Women’s State Pension Age: Ombudsman Report

Margaret Greenwood Excerpts
Thursday 16th May 2024

(7 months, 1 week ago)

Commons Chamber
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Margaret Greenwood Portrait Margaret Greenwood (Wirral West) (Lab)
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I pay tribute to all the WASPI women and others campaigning on this issue in Wirral West and across the UK, and those who are in the Gallery this afternoon. I stand in solidarity with them—I myself am a 1950s-born woman. I pay tribute to all who have sadly passed away, too.

I believe it is important to consider the broader pensions landscape, and the discriminatory and quite frankly sexist nature of provision that has adversely affected 1950s-born women. For example, rules that required a fixed number of qualifying years to be eligible for a pension have disproportionately adversely affected women. In 1973, the right to a deferred pension was introduced for those who left service on or after 6 April 1975, provided that they were over 25 years old and had completed at least five years’ service. One WASPI campaigner told me that she had worked for the Army for four years and then left after she had had her baby. She received no pension for those years, which is grotesquely unfair. That five-year qualifying period, which clearly discriminated against women, was reduced to two years from April 1988, and so it remains for the Army and civil service today. Again, I believe that this is discriminatory, and I ask the Minister to look into it.

Part-time workers have been similarly adversely affected by the design of pension schemes. There is insufficient time to provide detail today; however, women have clearly been disproportionately affected by that, too, as they are by the current earnings threshold of £10,000 per year for auto-enrolment. Again, I ask the Minister to look at addressing that discriminatory element of what is otherwise a very important policy that affects large numbers of women and men on low pay.

Women born in the 1950s have already been adversely affected by pensions policy. The pensions gender gap is still high: analysis by the DWP published in 2023 put that gap at 35%, meaning that women have 35% less private pension wealth than men at age 55, the minimum age at which most people can start to take their pension. Women have less state pension, too: analysis by the Institute for Fiscal Studies last year showed that women born in the early 1950s receive around 5% less state pension income than men.

The reasons included having spent less time in paid employment compared with women born in later periods, and the way that the rules for entitlement to the state pension before the introduction of the new state pension in 2016 created a significant gap between pensions for men and women. For example, before 1978, married women could opt to pay a married women’s stamp, meaning that they paid lower national insurance contributions and then received a lower state pension. It is scandalous, too, that many of the women who paid that married women’s stamp did not receive all the pension that they should have been entitled to, due to the complex rules and computer errors by the DWP.

Then, of course, the gender pay gap means that women are paying on average less into their occupational pensions. All those things are still affecting women today, so it is in that context that I ask the Minister to act swiftly in relation to the parliamentary and health service ombudsman’s report on women’s state pension age. The WASPI campaign has shone a light on how the changes affected women: many 1950s-born women found out about the changes to their state pension age at a time that was too late for them to alter their retirement plans. Others have said that they had no idea that they would have to wait longer to receive their state pension. As a result, many women have suffered financial hardship and emotional distress.

A survey of around 8,000 WASPI women carried out in December of last year found that in the previous six months, 55% of WASPI women had seen their economic position get worse, 49% had struggled to pay essential bills, and shockingly, 25% had struggled to buy food. As we have heard from Members right across this House, our constituents have spoken about how they have been personally affected. One woman in Wirral West told me that she had struggled to feed herself and had had to sell her home as a result of how she was affected. Another constituent wrote to me recently to say that she feels robbed of her future, and still feels that she is being ignored. It is insulting to those women that the Minister has barely acknowledged the clear maladministration that the ombudsman says occurred. Can he tell us today when his Department will acknowledge that maladministration, and will he apologise for it?

Because of “significant concerns” that the ombudsman has

“that DWP will fail to remedy the injustice”,

it has taken the “rare decision” to bring matters to Parliament’s attention, and specifically to ask Parliament

“to intervene and identify a mechanism for providing appropriate remedy”.

The ombudsman’s report sets out what that remedy might look like. It also says that it is

“open to DWP to forestall this process”

by acting on what the ombudsman says to Parliament. Will the Minister take this opportunity to do just that—to look carefully at what the ombudsman has said, and come forward with fair and fast compensation for the women affected? Jane Cowley, the WASPI campaign manager, said last week at a Work and Pensions Select Committee oral evidence hearing that

“We have attempted to meet with the Minister throughout our campaign but unfortunately those requests have never been accepted.”

This is incredibly disappointing. That campaign is acting on behalf of 3.5 million women adversely affected—it is utterly astonishing that the Minister should show them such little respect.

Time is of the essence for the Government to put things right. According to the WASPI campaign group, by this weekend, 280,000 WASPI women will have died since their fight for justice began. To put it another way, as has already been said in this House, one woman dies every 13 minutes. The Government talk about supporting all pensioners to have a dignified retirement, but can the Minister honestly stand at the Dispatch Box and say that his Government are treating these WASPI women with the dignity and respect they deserve? Last week, at the Select Committee’s oral evidence hearing, Angela Madden, the chair of the WASPI campaign, expressed frustration that the DWP

“have never accepted that they have done anything wrong”.

When will the Government remedy the injustice that so many 1950s-born women have faced? Ministers must apologise to those women who have suffered as a result of Government failings, and must bring forward fair and fast compensation as a matter of urgency.

--- Later in debate ---
Jim Shannon Portrait Jim Shannon (Strangford) (DUP)
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It is a pleasure to speak today on behalf of the WASPI women. Every right hon. and hon. Member who has spoken in this debate has done so with a heartfelt desire on behalf of their constituents, and I wish to do the same. A lot has been said, but I want to offer a Northern Ireland perspective in the debate. It unites the voices of those in this Chamber when we speak on behalf of all our constituents within the United Kingdom of Great Britain and Northern Ireland.

In Northern Ireland there are some 77,000 WASPI women—ladies who deserve to have their pension but have been denied it. Tragically, many have passed away. In my Strangford constituency we have approximately 5,000 who should qualify as WASPI women. Although I am the only Northern Ireland MP in the Chamber now, I know that many of my colleagues from other parties have spoken on this issue. I had a well-attended debate on 12 March; it was unfortunate that in that debate Members only had about three minutes. In today’s debate at least Members have had at least 10 or perhaps even 15 minutes, depending on when they came in. I asked a question on the same issue on 25 March in this Chamber and again on 2 May.

This debate is vital, but—and I say this almost as a question—is it necessary? Hon. Members will say, “What do you mean, is it necessary? That’s almost a contradiction.” But it is not. The debate is not necessary: the problem is crystal clear and undisputed, at least by every person who has spoken. That being the case, we should recognise this and grant the compensation in a timely manner. That is what the debate is about. That is what we are asking for, and everyone from all political parties is united on that. We have the ombudsman’s report. Why, then, do we need to debate this issue again today, if the problem and the solution are clear and expected? That is the way I see it.

I congratulate the hon. Member for North Ayrshire and Arran (Patricia Gibson), as I often do, on setting the scene; I know this issue has been a passion of hers in this House. I also congratulate the hon. Member for Kilmarnock and Loudoun (Alan Brown), who will sum up for the SNP at the end of the debate, on his Bill, which I have signed, along with others. The Government could grasp that Bill, push it through and have it all done by July. I also did not know until this debate, when the right hon. Member for Hayes and Harlington (John McDonnell) spoke, that he and the right hon. Member for Islington North (Jeremy Corbyn), who is not in his place, had a Bill or a process ready to bring forward. Would it be onerous or unrighteous of me to say that perhaps that is something that could be used as a text to move it forward? Right hon. and hon. Members have brought lots of ideas forward.

I say this with great respect to the Minister, who is an honest man and a gentleman, and who does his job well: the Government are dragging their heels. As we have said on multiple occasions, each day that passes means that another lady has been wronged. My constituents and others are missing out not simply on justice—that is reason enough—but on the quality of life that should have been theirs. Parties across the Chamber have come together to reiterate that, but the power for change—and the reason change is not coming forward—lies with the Government. That is the way I see it.

On the many occasions I have spoken about the WASPI ladies, I have given the example of a constituent of mine who was a school cleaner—everybody’s constituencies had school cleaners like her. That lady cleaned the school toilets until she was 60, with arthritis and pain. She spent most of her time on her knees. It is always good to spend time on your knees, as long as it is in prayer, but that lady spent her time on her knees on a floor with cold tiles, and she ended up with arthritis and pains. That is the issue. She focused on the end date when she could stop putting herself in pain and start enjoying her retirement without having to worry about turning her heating on because she could rely on her pension. That lady never had a sick day in 30 years—boy, what a record! She turned up every day for 30 years to clean the toilets at the school. She deserves credit for that.

We know that lady’s generation well. There is no shame in it, but she felt shame about taking benefits, and she worked hard for the entitlement to a well-earned pension, which she thought she was getting. That pension was about nine months or a year ahead of her, when suddenly it turned out to be six years ahead of her. What—really? There needs to be action. That was done to her without so much as a by your leave or a financial plan. I hear people saying, “Well, they knew about the plan,” but many of my WASPI women did not know at all. I cannot remember which Member said that 60% of people did not know about their financial options. My constituent’s option was to continue working on her knees, scrubbing, with tears in her eyes and in pain, which meant that she had to apply for sick pay.

This Government did that to her—and I say that with respect to the Minister. That is the reason why it happened. The ombudsman said that it was not right to do that to my constituent, and that we should compensate that honourable lady and the 5,000 other WASPI women in my constituency, as well as all those across this great United Kingdom. We are no further forward in giving her that entitlement. Meanwhile, those extra years of hard labour have taken their toll physically and emotionally. I genuinely have no words to say to that lady other than: “I am sorry. I continually ask for compensation for you and the others. I am sorry that the Government got it wrong. And I am sorry that it still is not rectified.”

