Employment Rates

Margaret Greenwood Excerpts

Wednesday 6th June 2018 Westminster Hall

[Margaret Greenwood (Wirral West) (Lab)]

It is a pleasure to serve under your chairmanship, Sir Roger. I begin by congratulating the hon. Member for Mid Dorset and North Poole (Michael Tomlinson) on yet again securing this debate, and on his work on youth employment as chair of the all-party parliamentary group on youth employment. We have heard some very interesting contributions today, including from the hon. Gentleman himself, and I really look forward in particular to the group’s work on care leavers and prison leavers, who are a matter of concern; I am sure he shares that concern.

We heard a good contribution from my hon. Friend the Member for Plymouth, Sutton and Devonport (Luke Pollard), who quite rightly raised the issues of in-work poverty, insecure contracts and food bank use, all of which have risen, as well as discussing how zero-hours contracts devalue the rights of employees. He also spoke about the importance of looking at a broad range of measures and at the lived experience of work; the testimony he received from his constituency, via his Facebook page, was very interesting.

My hon. Friend the Member for Warwick and Leamington (Matt Western) made a useful intervention about the question of the availability of hours for people in insecure work, and said that rather than looking at a “jobs miracle” we are looking at a “jobs mirage,” which I thought was a pertinent way of describing the situation.

I welcome the fact that the hon. Member for Berwickshire, Roxburgh and Selkirk (John Lamont) spoke about the particular issues that rural communities face. He also called for the quality and quantity of work that is available to be a focus for the Government across the board.

The hon. Member for Ayr, Carrick and Cumnock (Bill Grant) said that he did not agree with banning zero-hours contracts. I have to disagree with him on that, and I remind him that the number of people on zero-hours contracts is heading towards a million, so it really is a significant issue and I will touch on it later in my speech.

The hon. Member for Edinburgh North and Leith (Deidre Brock) quite rightly called for fair pay—enough for people to live on—and pointed out that the national living wage is not, of course, an actual living wage.

Increases in employment are welcome, but we also need to look beyond the statistics, as many Members have said, to see what the world of work is really like. Average real pay has still not returned to the level it was at before the financial crisis, and although inflation has started to fall, it has nevertheless outstripped wages for almost all of the period since 2010. Public sector workers have been particularly badly hit; they saw their pay frozen for two years, in 2011 and 2012, and since then any increase has been capped at 1% a year, regardless of the rate of inflation.

Then, of course, there is a generation of people who were in their twenties at the time of the financial crisis, so they have spent almost all of their adult life in this period of austerity. They are now in their thirties—an age when many of them will have young children—yet median pay for people in that group is nearly 9% below the level that it was at in April 2008.

The Resolution Foundation predicts that this decade is likely to be the weakest decade for real pay growth in almost two centuries. Some 20% of Britain’s 33 million workers earn £15,000 a year or less, and a recent report by the Centre for Social Justice forecast that the pay of those workers in particular would be squeezed over the next decade, as a result of trends such as the growth of the gig economy, automation and global competition. So can the Minister tell us what action the Government will take to improve the prospects of low-paid workers and what investment they will make in skills?

Around 8 million people are living in poverty in the UK, even though at least one person in such households is in work, and of course many people move in and out of low-paid work. Universal credit was originally aimed at smoothing the transition into work and at making work pay, but the cuts to work allowances announced in the summer Budget of 2015 severely damaged the work incentives that universal credit offers.

Reports by independent organisations such as the Resolution Foundation and the Equality and Human Rights Commission have made it clear that the increase in the national living wage and personal allowance do not compensate for the cuts to social security since 2010 for people on low income, with disabled people and single parents being hit especially hard.

According to a TUC report, the public sector pay cap, coupled with cuts to in-work support, means that the number of children in working families growing up in poverty will be 3.1 million this year, which is 1 million higher than in 2010. Will the Government listen to the call from the TUC and Labour to reverse the cuts to work allowances in universal credit and abolish the pay cap across the public sector, which Labour has committed to doing?

There are deep inequalities in the labour market, on the basis of where people live, ethnic background, gender, age and disability. The Government have repeatedly failed to address those inequalities, despite the Prime Minister’s fine words outside No. 10 Downing Street on coming to power. More than eight out of 10 companies employing more than 250 staff—such companies were required to report on their gender pay gap in April—paid men more than women and three out of 10 of them had a gender pay gap higher than the national median of 18%—in some cases it was over 50%. So now we know about those companies, but they will not face any action as a result, except perhaps reputational damage. Labour would introduce fines for companies that have a high gender pay gap that they have failed to reduce. Are the Government going to act on the gender pay audit, and if not, why not?

According to the Prime Minister’s race disparity audit, around one in 10 adults from a black, Pakistani, Bangladeshi or mixed background are unemployed, compared with one in 25 white British people. There are also significant differences in the kind of work that people do. For example, more than two in five people from a Pakistani or Bangladeshi background work in low-skilled occupations. Audits are important to tell us what the facts are, but we need action to address the issues they raise. How are the Government going to do that?

I turn to the situation for disabled people. Back in November, the Chancellor disgracefully sought to somehow blame disabled people for the UK’s poor productivity record. That was particularly shocking given the Government’s approach to supporting disabled people into work. The Work and Pensions Committee has highlighted that funding for specialist employment support for disabled people will fall substantially, from around £1 billion under Work Choice and the Work programmes to £554 million over the lifetime of the Work and Health programme.

A study by WPI Economics for the Employment Related Services Association estimates that the number of disabled people receiving specialist employment support will drop from around 300,000—the number it was between 2012 and 2015—to only 160,000 between 2017 and 2020. That would be a cut of around 50%, so I would be grateful if the Minister could comment on that, as it would not only be clearly detrimental to the lives of many disabled people, but would make no economic sense. Research by Scope suggests that a 10% increase in the number of disabled people in work would increase GDP by £45 billion by 2030 and benefit the Exchequer by £12 billion. If the Chancellor really wants to address the UK’s productivity problems, he might like to give those figures some thought.

The majority of employment support for disabled people will be provided through Jobcentre Plus by general work coaches. If the Government are going to take employment support back in-house, will they look again at providing specialist support, rather than adopting a generalist model for work coaches?

With youth employment, the figures are less rosy. One in eight young people aged 16 to 24 are unemployed, which is much higher than the overall unemployment figure. The number of young people who are economically inactive rose over the past year. That is a matter of real concern. Just over 11% of 16 to 24-year-olds, or 808,000 young people, were not in education, employment or training—NEET—in the final quarter of 2017. Only about two fifths of those young people were registered as unemployed. The rest were economically inactive and hidden from the benefits system. The proportion of certain groups that are not in education, employment or training is shockingly high. Some 30% of disabled young people and 40% of care leavers are NEET, as compared with 9% of other young people. The Children’s Society has made a strong case for there to be a specific marker for care leavers in universal credit, as in legacy benefits, so that we can measure their progress. Will the Minister commit to doing that?

Since April 2017, young people aged 18 to 21 claiming universal credit receive employment support through the youth obligation. After six months of what is supposed to be intensive support, they are required to take up an apprenticeship, training or a work placement. However, organisations such as Centrepoint are concerned that young people who face the greatest challenges in finding work—for example, care leavers—might need longer than six months and more personalised support to get to the point where they can do that. The all-party group has also made that point, stressing the importance of young people with greater challenges being given support in the first instance to develop basic skills. Can the Minister tell us what percentage of young people have found work through the youth obligation so far? Will he look at the case for personalised support for young people on universal credit through specialist work coaches?

The European social fund is a vital source of funding for employment support at the local level for disabled people and young people who are NEET, for example. In the present funding round for 2014 to 2020, the UK is receiving around £500 million a year, but ESF funding is important not only for the direct support it provides, but for attracting funding from other sources. The Government have announced that they will create a shared prosperity fund to replace the ESF, but time is running out to have a successor ready in time. They have said that they will publish a consultation some time later in the year, but no timescale has been announced. Can the Minister tell us when the consultation will take place? Can he tell us what he is doing to ensure that there will be no gap in the provision of employment support when ESF funding comes to an end?

