payments by 10.1%, and the draft benefit cap regulations will increase each of the four benefit cap levels by the same 10.1% in April 2023. Lastly, the Guaranteed Minimum Pensions Increase Order sets out the yearly amount by which the GMP, part of an individual’s contracted-out occupational private pension earned by 1988 and 1997, must be increased.

We continue to protect the poorest pensioners through the pension credit standard minimum guarantee. There is also the basic state pension in place, which will increase to £156.20 for a single person, and the full rate of the new state pension will increase to £203.85. The pension credit standard minimum guarantee will increase by 10.1%. The Government understand the pressures people are facing with the cost of living, which is why, in addition to the £37 billion of support last year, we have provided support given the cost of living pressures in 2023 and are now acting to ensure that support continues between 2023 and 2024.

[Dr Luke Evans (Bosworth) (Con)]

Is it not the case that the Government introduced the order to target the most vulnerable—those on fixed incomes, who really need the support at this time?

[Guy Opperman]

My hon. Friend is right: these are difficult times for everyone, but the Government have decided to provide the maximum amount of support to the most vulnerable. That is why we are uprating the benefits on an ongoing basis. We also provided a £37 billion cost of living support package last spring and an energy price support package last September, and in 2023-24 we will provide a package that includes uprated support for the most vulnerable and a further winter fuel payment.

The order increases the personal and standard allowance of universal credit by 10.1%. The monthly universal credit work allowance—the amount that a person can earn before their universal credit payment is affected—will also increase in April by 10.1% to £379 for those also receiving support for housing costs, and to £631 per month for those not receiving support for housing costs. The order also increases by 10.1% statutory adoption pay, statutory maternity pay, statutory paternity pay, statutory shared parental pay, statutory shared parental bereavement pay, and statutory sick pay. In addition, in April, the carer’s allowance will increase by 10.1% to £76.75 per week. Unpaid carers also have access to support through universal credit, pension credit and housing benefit, all of which include amounts for carers. For a single person, the carer’s element in universal credit will increase to £185.86 a month from April, and the carer’s premium in pension credit and other income-related benefits will increase to £42.75 a week.

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[Ms Karen Buck (Westminster North) (Lab)]

In a few weeks’ time, we will have the latest figures on households below average income. They are likely to confirm what we already know: that poverty will soar as the measures taken during the covid pandemic fall out of the adjustment. The figures will confirm what we see every day, and what the Trussell Trust and others see at their food banks, which is that the cost of living crisis is hurting millions. For those with the least, soaring inflation means hunger, cold, and the fearful wait for the bailiffs, for debt recovery, or for the forced imposition of a prepayment meter. It has meant families being unable to put a school uniform on their child’s back.

There are 4 million children already in poverty; 700,000 more children were in poverty than in 2010 even before the pandemic, and the Joseph Rowntree Foundation report of a few weeks ago estimated that one in seven families was going without essentials. One fifth of pensioners are in poverty, with older and disabled pensioners being most seriously affected—and there, too, the figures are going up.

In a report published last week, the Institute for Fiscal Studies said:

“Although it never sounds the most exciting part of benefits policy, the default indexation of benefits —what happens to their value each year if the government takes no deliberate action—is a first-order issue over the long term, and even over the short term when inflation is high.”

The IFS is right to make the important point that indexation and uprating are assumed to happen if the Government take no deliberate action. The annual uprating of working-age benefits with prices has long been the default in this country. When Governments fail to uprate benefits, that is a deliberate action, although they like to pretend otherwise.

Over the last couple of years, a new ritual seems to have been established in the run-up to the autumn statement: rumours circulate that the Government have not decided what to do, or whether they will uprate; think-tanks work out the implications of a freeze on rates of poverty and living standards; and charities and civil rights organisations urge the Government not to allow the real-terms value of benefits to fall. Uprating becomes a hot topic in the media speculation that attends any fiscal event. Then, at the last moment, we learn that the Government have decided to uprate after all. The Government expect praise for doing the right thing, and nobody considers for a moment what an extraordinary state of affairs this has become. However, it is an extraordinary state of affairs.

How can a social security system carry out its most basic functions if the value of basic entitlements is being eroded by inflation? Previous Governments did not need to spend weeks deciding whether to uprate; uprating was just what happened if they took no deliberate action. The sorry truth is that since 2010, Governments have increasingly treated the annual uprating of working-age benefits as a policy choice rather than a norm—a policy choice driven by short-term considerations, but with permanent effects that they prefer to ignore.

[Dr Luke Evans]

The hon. Lady is missing the key point that the universal credit taper was changed from 63p to 55p. That is new, and it makes a huge difference; those who are earning have more money in their pocket.

[Ms Buck]

The hon. Gentleman should go back to the original plans for universal credit, and to what the taper rate was intended to be at the very beginning, before a former Chancellor got his hands on it.

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[David Linden (Glasgow East) (SNP)]

It is a pleasure to follow the hon. Member for Amber Valley (Nigel Mills), who is always incredibly thoughtful on these issues, and it is certainly a pleasure to serve alongside him on the Work and Pensions Committee.

As we debate today’s annual uprating orders, we do so against a grim economic backdrop and at a time when some of the most vulnerable people in our communities are battling literally to survive this cost of living crisis and make it through the winter. However, I think it is important to recognise that the cost of living crisis is not a new thing. Yes, the war in Ukraine has had a profound impact on the global economy, and I do not think anybody in this House would deny that; and nor is anyone denying that the coronavirus pandemic has left serious scarring on the economy. But the inescapable fact is that poverty in all its forms was in a dire situation pre-pandemic. Let us take child poverty as just one example. Figures from the Child Poverty Action Group show that, pre-covid, there were 700,000 more children in poverty than at the start of 2010. Rising child poverty coupled with a cost of living crisis demands radical action from a British Government who must do more—so much more—to end the scourge of child poverty.