I do not want to heap coals of fire upon the shoulders or the head of the Minister, but the responsibility for this lies with the Government. My words to the Government are clear and direct, and I have plenty of them, but they can all be summed up in a few words: do the right thing, and do it now. That is my request. The Government know their obligation, understand their duty, and accept the rationale behind that, so all we need now is the action to make this happen.

We have seen how quickly compensation can be sorted, so why are we in this position where we are no further forward and doing the right thing seems not to be a priority? It needs to be a priority—it needs to be a priority today, following this debate. It needs to be a priority before the summer recess, whenever that comes. That is the target date that I am asking the Minister to aim for, because we need to give hope to our constituents and those WASPI women who have resolutely, courageously, and in many cases physically, withstood the test of time.

I believe that compensation should be granted in the form of a lump sum to help pay off any outstanding loans or debts, and there should then be an enhanced payment for a clear and set period of time. We have heard stories today of people who made their plans on the grounds of the pension plan that they had, only to find out that they had been disempowered, and all the plans they had made had to be scrapped. They lost their houses, their jobs and their health. What are we doing to help those people?

Margaret Greenwood Portrait Margaret Greenwood
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The hon. Gentleman is making a sensitive and excellent speech. Does he agree that this is not only about the loss of a pension from the age of 60, the fact that people have not been able to plan and so forth? For many women, their occupational pension will have been tied to the date of their retirement or their state pension—it varies a lot, depending on what the pension scheme is. Some women have lost thousands upon thousands of pounds as a result of this decision.

Jim Shannon Portrait Jim Shannon
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I thank the hon. Lady for that intervention. The occupational pension is another factor; it is incorporated in the plan that these people have made for their future. It is wonderful how you make a plan for the future and then the Government scupper it on you! All of a sudden, these ladies have found themselves in difficult circumstances, so I believe it is necessary to have a compensation scheme in place to help all of those ladies.

I will conclude with one more comment, ever mindful of the time limit that we all indicated we would keep to. I understand the magnitude of such a scheme, but we were able to get support quickly to households across the UK for cost of living and energy payments—something that I commend the Government on. That can be done on many occasions; we just need the commitment to make it happen. I know that the Government have the ability and the capacity to roll out all these schemes, so along with almost every other colleague in this House today, I sincerely ask that we prioritise finding a compensation formula and rolling it out. These women, our constituents—brave, courageous women—deserve no less, and we must ensure that we give them no less.

Carer’s Allowance

Margaret Greenwood Excerpts
Monday 22nd April 2024

(8 months ago)

Westminster Hall
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Margaret Greenwood Portrait Margaret Greenwood (Wirral West) (Lab)
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It is a pleasure to serve under your chairmanship this afternoon, Ms Elliott. I congratulate my hon. Friend the Member for Neath (Christina Rees) on leading this important debate on behalf of the Petitions Committee. I thank my constituents who have signed the petition that we are debating today, which calls on the Government to increase the amount of carer’s allowance to match pay for a full-time job.

Unpaid carers provide vital support to those they care for, whether a family member, friend or neighbour, and they make a huge contribution to our society in general. It is therefore important that they are valued properly. The petition points out:

“Many unpaid carers have to give up work to provide care, and being a carer can also have a significant impact on carers’ wellbeing and lifestyle.”

Census data suggests there are around 5.7 million unpaid carers across the UK, but research from Carers UK in 2022 estimated that the true number of unpaid carers could be as high as 10.6 million. It is thought that one in seven people in the workplace in the UK are juggling work and care.

We know that many unpaid carers have faced enormous pressure on their personal finances as a result of the cost of living crisis, which has caused stress and anxiety for them, and many have been forced to cut back on essentials such as food and heating. Some have suffered extremely severe financial hardship. According to the Carers UK website, 44% of working-age adults who are providing care for 35 or more hours a week are living in poverty. Carers UK has highlighted research from Petrillo and Bennett that shows that unpaid carers in England and Wales contribute a staggering £445 million to the economy every day, or £162 billion per year. That is a huge amount of money, and as things stand unpaid carers can get £81.90 a week if they care for someone for at least 35 hours a week and that person receives certain benefits.

It is unsurprising that there are calls right across the country for a significant increase in the money that carers receive. The Carer Poverty Coalition, which was set up by Carers UK and is made up of over 130 national and local organisations who have come together to campaign to end poverty among carers, has said:

“The next Government must commission a full review into Carer’s Allowance and its eligibility rules to ensure that it adequately values and supports carers.”

The coalition says that such a review should include, among other things:

“Increasing the level of Carer’s Allowance, so that it better reflects the level of financial penalty carers incur...Exploring different payments for people providing 20, 35, 50+ hours of care, to take account of the intensity of caring…Provide an additional payment for carers of State Pension Age...Scrapping the 21 hour study rule”.

The 21-hour study rule prevents anyone who is studying for more than that amount of time a week from claiming carer’s allowance. Those are all very reasonable and important measures, and they should be part of any such review.

In particular, I call for an end to the cliff-edge situation that faces carers who are in paid employment. At the moment, someone can only receive carer’s allowance if they earn £151 a week or less after tax, national insurance and expenses. If they go over that amount, even by one penny, they lose their entire benefit entitlement. That is leading to a situation whereby there are carers who are unwittingly going over the limit and thus becoming ineligible to continue claiming the benefit. That is particularly the case right now, as the national minimum wage has gone up this month, so I urge carers to check their entitlement as a matter of urgency. I also ask the Minister to say what the Government are doing to ensure that all carers in paid employment are aware of this situation.

Written parliamentary questions that I tabled last week revealed that currently the Government are seeking to recover a total of 156,300 carer’s allowance overpayments. That is over 10,000 more than at roughly the same point last year when I asked for this information. The vast majority of those cases—more than 58%—are for amounts up to £1,000. Three hundred cases are for amounts over £20,000.

It is shameful that the Government have failed to get a grip on this situation over the last year. They are leaving increasing numbers of carers to face mounting debts without taking the necessary action to stop that. It was revealed in the press earlier this month that

“tens of thousands of unpaid carers who look after disabled, frail or ill relatives are being forced to repay huge sums of money to the Government and being threatened with criminal prosecution after they had unwittingly breached earnings rules by just a few pounds a week.”

Of course, there may be some cases of fraud, which always have to be investigated, but many, many of those cases will undoubtedly be the result of human error. Lots of people struggle to navigate the claims system, and many carers are under considerable pressure caring for someone they love. Some carers may also have their own medical issues to manage on top of their caring responsibilities, which adds pressure, causes stress and makes them vulnerable. I also remind the Minister that there are 7 million functionally illiterate adults in this country; for them, to navigate the system is nigh-on impossible.

The Government have said to me that they seek to recover money without causing excessive hardship, but the experience of many carers clearly shows that the opposite is true. There have been reports that the DWP has warned carers that they could face greater penalties if they appeal against fines, and Government officials have been accused of using “threatening and cruel” tactics in this regard. That is truly shameful, and I hope that the Minister will look into those allegations. There have also been reports of carers becoming

“severely depressed, suicidal and self-harming”,

due to the Government’s “abhorrent” approach, after they were ordered to pay back money after mistakenly breaching the earnings allowance. That is a completely unacceptable state of affairs. The social security system should be there to support people, not to cause them stress and push some to suicide.

It is also true that the sheer complexity of the claims system can lead carers into making honest mistakes. The judge in the case of a woman who was being prosecuted after being overpaid carer’s allowance when she took a part-time job on the minimum wage said that she had

“limited understanding of the offence…committed.”

The cliff edge of £151 can have the effect of providing a disincentive for carers to be in work or stay in work. That is in absolutely nobody’s interest at all. Aside from the financial support that such work provides, it gives people a sense of agency within their local community and a sense of identity, and it can be vital for people’s mental health and wellbeing. It is also important for people who are caring for people who might be approaching the end of their life, because when the person who they care for passes away they may want to re-engage with full-time employment, and it is much easier for someone to get work when they are already in work and when their skill level has been maintained.

Clearly, that is something that needs to be included in any review, as do the long waits that carers have reported experiencing when they contact the carer’s allowance unit by telephone for information about the benefit and how to make a claim. Labour has committed to reviewing the system of carer’s allowance, and we need this Government to make the same commitment as a matter of urgency. Along with that, they need to review the level of carer’s allowance. As things stand, too many carers are not getting the support that they need.

In summary, it is evident that there needs to be a large-scale review of carer’s allowance, and that the level of payments that unpaid carers receive needs to be increased. Work must be done to tackle the issue of overpayments. The Government should provide more staff to help clear the backlog, looking into possible overpayment cases, and to use those automated systems that are available. We need to see an end to the cliff edge that renders someone ineligible to qualify as soon as they go a penny over. Unpaid carers need to be recognised for the vitally important and selfless work that they do. They need to be supported and not punished for looking after their loved ones.

Women’s State Pension Age

Margaret Greenwood Excerpts
Monday 25th March 2024

(9 months ago)

Commons Chamber
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Mel Stride Portrait Mel Stride
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As I have said, there should be no undue delay, but my hon. Friend is absolutely right that clarity is what is required. That is why I am stressing the point that clarity comes with careful consideration.

Margaret Greenwood Portrait Margaret Greenwood (Wirral West) (Lab)
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I pay tribute to all WASPI campaigners and stand in solidarity with them. I need also to declare that I am somebody who was born in the 1950s. The treatment of the 1950s-born women in relation to changes in women’s state pension has led to great hardship for many. One woman in my constituency struggled to feed herself and had to sell her home as a result. The impact has been devastating. It is estimated that some 270,000 WASPI women have died since the start of the campaign in 2015 and that another dies every 13 minutes. I note the Minister’s comments that there will be no undue delay. Will he return to this House immediately after recess with a firm commitment to fast and fair compensation?