Young people are also more likely to be working part time, in temporary employment or on a zero-hours contract than workers who are older. It is little wonder that the chief executive of the Financial Conduct Authority warned last year about levels of debt among young people that are built up in just trying to cover basic bills. Women are especially likely to be in part-time or insecure work. Some 55% of people on a zero-hours contract are women, and 45% are men. Similarly, a high proportion of people from some ethnic minority communities are more likely to be in part-time or insecure work. According to the Government’s race disparity audit, more than one in four Pakistani and Bangladeshi workers were employed in distribution or in hotels and restaurants, and one in five were in transport and communications industries, where low-paid, insecure work is common. Around 900,000 people are on zero-hours contracts.

More than half the zero-hours workers in a TUC survey said that they had shifts cancelled at less than 24 hours’ notice. People with caring responsibilities simply cannot afford to take shifts at such short notice. Having made provision for childcare, to then have a shift cancelled is particularly frustrating and expensive. Three quarters of the people responding to the survey said that they had been offered shifts at less than 24 hours’ notice, and a third said that they had been threatened that they would not be given shifts in future if they turned down work. How are people supposed to manage their finances and their lives when they are on zero-hours contracts—when they do not know how much money will be coming in each week and how much childcare they are likely to need? Will the Government ban exploitative zero-hours contracts, as Labour would?

The hon. Member for Berwickshire, Roxburgh and Selkirk spoke of the importance of the work of self-employed people. In evidence to the Work and Pensions Committee in January, the director of universal credit at the Department for Work and Pensions said clearly:

“Self-employment is a cause of in-work poverty.”

We should all be alarmed by that statement. The number of self-employed people has increased. They now make up about 15% of the workforce, or 4.8 million. That figure is for 2017, and compares with 12%, or 3.3 million, in 2001. The design of universal credit means it can fail to protect self-employed people on low income from poverty. Under the minimum income floor, self-employed people claiming universal credit are assumed to be earning the equivalent of 35 hours at the national living wage after a year, even though in many cases their earnings may be much less. That is exactly why they need to claim universal credit.

In February the Office for Budget Responsibility estimated that by 2022-23 more than two thirds of self-employed people claiming universal credit would lose out from the minimum income floor by an average of £3,000 a year. Someone who is self-employed, but on exactly the same annual income as someone who is an employee, can be entitled to less universal credit because it fails to take account of the fluctuating earnings that are a basic characteristic of self-employment.

In conclusion, high rates of employment should be good for those who are employed. They should mean higher wages and more security, but in reality people can face years as agency staff on temporary contracts, and zero-hours workers can have shifts cancelled at less than a day’s notice, with all the insecurity that that brings. It is little wonder that the TUC has reported parents being penalised by employers for asking for flexibility for family reasons, such as for simply wanting to take annual leave when their child is sick. Work should be a route out of poverty, but recent research by the Living Wage Foundation reveals that more than a third of working parents on low incomes have regularly skipped meals because they are short of money, and almost half have fallen behind on household bills. On coming to power, the Prime Minister promised outside Downing Street to be on the side of families who were just about managing, but it is clear that her Government are failing to do that. High employment rates are welcome, but they do not tell the whole truth about most people’s experience of the world of work.

[The Minister for Employment (Alok Sharma)]

It is an absolute pleasure to serve under your chairmanship, Sir Roger. I congratulate my hon. Friend the Member for Mid Dorset and North Poole (Michael Tomlinson) on securing, for the second time, this important debate on recent trends in employment. He made a fine speech, as did colleagues from all parts of the House. I have time in this debate to respond to a lot of the points that have been raised, and I will aim to do that. I will also come back to some of the points that my hon. Friend raised.

Sir Roger, I think you and I are probably the only Members here who were in the House in 2010, when the Conservative-led Government came into office. One of their first acts was to introduce an emergency Budget. At the time—both during the debate and subsequently—there were many siren voices on the Labour Benches that warned with great conviction that the Government’s policies would lead to a big increase in unemployment. Well, those doom-laden predictions have not come to pass; as Members on both sides have pointed out, we have seen strong jobs growth.

The hon. Member for Warwick and Leamington (Matt Western) is no longer in his place, but, frankly, to talk about this jobs miracle as a mirage is insulting. It is insulting to the more than 3 million people who now have a job as a result of the jobs created since 2010. It is also insulting to the employers—the hard-working companies and organisations that have created those jobs.

[Margaret Greenwood]

Will the Minister comment on the 900,000 people who are on zero-hours contracts and cannot manage their lives? They do not know how much money they are going to earn. They do not know how much childcare they need. It is a state of real insecurity, creating anxiety for a lot of people, and it is not good for the economy either.

[Alok Sharma]

I will of course come on to discuss precisely those points, because they are important.

The labour market statistics published last month by the independent Office for National Statistics—I point out once again to the hon. Member for Plymouth, Sutton and Devonport (Luke Pollard) that it is independent—show that employment in the United Kingdom reached a record high in the last quarter of 75.6%. That was the 17th new record employment rate since 2010. Employment is up by more than 3 million since 2010. I place on record my thanks, as my hon. Friend the Member for Mid Dorset and North Poole did, to all the businesses and organisations across our constituencies that have created those jobs. The unemployment rate has fallen to 4.2%, which is a 40-year low. As my hon. Friend pointed out, there are now more than 800,000 vacancies across our economy.

Those who cannot quite accept that positive trend will say that all those jobs are low paid and temporary, but that is absolutely not true. Some 70% of the increase in employment has been in higher skilled occupations that pay higher salaries. Three quarters of them are full time and permanent.

A point was made about where those jobs are created and whether they are all in London and the south-east. I can confirm that 60% of the growth in private sector employment since 2010 has been outside London and the south-east.

Various colleagues, including the hon. Member for Wirral West (Margaret Greenwood), made a point about zero-hours contracts. Such contracts represent less than 3% of all people in employment. The hon. Lady is right to say that that is around 900,000 people, but the number is down on the year. On average, someone on a zero-hours contract usually works 25.2 hours a week. Again, of those who stated a preference—to be clear, this is in the ONS’s own labour force survey—only 30% of those on a zero-hours contract stated that they wanted to work more hours. So when the hon. Member for Plymouth, Sutton and Devonport talks about only a small number of people valuing such flexibility, I have to say that that is not what we see from the independent figures—a point well made by my hon. Friend the Member for Ayr, Carrick and Cumnock (Bill Grant).

[Margaret Greenwood]

I thank the Minister for giving way again; he is being very generous. Is he aware of the issue of sexual harassment in the workplace among staff on zero-hours contracts? What advice would he give to a young woman on such a contract who is experiencing that? Where can she go for support? How can she tackle it, and how can she remain employed, but in a safe environment?

[Alok Sharma]

Frankly, any kind of bullying and any such acts are completely unacceptable, whether someone is on a zero-hours contract or a full-time contract. As the hon. Lady knows, there are avenues open to people, but if she has specific cases, she is welcome to come and talk to me about them. It is important that we have flexibility in work patterns, which is what zero-hours contracts allow, but it is also right that the Government have banned exclusive zero-hours contracts.

We have discussed employment outcomes by groups. If we look at some of the groups that have historically been under-represented in the employment market, we have seen a significant improvement in their participation in the workforce. The hon. Member for Edinburgh North and Leith (Deidre Brock) welcomed the record high of 71.2% in the female employment rate, which I of course welcome as well. There are now more than 3.8 million people from ethnic minorities in work—an increase of 1.1 million since 2010. The ethnic minority employment rate currently stands at 65.1 %, which is a record high. However, I completely accept that the employment gap between ethnic minorities and the white population is too high, at 12%, and we are working to address that. If I have time, I will talk about the response to the race disparity audit.

My hon. Friend the Member for Ayr, Carrick and Cumnock talked about disabled people. We have seen a welcome rise in the employment of disabled people—600,000 in the past four years—to around 3.5 million people today. He also talked about the Disability Confident scheme. More than 6,000 employers are involved in that and in Access to Work support. That is really important in encouraging everyone in our country who aspires to work to have an opportunity to do so.