Today’s uprating orders are certainly a step in the right direction. The orders for the financial year 2023-24 are welcome, and we certainly will not oppose them. However, Ministers should be under no illusion that these will make up for four very long years of benefit freeze prior to the pandemic. Data from the Joseph Rowntree Foundation’s cost of living tracker in October paints a horrendous picture that should shame every single one of us. About six in 10 low-income households are not able to afford an unexpected expense, over half are in arrears and about a quarter use credit to pay essential bills, resulting in over seven in 10 families going without essentials. That, I am afraid, is the stark reality of Tory Britain in 2023, and no alternative facts in the Minister’s red folder can seek to deny that.

I thought it might be a good idea to have a look a bit closer to home—indeed, in the Minister’s own constituency —and see what Tory Britain really looks like in Hexham, so I had a look at the latest available annual report for the West Northumberland food bank, based in the Minister’s own constituency. Page 3 of its latest published annual report—again, I am quoting from the Minister’s own local food bank—states:

“Listening to people’s concerns on the helpline we became increasingly aware of rising child poverty, the two-child policy has plunged hundreds of thousands of children into poverty across the UK, since 6 April 2017. Parents having a third or subsequent child are no longer eligible for support for that child through benefits worth up to £2,830 per child per year”.

It goes on, remarkably, to cite statistics from the Minister’s own Department—this is his own food bank—saying that

“DWP…statistics show that in 2019-20 24% of children in the Hexham constituency were growing up in poverty, that’s almost 3,000 children and it’s increased by 6% since 2015, that’s 738 more children born into poverty in just 4 years.”

They are not my words, but the words of the Minister’s own local food bank’s annual report.

The red folder that the Minister walks about with may contain all sorts of distorted statistics and soundbites, but the problem is that statistics and soundbites do not put food on the tables of people in Hexham, or indeed anywhere on these islands. For example, instead of increasing the benefit cap, which has been frozen since 2016, the British Government should, in my view, just abolish it entirely, because it is pushing more and more people into poverty, and those of us who have surgeries on a Friday morning can see that clear as day.

If history teaches us anything, it is that trying to govern simply to appease headline writers in comics such as the Daily Mail and the Express does nothing other than further cement inequality and poverty, which is rife in Britain today. The reality is that too many households have now been left behind and will not benefit adequately from uprating because the Tories keep refusing to fix known policy failures. For example, the continued refusal of Ministers to fix the extensive known problems with universal credit is unacceptable and is subjecting vulnerable people to additional unnecessary hardship.

Instead of keeping additional pressures on low-income families, Ministers need to urgently address the fundamental issues with universal credit. A recent report by the Commissioner for Human Rights at the Council of Europe found that the level of support provided under UC was

“a key contributing factor to child poverty.”

The report stated that policies like

“the two-child limit and the benefit cap restrict the amount of benefits that households can receive, regardless of their specific needs, and thereby continue to exacerbate child poverty.”

Therefore, my party stands by its calls to the British Government to reinstate the uplift to UC, and indeed to increase it by £25 a week, and to extend it to means-tested legacy benefits, as well as to extend the benefit cap.

[Dr Luke Evans]

Has the hon. Gentleman or his party calculated how much that would actually cost the taxpayer?

[David Linden]

Given the ability of the Government to crash the economy in the mini-Budget by the now elusive right hon. Member for South West Norfolk (Elizabeth Truss)—[Interruption.] Hon. Members have managed to wake up just in time to debate economics. They had nothing to say on food banks or child poverty, but when it comes to money, they are excited. The hon. Member for Bosworth (Dr Evans), who is a parliamentary private secretary, must do better with his interventions if he wants to get into the Government.

Last April, Ministers in Edinburgh called on the British Government to reverse those policy changes. That would have put £780 million into the pockets of Scottish households and it would lift 70,000 people, including 30,000 children, out of poverty in 2023-24.

In its recent submission to the United Nations Committee on Economic, Social and Cultural Rights, Human Rights Watch also gave a damning review of the British Government’s restrictive social security policies, such as the two-child limit and the failure to reduce the cut to universal credit. It set out the negative impacts on the right to an adequate standard of living, to food, and to housing for families with children. It is a depressing state of affairs that thousands of families with children will be pushed into poverty simply because the British Government refuse to scrap the two-child limit on child tax credits and universal credit. In April 2022, 1.3 million children here in these islands were affected by the two-child limit—that is 8.7%, or one in 12 children—and that number will, sadly, continue to rise as nearly all low-income families with three or more children eventually become subject to the limit.

--- Later in debate ---

[David Linden]

The hon. Gentleman is missing what is happening, given the limited social security powers that the Scottish Government have. Bearing in mind that 85% of welfare spending is reserved to this place, he will see that we are doing an awful lot to try to help people with social security, but if the Minister wants to back up my calls to devolve all social security to the Scottish Government, that will certainly be welcome.

Research from the Child Poverty Action Group shows that the majority, some 59%, of those affected by the two-child limit are working families. Perversely, some of those families work for the Minister’s own Department, which administers said benefits; that would be funny if it wasn’t so tragic. The fact that a few weeks ago the Lords Minister, Viscount Younger, could not justify to the Work and Pensions Committee how the two-child limit is compatible with the Government’s own family test is a damning indictment of a Minister who is not over his brief and whose policies do not even comply with the family test for which he is responsible.