Mel Stride Portrait Mel Stride
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I think we owe it to all of those to whom the hon. Lady refers to act without undue delay—that is a commitment that I have made—and to look at these matters extremely carefully and make sure that we allow time to do that effectively.

Oral Answers to Questions

Margaret Greenwood Excerpts
Monday 18th March 2024

(9 months, 1 week ago)

Commons Chamber
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Mel Stride Portrait Mel Stride
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The hon. Gentleman is right inasmuch as universal credit for the self-employed has to recognise the fact that sometimes there are inconsistent levels of income month to month. That is why we have a minimum income floor and the arrangements around that. I know he has a rural, agricultural constituency; I recognise some of those issues, and I am looking closely at them.

Margaret Greenwood Portrait Margaret Greenwood (Wirral West) (Lab)
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5. What assessment he has made of the effectiveness of his Department's support for vulnerable people who claim social security benefits.

Mims Davies Portrait The Minister for Disabled People, Health and Work (Mims Davies)
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[In British Sign Language: Happy Sign Language Week everybody.] It is a key priority for the Department for Work and Pensions to provide effective support for our vulnerable customers. We provide training on how to support customers’ mental health, and we have a six-point plan for supporting claimants who may be at risk of suicide or self-harm. The DWP regularly reviews processes to make improvements through colleague and customer feedback, and through the work of the serious case panel.

Margaret Greenwood Portrait Margaret Greenwood
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The Government estimated that 3% of households on legacy benefits would fail to move to universal credit under managed migration. However, by last December, 21% had not managed to do so and, as a result, had their benefits stopped. This is a matter of real concern. The DWP will now ask more vulnerable people who are wholly reliant on benefits to transfer. What will the Government do to ensure that those vulnerable people do not fall out of the social security system?

Mims Davies Portrait Mims Davies
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I thank the hon. Lady for her point about vulnerable customers who have come into our curtilage and purview. The Minister for Employment has reminded me that we will take this very slowly, and will engage with and support customers. Customers can speak to help to claim advisers at Citizens Advice, and we will ensure that we listen to them.

Musculoskeletal Conditions and Employment

Margaret Greenwood Excerpts
Wednesday 10th January 2024

(11 months, 2 weeks ago)

Westminster Hall
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Margaret Greenwood Portrait Margaret Greenwood (Wirral West) (Lab)
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I beg to move,

That this House has considered musculoskeletal conditions and employment.

It is a pleasure to serve under you chairmanship, Dame Caroline. Musculoskeletal conditions can be devastating for those affected. They can cause pain, reduce mobility, diminish self-confidence and lead to isolation. They can also lead to extended periods of absence from work and, in some cases, people giving up work altogether. Instead of enjoying a productive working life, people can find themselves unemployed and impoverished. In addition to the terrible human cost, MSK conditions bring substantial costs to the state in the form of social security and NHS spending.

Conditions include osteoporosis, rheumatoid arthritis, traumatic fractures, osteoarthritis, rheumatic rheumatoid arthritis, traumatic fractures and a range of conditions that cause pain in the lower back, the neck and parts of the arms and legs. The workplace can be a source of such conditions through injuries sustained from one-off accidents or through poorly managed working practices that lead to conditions developing over time.

The Health and Safety Executive has noted that MSK conditions can be caused by a number of things, including, but not limited to: lifting heavy loads, working with handheld power tools, long-distance driving or driving over rough ground, working with display screen equipment, and repetitive work that sees an individual using the same hand or arm action over a period of time. HSE statistics show that the industries with the most reported incidents of musculoskeletal disorders are agriculture, construction, health and social care, and transport and logistics.

It is clearly important to ensure that healthy working practices are the norm and that mitigations are put in place where such movements are required. That might include ensuring that there are sufficient breaks from routine activities. The Health and Safety Executive has reported that 35.2 million days were lost due to work-related ill health in Great Britain in 2022-23. MSK disorders accounted for 6.6 million of those lost days and was the second highest cause after stress, depression or anxiety. Research from the charity Versus Arthritis suggests that over 20 million people—around a third of the UK population—live with an MSK condition. For current UK employees, the figure is one in 10.

Of course, we have to remember that a lot of people have to give up work precisely because they have an MSK condition. According to the Government's statistics, the employment rate for people who have an MSK condition and are classified as disabled was 57.5% in 2022-23. In contrast, the employment rate for the whole population was much higher at 75.7%. Versus Arthritis estimates that the cost of working days lost due to osteoarthritis and rheumatoid arthritis, which are just two of the many types of MSK conditions, was £2.5 billion in 2017, and that that figure will rise to £3.43 billion by 2030. In 2022, the Government’s Office for Health Improvement and Disparities stated that musculoskeletal conditions represent the third largest area of NHS spend, costing around £5 billion a year. The report cited a 2016 study based on 2012-13 costs, and so is not recent. It would be helpful if the Government could revisit this and provide a more up-to-date figure.

The scale of the problem demands a clear and focused response from the Government. In short, the Government should come forward with a cross-departmental MSK strategy. That strategy must set out how the Government will seek to promote good MSK health, reduce the risk of accidents and practices in the workplace that lead to or exacerbate MSK conditions and ensure that support is there for people who need it through positive workplace practices and, where appropriate, the use of equipment, devices and assistive technologies. They should also invest far more in the provision of leisure centres and swimming pools, particularly in deprived areas, so that people can manage and improve their health, and should increase investment in research into MSK conditions. Ministers should consult with stakeholders including clinicians, health and safety experts, trade union health and safety representatives, employers and employees when coming up with this strategy.

Those who are in work need the right support so that they can remain in work, and those who are looking for work need to know of the support that is available to help them get back into employment. Modern design and technology can improve working conditions for people with some MSK conditions, yet people can often feel awkward asking for such adjustments.

Jim Shannon Portrait Jim Shannon (Strangford) (DUP)
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I commend the hon. Member for Wirral West (Margaret Greenwood) for bringing this important issue forward for us to consider. I apologise to you, Dame Caroline, and to the hon. Lady because, unfortunately, I cannot be here for the debate because I have to attend a Northern Ireland Affairs Committee session. I will just make this point: in Northern Ireland, we have almost half a million sufferers of MSK. That equates to a quarter of the population. Does the hon. Lady agree that we need to enable working people to continue working by providing support and help? I think she does, and I believe that the Minister will as well. The Government must offer support to small businesses to ensure that they know how to make a reasonable adjustment to allow someone who wants to work to do so, rather than having to take sick leave, which they do not want to do.

Margaret Greenwood Portrait Margaret Greenwood
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The hon. Gentleman is absolutely right. Support is needed particularly for small businesses who may struggle to understand and source what is required to support people, and to have the confidence to do so and the understanding that it is a positive investment in their workforce. He makes a really important point. I am also very glad that he cited the scale of the issue in Northern Ireland. One in four is incredibly high, so we need a focused response as a matter of urgency, and I thank him for that point.

There should be absolutely no stigma around having an MSK condition, nor for asking for help in relation to it. For example, in an office environment, it should be common practice that employees are made to feel comfortable in speaking up if they face issues, and that adjustments and equipment such as sit-stand desks, voice recognition software, a vertical mouse, split keyboards and other ergonomic computer equipment are made available to people if that would support their MSK health.

The strategy to which I have referred should be launched alongside a large public awareness campaign so that everyone can be involved and benefit. The Access to Work scheme provides important support for people who are disabled or have a health condition that impacts on their ability to get work or stay in work, but it seems that not nearly enough people know about it.

There has been much evidence to suggest that many people who could benefit from the scheme do not know that it exists. Indeed, I have heard it referred to as the Government’s best-kept secret. In 2021-22, only around one in eight—just over 4500 people—who received support from Access to Work had an MSK condition. The Work and Pensions Committee has highlighted that the application process can be complex and difficult for people to navigate. We therefore need a much greater effort from the Government to raise awareness of the scheme and the benefits that it can bring.

For example, the Government could make it a legal requirement for all employers to inform new and existing employees about Access to Work and to provide a point of contact for any employee who thinks they might benefit from it. This would highlight and promote the scheme, and it would give the opportunity for expertise to be developed within workplaces to support MSK health.

The Government must also give thought to the fact that over 7 million adults in England have very poor literacy skills. It is vital that information about the scheme is presented in a way that is easy for them to understand. Last year, the Government published their “Transforming Support” White Paper, which, among other things, pledged to pilot a new Access to Work enhanced package for people who need more support than the existing scheme can provide. How does the Minister envisage that that will benefit those with MSK conditions specifically? The White Paper also spoke of Access to Work developing an innovative digital service. Will the Minister guarantee that changes will be mindful of the fact that so many adults struggle with literacy and digital skills?

It is disappointing that the Government are failing to administer the Access to Work scheme promptly. In a response to a written question from my hon. Friend the Member for Lewisham, Deptford (Vicky Foxcroft), who will respond on behalf of the Opposition this morning, the responding Minister said that 21,780 applications were outstanding on 5 September last year. That is 21,780 people waiting to receive support for their health condition. It is completely unacceptable. I ask the Minister to update the House on the current state of affairs.

The last Labour party manifesto committed to help disabled people who want to work by bringing back specialist employment advisers and introducing a Government-backed reasonable adjustments passport scheme to help people move between jobs more easily. In their White Paper, the Government said:

“Access to Work is supporting a series of Adjustment Passport trials. The Adjustment Passport will provide a living document of the disabled person’s workplace adjustments, general working requirements and signposts adjustment support at every stage of the journey into work.”