My hon. Friend the Member for Mid Dorset and North Poole made a powerful opening speech and highlighted the excellent work of the all-party group on youth employment, which he chairs. He has shared with various ministerial colleagues reports from inquiries that the APPG has conducted. Of course, I would be delighted to come to the APPG to discuss its work and to meet the youth ambassadors, who I am sure will ask challenging questions. As my hon. Friend highlighted, we have made progress on youth employment. The employment rate for those not in full-time education stands at 74.9%, and youth unemployment is down by 40% since 2010.

My hon. Friend made international comparisons, some of which I will repeat. The UK youth employment rate is 18.3 percentage points above that of the euro area and more than 16% above the EU average, but of course I agree with him that we need to do more. We therefore have a skills agenda, with a focus on apprenticeships and technical education. Colleagues have talked about the youth obligation support programme, which started in April last year, and about the ability to get work experience. We have also been encouraging work-based academies, which I think have been very successful.

My hon. Friend talked about whether there should be better working across Government on these issues. Of course, many are joined up. I can confirm that we have a number of taskforce initiatives where Ministers work together. He will be pleased to know that straight after this debate I will be having a meeting with the Minister for Apprenticeships and Skills to discuss precisely these issues.

The Government are funding lifelong learning pilots, investing in a national retraining scheme, and delivering basic digital skills and careers advice for older workers who need them. We are also ensuring there is support to assist those with a health condition or disability, to make sure they are able to access the support they need to move into work.

On the cost of living, I know that all Members will welcome the fact that the ONS reported last month that salaries are starting to outpace inflation. I certainly want to see that very welcome trend continue. We absolutely recognise that people need additional support with living costs, and we have been providing that support. We have recognised that high childcare costs can affect parents’ decisions to take up paid work or increase their working hours. That is why, by 2019-20, we will be spending around £6 billion a year on childcare support. That includes 30 hours’ free childcare for working parents of three and four-year-olds. Within universal credit, claimants are eligible to claim up to 85% of their childcare costs. The outcome from independent evaluation in areas of early introduction shows that, with increased childcare support, parents are able to work more flexibly and increase their hours. We are championing shared parental leave and have introduced a right to request flexible working.

My hon. Friend the Member for Berwickshire, Roxburgh and Selkirk (John Lamont) welcomed the increase in personal allowances, which means that a typical basic rate taxpayer now pays more than £1,000 less in income tax than in 2010. We also introduced the national living wage in 2016, which increased by 4.4% this April. Thanks to the national living wage, full-time minimum wage workers have had a boost of £2,000 since 2016.

Numerous colleagues, including the hon. Members for Edinburgh North and Leith and for Plymouth, Sutton and Devonport and my hon. Friend the Member for Berwickshire, Roxburgh and Selkirk, talked about job quality and the Matthew Taylor review. Although we need to continue to work to maintain high levels of employment, I absolutely agree that we must also address the important issue of job quality. Among its recommendations, last year’s Taylor review asked the Government to focus on the quality of work and to identify a set of measures to evaluate job quality.

A strand of the Government’s industrial strategy has a focus on the creation of good jobs and greater earnings power for all, so the Government have outlined five foundational aspects of good work: overall satisfaction; good pay, which includes perceptions of fairness relative to one’s peers; participation and progression in the workforce, which includes the ability to work flexibly and acquire new skills; wellbeing, safety and security at work; and voice and autonomy in the workplace. It is self-evident that if people feel a sense of control over how they carry out their job, they will generally feel much more positive about it. The Government are working with experts to identify a set of measures against which we can evaluate quality of work, and I certainly look forward to the outcome of that work.

I have time to go through a number of points that colleagues have raised. My hon. Friend the Member for Mid Dorset and North Poole talked about the hospitality industry, and we absolutely want to see a strong and vibrant hospitality sector. I recently met Brigid Simmonds, chief executive officer of the British Beer & Pub Association, to talk about the hospitality sector. In February this year, the Department for Work and Pensions ran the annual Hospitality Works campaign, which aims to raise awareness of the thousands of great career options that exist in the sector and to showcase some of the key employers we work with.

Personal Independence Payments

Margaret Greenwood Excerpts

Monday 4th June 2018 Commons Chamber

[Mr Speaker]

I call Marsha De Cordova. [Interruption.] Ah, there has been a change of personnel. I was advised that it would be the hon. Member for Battersea. Never mind, I call Margaret Greenwood.

[Margaret Greenwood (Wirral West) (Lab)]

Thank you, Mr Speaker. I congratulate my hon. Friend the Member for Oldham East and Saddleworth (Debbie Abrahams) on securing this urgent question. I was disappointed to hear the Secretary of State be so dismissive of concerns that have been expressed by Members right across the House. For the second time this year, the Secretary of State has been forced to acknowledge that her Department has made a serious error in assessing claims for personal independence payments. The previous error resulted in potentially 220,000 people being underpaid PIP, causing misery that could and should have been avoided. The Secretary of State now admits a second error, this time relating to activity 3 of the daily living component, “Managing therapy or monitoring a health condition”. The Department has again got the law wrong on interpreting PIP descriptors, leading to perhaps thousands of disabled people not getting the crucial support that they need.

In January, when the DWP last admitted that there had been an error, my hon. Friend the Member for Battersea (Marsha De Cordova) asked the Minister for Disabled People, Health and Work a series of questions that should have been answered but still have not been. If anyone is to have confidence in the Department, the Secretary of State must now answer our questions.

How quickly will the Department be able to identify claimants? Will the Secretary of State publish her criteria for reviewing cases? Will she include the cases that did not originally score sufficient points? Exactly how many claimants have been wrongly assessed for PIP? What assessment has she made of the administrative cost to her Department of undertaking yet another complex exercise? Given that this is the second error in the Department’s interpretation of its own guidance to come to light in six months, what reason do disabled people have to believe that her Department is fit for purpose?

[Ms McVey]

This is a brand new benefit that, for the first time, looks not just at people with physical disabilities, but fundamentally at all the disabilities people have—cognitive, sensory, health and mental health conditions—and supports more people than DLA ever did.

Nobody was forced to come here to explain why I did not appeal the mobility case. I made a decision by myself, which I thought was true and in keeping with how PIP was designed, and I made sure that we did not seek leave to appeal that.

There was a period of uncertainty for the five months between the court case and when the new regulations came into play. I agreed that in the cases of AN and JM, they should not be living in uncertainty. I believe that in both instances, I have done the right thing in not seeking leave to appeal.

I appreciate that the Opposition do not like to hear the fact that we have, I would say, made a positive move by not seeking to appeal and by supporting these extra people. No one would believe it from the screams from the Opposition Benches, but what I have decided to do and what this Government have decided to do is to support disabled people as best we can and to provide this new benefit, which is a personalised, forward-looking benefit, which was not the case with DLA.

Oral Answers to Questions

Margaret Greenwood Excerpts

Monday 21st May 2018 Commons Chamber

[Ms McVey]

As it is a brand new benefit, we are providing extra childcare support, which is needed by people with children and lone parents. We are also giving tailored support. The claimant commitment and the one-to-one relationship that people have with their work coach is about really understanding the needs of the individual. That is what we are doing to help people to get into a job, get a career and fulfil their job ambitions.

[Margaret Greenwood (Wirral West) (Lab)]

The Department for Work and Pensions has been forced recently to reveal that a fifth of universal credit claims are being turned down because claimants are not managing to negotiate the complex application process, meaning that thousands of people are falling out of the system. Claims must be made and managed online, even though, according to an OECD study, 40% of unemployed adults in England have low basic skills. Meanwhile, one in 10 jobcentres are being closed, removing face-to-face support from communities, and the Government are speeding up the roll-out of the full service yet again. What action are the Government taking to identify the factors leading to such a high level of failure?