I turn now to universal credit, which should be topical, given Labour’s significant change in stance. That change provides an opportunity to seek cross-party agreement on reform of universal credit, because all three main parties in this Chamber now agree with the broad principles and the aims of universal credit. The challenge for us now is to make it work and to iron out the creases, which are by no means insurmountable. We know, for example, that the five-week wait for a first payment is needlessly pushing people into hardship. That could be relatively easily fixed by implementing proposals to turn advance payment loans into non-repayable grants after a claimant has been deemed eligible.

On sanctions and conditionality, far too many households face destitution, largely because DWP rules are pushing them into debt through sanctions and deductions. Recent changes to the universal credit administrative earnings threshold mean that even more people will risk having their vital universal credit payments sanctioned. These 600,000 people are already working, and there is clear evidence that sanctions do not work in getting people into work or to increase their hours or earnings. To that end, I have tabled early-day motion 715 to annul the relevant regulations, which I hope the Government will grant us time to debate and vote on, and I certainly hope we can count on Labour support in that.

However, there are other problems with sanctions and conditionality. For example, individuals who have had a sanction applied have also been denied the vital cost of living payments the Minister was rightly trumpeting earlier. That demonstrates a fundamental issue with the DWP’s attitude to those on low incomes, because preventing vulnerable families from receiving the social security they are entitled to when they need it most strikes me as somewhat back to front.

I will turn now to the UC childcare offer. If the Tories actually cared about working people, they would want to improve childcare support for UC claimants by supporting them with childcare costs up front and in full. The SNP continues to call on the Government to increase payments for those aged under 25 in line with increases for older claimants. We also continue to call for local housing allowance to cover the average cost of rents and for the shared accommodation rate for those under 35 to be suspended—that age range has always struck me as somewhat arbitrary.

The SNP has called for the British Government to fix these fundamental flaws in social security and to deliver a system that actively tackles poverty and empowers people. However, it is an inescapable and undeniable fact that the Scottish Government cannot change these policies while 85% of welfare expenditure and income-related benefits remain reserved to this institution here in London, and that includes universal credit, which is of course a reserved benefit. The only way to ensure that Scotland has a decent social security system is for us to take all legislative and fiscal responsibility for these issues by way of independence and to no longer hope that the full-fat Tories, or the diet Tories on the Labour Benches, will one day reform the social security system, which is clearly broken beyond repair.

I turn now to the order on pensions, and I start by genuinely welcoming the Pensions Minister to her place. I respect her enormously, and although we will doubtless disagree on aspects of policy, I have no doubt as to her motivations. Where we have common cause and we can agree—for example, on pension credit—she can be assured of SNP support. However, I am afraid that that is probably where the warm words and cross-party consensus will come to a halt for this evening, because the British Government have a serious job of work to do if they are to rebuild credibility among pensioners. Time and again, we have seen the Tory Government short-change pensioners, who are getting a raw deal from a pension system that they have paid into their entire lives.

Pensioners on low incomes are among those hardest hit by the cost of living crisis, and the British Government must do much more to ensure that they are properly supported, so let us start with the state pension. Westminster already provides a lower state pension relative to average earnings than most other advanced economies. Last year’s breaking of the triple lock will cost each pensioner £520 on average during the course of living crisis. The Government’s own Red Book shows that that will take £30 billion in total from pensioners by the 2026-27 financial year. Retaining the triple lock is the bare minimum I would expect, but I rather fear that that policy pledge will not survive the rigours of manifesto writing when it comes to both main parties in this House. However, I would like to be assured on that issue in the winding-up speeches.

A recent report from the Pensions and Lifetime Savings Association found that the annual income required to maintain a basic standard of living in retirement has massively outstripped the rise in the state pension. For a single person, the minimum income now sits at £12,800, while the state pension will rise to only £10,600 in April for those on the full flat rate. Indisputably, the state pension remains an important source of income for pensioners living in, or at risk of moving into, poverty because of the very low take-up of pension credit, which I accept is the Minister’s biggest priority and one I am certainly willing her on to succeed with. However, Independent Age highlights that 5% of pensioner couples and 19% of single pensioners have no source of income other than the state pension and benefits.

The Joseph Rowntree Foundation’s “UK Poverty 2023” report revealed that 1.7 million pensioners were living in poverty in the UK in 2020-21, the poverty rate for single pensioners is almost double that of couple pensioners, and almost one in seven pensioners overall are living in poverty—something I can see in its rawest form in communities such as Sandyhills, Carmyle and Baillieston in my constituency. We know that pension credit is a vital support for many older people, but only around seven in 10 of those who are entitled to it actually claim it, and up to £1.7 billion of available pension credit is, I am afraid, going unclaimed. In crude terms, that amounts to £1,900 a year for each family in the east end of Glasgow entitled to receive pension credit.

[Dr Luke Evans]

Will the hon. Gentleman give way?

[David Linden]

The hon. Gentleman is obviously on overtime tonight.

[Dr Evans]

I am grateful to the hon. Gentleman for giving way. Is that not a point that all of us in this House can take away? Pension credit is going unclaimed and all 650 of us could go back to our constituents and encourage them to make sure they check the website and use the phone to get, potentially, that gateway option to £3,000.

[David Linden]

Yes, I think we are going to have a political “Lady and the Tramp” moment where we actually agree on this. There will be spaghetti across the House. The hon. Gentleman is absolutely right. We need to be in a situation where we encourage all our constituents to take up pension credit. Having met the Minister fairly recently—

Child Support (Enforcement) Bill

Luke Evans Excerpts

2nd reading
Friday 9th December 2022 Commons Chamber

[Dr Luke Evans (Bosworth) (Con)]

My hon. Friend is making a fantastic speech and bringing forward a great piece of legislation. I was in the House only a few weeks ago supporting my hon. Friend the Member for Hastings and Rye (Sally-Ann Hart), who was making changes to the CMS for those suffering domestic abuse who are trying to get payments. Has my hon. Friend the Member for Stroud had a conversation with her about how this Bill can dovetail with her Bill? Perhaps the Government can take both Bills forward to provide extra protections for those who are struggling to get payments for their children.