Will the Minister give more information on these trials and how they are going? Can she say what actions her Department has taken to ensure that the passports are user-friendly for people who have problems with literacy?

The Government can promote MSK health and prevent issues from arising through specific campaigns developed with the expertise of health professionals and occupational therapists. They can also legislate for good working practices. It is important that the Government lead on creating positive workplace cultures around promoting MSK health, but for this to be most effective, they need to look at the issue from the employee’s perspective. Under the Equality Act 2010, employers must make “reasonable adjustments” to workplaces, working practices and policies or procedures, to remove or reduce any disadvantages faced by workers that are related to their disabilities. However, it can be difficult for people to raise concerns in the workplace, especially if their job is insecure. People on zero-hours contracts are a particular risk in this regard.

One of the key sectors in which MSK has an impact is transport and logistics, and we know that many delivery drivers are on zero-hour contracts. Health and care is another key sector affected; again, many in the care sector are on zero-hour contracts. Clearly, then, banning zero-hour contracts, as Labour would do, is important not just to ensure that people know that they have stable work and a reliable income, but to prevent a race to the bottom in health and safety at work. The Health and Safety Executive is responsible for inspecting organisations and enforcing statutory duties in relation to health and safety law. The HSE can investigate businesses and has the power to bring enforcement proceedings, including prosecutions, in cases of serious failures. Its work is incredibly important, yet the HSE’s funding has been savagely cut since 2010.

Analysis last year from the Prospect trade union found that Government funding for the HSE decreased by 45% in cash terms between 2010 and 2019, from £228 million to £126 million. Funding increased to £185 million in 2022, but this still represents a huge decrease from 2010 levels. Prospect’s research also highlighted staff cuts of 35% across the HSE since 2010, while the number of inspectors has fallen by 18%. These cuts are an attack on the health and safety of all of us, and I call on the Government to review the needs of the HSE and restore funding to at least 2010 levels. We cannot allow the Government’s obsession with austerity to damage our health and safety.

The Government could also promote MSK health and prevent issues from arising by supporting the “Better Bones” campaign, which is led by the Royal Osteoporosis Society and the Sunday Express and backed by many organisations, including the Federation of Small Businesses, Parkinson’s UK, Coeliac UK and a number of unions and royal colleges. Some 50% of women and 20% of men over the age of 50 will have a fracture caused by osteoporosis—staggering rates. A third of those who have a fracture and have osteoporosis will have to leave their jobs.

Fracture liaison services can do invaluable work in identifying whether people have osteoporosis. However, only 51% of NHS trusts in England have them. As a result, many people will break bones and go to A&E, and will be seen without their underlying osteoporosis being diagnosed and treated. That leaves a massive risk that they will suffer further, more serious fractures in the future. As a result of this postcode lottery, around 90,000 people a year are missing out on important diagnosis for a condition for which they could otherwise receive medication that would reduce their risk of further fractures.

The “Better Bones” campaign is calling for access for all over-50s to fracture liaison services with dedicated bone specialists, £30 million a year of extra investment to make fracture liaison services universal in England, Wales and Scotland, and the appointment of a fractures tsar for each British nation. It was therefore extremely disappointing that there was no extra funding in the autumn statement for fracture liaison clinics, despite the Minister in the Lords saying in September:

“We are proposing to announce, in the forthcoming Autumn Statement, a package of prioritised measures to expand the provision of fracture liaison services and improve their current quality. NHS England is also setting up a fracture liaison service expert steering group”.—[Official Report, House of Lords, 14 September 2023; Vol. 832, c. GC241.]

That is especially disappointing from a Government who claim that they want to try to help people over 50 to get back into work. It is disappointing too that, in July, the then Secretary of State for Health and Social Care said that the Government planned to spend more than £8 billion from 2022-23 to 2024-25 to support elective recovery, with NHS England prioritising fracture liaison services in its elective recovery plan. However, in the end, fracture liaison services were not even mentioned in the elective recovery plan.

The Government must address the shortcomings in fracture liaison services, which would contribute to helping over-50s back into work, and I ask the Minister to press this point with ministerial colleagues. As the Federation of Small Businesses said of the “Better Bones” campaign, it

“is more than a health initiative—it’s a matter of economic vitality. We need to address the increased numbers of those who have left the workplace as employees, self-employed or small business owners themselves due to sickness. This campaign is one of those steps.”

The Government can support workers with MSK conditions, too, by ensuring flexible working from day one, as a Labour Government would do. We also need to see action from Government on people’s general health and MSK conditions through investment in the health and wellbeing of all communities.

Versus Arthritis argues that being overweight or obese increases the risk of developing arthritis conditions such as osteoarthritis and gout. It also points out that swimming is a good exercise for people with musculoskeletal conditions, such as arthritis or back pain. The water helps to support the weight of the body, which reduces strain on painful joints. The Government should also promote MSK health by ensuring people can access facilities such as swimming pools and leisure centres.

Sadly, central Government cuts to local government since 2010 have resulted in many pools and leisure centres closing across the country, including in my own constituency of Wirral West. During the campaign to save the Woodchurch Leisure Centre and swimming pool, I remember people telling me how they used the pool to cope with arthritis. The loss of this facility has been devastating for many people trying to manage MSK conditions in my constituency and it is doubtless the same for people across the country.

Government strategy must look at the impact of austerity policies on sport and leisure facilities and at the impact that this has on the health of the population. Musculoskeletal issues cause serious problems for millions of people and can have a devastating impact on an individual’s working life. The high prevalence of such conditions warrants a high-profile, cross-departmental policy intervention. I to pay tribute to all those who work so hard to promote safe and healthy working environments, including the HSE professionals, occupational therapists and of course hard-working trade union health and safety reps who do such invaluable work in identifying workplace issues and campaigning for greater safety for working people.

The Government must bring forward a cross-departmental MSK strategy with clear goals to improve prevention and to support those with MSK conditions. Failure to do so will only lead to continuing costs to people’s health and happiness and continuing costs to the Exchequer for NHS and social security spending. The benefits of taking action on MSK are clear to all, and I call on the Government to do just that.

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Mims Davies Portrait The Minister for Disabled People, Health and Work (Mims Davies)
- Hansard - - - Excerpts

It is a pleasure to serve under your chairship, Dame Caroline, and I thank the hon. Member for Wirral West (Margaret Greenwood) for introducing today’s debate in a constructive, positive and very interesting way. As the Minister for Disabled People, Health and Work, it is an honour early on in my tenure to talk about the Government’s commitment to enabling people with musculoskeletal conditions to start work, stay in work, and importantly succeed in work, which is what today’s debate is about, and it was an honour to hear from Members on all those matters. As the hon. Member for Motherwell and Wishaw (Marion Fellows) said, the spirit and context of the debate is extremely important. I thank the hon. Member for Lewisham, Deptford (Vicky Foxcroft). We have always had a very constructive and positive relationship. I look forward to working with her on her challenges to us, and all her asks across Government; I note all of these. As hon. Members might note, I have a lot of material here. Whether I can get to all of it we will see, but I hope to share the Government’s ambition for this society as one where disabled people and those with health conditions can fulfil their potential when it comes to employment, and one where they have the fair rights and access that we all want for them.

My mum lived with osteoporosis and rheumatoid arthritis, and she worked with disabled adults; my dad lived with a head injury for more than 25 years under the Court of Protection, and I am a coeliac, so despite the height of my role, I want to reassure those in the Gallery and those listening to the debate that my convening power is no less and my commitment is no less, but I understand the asks from the hon. Member for Lewisham, Deptford—and on her advocacy for my promotion, one could ask for nothing else.

The joint Department for Work and Pensions and Department of Health and Social Care work and health directorate was set up in 2015 to recognise the extremely strong links between work and health and the importance for health of good work, which has been highlighted today. I pay tribute to those doing the “Better Bones” campaign. As the Minister who was predominantly responsible for the HSE for a number of years, I assure the right hon. Member for Hayes and Harlington (John McDonnell) that I have paid close attention to the issue, and I hope that the HSE’s representatives will come to Parliament shortly to give us all an update on their work. The responsibility sits with my noble Friend Lord Younger now, but I will be working very strongly with him.

I absolutely agree with my hon. Friend the Member for Gedling (Tom Randall) and others on the subjects of prevention, tackling stigma and keenly engaging with those who understand this matter. Supporting and empowering those with MSK conditions is very important to me—I hope I have outlined why—both in this new role and in my capacity as a local MP. In fact, in that capacity, I invited my ministerial predecessor, who is now the Minister for Legal Migration and the Border, my hon. Friend the Member for Corby (Tom Pursglove)— I pay tribute to his work and his commitment on this subject—to visit VIM Health. This gives me an opportunity to mention Tom from VIM Health and all his team, all his patients and the work done in this specialist neurological rehabilitation centre and MSK therapy service, which I have seen. My hon. Friend and I agreed that it was incredibly inspiring to see how innovative technologies can make healthcare more accessible, enjoyable and transformative. This gym helps with rehab, and also makes accessible exercise, and other things that many of us take for granted. We talked about the pools, and I will come on to that later.

I am looking forward to meeting representatives of Versus Arthritis later this month; I met them at the party conference. Like others, I extend my thanks to third sector organisations for the important work that they do, and the knowledge that they impart to us in Westminster, to raise awareness and to support people living with MSK conditions, helping them to fulfil their potential in the workplace. As we heard from my hon. Friend the Member for Gedling, this is about a change of mindset. Work is so much more than a pay packet. It increases people’s wellbeing; it increases their network and their confidence. At times when their health is perhaps failing or fluctuating, nothing is more important than having confidence, a network and support, and that very much comes from work.