[Ms McVey]

Obviously, this benefit is not failing. That is why we are seeing extra support and why we are seeing record numbers of people in employment and record low unemployment. However, the hon. Lady is right to talk about the low IT skills that people have. Part of the universal support we are giving is to educate and to enable people because the IT skills they need to claim a benefit are the same IT skills they need to get a job and to get cheaper deals online. That is what we are providing. Again, if they are in debt, we are providing that personalised support. As we close some of the jobcentres, most important is the outreach work that we do. As we seek to help more people and some of the most difficult to help into work, we are doing outreach work through the flexible support fund.

--- Later in debate ---

[Kit Malthouse]

It is deeply disappointing when Members of this House trade their principles for perceived political advantage, as the hon. Gentleman seems to have done on universal credit, having of course previously been a strong supporter of the coalition Government’s reforms. He knows full well that direct payments to landlords are available. I have myself met the two most prominent residential landlord organisations very recently and, if he looked at the data, he would see that the proportion of working-age recipients of housing benefit and universal credit in the private rented sector seeking support has not really changed over the past 10 years.

[Margaret Greenwood (Wirral West) (Lab)]

It is reported that the Law Centres Network says cases are now common in which eviction proceedings come to court after the Department for Work and Pensions has failed to pay rent directly to the landlords of universal credit claimants, even though it says on a claimant’s journal account that a direct rent payment has been made. What action is DWP taking to address this issue as a matter of urgency?

[Kit Malthouse]

As the hon. Lady will know, we have taken significant action to try to improve the situation upfront, not least by providing an additional two weeks of housing benefit for people transitioning to universal credit. People can receive a 100% advance and help with budgeting support, and of course a direct payment is available if landlord or tenant require it.

Oral Answers to Questions

Margaret Greenwood Excerpts

Monday 26th March 2018 Commons Chamber

[Kit Malthouse]

My hon. Friend made a remarkably good speech about this just a week or so ago, and I congratulate him on his foresight. He is absolutely right: relative poverty as currently measured suggests that there are quite a lot of poor people in Monte Carlo, which, of course, is not an intuitive picture that people would have. As a Department, we are looking at other measures. We believe that absolute poverty, which currently stands at an all-time low, is a better indicator. Of course material deprivation, which asks specific questions about how people live, holds some promise as an indicator that the public might appreciate.

[Margaret Greenwood (Wirral West) (Lab)]

I am disappointed to hear the Minister be so facetious about a subject as important as child poverty. At the last count, 72% of households whose benefits were capped were those of lone parents and 77% of those lone parents had a child under five. They can escape the cap by working at least 16 hours a week, but are then hit by the cuts to work allowances in universal credit, which trap many in poverty. According to Government figures released last week, more than half a million children are currently in poverty in lone-parent families where their parent—usually the mother—is either in full or part-time work. If the Government really believe in making work pay, will they reverse the cuts to work allowances?

[Kit Malthouse]

I know that the hon. Lady likes to present herself as some kind of latter-day mahatma and as the only person in this House who cares about poverty, but, of course, that is not true. Many of us—as councillors, voluntary workers, social workers and so on—have spent many years fighting poverty, so it would be helpful to the general tone of debate in this House if she were not quite so accusatory. Our view, and the Office for National Statistics points this out, is that 100,000 fewer work-age lone parents are now in poverty and that their biggest problem—the biggest thing that assails them—is childcare. The 85% payment for childcare under universal credit and the increase in availability to 30 hours will give the greatest assistance to lone parents.

--- Later in debate ---

[The Parliamentary Under-Secretary of State for Work and Pensions (Kit Malthouse)]

My hon. Friend raises an important point, not least because we are approaching the deadline for the switchover of SMI from a benefit to a loan. He is absolutely right—this change is specifically designed to keep people in their homes. I urge people to ignore the scare stories being put around, look at the paperwork, take the phone call that has been made and ensure they make a good decision in time.

[Margaret Greenwood (Wirral West) (Lab)]

Had the Secretary of State read the full article that she refers to on Channel 4’s FactCheck, she would have seen that it said that our numbers were in fact correct.

[Ms McVey]

indicated dissent.

[Margaret Greenwood]

Well, it did. I recommend that the Secretary of State rereads it.

In less than two weeks’ time, support for mortgage interest will change from a benefit to a loan. Government figures released on Friday show that, even at this late stage, the DWP has still not managed to contact 40% of claimants by phone to explain the change, and 30% of all claimants have already declined a loan. A large proportion of claimants are pensioners, and Age UK is warning that many may instead try to manage by cutting back on essentials such as heating. Why have the Government failed to give claimants adequate notice, and will they call a halt to this policy, which risks inflicting hardship on thousands?

[Kit Malthouse]

We have been communicating the changeover with approaching 500,000 pieces of paper since last July, and well over 350,000 telephone calls have been made to the something like 90,000 people in receipt of this benefit. There are specific provisions, post the changeover, to deal with people who perhaps attempt to manage on their own and feel that they cannot do so in that, post the deadline, they can reapply for support and backdate it to 6 April if they so wish.

Welfare Reform and Work Act

Margaret Greenwood Excerpts

Wednesday 21st March 2018 Westminster Hall

[Margaret Greenwood (Wirral West) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Gapes. I congratulate the hon. Member for Central Ayrshire (Dr Whitford) on her measured and comprehensive speech and her focus on the devastating impact of the Welfare Reform and Work Act 2016 on sick and disabled people and the importance of the work done by carers.

The hon. Member for Inverness, Nairn, Badenoch and Strathspey (Drew Hendry) made some extraordinary claims about the track record of the SNP in Scotland, which voted against Labour’s measure that would have lifted thousands of children out of poverty in Scotland.

[Drew Hendry]

rose—

[Neil Gray]

rose—

[Margaret Greenwood]

I will not give way, because I am short of time. I refer the hon. Member for Inverness, Nairn, Badenoch and Strathspey and others to the excellent speech made by my hon. Friend the Member for Glasgow North East (Mr Sweeney) that showed clearly and in detail how Labour has led the fight for a social security system that supports people in their time of need.

[Hon. Members]

Where is he?

[Mike Gapes (in the Chair)]

Order. We can do without the heckling.

[Margaret Greenwood]

The Welfare Reform and Work Act 2016 is having a profound impact on the lives of many of the most vulnerable in our society—the disabled, single parents, pensioners and children growing up in poverty—through a range of policies, accompanied by severe reductions in social security introduced in the 2015 Budget and what we are seeing with the roll-out of universal credit. There is the cut to employment and support allowance for disabled people, which is falling by £30 a week to the same level as JSA, leaving them with just more than £70 a week. There is the abolition of the family element of child tax credit and the equivalent in universal credit, which is worth up to £540 a year for new claimants.

We have a cut in the level of the benefit cap; the four-year benefits freeze; the abolition of targets to tackle child poverty, which Labour had introduced; the two-child limit on new claims for child tax credit and the child element of universal credit; the change in support for mortgage interest from a benefit to a loan that will be particularly hard on pensioners and disabled people; and the cuts to work allowances in universal credit in the summer Budget of 2015, which we call on the Government to reverse. So we see that the claims that the Act rewards hard work and is fair to working households simply do not bear scrutiny.

[Neil Gray]

Will the hon. Lady give way?

[Margaret Greenwood]

No, I am going to make some progress.

In-work poverty has risen to record levels: 8 million people, including 2.7 million children, are in poverty, despite being in a working family, and 67% of working-age adults and children in poverty in the UK are in working households. Many people are stuck in a low pay, no pay cycle, where they may pass from employed to unemployed and back again several times in the course of a year.

A study of in-work poverty published by researchers at Cardiff University found that

“those in working poverty are three times more likely to become workless than people living in non-poor working households.”

It also found that not everyone who finds work progresses to better paid employment. The reports states that

“one quarter of those families where somebody finds work, exit worklessness only to enter in-work poverty. Lone parents are over-represented in this group, as are families with three or more children.”'.

I recommend the report to the hon. Member for Redditch (Rachel Maclean).