[Siobhan Baillie]

I thank my hon. Friend for his intervention. I actually read all of that debate in Hansard, including his many interventions on my hon. Friend the Member for Hastings and Rye, so I think he just wanted to show you that he really knows his stuff, Mr Deputy Speaker. He is absolutely right that my hon. Friend the Member for Hastings and Rye is taking a Bill through the House that will protect people who have experienced domestic abuse, because so often, where there has been domestic abuse and a breakdown of a relationship, there is then no payment between the parents. It is probably very unusual for the Department to have to deal with two Bills, but we have very enthusiastic Members of Parliament who want to help families caught up in this system. I have real confidence in the Government teams and the Ministers to use the corporate knowledge for both these Bills and get this done.

This Bill will introduce a quicker and cheaper process to pursue enforcement, not just for the taxpayer but for the people who are waiting for their money, and it will ensure that more money is collected for more children. These are often children of single parents and children who desperately need £5, £10, £15, £20 or £100 a month—whatever the amount is, it will make a difference. I thank all Members in the Chamber for being here to debate the Bill and the Department for helping me with the drafting, and I very much hope it will receive support today.

--- Later in debate ---

[Dr Luke Evans (Bosworth) (Con)]

Who would have thought when I went to conference four or five years ago and was joined by my hon. Friend the Member for Stroud (Siobhan Baillie), who is sat next to me, that we would both be here in the Chamber having this debate, almost three years to the day since our election? Actually, it was patently obvious at that point that she was going to become an MP, because she is diligent and driven. Her introducing the Bill is testament to that.

On reading my hon. Friend’s comments from her Westminster Hall debate last month, it was so sad to note that about 280,000 children see their parents separate. That is a hugely concerning statistic, and a figure that we need to closely reflect on, as my hon. Friend the Member for Devizes (Danny Kruger) pointed out. I am lucky and eternally grateful to have benefited from a being in a loving and stable family for nearly 40 years, but I appreciate that that experience is not universal.

We all have CMS cases in this House, and we have often seen the anguish and the upset that the process generates. More broadly, before I came to the House, I saw in hospitals and GP surgeries the anguish that a given mental or physical issue would bring. A medical professional’s starting point is: how can I make things better? While I often could not solve the problem, I could help inform and equip people and ensure that the process ran smoothly. This Bill gives people a real chance to try and make these things better.

I fully support this important legislation, because I believe that it sits well with the Government’s wider reforms to ensure that the work of the Child Maintenance Service is effective in preventing parents from evading their financial obligations to their children. While couples may fight and frustrate, we must keep in mind the best outcome for the children’s sake. When I was researching for the debate, I was surprised to see that more than 30 years have passed since the Thatcher’s Government critical “Children Come First” White Paper. Society has made changes since then, and methods to collect payments have certainly changed over those years. Much scrutiny and change has taken place, substantial amounts of water have passed under the bridge, and we have seen major systems redesigned.

I note the important work of the Labour and coalition Governments to encourage and support family- based arrangements, and the fact that that work, and wider policy, have progressed with, seemingly, some decent success. Changes to the Child Maintenance Service have built on earlier reforms to ensure a fairer assessment of parents’ earnings, helping to prevent them from evading their financial obligations. These powers make a real difference in compliance by closing loopholes and strengthening enforcement.

We must be thankful for this progress. We must never give up on the ideals, but we must balance them with the reality. According to a report from the National Audit Office published in March 2022, while the number of people making a family-based arrangement has increased as was intended, there has also been an increase in the number of people with no maintenance arrangement, as was pointed out by my hon. Friend the Member for Darlington (Peter Gibson). I sense that the CMS is facing a considerable workload. At the end of December 2021, it was managing more than 600,000 arrangements for 560,0900 paying parents, a 9% increase in the number of arrangements since the end of June 2021.

We must also consider those who fail to pay any amount of child support maintenance, especially when deductions from earnings are not possible. I think that enabling the DWP to make administrative liability orders is a step forward, and I also think it right that those who are subject to such orders are able to appeal. I believe I am correct in saying that they can appeal but cannot challenge the amount that has been decided by the CMS, and I think that is the right approach.

I hope the Bill is successful, and I also hope it can be seen in the wider context of the Government’s work to ensure that the child maintenance system has the legislation and the resources to enable it to manage modern Britain. No two cases in the UK are the same, and there are nuances that play out in all our constituency surgeries. We know that these have real, far-reaching consequences, but I sense that the Bill can be a key part of a wider commitment among my ministerial colleagues to ensure that, over time, everyone pays, everyone receives the right amount, and, most importantly, the child—

[Danny Kruger]

Will my hon. Friend give way?

[Dr Evans]

I will.

[Danny Kruger]

It is important for my hon. Friend to experience what it is like to be on the receiving end of an intervention.

My hon. Friend said earlier that many couples did not have an arrangement at all. What does he think we can do about not just the couples whose arrangements have broken down, but those who did not put one together in the first place?

[Dr Evans]

That is a very good question—and I am so grateful to my hon. Friend for his sword-like intervention, cutting me off with one word to go before the end of my speech!