Margaret Greenwood Portrait Margaret Greenwood
- Hansard - -

I appreciate the tone that the Minister is taking in the debate. On that point about mindset, would she look at perhaps requiring employers to inform new employees about Access to Work when they start, to make it quite a routine thing, and so that people know about it and can have an up-front conversation about all areas of their health, but particularly MSK health? I ask because from the point of view of the person who is suffering, it can be extremely difficult to raise an issue that they know will cause bother for their manager, perhaps cost them money and so on.

Mims Davies Portrait Mims Davies
- Hansard - - - Excerpts

I thank the hon. Lady for that point. In fact, in preparing for this debate and seeking to understand the issue further, this was something that we discussed and I was interested in. Gatwick is not far away from my constituency, and many constituents work there, and some of them work in passenger assist, getting people on and off planes. Being able to talk to employers confidently and comfortably is really important.

When someone’s health changes, it is often a bolt from the blue. How do they manage that with their employer? That is something that I am very focused on, and it covers the Access to Work programme and the Disability Confident scheme.

I will come on to Disability Confident, but we need to move this from being a nice thing on a website to a reality for people working in whatever sector and with all employers. We have taken that approach with menopause and the debilitating impact that it can have for women of all ages, including in the workplace. All of this, in the round, is very important when it comes to staying in work and thriving in work, which is what we ultimately want for everybody.

For context, around a third of the UK population—over 20 million people—live with an MSK condition. As we said, we do not want people to feel that leaving employment is the only option, and the Government absolutely recognise that good work is generally good for health, as we heard from my hon. Friend the Member for Gedling and the hon. Member for Lewisham, Deptford. MSK interventions to improve workforce participation were key when it comes to the £400 million health package in the 2023 spring Budget.

Let me go through some what the Government are doing. We are introducing employment advisers within MSK services to support people with conditions to thrive in work, help them to have those conversations and, above all, assist with engaging with employers. We are developing and scaling up MSK hubs in the community. Building on existing local practice, hubs will offer people with MSK conditions access to physical activity interventions in leisure centre or community settings—as we have heard—and we will explore how to embed vocational advice too. We will also be making the most of digital health technologies to support people with MSK conditions to better manage those symptoms and remain in work, and that will include digital therapeutics.

The reality is we are all living longer, and long-term sickness is a common reason for economic inactivity among the working-age population. Therefore, the Government rightly have an ambitious programme to support disabled people and those with health conditions, including MSK, to start, stay and succeed in work. That includes variety of interventions, which we have heard about today: Disability Confident, the Access to Work grants, the Work and Health Programme, and a digital information service for employers in relation this. Employers knowing how to manage and to have those conversations equally with employees will make a real difference, and of course there are also our own disability employment advisers in DWP. I will be engaging directly with all groups and stakeholders to make sure this works, and I will be putting myself, as I always do, in the place of our claimants and of those people that that need help.

Margaret Greenwood Portrait Margaret Greenwood
- Hansard - -

I thank the Minister for giving way; she is being very generous.

On helping people to engage in activities that will improve their health, the closure of swimming pools is really serious. In my constituency, we have lost the swimming pool in the Woodchurch estate. I met users there—we were fighting against the closure—and they were clear that they were using the pool to deal with two things: mental health issues and arthritis. That particular estate has a higher-than-average level of deprivation, a higher-than-average level of disability, and more older people living there. For them, the closure has been catastrophic. I recognise that that is not the Minister’s Department, but will she talk with ministerial colleagues and look again at the provision of sport and leisure facilities, particularly in areas of deprivation, so that those people can improve their own health?

Mims Davies Portrait Mims Davies
- Hansard - - - Excerpts

I thank the hon. Lady for reiterating that point for her constituents. These hubs in the community will deliver both that physical activity and those interventions. I understand her point, and I know that support for pools has come to councils from the Department for Digital, Culture, Media and Sport. What the hon. Member has said is very specific, and I will take that away in the cross-Government work that I am doing. I think, as well, that it is a lesson for many of our local authorities to think very carefully about the decisions they make and how they affect the whole community. It is vital that people understand that the wider impact might involve losing more than just swimming lessons—and that is not easy in itself. The hon. Member has rightly put that on the record for her constituents.

Employment advice and NHS talking therapies will be included in our interventions, along with individual placement and support in primary care and increasing work coach time in jobcentres. The hon. Member for Motherwell and Wishaw spoke about making sure that we listen to and engage with people, and do it in the right way, and I wholeheartedly agree with that individual approach.

All these investments are part of a much wider agenda to tackle inactivity due to long-term sickness. We also announced our Back to Work plan in the autumn statement. It includes doubling the number of universal support employment programme places; increasing occupational health take-up in businesses, including SMEs, which is absolutely key; testing new ways of providing individuals receiving a fit note with timely access to their key support; and supporting people with health-related barriers to work through the 15 WorkWell pilot areas that we are working on. WorkWell is accepting applications for funding from local areas across England, with pilot areas due to be announced in April and more details in the autumn. I will be working with the Minister for Employment, my hon. Friend the Member for Bury St Edmunds (Jo Churchill) on this matter.

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Margaret Greenwood Portrait Margaret Greenwood
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I thank everybody who has taken part in this important debate for their points. I also thank the many organisations, some of whom I have already referenced, that have been in touch with me in advance of today’s debate to offer briefings and expertise. I run the risk of missing someone out, so I will say that those organisations include but are not limited to the Society of Occupational Medicine, MSK Aware, On the Mend, the Royal Osteoporosis Society, the Chartered Institute of Ergonomics, Orthopaedic Research UK, Versus Arthritis, the British Society for Rheumatology, and ukactive.

I also want to thank the individuals who have been in touch with me to share their experiences, as well as staff at the House of Commons Library. I again pay tribute to the vital role played by trade unions in the workplace when it comes to matters of health and safety and improving working practices. Millions of people across the UK suffer with musculoskeletal problems, which profoundly impact not only their health and wellbeing, but their ability to acquire and stay in work. We need concerted Government action to improve prevention and support.

Given the scale of the problem, a comprehensive cross-departmental MSK strategy is desperately needed. There is a wealth of expertise in the public sector and the organisations that I have cited. I urge the Government to consult them and, crucially, the people with lived experience of MSK conditions. I reiterate that the Government need to address the issues with the administration of Access to Work. They need to oversee an increase in the numbers of people with MSK conditions getting support through Access to Work, significantly increase funding for the Health and Safety Executive and come forward with funding for fracture liaison clinics, as called for by the “Better Bones” campaign, to help the over-50s who suffer fractures due to osteoporosis.

I hope that the Minister will take on board everything that has been said. She said that she will write to respond to some of the questions, which I very much appreciate. We need to see vastly improved MSK health and improvements in how people are able to participate in the workplace.

Question put and agreed to.

Resolved,

That this House has considered musculoskeletal conditions and employment.

Two-child Benefit Cap and Child Poverty

Margaret Greenwood Excerpts
Tuesday 11th July 2023

(1 year, 5 months ago)

Westminster Hall
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Westminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.

Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.

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Kim Johnson Portrait Kim Johnson
- Hansard - - - Excerpts

I thank my hon. Friend for his intervention. The cap has done immeasurable damage to so many families in this country, impacting poverty and driving more families into poverty and not, as this Government anticipated, into work.

Margaret Greenwood Portrait Margaret Greenwood (Wirral West) (Lab)
- Hansard - -

I congratulate my hon. Friend on securing this really important debate. According to the End Child Poverty coalition, more than 2,700 children were living in poverty in my constituency of Wirral West in 2021-22—that is more than 18% of the children. As my hon. Friend has touched on, we know that poverty has an impact on children’s educational attainment, happiness and life chances. Does my hon. Friend agree that this is a scandalous state of affairs, it makes absolutely no sense for us to leave this problem unattended and we must end the two-child limit as a matter of urgency?

Kim Johnson Portrait Kim Johnson
- Hansard - - - Excerpts

I totally agree with my hon. Friend. We need to end this horrendous two-child policy and ensure all children have the opportunity to thrive and grow and not live in poverty.

Last September, when I hosted an event in Parliament in partnership with the End Child Poverty coalition and the National Education Union calling for universal free school meals to help alleviate child poverty and close inequalities in education and health, we heard from some incredible youth ambassadors. They told us of the stigma of being singled out for free school meals. One said the impact was like sitting in a classroom wearing a badge on their back saying they were poor. Another told us she remembered her mother skipping meals to make sure she and her siblings had something to eat and that now, years later, her own relationship with food and the guilt she associated with eating is still having an impact on her. Members in all parts of the House will be painfully aware of so many similar personal stories from the constituents they work with every day.

Last year the Joseph Rowntree Foundation annual report on UK poverty showed that child poverty in families with more than two children increased from 33% to 47% between 2012-13 and 2019-20, reaching levels not seen since before 1997. In my constituency, 11 children in a class of 30 are living in poverty, and of the 1,400 children in households in receipt of universal credit, 444 are not eligible for extra support due to having two or more siblings born after 6 April 2017.

Department for Work and Pensions

Margaret Greenwood Excerpts
Tuesday 4th July 2023

(1 year, 5 months ago)

Commons Chamber
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Margaret Greenwood Portrait Margaret Greenwood (Wirral West) (Lab)
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The hon. Gentleman is making such important remarks. Does he agree that the impact of sanctions is detrimental to people’s mental health? We are facing a mental health crisis. If we want to support people getting into work, we need to make sure that they are not struggling on the breadline.