The cumulative impact assessment by the Equality and Human Rights Commission published last week, which several Members have rightly referenced, states that the measure that has the most impact on households on low income is the four-year benefits freeze introduced in April 2016. When the benefits freeze began in April 2016, inflation was 0.3%. Despite a fall in inflation last month, it is still at 2.7%, and food prices went up by well over 3% in February compared with the year before. So it is little wonder that the chief executive of the Financial Conduct Authority has warned of increasing household debt built up simply by trying to cover basic household bills.

The Resolution Foundation estimates that by 2019 a lone parent in work with one child will lose £420 a year as a direct result of the freeze alone, and a couple with a single earner and two children will lose £570 a year. If the Chancellor was justified in his claims in his spring statement for improvements in the public finances, will the Government abandon the benefits freeze that is pushing households into poverty?

Housing benefit was first cut in 2011 and is also one of the benefits now frozen by the Act, but private sector rents have continued to rise rapidly. Between 2011 and 2018, private rents in the UK increased by more than 15%—and by more than 12% even if London is excluded. The Act also severely cut the levels of the benefit cap so that it is now hitting the whole of the country, and the cap in practice operates through a cut in housing benefit. The benefit cap is supposedly designed to incentivise work by exempting people who start claiming working tax credits. However, 45,000 households that had their housing benefit capped in November 2017 were single-parent families, and 35,000—

[Neil Gray]

Will the hon. Lady give way?

[Margaret Greenwood]

No, I am really short of time.

Thirty-five thousand of the single-parent capped households had at least one child aged under five, including 15,000 with a child aged under two.

The Act also requires the main carer of a child to look for work once their youngest child turns three, rather than five as previously. Many parents of very young children would actually like to work, but it can be almost impossible for them to find affordable childcare or work that fits around caring for young children. That brings me to one of the most contentious parts of the Act: the abolition of the targets to tackle child poverty set by the previous Labour Government in the Child Poverty Act 2010.

The previous Labour Government lifted 1.1 million children out of poverty through a cross-Government strategy that included Sure Start centres and year-on- year increases in social security, which went hand in hand with employment support targeted at specific groups such as lone parents. There was no thought that people should be left trapped on welfare, as the then Work and Pensions Secretary termed it when the Welfare Reform and Work Bill was being debated.

Labour’s policies achieved results. Between 1997 and 2010, the employment rate for lone parents with dependent children in the UK increased from 45% to 57%. That cross-Government approach has long since been discarded by the Government. The Child Poverty Unit set up to oversee it has been dismantled, and renaming the Social Mobility and Child Poverty Commission “the Social Mobility Commission” in the Act, thus excluding child poverty, says much about the purpose of that Act.

All four members of the board of the Social Mobility Commission stood down in December in protest at the lack of progress in creating a fairer Britain, including Baroness Shephard, deputy chair of the commission and a former Conservative Education Secretary under John Major. Will the Minister tell us his Department’s assessment of what contribution the Act has made to social mobility?

In February, the End Child Poverty coalition published new figures that showed that more than 50% of children in some constituencies are growing up in poverty and that 4 million children are in poverty after housing costs are taken into account. The Government claim their figures show that child poverty is actually decreasing, but they do not have up-to-date figures. The End Child Poverty coalition figures compiled by Loughborough University are for 2017-18, yet the Government’s official figures, to be published tomorrow, will cover only the year before, 2016-17. That time lag is important because, although the benefits freeze came into effect in April 2016, other parts of the Act that are likely to lead to an increase in child poverty, such as the two-child policy, were introduced only in April 2017, and so we have yet to see the full impact of them.

[Neil Gray]

Will the hon. Lady give way?

[Margaret Greenwood]

No.

The main provider of food banks in the UK, the Trussell Trust, has highlighted that food bank referrals have risen by 30% in areas after the full service has been introduced. The EHRC report published last week estimated that 1.5 million children will be living in poverty by 2021-22 as a result of tax and benefit changes, and the Institute for Fiscal Studies predicted in November that the proportion of children growing up in poverty is expected to rise from 30% in 2015-16 to 37% in 2021-2022. It really is time the Government listened to the informed opinion that is available out there.

The two-child limit on new claims for child tax credit and the child element in universal credit is one of the most controversial and, to my mind, one of the most offensive parts of the Act. The idea behind it seems to be that people claiming social security should have to think twice before having larger families, but in the real world unplanned pregnancies happen to people, and people might be unexpectedly made redundant having planned a larger family. Moreover, we should value children and not see them as a burden.

Faith communities are especially concerned about the two-child policy because, for many people of faith, reproduction, use of contraception and family size are determined by beliefs. The policy would originally have also covered children born as a result of rape. The Government were forced to back down, but the exemption still requires a woman to disclose sexual violence, which we know many women understandably find extremely difficult because of, for example, the trauma that they have experienced, a need to protect themselves and perhaps their children, and a fear of the perpetrator.

Someone claiming the exemption must also not be living with the person responsible for the sexual violence. Again, we know that women can be at severe risk at the point when they leave an abusive relationship. It should be the woman who has suffered abuse who decides when that should be. She should not be pushed into doing so at the wrong time by the DWP. The Government have not told us how many people have been affected by the two-child policy or how many have claimed exemptions, even though the policy has been in operation for almost a year now. Will the Government publish those figures and abolish the rape clause, which requires women who want to claim the exemption to prove that they have been a victim of sexual violence? Will the Government abandon the disgraceful policy that treats one child as though they were somehow worth less than another?

In a little over a fortnight, support for mortgage interest will be turned from a benefit into a loan. The Government have left it so late to contact people claiming SMI that at the beginning of March more than half of claimants—53,500 out of 110,000—had still not received a follow-up phone call to the initial letter sent out by the DWP. The delay echoes the fiasco of the pension changes affecting women born in the 1950s, where again people were not given enough time to prepare. Forty-one per cent. of people claiming SMI are pensioners. Turning it into a loan risks pushing them into poverty.

[Neil Gray]

rose—

[Margaret Greenwood]

The Government have made it difficult to trace the overall impact of the Act with all its complexity because they have failed to publish a cumulative impact assessment.

[Neil Gray]

rose—

[Mike Gapes (in the Chair)]

Order. It is quite clear that the hon. Lady is not giving way. She is coming to the end of her remarks, so I will be grateful if people do not try to intervene when it has been made clear that she is not giving way.

[Margaret Greenwood]

Even the impact assessments for each part of the Act are out of date. Civil society organisations such as the IFS, the Resolution Foundation and the Equality and Human Rights Commission have done the hard work and the evidence is damning. If the Government do not like the figures that other organisations publish, they should make sure they publish their own and that they are up to date. The Act uses language such as fairness to working households, a sustainable welfare system and life chances, but it is punitive, not progressive. The groups hit time and again by the Act are those most at risk of poverty: lone parents, larger families and disabled people.

Scottish Welfare Powers

Margaret Greenwood Excerpts

Tuesday 20th March 2018 Westminster Hall

[Margaret Greenwood (Wirral West) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Rosindell. I welcome this debate, and I thank the hon. Member for Ayr, Carrick and Cumnock (Bill Grant) for securing it.

It is important that we debate the impact of the Westminster Government’s cuts to the social security system in Scotland and the whole of the UK. Although the Scottish Government’s response takes steps in the right direction, is not without problems. I pay tribute to my Labour colleagues in Scotland who have worked hard and continue to do so to ensure opportunities are not missed in the Social Security (Scotland) Bill, as my hon. Friend the Member for Glasgow North East (Mr Sweeney) said powerfully. They have used every opportunity available to them to improve the legislation, but we are concerned because, for all the Scottish Government’s warm words, progress has been slow.

I will not go through every aspect of the Bill, because many have been discussed today, or the powers available to the Scottish Government, but I want to raise some key issues that we need answers to. The previous Labour Government strengthened the social security net to lift 120,000 children and 110,000 pensioners in Scotland out of poverty, but ground has been lost since Labour left office. More than one in four children in Scotland now live in poverty.