It is important to engage with couples and ensure that they know where the resources are to enable them to have the necessary discussions, and I think that that is starting to happen as a result of signposting to, for instance, health visitors, GPs and schools, so that parents have an opportunity to speak to someone establish what their options are. Enabling them to have that dialogue is part of the work that the DWP and the Government as a whole should be doing. People need to understand fully what is available to them, and going through the court system may not be the right way for that to happen.

I am hugely grateful to my hon. Friend the Member for Stroud, and I welcome the Government’s support for the Bill. I hope that it makes much haste.

[Madam Deputy Speaker (Dame Rosie Winterton)]

I call the shadow Minister.

Child Support Collection (Domestic Abuse) Bill

Luke Evans Excerpts

Friday 28th October 2022 Commons Chamber

[Sally-Ann Hart (Hastings and Rye) (Con)]

I beg to move, That the Bill be now read a Second time.

I am pleased that we have time today to debate this Bill, which is an important measure to help safeguard victims of domestic abuse who use the Child Maintenance Service. MPs from across the House will have experienced casework where constituents—predominantly women—who are struggling financially find it very difficult to make their former partner pay child maintenance and have to chase this through the CMS.

We have all seen the impact, mainly on women, and children, when abusers have made it difficult for their formers partners by using money as a means of controlling them. Although the majority of separated parents do all they can to make sure they financially support their children, we have all had casework on the non-payment of child maintenance. I praise in particular the work of Baroness Stedman-Scott, the Minister in the other place, for her focus and hard work on this issue, as well as the CMS staff. Chasing non-payers, even when victims sometimes just want to give up, lifts thousands of children out of poverty. Since 2019, more than £1 billion of child maintenance support has been collected and arranged each year through direct pay and collect and pay. Until fairly recently, financial abuse has been under-recognised as a form of domestic abuse, in which victims, predominantly female, are cut off from sources of money by their partner as a form of control. I therefore cannot discuss this Bill, which is concerned with a niche aspect of domestic abuse, without mentioning the work of consecutive Conservative Governments on this serious issue. The most recent piece of legislation against domestic abuse is the Domestic Abuse Act 2021, landmark legislation that significantly enhances protection for victims of domestic abuse.

Some 2.4 million people in England and Wales are estimated to have suffered some form of domestic abuse. In the UK, some reports estimate that one in eight adults—5.9 million people—experience economic abuse in their lifetime from a partner or family member. Some 4.2 million of them are women, and this financial abuse can leave women with no money for basic essentials such as food and clothing. Financial abuse also has an impact on children, who are real but all too often overlooked victims.

In my former role as a magistrate, I witnessed at first hand how perpetrators of domestic abuse can sit in a courtroom, lie, make sounds or move in a certain way that, to the victim, is terrifying. I have also witnessed those who try to use money or access to money as a means of control, leaving victims feeling worthless and powerless.

[Dr Luke Evans (Bosworth) (Con)]

My hon. Friend is making a powerful speech and I support her Bill wholeheartedly. She is right to point out how children are victims. In my former role as a GP, before coming to the House, I used to see the impact of domestic abuse on children, and not only when they were young but throughout their lifetime. The real key is to ensure that we clamp down on domestic abuse so that it does not have that long-term impact on the rest of someone’s life.

[Sally-Ann Hart]

I thank my hon. Friend for his incredibly good intervention. I absolutely agree.

Before I go into detail on the Bill’s aims, it may be helpful if I explain, for hon. Members who may not be aware of it, how the Child Maintenance Service operates. In an ideal world, the Child Maintenance Service would not be needed. It is certainly not a service that many people would want to use, but it is a safety net when parents who have separated cannot reach agreement on financial responsibilities, especially when one parent is deliberately trying to evade paying their share. It goes without saying that even when a relationship between parents breaks down, their financial responsibilities to their children continue at least until their children reach adulthood. It takes two to tango. Responsibility must be shared.

The purpose of the Child Maintenance Service is to facilitate the payment of child maintenance between separated parents who are unable to reach their own agreement following separation. It is a challenging job that is done in very difficult circumstances. Getting a maintenance arrangement in place for children improves their life and improves their chances in life. Ensuring that parents take responsibility for their children, including financial responsibility, means that they are giving them the best start in life.

Many hon. Members will have had some experience with the Child Maintenance Service. Some experiences will have been positive and some negative, but those who remember the Child Support Agency will know how much work has been done over the past few years to improve the system. I am sure all hon. Members will acknowledge that the Child Maintenance Service performs well—much better than previous child maintenance systems. Improvements include bolstering enforcement powers to tackle parents who refuse to pay what they owe, and moving more of the service online. Passports can be removed if a paying parent will not pay up, for example, and eight out of 10 new claims are now made online.

The Child Maintenance Service manages child maintenance cases through one of two service types: direct pay, and collect and pay. With direct pay, the Child Maintenance Service provides a calculation and a payment schedule, but payments are arranged privately between the two parents. With collect and pay, the Child Maintenance Service calculates how much maintenance should be paid, collects the money from the paying parent and pays it to the receiving parent. Under current legislation, direct pay is the default option unless the paying parent agrees to use collect and pay or demonstrates an unwillingness to pay their liability. The Bill aims to extend the collect and pay service to victims of domestic abuse, regardless of the payment history.

I know that the Child Maintenance Service already has safeguards in place for victims of domestic abuse. For example, it ensures that there is no unwanted contact between parents and provides information on how parents can set up a bank account with a centralised sort code so that they cannot be traced. I look forward to reading the independent review of domestic abuse support in the Child Maintenance Service, which was completed earlier this year and which I hope will be published as soon as possible. I am sure that we can all acknowledge that any situation where former partners have to co-operate is always going to be difficult for some people. That is particularly the case where there has been domestic abuse in the relationship.