David Linden Portrait David Linden
- Hansard - - - Excerpts

The hon. Lady is spot on. Sometimes, Ministers overlook when they take those decisions—yes, they might be driven by focus groups and such things—that the state bears the cost. If somebody hits a period of mental ill health or is made homeless, the health service or the local authority will pick up the pieces. It is not without cost for the state. I would like Ministers to have the wider picture as they pursue sanctions, because the research shows that they do not work.

Margaret Greenwood Portrait Margaret Greenwood
- Hansard - -

The hon. Gentleman is being generous. Does he agree that the issue of poverty is so concerning for small children because it impacts on the development of the brain and how well they will be able to learn? If a child has a good five years at the start of their life, that will see them through life. So many children in desperate poverty who do not know whether they will get enough food are also in receipt of the anxiety their parents are in, as they battle those stressful situations.

David Linden Portrait David Linden
- Hansard - - - Excerpts

I am proud that the Scottish Government invest in things such as the best start grant, the baby box and free school meals, to ensure that young people get the best possible start in life. My local authority in Glasgow is spending millions of pounds on holiday hunger programmes, to ensure that children who receive free school meals during school term time are still being fed. It is a damning indictment on the state that we have to spend money from local authority budgets feeding children because their parents do not have enough money. That is the situation we are in, in the fifth richest economy in the world.

Remarkably, as I am sure we will hear when the Minister responds to the debate, Ministers are still forcing more people into the sanctions regime, which further demonstrates the fundamental issue with the British Government’s attitude to those on low incomes: preventing vulnerable families from receiving the social security they are entitled to and, most importantly, when they need it the most.

Before I draw my remarks to a close, I want to turn to the local housing allowance. The freeze of LHA rates for three consecutive years is placing additional and needless pressure on tenants and housing associations, and is likely to increase poverty and inequality. That is why Ministers should protect household incomes and support renters by restoring LHA rates to the 30th percentile as a minimum. The SNP has long called for the British Government to fix those fundamental flaws in our social security system but, as is so often the case, it falls on deaf ears each and every time, to the extent that every time I take part in one of these debates, it feels like groundhog day.

The blunt truth is that the Scottish Government cannot change those policies while 85% of welfare expenditure and income replacement benefits remain reserved to this institution here in London. That includes universal credit. By all means, I am happy to take part in debates and make suggestions about how we repair the social security system, but it is difficult to conclude anything other than Westminster—whether the Tories or the pro-Brexit Labour party—has zero appetite to genuinely step in and sew up a system that is failing some of the most vulnerable people in society. For that reason, the only way genuinely to bring about that compassionate, fair and dignified social security system in Scotland is with the full powers of independence. Frankly, that cannot come soon enough.

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Guy Opperman Portrait Guy Opperman
- Hansard - - - Excerpts

No.

The Government have never paid more for the pensions that we support in this country, we have never paid more for the benefit support that we provide in this country, we have never paid more for the housing support that we provide in this country, and we have never paid more for the disabled in this country. As we celebrate the 75th anniversary of the national health service, let me also put on record my thanks to the NHS. I have had my life saved twice by the NHS, once after I collapsed in Central Lobby in 2011. I got into politics because of my attempts to save my local hospital, and I am proud to have visited Hexham General Hospital this week to see the amazing new maternity suite that has recently been opened.

Much has been said today about a variety of issues, but I want to try to put the debate in context. The Government clearly understand the pressures that households are facing. We are all familiar with the root causes of our higher costs, including the global factors: the illegal war in Ukraine brought about by Vladimir Putin, the aftermath and consequences of the pandemic, and the furlough scheme and the other support that we set out in great detail and the country provided at a time of difficulty. We are committed to delivering on our priority of halving inflation, which will help to ease those pressures for everyone and raise living standards.

Alongside that work, we continue to implement a significant package of cost of living measures to support the most vulnerable during 2023-24. We have increased benefits and state pensions by 10.1%, and raised the benefit cap by the same amount so that more people feel the benefit of uprating. For low-paid workers, we have increased the national living wage by 9.7% to £10.42 an hour; that represents an increase of more than £1,600 in the gross annual earnings of a full-time worker on the national living wage. That increase, and the increases that we made in the national minimum wage in April, have given a pay rise to about 2.9 million workers. To help parents, we are delivering a significant expansion of childcare support, including a 47% increase in the maximum amount of universal credit childcare payments. As I said in the House last week, that is a dramatic increase. In addition, where there are gaps in provision, notwithstanding the above cost of living payments, the £842 million extension of our household support fund into 2023-24 means that councils across England can continue to help families with grocery bills and other essentials.

Margaret Greenwood Portrait Margaret Greenwood
- Hansard - -

Some universal credit claimants can apply to have the housing elements of their universal credit paid directly to the landlord. However, a report by the Child Poverty Action Group on the discovery phase of managed migration identified delays or errors in the setting up of direct payments and poor communication between the DWP, landlords and claimants, leading to people falling into arrears. That is clearly a serious state of affairs for anyone to find themselves in. Will the Minister tell us what the Government are going to do about it?

Guy Opperman Portrait Guy Opperman
- Hansard - - - Excerpts

I will ask the Minister who is responsible for that to write to the hon. Lady. However, her intervention brings me to the issue of housing, which was raised by several Members.

In 2022-23, the Government are projected to have spent £30 billion to support renters. That is 1.4% of GDP. Members may have criticised that sum, but they should be aware that it represents the highest spending on household rental support in any country in the OECD. The next highest is 0.9% of GDP. That figure is clearly higher than the figure that obtained when we came to office. Moreover, there are 2 million more homes than there were then, and more homes are meeting decent homes standards. I could go on.

Employment now stands at 30 million. It is up 23,000 on the month and 73,000 on the quarter, and vacancies are down again—35,000 down on the month in May and 79,000 down on the quarter. Today I met representatives of UKHospitality and a host of hospitality providers at the Department to discuss some of the long-term vacancy issues that they wished to raise. I believe we can continue to work with jobcentres throughout the country to try and address that, and to increase the overall employment rate, which was up by 0.1% on the month and 0.2% on the quarter, with unemployment down by 0.1 percentage points on the month as of May. Economic inactivity is down by 0.4 percentage points on the quarter and down by 781,000 since the 2010 general election. It is clear that the pandemic had impacts, and the progress in certain areas is not as quick as one would like, but we have made huge efforts to turn that around, and all the indications from all the labour market statistics released by the Office for National Statistics in May are that the trends are in the right direction.

Margaret Greenwood Portrait Margaret Greenwood
- Hansard - -

Will the Minister give way?

Guy Opperman Portrait Guy Opperman
- Hansard - - - Excerpts

No, I will not. I have already given way to the hon. Lady.

Let me say something about cost of living payments. We are building on, and extending, the one-off cash payments that we provided in 2022-23, when we made more than £30 million worth of cost of living payments, including the £150 disability payment to 6 million people, £650 for more than 8 million households on means-tested benefits, and an additional £300 on top of the winter fuel payment for more than 8 million pensioner households. That put hundreds of pounds directly and quickly into the pockets of millions of people.

Criticism was made of universal credit as a principle. The first—and simple—point that I would make, which I think was acknowledged by the Chair of the Select Committee, is that the legacy system would in no way have been able to provide the degree of support that universal credit provided during covid, and it would in no way be able to provide an ongoing degree of cost of living support. Universal credit, as we see, provides a massive amount of support on an ongoing basis, which is targeted to help those most impacted by rising prices throughout this financial year.

People with Disabilities: Cost of Living

Margaret Greenwood Excerpts
Tuesday 16th May 2023

(1 year, 7 months ago)

Westminster Hall
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Marion Fellows Portrait Marion Fellows
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The hon. Lady will know that I do not often agree with her, but in this case I totally agree. There are many other organisations—she mentioned the Resolution Foundation, and the MND Association has outlined that those with motor neurone disease face additional costs of £14,500 per year. Naturally, those with the condition have much higher energy needs in order to power their essential, life-saving equipment.

Margaret Greenwood Portrait Margaret Greenwood (Wirral West) (Lab)
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The latest Government statistics show that 68% of PIP decisions appealed by a claimant were overturned. Does the hon. Member agree that there is a pressing need to improve the PIP assessment to ensure that people who are disabled or have a serious health condition do not have to fight continually through reassessments and tribunals to get the support that they so desperately need?

Marion Fellows Portrait Marion Fellows
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I could not agree with the hon. Lady more. This is a scandal, and it is a huge waste of public money with the number and cost of appeals and tribunals.

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Margaret Greenwood Portrait Margaret Greenwood
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My hon. Friend is making an excellent speech. When I met representatives of Scope a few months ago, one issue they raised was the household support fund. It is designed to help vulnerable people across England and is administered by local authorities, but it has not helped many disabled people. Many people are not aware of its existence. Does she agree that that is shocking and that, as the Government have extended the fund until the end of March 2024, it is vital that people are made aware of the support that is available?

Vicky Foxcroft Portrait Vicky Foxcroft
- Hansard - - - Excerpts

My hon. Friend raises an important point, and I completely agree.

The costs will vary depending on the specific disability or disabilities that an individual has, but they might include assistive equipment, care and therapies—things that are essential for them to live their lives. My hon. Friend the Member for Oldham East and Saddleworth (Debbie Abrahams) raised the fear of more disabled people dying, and my hon. Friend the Member for Wirral West (Margaret Greenwood) rightly pointed to problems with PIP decisions and the need for the reform of the assessment process.

We all know that disabled households tend to spend more on essential goods and services such as heating, food and travel. As we have heard many times, last month the disability equality charity Scope released updated research on the extra costs associated with having a disability—the so-called disability price tag. When Scope last calculated the price tag in 2019, it stood at £583 per month. The update makes for very sober reading: over the last four years the price tag has risen to a shocking £975 per month, which is equivalent to 63% of household income. That means that disabled households need to find almost £12,000 extra per year to achieve the same standard of living as non-disabled households.