The Westminster Government’s decision to limit the cap on uprating to 1% from 2013-14 to 2015-16, and the subsequent freeze on the majority of social security payments, have caused low-income households to suffer a significant deterioration in the adequacy of social security support. The freeze to payments and support is having a detrimental impact on millions of people on low incomes across the UK. Inflation has more than doubled in the past year. It hit 3.1% in November, and it is now at 2.7%. Meanwhile, food inflation is at 3.3%. The Child Poverty Action Group states that

“the failure to uprate benefits in line with inflation is the single biggest driver behind child poverty.”

Will the Minister explain why the Government refuse to listen to CPAG and many other expert charities and organisations, and why they will not end the freeze?

I want to see the uprating of social security support both in Scotland, via the powers given to the Scottish Government in the Social Security (Scotland) Bill, and in the rest of the UK. Unfortunately, the Government here have refused to do that, but the Scottish Government still have the opportunity to take action.

[Danielle Rowley (Midlothian) (Lab)]

Does my hon. Friend agree that the Conservative Government’s handling of welfare changes has been absolutely shambolic, and that the SNP Government in Holyrood have dragged their heels? At the centre of this are people, and the finger pointing on display here does nothing to reassure them.

[Margaret Greenwood]

My hon. Friend makes a really important point, but I am so short of time.

In Scotland, some 50,000 households with three or more children are in receipt of tax credits. From April 2017, families no longer received support through child tax credits or universal credit for any third or subsequent child born on or after that date. That also applies to new UC claims. On top of that, the abolition of the family element of the child tax credit for all families whose third child is born after the April 2017 deadline will affect thousands of families who will lose £545 a year. Yet in Scotland the SNP blocked Labour’s plan to introduce a child benefit top-up of £260 each year, which would have lifted 30,000 children out of poverty. After housing costs, 26% of children in Scotland were living in relative poverty in 2015-16—approximately 260,000 children. Does the Minister think that is acceptable? Why does he refuse to act?

On top of that, the switch to universal credit will cause up to 100,000 families in Scotland who are currently in receipt of housing or council tax benefit to lose an average of £1,196 a year in state support for childcare costs. Universal credit is clearly not fit for purpose, so why does the Minister refuse to pause the roll-out and fix the problems to make the system work?

Members have spoken about the flexible payment system, which is important—we have been calling for one for the rest of the UK—and the system of split payment. I would be grateful if the Minister explained to us whether there are any practical reasons why split payments cannot be the default position. There is a great deal of concern about the impact that the current system has on the safety of people living in situations of domestic violence.

Labour has long campaigned for the abolition of the bedroom tax right across the UK, so we welcome the Scottish Government’s action to mitigate its impact. Like the bedroom tax, the imminent changes to support for mortgage interest is another Conservative policy that will hit those on low incomes. Right now, 11,000 people in Scotland who rely on the current scheme have little more than a month to decide whether to take out a loan or pay for the shortfall. I am eager to hear what the Minister has to say about that devastating yet avoidable change. Will he delay the impending changes and review the impact of the options before him?

We welcome the Scottish Government’s agreement with Labour that the new social security agency in Scotland should have a duty to ensure take-up, but we should go further. Will the Minister commit to considering a duty for the rest of the UK? We need a social security system that is reliable, is there for us in our time of need, and provides support should any of us become sick or disabled, or fall on hard times. I am interested to hear how the Minister intends to address that in the light of the changes his party is pursuing.

[The Minister for Employment (Alok Sharma)]

It is an absolute pleasure to serve under your chairmanship, Mr Rosindell. I congratulate my hon. Friend the Member for Ayr, Carrick and Cumnock (Bill Grant) on securing this debate on a key issue for the citizens of Scotland.

We have had an incredibly spirited debate, in which a range of views have been expressed. Of course there have been disagreements, but that demonstrates, as my hon. Friends the Members for Ochil and South Perthshire (Luke Graham) and for Berwickshire, Roxburgh and Selkirk (John Lamont) noted, that ultimately we all care about our constituents and want to do the best by them. That is why we need to work together, across all parties, to ensure that we deliver for the people of Scotland.

[Margaret Greenwood]

Will the Minister give way?

[Alok Sharma]

No, I will not, if the hon. Lady does not mind. A lot of comments have been made, and I want to deal with them.

The devolution of welfare powers represents a considerable and positive change, but it will require strong collaboration and co-operation from all sides if it is to be a success. The hon. Member for Airdrie and Shotts (Neil Gray) asked about the UK’s commitment. I can tell him that we have set up and resourced dedicated teams to lead on Scottish devolutions; we have shared—and we continue to share—our learnings and experience with the Scottish Government; we have run more than 100 workshops and operational visits; and we have shared many hundreds of pieces of information. We are absolutely committed to working in partnership with the Scottish Government to ensure a safe and secure transfer of the welfare powers for which they now have responsibility.

Scotland is an integral part of the United Kingdom, and our economic and welfare reform policies recognise that. Unemployment in Scotland is at a near historic low, which we should all welcome, and more people see greater security in retirement. Following the decisive result of the 2014 independence referendum and the ensuing Smith commission, we are delivering on the promises we made to people in Scotland by devolving £2.8 billion in welfare powers.

Women and Work

Margaret Greenwood Excerpts

Wednesday 14th March 2018 Westminster Hall

[Margaret Greenwood (Wirral West) (Lab)]

It is a pleasure to serve under your chairmanship, Sir David. I congratulate the hon. Member for Redditch (Rachel Maclean) on securing this really important debate and on her wide-ranging speech. It is clear from the contributions we have heard that we are all aware of the importance of equality, to put it in a nutshell, and I thank the hon. Member for Edinburgh North and Leith (Deidre Brock) in particular for giving such a thorough account of all those contributions.

It is hard to believe that until 1946 a marriage bar prevented married women from joining the civil service, and women civil servants had to resign on marrying unless they were given an exemption. It is even harder to believe that the Foreign Office did not remove that bar until 1973. Although we have come a long way in some respects, the continuing gender pay gap, the greater prevalence of zero-hours contracts among women, and the Weinstein scandal remind us how limited progress has been in others.

Women born in the 1950s have lived through major changes in the workplace. They should have the right to a decent pension, but instead their state pension age was changed without sufficient notice for them to prepare properly. Labour would extend pension credit to the women affected and allow them to retire at 64 on a reduced state pension, rather than wait until 66, if they chose to do so. Will the Government act, even at this late stage, to give women born in the 1950s justice?

Many Members mentioned the gender pay gap. It was of course a Labour Government who passed the Equal Pay Act 1970, following the brave fight for justice by Dagenham women who were employed sewing car seat covers. It is less well known that a factor behind the introduction of that Act was the expectation that the UK would soon accede to the European Economic Community, so UK legislation needed to be in line with the treaty of Rome, which requires that men and women receive equal pay for equal work. That helps to illustrate why the Opposition have fought so hard to amend clause 7 of the European Union (Withdrawal) Bill, which was designed to give the Government the power to amend by statutory instrument, primary legislation such as the Equal Pay Act.

The gender pay gap has narrowed over time, but it remains more than 9% for full-time employees and more than double that—18.4%—for employees overall. Men are more heavily represented in highly paid occupations: 72% of chief executives, 70% of managers and directors, and 92% of people in skilled trades are men. For example, easyJet reported a gender pay gap of just under 52%. The main reason for that is that most of the airline’s pilots are male and the average salary for a pilot is £92,000 a year, but more than two-thirds of easyJet cabin crew are women and the average salary for that job is £25,500. Women far outnumber men among health and social work professionals, yet the gender pay gap in that sector is nearly 19%. Some 58% of students accepted on to medicine and dentistry courses in 2016 were women, but only around 16% of consultant surgeons were. Paediatrics was the only specialty where more than a quarter of consultants were women. In contrast, in 2016 only around 11% of registered UK nurses were male.