These proposals are about giving victims of domestic abuse the choice to use collect and pay, so that they can decide what is best for their personal circumstances. Thus they can avoid entirely any need to transact with the other parent where that is appropriate, which will help them to feel as safe as possible using the Child Maintenance Service, particularly if the relationship with their former partner was abusive. That will protect them from ongoing coercion and abuse in their financial arrangements.

--- Later in debate ---

[Selaine Saxby (North Devon) (Con)]

I congratulate my hon. Friend the Member for Hastings and Rye (Sally-Ann Hart) and thank her for bringing forward such an important piece of legislation. As she rightly said, some of the most harrowing casework we deal with is often in this area.

North Devon Against Domestic Abuse reports that one in five women and one in seven men have reported experiencing economic abuse as part of a relationship. That can lead to severe financial hardship, debt and emotional distress. The charity offers advice and support to victims of domestic abuse across North Devon as they rebuild their lives, and helps them to build financial resilience and learn money management skills.

Economic abuse is when perpetrators seek to reinforce or create economic dependency and instability, limiting victims’ choices and their ability to access safety. It does not require physical proximity, so it can continue after separation. Economic abuse was defined in the landmark Domestic Abuse Act 2021 and can include taking control of family finances and not keeping partners aware of bills or debts, refusing to contribute or taking victims’ contributions beyond a fair balance, and forbidding the claiming of universal credit or benefits, or insisting they are put into an account that victims do not have access to, to name but a few.

Those actions can all leave lasting marks on victims who are trying to rebuild their lives and their families’ lives. Pushing them into a situation where they are financially exposed to their abuser can impact their ability to build a healthy life. It is also a continuation of abuse, using children as a tool to cause distress. Testimony shows that the legacy of that abuse can lead to some victims’ not pursuing the legal entitlements of their children. One said, “I haven’t arranged any child maintenance because I don’t want to have any aggravation from him.”

[Dr Evans]

My hon. Friend is making a fantastic start to her speech. That is exactly why we need the Bill: it circumvents that and protects victims of confirmed domestic violence, so they do not have to go through that heartache and stress, and do not have to front up against difficult perpetrators of domestic violence. It makes sure that there is stability and safety for them and the family that they are now supporting.

[Selaine Saxby]

I agree with my hon. Friend; what we hear is really harrowing. The next testimony says, “The Child Maintenance Service is his last avenue of financial control, so he uses this wherever possible.”

I also sit on the Work and Pensions Committee, which is currently hearing evidence on this issue. One person said, “In my case, my ex-partner declared an income of less than £8,000 per annum, yet sent my children postcards from all his holidays—skiing in France and Italy, two three-week trips across the whole of the USA, spa weekends and city breaks. Then they had postcards of their father’s new cars: a McLaren and a Bentley. He moved into a three-bedroom house in a desirable area of Cheshire. How on earth is that possible for someone who earns less than £8,000 a year? Meanwhile, I was struggling to pay my utility bills, let alone their after-school clubs and school trips. I am left wondering why none of the evidence was taken into consideration by the CMS.” Some joined-up thinking and common sense is needed. Even when the other parent provides ample evidence that income is being under-reported, the paying parent is simply taken at their word.

We often hear about women experiencing that, but the Select Committee has heard equally harrowing evidence from gentlemen. One said:

“I have 3 children from my previous relationship. Despite the narrative often spun, I am not a dead beat dad, and not all mothers are saints deserving of children. I am a loving father who is paying the consequences of a malicious partner who is using a government tool as part of her domestic violence campaign. During this relationship I was subject to physical, psychological and financial damage… Since I fled, the physical aspect has ceased. Yet abuse at the hands of my ex-wife continues. I don’t report this flippantly. However, the vehicle for her abuse is the Child Maintenance Service, who she uses to continue to financially and psychologically control me from afar, while also denying me access to my children. I’m exhausted by the situation, and with the current cost of living crisis and constant squeeze on my finances, I can honestly say that if I commit suicide, it will be as a direct result of my ex-wife’s abuse in combination with the Child Maintenance Service.”

Although non-payment is not a new tool, it has been exacerbated during covid-19, as the non-resident parent has had increased opportunities to abuse the system, and there have been lower risks associated with that. My hon. Friend the Member for Hastings and Rye has done great work to bring the Bill before us today, and I am delighted to support it, because it is an important step to alleviate the burden on families who have already experienced trauma, and puts the onus on the perpetrator, rather than the victims.

--- Later in debate ---

[Anna Firth]

Yes, this is another way in which the father, or the estranged parent, uses money as a form of control. Dealing with the arrears part of the system is vital.

The other week, my brilliant caseworker, Charles, brought to my attention one case that, frankly, appalled me, but these are common cases; we all receive such cases in our inboxes every week. The marriage of one of my constituents broke down in 2018, and she became the primary carer for the three sons. The Child Maintenance Service decided on an amount to be paid by the father, but the father had not disclosed a large personal income. My constituent appealed against this and it took two-and-a-half years before the Child Maintenance Service agreed with her that the father was underpaying. It then set a new repayment schedule and allowed the father to pay off that debt in small instalments each month, thus penalising my constituent and her children through absolutely no fault of their own. As I understand it, he did not start paying off the debt; it is still accruing and the Child Maintenance Service is doing very little to help.

My constituent has had to fight every step of the way to ensure that her children’s father actually pays what he needs to, and we have still not reached a conclusion. Quite frankly, this sort of behaviour is abuse. It is using money as a weapon. It is a form of domestic abuse and no one should have to go through it. The Child Maintenance Service must be informed to ensure that mothers are not left out of pocket by their ex-partners. This Bill is a vital way of advancing us on that journey.