The hon. Member for North East Fife (Wendy Chamberlain) rightly articulated the escalating rise in food costs, which under the Conservatives have risen at the highest rate for more than 45 years. Depending on the nature of their disability, some people have difficulty preparing certain foods and rely on pre-prepared or convenience food, which frequently works out to be more expensive than buying raw ingredients. The price of ready meals rose by almost 22% in 2022. If someone has difficulty standing or sitting for long enough to prepare a meal from scratch, they might feel they have no choice other than to pay those prices.

The hon. Member for Chesham and Amersham (Sarah Green) raised the case of a constituent who could not afford their energy costs and had to switch off important equipment. Disabled people have been hit hard by rising energy prices not only because they might have difficulty keeping warm and spend more time at home, but because many have to run life-saving medical equipment. In the Commons Chamber at the end of last year, I raised a case in which the actor Kate Winslet stepped in to help a family faced with a £17,000 bill.

I am sure the Minister will tell us that the Government have taken steps to support disabled people through the crisis by delivering the disability cost of living payments. Disabled people may also benefit from broader support measures such as the energy price guarantee and other cost of living payments for those on means-tested benefits. What the Government will probably not remind us of is that hundreds of thousands of people are no longer entitled to the warm home discount since the Government excluded those who claim disability living allowance, personal independence payment and attendance allowance.

I find myself in the odd position of agreeing with the hon. Member for North Swindon (Justin Tomlinson) that we should abolish reassessments for conditions that we know will not improve or are deteriorating. I am interested in how the Minister will respond to that idea.

Among many others, Disability Rights UK has said that the support given to disabled people has barely touched the sides. Trussell Trust figures show that even in early 2020, 62% of working-age people referred to food banks were disabled. A Mencap survey has revealed that 35% of people with a learning disability have skipped meals to cut back on costs and 38% had not turned on their heating despite being cold. I could go on, but others have already stated the case very eloquently this morning, so I will finish by asking the Minister to commit to working closely with disabled people and disabled people’s organisations to find a sustainable solution to the crisis. As many have already said, they genuinely are the experts by experience.

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Margaret Greenwood Portrait Margaret Greenwood
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One of the things that charities representing disabled people have been campaigning for is a social tariff for energy—the Minister was just talking about energy—to give disabled people, older people and carers who face high energy costs discounted energy bills. In January, I asked the Government what plans they had to introduce a social tariff for energy, and the Minister at the time replied:

“The Government has committed to work with consumer groups and industry to consider the best approach, including options such as social tariffs”.

Will the Minister please provide an update on that? Also, I urge him to have discussions with disabled people and the charities that represent them, as well as industry and consumer groups.

Tom Pursglove Portrait Tom Pursglove
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I am extremely grateful to the hon. Lady for her intervention. If I may, I will come to that point a little later, because I want to address the social tariff issue directly.

We understand and recognise that many households in the United Kingdom include vulnerable people who may be elderly or disabled, or who may have a medical condition. Often, that inevitably leads to higher energy costs. We are clear that everybody must be able to afford their energy usage, particularly to be able to power any machines and equipment that they might require. With that in mind, I would argue that the Government acted decisively and rapidly by putting in place a significant and comprehensive package of support to assist with the cost of living challenges. It is worth more than £94 billion in 2022-23 and 2023-24—an average of more than £3,300 per UK household. It is also important to note the 10.1% uplift to benefits across the board.

To reflect back on 2022-23, one of the vehicles through which we were able to deliver that support was the cost of living payments—the £1,100 payments for some households during the 2022-23 financial year. It was a remarkable achievement that, from the first announcement back in May last year to delivery, more than 30 million cost of living payments were paid last year. More than 8 million households received up to £650 across two payments; more than 8 million pensioner households received an additional £300, on top of their winter fuel payments; and 6 million people receiving an extra-costs benefit such as personal independence payment or adult disability payment in Scotland received a £150 disability cost of living payment.

Those payments came alongside a wider package of cost of living support, with the energy price guarantee capping fuel bills at £2,500 for average use, the £400 off domestic electricity bills that was received by every household in Great Britain, and then the council tax reductions for properties in bands A to D in England, as well as—this was an important part of the package, recognising that people’s circumstances are often not neat and that there is a risk that people fall between the cracks of the structured support—the household support fund, including funding in that envelope for the devolved Administrations. We extended that support twice, and the total has been £1.5 billion since October 2021.

I certainly feel that the household support fund has been a helpful vehicle for us to get support out to people by working with local authorities. I totally accept that we should look at what more we can do about awareness of it and getting the message out. Of course, many of our partners, such as Citizens Advice and advice services, are invaluable in helping the Department and local authorities to get the word out about it, but I would certainly be keen to look at any suggestions about what more colleagues think we can do about awareness, because it has been an effective means of getting help to people who require it.

Margaret Greenwood Portrait Margaret Greenwood
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I thank the Minister for giving way again; he is being extremely generous. He is talking about what else we could do. Will he recognise the erosion of advice centres for constituents? I am sure that many of us in this room are acutely aware that there has been an erosion of the provision of advice to people, and particularly to disabled people. Perhaps the Minister could speak to his colleagues about looking at funding such centres, because a lot of them came about through local authority funding, which has been squeezed to such a degree that there is no longer the same level of advice available in our communities as there should be.

Tom Pursglove Portrait Tom Pursglove
- Hansard - - - Excerpts

I will certainly and gladly take that point back to the Department. I am sure it is something I can pick up on during the many engagement sessions that I have, particularly with disability charities and disabled people’s organisations. I would be keen to hear their views on how the issue is best approached and what more we can do in the advice space.

I want to touch on the cost of living support in place for 2023-24. Members will recall the commitments that my right hon. Friend the Chancellor of the Exchequer made in the autumn statement, including a firm commitment to support the most vulnerable people in our society. That will be delivered through 8 million low-income households getting £900 cost of living payments. I am delighted to say that my Department has already delivered 99% of the first cost of living payment of £301 to the 7.3 million households in receipt of a means-tested benefit such as universal credit. That in itself represents a £2.2 billion injection of help for households.

I am also pleased to confirm that we will shortly lay in Parliament regulations that will allow us to pay the additional £150 disability cost of living payment to 6.5 million people throughout the UK who receive an extra-costs disability benefit. Those payments will land in people’s bank accounts in the summer. We will also shortly lay regulations that mean that this winter pensioner households will again get an additional £300 on top of their annual winter fuel payment, as they did last year.

Labour Market Activity

Margaret Greenwood Excerpts
Tuesday 28th February 2023

(1 year, 9 months ago)

Commons Chamber
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Jonathan Ashworth Portrait Jonathan Ashworth
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The hon. Gentleman makes an entirely reasonable point. We are seeing more and more people being forced out of the labour market, or not able even to enter it in the first place, because of depression, stress or anxiety. If we reform the way in which we deliver employment support, we can get many of these people back to work, because being in work will be good for them in terms of managing their mental health. Obviously, that is not necessarily the case for everybody, but it will be for a significant proportion. The problem is that there are many who want to work, yet under the Government’s approach, which focuses just on the unemployed via the jobcentres, only one in 10 out-of-work older people or disabled people are getting any support. We reject that approach.

Margaret Greenwood Portrait Margaret Greenwood (Wirral West) (Lab)
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My right hon. Friend is making a good speech. For someone with a disability or a long-term condition, simple adjustments in the workplace, such as having a sit-stand desk, so that an office worker does not have to sit down all day, a vertical mouse, to help somebody who has problems with their wrists, or an ergonomic chair, to help somebody with a bad back, can make all the difference in how they are able to manage their health and how happy they can feel in the workplace. Lots of people do not know that they are entitled to ask for reasonable adjustments and that very often these items are available through the Access to Work programme. Does he agree that the Government need to do far more to publicise the support that is out there, so that not only can people get into work, but those in work can maintain their health and stay in work longer?

Jonathan Ashworth Portrait Jonathan Ashworth
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My hon. Friend hits the nail on the head. It is not just that lots of people are not aware of the Access to Work scheme, but some people who apply for Access to Work are then faced with the most ridiculous waiting lists. A constituent of mine accepted a job and was told that there was a 26-week waiting list for an assessment. I raised that case with the Department in my capacity as a local constituency MP and I am pleased that the Department has looked at it again, but lots of people will not go to their local MP asking them to intervene, and we want to get people into work. It is no wonder that the disability employment gap is widening.

As a country, we should be aiming for the highest level of employment in the G7. That would mean living standards raised for every household. The reason we want to extend the opportunity of decent work to all is even more fundamental: when one in five people who have left the labour market in the past two years say that they would like to work, we have a responsibility to help them. Behind every statistic is a story of opportunities missed, talents wasted and extraordinary potential left untapped, none more so than for the now 1 million young people not in education or employment. Increasing numbers of young people are out of work for reasons of mental health. We know the long-term scarring effects of worklessness at a young age; it risks a life on the margins. To do nothing for this group of young people, as is, in effect, the case now, means writing them off. Its means tolerating a situation where only about 4% of people in the employment and support allowance support group return to work each year—to me, that is fundamentally unacceptable. It is a massive social cost and it has a massive economic cost as well, as we will see, because the Office for Budget Responsibility is predicting that the health-related benefit bill will increase, costing us £8 billion extra.

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Jonathan Ashworth Portrait Jonathan Ashworth
- Hansard - - - Excerpts

The hon. Gentleman is tempting me into very choppy waters by offering to disrupt the way in which we provide social security across the country, but I will resist the temptation to go off course.