Companies with more than 250 employees are required to complete a gender audit of pay by April 2018, but the legislation has no teeth. They are not required to do anything about their gender pay gap: the only sanction they will suffer is reputational damage, significant though that may be. Will the Government introduce tough new rules, as Labour would, to fine companies with large gender pay gaps that do not take action to close them?

Another part of the explanation for the overall gender pay gap is that, in general, a far higher percentage of women than men are in part-time employment. Part-time work tends to be paid less well than full-time work, and it offers fewer opportunities for progression. At the last count, 42% of women in employment were working part time, compared with 13% of men—more than 6 million women, compared with 2.25 million men. That difference is especially marked from the age of 30 onwards. That no doubt reflects the fact that women still overwhelmingly play a greater role in bringing up children, caring for other family members and doing household work. Among people over 30, the percentage of men who work full time is around a third higher than the percentage of women. The gender pay gap also rises among older age groups: it is around 2% for full-time workers in their 20s and 30s, but increases to nearly 14% for full-time workers aged 40 to 49.

Those figures should not be allowed to disguise the reality that part-time and flexible work can still be difficult to find. Since last April, mothers whose youngest child is aged three, rather than five as previously, have been required to look for work if they are claiming social security. Many mothers with very young children want to work, but affordable childcare that fits around work is extremely difficult to find in a lot of places, as is work that fits with childcare. Under universal credit, childcare costs have to be paid up front and then reclaimed, which is not the case with tax credits. That is a major outlay for parents, who would not be claiming universal credit unless they were on a low income in the first place. Citizens Advice has also highlighted problems with the online system for universal credit, which does not accept receipts for childcare unless they are in a specific form. Can the Minister assure us that those problems have been resolved?

A study by Gingerbread of employment opportunities for single mothers found that very few part-time jobs were advertised on the Government’s own job search portal, which all jobseekers are required to register with. Will the Government ensure that the claimant commitments of parents of very young children—in particular single parents—reflect the availability of childcare and part-time work?

Women are more likely than men to be on a zero-hours contract: 3% of women in work are on one, compared with 2% of men. They are also more likely to be in temporary work: 5% of women are, as opposed to 4% of men. Insecure work can have different implications for women. Caring responsibilities are difficult to fit in with insecure work, because a parent or carer may not be able to drop everything at short notice for a shift. Will the Government take action to ban exploitative zero-hours contracts, as Labour would?

In her Mansion House speech on 2 March, the Prime Minister said that the UK would

“not engage in a race to the bottom in the standards and protections”

of workers’ rights. We should be far more ambitious than that. The EU is looking to extend those rights by, for example, requiring employers to give workers on zero-hours contracts a written statement of their pay rates and expected hours of work. Will the Government ensure that they match such advances in employment rights, so that UK workers do not have less protection than workers in other parts of Europe after we leave the EU?

The Government estimate that universal credit will bring as many as 1 million people under in-work conditionality by the time it is fully rolled out, which means that people who are in work but on a low income will be asked to increase their hours. However, some sectors, such as retail, where women workers are heavily represented, tend to offer extra hours at weekends or evenings, which are much more difficult to fit around caring responsibilities than daytime hours during the week. What assessment have the Government made of the impact of in-work conditionality on the number of women at risk of being sanctioned?

There is also evidence that women on zero-hours contracts or in temporary work may be at a higher risk of sexual harassment at work, because there is a greater power imbalance between an employer and someone who does not have a permanent contract. Women in that situation may be more reluctant to report harassment, for fear of losing out in future on work that they desperately need, and there may not be a proper HR structure for people to report abuse. In 2014, an employment tribunal imposed £19,500 damages on an employer in a case of that kind. The level of those damages in part reflected the employer’s failure to follow up the complaint, but the tribunal also gave weight to the fact that the employee was on a zero-hours contract and so could be said to be more vulnerable.

It is illegal to treat women less favourably at work as a result of pregnancy or maternity leave. Statutory rights to maternity leave and maternity pay were first introduced in 1975 under a Labour Government. While it is true that domestic legislation predated European directives in this area, European legislation has also led to the extension of rights, such as improvements in the safety and health at work of pregnant workers, and workers who are new mothers. Here again, will the Government ensure that workers in the UK do not come to have lesser rights than their European counterparts as European legislation develops in the area of parental leave?

Rights are one thing; the exercise of those rights and enforcement is just as important. A survey for the TUC shows that one in 10 women found that when they returned to work, they were given a more junior position. In the five years from 2008 to 2013, more than 9,000 women brought tribunal claims on the grounds of unfair dismissal or unfair treatment as a result of pregnancy. It may be even more common than those figures suggest, as many women may not be aware of their rights or simply decide it is too much trouble to fight against discrimination.

Pregnancy and maternity claims fell by one quarter following the introduction of fees, which highlights how important a factor fees were in dissuading people to fight for their rights. Labour pledged to abolish tribunal fees at the last election, and thankfully the Supreme Court ruled in July 2017 that fees were illegal. Statistics published a few days ago show that in the six months after that judgment, the number of employment cases overall taken to a tribunal rose by 100%—although that increase is on a number reduced as a result of fees. Even so, a senior employment lawyer at the solicitors Kingsley Napley recently highlighted that the system is struggling to cope with the increase, as funding for tribunals was cut in the wake of the introduction of fees. At London South tribunal, for example, current estimates are that the parties in a discrimination case that may last two or three days will have to wait until late this year or early next year for it to be heard. The basis of the Supreme Court judgment was that fees impeded access to justice, but so does excessive delay. Will the Government ensure that the tribunal system is properly resourced?

What of the future? As has been said, since 2010 more women than men have started apprenticeships, which is a sign of positive change. A major factor in that was the announcement in 2009 by the last Labour Government of 50,000 new social care apprenticeships and more than 5,000 apprenticeships in the NHS.

[Sir David Crausby (in the Chair)]

Order. I think the Minister needs a chance to reply.

[Margaret Greenwood]

May I finish my speech?

[Sir David Crausby (in the Chair)]

Very quickly.

[Margaret Greenwood]

My final line is that we must fight for equal rights at work, because they are essential if we are to have an equal society.

Child Poverty: London

Margaret Greenwood Excerpts

Thursday 22nd February 2018 Westminster Hall

[Margaret Greenwood (Wirral West) (Lab)]

It is a pleasure to serve under your chairmanship, Sir Henry. I congratulate my hon. Friend the Member for Mitcham and Morden (Siobhain McDonagh) on securing such an important debate.

I have been struck by the passion and clear sense of all the speeches we have heard from Members championing the need to improve the situation of those in poverty. From the stories my hon. Friend told about some of the impacts, I think we will all remember the image of children guarding their school dinner plates with their arms to stop other people taking their food. That is horrific, given the scale of wealth in this country. She made a powerful and moving speech.

I also draw particular attention to the speech by my right hon. Friend the Member for Enfield North (Joan Ryan), who, along with my hon. Friend the Member for Westminster North (Ms Buck), talked about her pride, which I share, in the last Labour Government’s record in lifting 1 million children out of poverty. I also draw attention to the passion of my hon. Friend the Member for Westminster North, which was also touched on by my hon. Friend the Member for Hammersmith (Andy Slaughter), in talking about how such extreme wealth can sit next to such poverty, and the image that people from outside London have of it.

The debate was prompted by the release of disturbing new statistics by the End Child Poverty coalition, which show that, in some parts of London, more than half of children are now growing up in poverty; in Bethnal Green and Bow it is 54%, and in Poplar and Limehouse it is 53%. The Minister questioned those statistics at the last Work and Pensions questions. I suggest that Government Ministers are in no position to do that, given the Government’s reluctance to publish up-to-date figures on a wide range of social security issues. The coalition Government only agreed to continue to publish data on child poverty at all after being pressured by the Opposition and voluntary organisations working in the field.

However, even the Department for Work and Pensions’ statistics on child poverty show that London has the highest rate of child poverty of any part of the UK. According to DWP figures, 37% of children in London are growing up in poverty after housing costs are taken into account. The Institute for Fiscal Studies estimates that current Government tax and benefit policies will see that rise to 41% over the next two years.