The Bill, so ably spearheaded by my hon. Friend, will amend primary legislation to allow victims of domestic abuse to use the collect and pay service where there is evidence of domestic abuse against the requesting parent—this could be the paying or the receiving parent—or even children in their household by the other parent involved in the case.

As other hon. Friends have mentioned, there are collection charges for the use of the collect and pay service. I do not complain about the 20% on top of the maintenance liability for the paying parent, but the 4% charge that the receiving parent must pay is wrong and should be amended. I understand that, although the Minister is clear that charges are the right approach for current users of the service, he is willing to consider whether an exemption may be appropriate in these cases. I look forward to hearing him clarify that point in his summing up.

[Dr Luke Evans]

Clearly, the system has to be funded, but the right level of evidence needs to be put in for those who are convicted of domestic abuse. Does my hon. Friend have an idea about how the Government might be able to work that through? It could be that the victim of those who are fully convicted does not have to pay those charges. That might be a nice solution and would allow the removal of fees for those victims to go ahead.

[Anna Firth]

My hon. Friend makes an important point. Obviously, evidence has to underpin this service to make it fair, but in instances where there is clear evidence, which can be assessed, it seems only right that the parent can use the collect and pay service without being financially penalised in any way.

We would all agree that domestic abuse, including financial abuse, is horrific and that no one should have to endure it. As a country, we want to support victims of domestic abuse. None of our state systems should be allowed to make the survivors suffer more than they already have. The Bill will improve the Government’s offer to victims of domestic abuse in how they receive child maintenance payments. We must not forget that these payments often form a vital part of the recipient’s overall income and finances, especially those who have endured domestic abuse.

I am pleased to be here to support the Bill, and I am grateful to my hon. Friend the Member for Hastings and Rye for giving us an important opportunity and for spearheading this vital measure to stand up for women and children.

[Peter Gibson (Darlington) (Con)]

It is a privilege to be called to speak for the third time today and to be able to support my hon. Friend the Member for Hastings and Rye (Sally-Ann Hart), who is also my very good friend, on the Second Reading of her hugely important Bill. As I said earlier, I know only too well the privilege of doing well in the ballot for private Members’ Bills, but I also know the difficulties of guiding a piece of legislation through the House. As my Bill progressed through the House I was honoured to have the support of colleagues across the House, and I am delighted to support my hon. Friend and her Bill.

Violence against women and girls is rightly a key focus for the Government and for everyone in the House. That was detailed in the recently published “Tackling violence against women and girls” strategy, which builds on a long heritage of legislation introduced by Conservative Governments, including the Children Act 1989, the Protection from Harassment Act 1997, the Protection of Freedoms Act 2012, the Modern Slavery Act 2015 and the Domestic Abuse Act 2021, all of which contained steps and measures to protect people.

[Dr Luke Evans]

It is all very well having legislation in place, but it is really important that we have the financial backing to enforce it. Does my hon. Friend welcome the £230 million from the Conservative Government to do exactly that?

[Peter Gibson]

I am grateful to my hon. Friend for making that important point. He has made it clearly and it is on the record, and I welcome that investment.

As I have served on the Women and Equalities Committee and the Domestic Abuse Bill Committee, and I engage regularly with my local police, domestic abuse refuge and the night-time economy—including my shift last week at the newly established Number Forty night-time hub in Darlington—I am only too aware of the need for society to do more to protect people. I am therefore grateful to all hon. Members who are taking part in today’s debate.

Domestic abuse is a crime. It is perpetrated in the privacy of a place where everyone should feel safe by those who exploit and abuse their position. It is right that we do all that we can to restore a position of trust and safety for victims, and protect and support children who are witnesses to domestic abuse and punish and rehabilitate the perpetrators. Domestic violence as a crime has both an instant impact and a long tail of consequences, putting pressure on our charities, local authorities, schools and prisons. At the root of this crime is the perpetrator, wreaking havoc on a partner and often children too, creating huge costs to our society both in money and in impact.

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[Peter Gibson]

My hon. Friend makes an important point, and I am sure the Minister will, having heard him, address it in summing up.

To return to the use of the banking system as a means of perpetrating abuse, I have worked with a number of banks on this and know that many are working on ways to stamp it out. Abusers can also use non-payment and deliberate payment on irregular days to interfere with means-tested benefit entitlements. No victim or survivor of domestic abuse should ever be told or forced to contact their abuser; it is unquestionably a moral wrong.

I understand that these issues have been a source of controversy since the inception of the current CMS and the introduction of the direct pay service and charging, and the Bill will bring a long overdue and welcome change to the system. I am also glad that the Bill will extend not only to England but to Scotland and Wales, providing consistent protections to victims of domestic abuse across Britain. It is regrettable, however, that the current suspension of the Northern Ireland Assembly means it has not been possible to extend the protections to the entirety of the United Kingdom.

[Dr Luke Evans]

I want to stress the importance of cross-border unity across the United Kingdom on this issue, so perpetrators cannot hide in one jurisdiction from another.

[Peter Gibson]

I agree wholeheartedly with my hon. Friend.

My hon. Friend the Member for Hastings and Rye has introduced a highly commendable Bill, putting further steps in place to right a wrong that has existed in CMS payments since inception, and providing a further level of protection to some of the most vulnerable in our society by preventing abusers from further torturing those who have escaped from a cycle of abuse through the CMS.

This Bill clearly commands cross-party support and I offer my sincere thanks to my hon. Friend for bringing it forward. I wish her well as she continues to guide it through its legislative process and hope to see it pass all its parliamentary stages and make its way on to the statute book.