At a time when local areas should be given more resources to deliver employment support, the Government are cutting resources. Not only did they announce out of the blue in December that they were cutting a scheme that helped those with health conditions to move into work in the west midlands and South Yorkshire—they then U-turned on that a couple of weeks ago—but, as I heard from the Salvation Army when I went to visit an employment project in East Ham this morning, they are also leaving the voluntary sector with no answers about its future because of decisions about the shared prosperity fund.

The shared prosperity fund, which is the successor to the European social fund, helps to fund schemes that support people with complex barriers into work. The European social fund money ends at the end of this year, and there is then a nine-month funding gap until the people and skills element of the new shared prosperity fund kicks in. How does the Secretary of State expect to get more of the economically inactive into work when that funding gap means that voluntary organisations in all our constituencies have no idea how they will fund their work for the best part of a year? That is not the way to go about it, and when the Department leaves those voluntary organisations with no funding, it does not suggest that the Government are serious about getting people back to work.

Margaret Greenwood Portrait Margaret Greenwood
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Will my right hon. Friend give way?

Jonathan Ashworth Portrait Jonathan Ashworth
- Hansard - - - Excerpts

I will, but then I need to make progress.

Margaret Greenwood Portrait Margaret Greenwood
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My right hon. Friend is making an important point about the shared prosperity fund and the funding gap that so many providers in our constituencies face. I have seen in my constituency the fantastic work they do. The people working in those charities and organisations have huge expertise. Does he share my concern that, if their jobs do not continue, we will lose a wealth of knowledge that is tailored to our local communities, which would be devastating for so many people looking for work?

Jonathan Ashworth Portrait Jonathan Ashworth
- Hansard - - - Excerpts

It is a crazy situation. In fairness to the Secretary of State—I do always wish to be fair to him—decisions on the shared prosperity fund are made by the Department for Levelling Up, Housing and Communities, but for a Government who say that focusing on inactivity will be a feature of their Budget, the fact that one Department does not seem to know what another is doing does not exactly fill one with confidence.

Shifting resources out of Whitehall would provide greater opportunities to better join up and co-locate employment advisers in health services, mental health services, addiction services and primary care. We know that increasing numbers of people are out of work, not just for depression and anxiety but for traditional musculoskeletal conditions, and if we are to get people back into work, they need to be supported into work. They need to be given the support to thrive once they are in work. This is urgent, because we do not want the increasing numbers who are leaving work as the short-term sick turning into the long-term sick. We know that, once someone is out of work beyond three months, they risk being out of work for a considerable time.

Obviously, some of this is to do with access to the NHS, given that there are 7 million on the waiting list. It is about access to primary care, to help people manage their health conditions, but there is also a role for employment advisers. Indeed, the new frontier of social security reform, in my view, is bringing together health and welfare in a way we have not before. That also means giving people proper occupational health support. In fairness to the Government, a few years ago they endorsed Dame Carol Black’s report on occupational health, and they piloted a Fit for Work occupational health scheme, but they pulled the plug on it before it had time to properly bed in and develop. That was possibly an incredibly short-sighted decision, given the numbers out of work today for reasons of sickness.

We need to reform sick pay, as Labour has consistently called for. We need to ensure that fit notes are about not just signing people off but sign-posting people to help. We need to give people flexible work options, so that they can stay in work. We also need to support women to stay in work with the menopause, as my right hon. Friend the Member for Ashton-under-Lyne (Angela Rayner) has outlined today. My hon. Friends the Members for Swansea East (Carolyn Harris) and for Leicester West (Liz Kendall) have been elegant and brilliant champions for this.

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Mel Stride Portrait Mel Stride
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My hon. Friend is absolutely right, and the 1.4 million figure is depressingly true. Under the last Labour Government, over 1 million people were parked on long-term benefits. Of course, when we talk about unemployment, we know that every Labour Government in history have left unemployment higher at the end of their term in office than it was at the beginning.

Margaret Greenwood Portrait Margaret Greenwood
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I very much appreciate the Secretary of State giving way. He was saying that he had been tasked to work across Government on tackling this issue. Adult education has a really important role to play in building people’s confidence—it can be particularly important for people who, perhaps in midlife, have had to give up work to look after a family member who was ill or whatever, and later find themselves struggling to get back into work and having really lost their confidence—yet the Government, as part of what they call their reorientating the vision for non-qualification provision in adult education, have plans that could actually remove some of the very non-vocational courses that people who may feel daunted at the prospect of having to go for a high qualification would none the less get. Could he please speak to his colleagues to ask them to look at this issue again?

Mel Stride Portrait Mel Stride
- Hansard - - - Excerpts

If the hon. Lady would drop me a line about the point she raises, I would be very happy to raise that specifically and to consider it myself as well.

Could I turn to economic inactivity, and to disability and sickness? This Government have been acting, and we will come forward with further measures very shortly, which I am sure will be of interest to the right hon. Member for Leicester South (Jonathan Ashworth). For example, our Work and Health programme has now been extended to September 2024, bringing an extra 100,000 people into support. We have rolled out health adjustment passports to facilitate more structured conversations between those seeking work, those seeking to employ them and employees in jobcentres. We have been co-locating employment advisers alongside therapists in NHS talking therapies. For those with autism, which is often a very considerable barrier to employment, we have funded no less than 28 different initiatives across local authorities.

Social Security and Pensions

Margaret Greenwood Excerpts
Monday 6th February 2023

(1 year, 10 months ago)

Commons Chamber
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Karen Buck Portrait Ms Buck
- Hansard - - - Excerpts

The Government have decided to refer to the absolute poverty figures only, which we would expect to go down as the years go by. However, under the standard measure of poverty, the relative measure, there is an increase in poverty. Indeed, if we want to get into the details, the Government’s preferred measure also shows an increase in poverty among families, including families with more children. This year’s uprating will at best serve to maintain the value of benefits, which has been severely reduced over the last decades. The resulting inadequacy of the safety net has played out exactly as one might expect; it contributes to increased numbers of children in poverty, to deepening poverty, and to increased need for food banks.

Margaret Greenwood Portrait Margaret Greenwood (Wirral West) (Lab)
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My hon. Friend is making an excellent speech. Does she agree that the last Labour Government took 1 million children out of poverty, and that we could do with having a Labour Government immediately to take further action?

Karen Buck Portrait Ms Buck
- Hansard - - - Excerpts

I could not agree more. The Labour Government demonstrated what could be done with will, policy and investment; they brought about a dramatic reduction in pensioner poverty and child poverty. A future Labour Government will do exactly the same. Of course we will support the motion, but the Government deserve no praise—

Karen Buck Portrait Ms Buck
- Hansard - - - Excerpts

I have given away enough for the moment. The Government deserve no praise for refraining from a deliberate action that they should never have contemplated taking in the first place.

It is important to recognise the limitations to the uprating order. Although the nominal value of most working-age benefits will increase by 10.1%, there will be no change to the eligible cost limits of two crucial benefits: the childcare element of universal credit and tax credits, and the local housing allowance. Do the Government think that childcare and housing costs are immune to inflation? How does allowing the erosion of the value of childcare support fit with their stated aims of encouraging work progression and helping working parents to increase their hours of work?

Yesterday, the deputy political editor of The Sunday Times reported that:

“Sunak and Hunt want a new benefits crackdown, including”

increasing the

“threshold under which people must attend regular job centre interviews/meet work coaches to be raised to 18 hours”.

If the Government are serious about helping parents to progress, they should ensure that parents are better off working more hours, rather than using the crude and unproven instruments of conditionality. As the IFS has shown, parents in the lower thirds of the earning distribution already stand to lose 58% of their additional earnings when moving from 20 to 40 hours of work a week.

Incentives to progress are already weak, so allowing inflation to erode the value of childcare support makes absolutely no sense. As evidence to the Work and Pensions Committee stated recently,

“The childcare support provided with UC is only sufficient to cover part-time hours, because the cap it is subject to has been frozen for six years”,

and

“A fixed cap amid rising childcare costs means fewer hours are eligible for reimbursement under UC today compared to Working Tax Credit in 2005—potentially restricting parents’ employment options.”

While I am on the subject, we hardly need reminding that the requirement for parents who claim childcare support to pay up front heaps the burden on to low-income parents, and contributes to the nightmare of overpayments and deductions, which contribute to the debt and destitution crisis.

The local housing allowance remains frozen for the third year in a row—at least, that is how everybody apart from the Secretary of State sees it. He said in his written statement of 17 November:

“I can also confirm that the local housing allowance rates for 2023-24 will be maintained in cash terms at the elevated rates agreed for 2020-21.”—[Official Report, 17 November 2022; Vol. 722, c. 24WS.]

Perhaps the Minister can explain how those rates, which are based simply on the 30th percentile of local rents in 2019—since when rents have risen by 8% overall according to the Institute for Fiscal Studies, and vastly more in some parts of the country—can seriously be described as elevated.

Margaret Greenwood Portrait Margaret Greenwood
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I thank my hon. Friend for giving way—she is being very generous. According to the Institute for Fiscal Studies, freezing local housing allowance, as opposed to uprating it to match local rents, will reduce support for nearly 1.1 million households by an average of £50 per month. Does she agree that that is an utterly impossible situation for people to face, and that we need action from the Government on it?

Karen Buck Portrait Ms Buck
- Hansard - - - Excerpts

It is absolutely impossible. Rents are such a major component of people’s expenditure. For that shortfall to first be fixed, and then to grow, is inexplicable. It absolutely eats into people’s residual income.

Nearly 1.5 million universal credit households receive the housing allowance. Of those, 844,000, or 58%, have rents above the maximum that local housing allowance will support. On average, they face a shortfall of £100 a month, which has to come out of their residual income.