--- Later in debate ---

[Dr Luke Evans]

Training is indeed very important. We talk a lot about the victims of domestic abuse, but the CMS might be a place where we can pick up on domestic violence and domestic abuse on the first presentation. Is there training to make sure we pick up those cases when they come forward?

[Tom Pursglove]

My hon. Friend asks a very good question, and I am keen to obtain an answer for him on that point. He will appreciate that I am only a few hours into the role and this is quite an involved question but, of course, he raises an important point. I will make sure he receives a full response following this debate.

The CMS also ensures that there is no unwanted contact between parents, and it provides information on how parents can set up a bank account with a centralised sort code so they cannot be traced. The application fee is also waived for victims of domestic abuse, and CMS caseworkers can provide information to our customers on a number of specialist domestic abuse organisations.

In recent years, the CMS has strengthened its domestic abuse training to ensure that caseworkers are well equipped to support parents in vulnerable situations. However, the domestic abuse landscape is always evolving and we are, of course, ready to listen to feedback from customers, customer representatives and stakeholders on this sensitive area. We already engage regularly at ministerial and official level with MPs, interested parties and the domestic abuse commissioner, and we will continue to do so.

In the autumn of 2021, the Department commissioned an independent review of the way in which the CMS supports survivors of domestic abuse. The review was conducted by Dr Samantha Callan, who is a leading expert on domestic abuse. The review has now completed and is with the Government for consideration. We welcome the opportunity to learn lessons and take whatever practical steps we can to help separated parents who have experienced abuse to set up safe maintenance arrangements.

My hon. Friends have spoken about the importance of this Bill, but I would like to explain why the Government support it and see the need for it to be enacted now. The CMS manages cases through one of two service types: direct pay or collect and pay. For direct pay, the CMS provides the calculation and a payment schedule. The payments are arranged privately between the two parents. Just to be clear, if necessary this can be done without the parents having any direct communication. For collect and pay, the CMS calculates how much maintenance should be paid, collects the money from the paying parent and pays it to the receiving parent. Under the current legislation, as my hon. Friend the Member for Hastings and Rye said, direct pay is the default option unless the paying parent agrees to use collect and pay or demonstrates an unwillingness to pay their liability. With collect and pay, paying parents pay an extra 20% on top of their liability, so cases are generally moved to collect and pay only when the paying parent is non-compliant.

There are some limited circumstances in which requiring a receiving parent to continue to manage relations directly with the other customer in their case seems inappropriate. I know that the CMS has experience of such circumstances and is keen to give customers the best service it can, but is bound by the current rules. The Bill will directly address the situation. It will allow a CMS case to be placed with the collect and pay service when either parent applies for it on the grounds of domestic abuse and when there is evidence that that is the right thing to do in their case.

Normally, it is only the receiving parent who can request a move of their case to collect and pay, on the basis that they are not receiving their payments. However, we recognise the importance of supporting any parent who is a victim of domestic abuse. Whatever their role in the case, either a receiving or a paying parent will therefore be able to request collect and pay.

To enable that, the Bill will provide the Secretary of State with the power to make secondary legislation setting out the details of circumstances in which the power can be used. That legislation will deal with the types of domestic abuse evidence that the CMS will accept in determining whether those circumstances apply in a particular case. The House will have the opportunity, which I think is welcome, to scrutinise that secondary legislation. The details need to be in secondary legislation because the evidence requirements may be complex and are likely to change over time as the Government do further work—not only in relation to child maintenance, but right across Government—to ensure we do all we can to minimise the incidence of domestic abuse. The affirmative procedure will be followed so that hon. Members have the opportunity to scrutinise the legislation in this place.

We will, of course, consult widely when formulating our proposals. We will aim to produce requirements that are sensitive to the needs of domestic abuse victims and that have been carefully evaluated and tested before being brought forward.

Given the importance of domestic abuse issues to hon. Members throughout the United Kingdom, I should say a few words about our work with colleagues in the devolved Administrations. I will not mention Northern Ireland, where child maintenance is a devolved issue, except to say that we will be working with Northern Ireland colleagues to ensure that domestic abuse victims are protected throughout the whole United Kingdom. However, I will say a few words about how we will implement the Bill in Scotland, as I know that colleagues who represent Scottish constituencies are keen to be reassured that the Government are considering child maintenance customers across Great Britain in the context of the Bill.

The Bill uses the definition of domestic abuse set out in the Domestic Abuse Act 2021. That Act does not extend to Scotland, where the definition generally used is set out in separate, devolved Scottish legislation. However, for ease of implementation in an area as complex as child maintenance, in which cases frequently fall within more than one jurisdiction in the United Kingdom, the Bill allows for the Act’s definition to apply throughout Great Britain for the purposes of the Bill.

The collection of child maintenance is governed by the same statutory provisions in England and Wales and in Scotland. We are keen to avoid the administrative complexity that could result from different definitions applying in each jurisdiction, but I acknowledge that the legislation will need to sit comfortably alongside devolved legislation dealing with similar issues. We will therefore work with legal colleagues and the Scottish Government to ensure that the policy aim is effectively delivered in Scotland.

Understandably, various colleagues—particularly my hon. Friends the Members for Southend West (Anna Firth), for Hastings and Rye, for Bosworth (Dr Evans) and for Heywood and Middleton (Chris Clarkson)—have raised the issue of charging. Collection charges are applied to all CMS collect and pay cases. The charges are 20% on top of the liability for the paying parent, and 4% of the maintenance received by the receiving parent. Running the collect and pay service incurs costs for the taxpayer. It is therefore reasonable for most parents to contribute towards running an expensive service. However, we recognise that many of the parents whom the Bill aims to support could be among the most vulnerable.