Although the rate of child poverty is highest in inner London, it is clear that child poverty is a London-wide problem. For example, some 45% of children in Edmonton are growing up in poverty, as well as 40% in Enfield North and 37% in Croydon North. It is not only the geographical spread that is the problem but the severity of the child poverty. In 2016-17, 40,000 children in London received helped from food banks, according to the Trussell Trust, which is of course the largest but by no means the only provider of food aid in the UK. The latest figures for this year show a similar level of need.

Free school meals ensure that children in families on low incomes get one hot meal a day, which is vital for their wellbeing and ability to learn. The Labour party would introduce free school meals for all primary school children and all secondary school children whose families claim universal credit. Under Government plans, children in families that claim universal credit will no longer be eligible for free school meals if their families earn more than £7,400 a year, which is such a small sum of money that it is difficult to understand how the Department could come up with that policy. Will the Government step back from introducing a cliff edge for eligibility for free school meals?

Many speakers have highlighted the significance of the high housing costs in London; it is something that those of us who do not live in London find quite astonishing. Last September, the median private rent in London for a one-bed property was £1,250 a month, compared with £595 for England as a whole. The level of private renting is at its highest since the 1970s, and private sector rents in London are more than double the average for England as a whole.

Over the past five years, the cheapest fifth of private rents have increased faster than rents in the sector overall. Although the number of children in social housing living in poverty has risen in recent years, the number of children in private rented accommodation living in poverty tripled over the decade up to 2015-16, by which point more than half of all children in private rented homes were living in poverty.

Seven in 10 households in temporary accommodation in England are in London, and more than 80% of them are households with children. Those children have no security in where they live. Levels of overcrowding in London are more than twice as high as the rest of England, and the rate of overcrowding is especially high for ethnic minority households. That means that children may not have the space to play or the peace and quiet they need to do homework. If there are family tensions, it is harder still for children to escape them.

Just 29,000 homes of all types were built in London per year between 2013-14 and 2015-16, and only 24% were —apparently—affordable, which is down 10% on the previous three years. No homes for social rent were built in London in the current Foreign Secretary’s last year as Mayor of London. The current Mayor has set a target in his London plan of 65,000 new homes a year, half of which will be affordable. He also wants to redefine “affordable”, as the current definition of 80% of market rate is beyond all too many people, as many Members have said.

Government funding for affordable homebuilding in London is still less than half the amount spent in 2009-10. The Chancellor announced an additional £2 billion for affordable housing in the Budget, but the Office for Budget Responsibility later revealed that that came from existing housing pots. The Mayor has called for £2.7 billion a year to fund affordable housing in London. Will the Government ensure that he gets the funding he needs to meet London’s housing need?

High London rents mean low-income families are likely to face a shortfall between their housing benefit and their rent. However, the Government have not only failed to back new homebuilding but also cut local housing allowance for private sector tenants in 2011, and then introduced the benefit cap in 2013, which they lowered further in 2016. Will the Government abolish the benefit cap, as Labour would?

In 2013, the Government also replaced council tax benefit with council tax support. Even families with very low incomes are now generally expected to pay some council tax. In 15 London boroughs, 200,000 low-income residents paid, on average, at least £200 more a year towards their council tax than they would have if they had received council tax benefit. Will the Government recognise the pressure they are putting on the finances of families on low incomes and act to restore council tax benefit?

The result of sharply rising rents and less help with housing costs is that low income families are more at risk of losing their homes, which causes misery, for families with children in particular. The total number of eviction orders rose in the five years to 2015-16. Possession orders, rather than mortgage orders, made up 97% of the total eviction orders in that year. High eviction rates are occurring in boroughs with high proportions of families with children living in the private rented sector and receiving housing benefit. Nine of the 10 boroughs with the highest eviction rates are in outer London.

The long waits that universal credit claimants experience for initial payment put them at particular risk of eviction. Increasing numbers of families with children in the capital are claiming universal credit as the full service is rolled out. There is clear evidence from the Residential Landlords Association that landlords are also increasingly reluctant to let to universal credit claimants in the first place.

The Government announced the removal of the waiting period and said that they would make it easier to get an advance, but they refuse to publish regular statistics on timeliness or advances. I had to table a written question in January to find out that, even under the old system of a six-week wait, one fifth of claimants were still not being paid in full on time, and 13% were not receiving any payment at all. The Government would not say how many people had requested an advance, so although more people are getting them, we do not know the extent of the need.

The Minister questioned the End Child Poverty coalition’s statistics. Since the Minister sets such store by accurate figures, will he give a commitment to publish regular statistics on the timeliness of payments and on how many people both request and receive an advance, so that we know whether the changes the Government introduced are making a difference?

The Government do not publish statistics on households affected by the two-child policy either. Will they commit to doing so? That policy will have a particularly severe impact on some religious communities, where reproduction, use of contraception and family size are determined by beliefs, and where culture is also a factor. Those communities are important parts of London’s population, and some of them, such as the Bangladeshi communities in Tower Hamlets and Newham, are located in areas of high child poverty. A couple may well have planned a large family, then found that their circumstances have changed and that they need to receive social security. Will the Government reverse the pernicious two-child policy?

The Government’s stock answer when called to account on child poverty is that work is the best route out of poverty. Yes, it is better to be in work, but work should pay. That was supposed to be one of the foundations of universal credit. However, cuts to universal credit work allowances will hit families on low incomes hard. It is the case that 58% of people in poverty in London are in a family in which someone is in work; that is up from 44% a decade ago. And 17% of people in in-work poverty live in a household in which all the adults work. During the past decade, average weekly pay in London has fallen. In 2016, just over one fifth of workers in London were low paid, compared with 13% in 2005. There is a range of reasons for that, not least a rise in insecure employment. One third of temporary workers are on a temporary contract because they cannot find a permanent job. The figure is nearly 10% higher than in 2004.

Many parents of very young children want to work, but face the challenge of finding both a job that will fit in with parenting and affordable childcare. A recent Gingerbread study of lone parents in Camden highlighted the fact that very few part-time jobs were advertised on the Government’s own job search portal, with which all claimants have to register. The average cost of childcare in a nursery or from a childminder in London is just over £150 a week—more than £40 a week higher than the average for England.

Child poverty in London is not new. Charles Booth’s maps showing the geography of poverty at the end of the 19th century or Roger Mayne’s photos of 1950s Notting Hill testify to that. However, the End Child Poverty coalition’s statistics are still shocking. Rather than questioning the figures and trying to brush them under the carpet, the Government should react to them by making the tackling of child poverty the priority that it should be.

Motability

Margaret Greenwood Excerpts

Thursday 8th February 2018 Commons Chamber

[Ms McVey]

My hon. Friend raises a good point. This issue unites Members on both sides of the House. The first step is for the NAO to look into the matter, but my hon. Friend’s suggestions seem fair and right, and they are the kinds of points we should pursue.

[Margaret Greenwood (Wirral West) (Lab)]

I congratulate my hon. Friend the Member for Bassetlaw (John Mann) on securing this urgent question. I also thank you, Mr Speaker, for granting it.

The news that the chief executive of Motability Operations Group plc took home £1.7 million last year and that the group is sitting on reserves of £2.4 billion has shocked people around the country. Particularly shocked are disabled people, 51,000 of whom, according to Motability’s own figures, lost access to the scheme last year after being reassessed for their personal independence payment. More than 3,000 were reinstated on appeal, but many lost their car in the meantime.

From Carillion to Motability, excessive executive pay is completely out of hand. With Motability Operations Ltd paid about £2 billion a year directly by the Department for Work and Pensions on behalf of disabled people in receipt of social security support, there are serious questions for the Secretary of State to answer. When did she or her officials last meet with either Motability or Motability Operations Group? The National Council for Voluntary Organisations’ “Report of the Inquiry into Charity Senior Executive Pay and Guidance for Trustees on Setting Remuneration”, published in April 2014, says that charities should include their highest earners in their accounts, regardless of whether they work for a subsidiary company. Does the Secretary of State agree?

Motability Operations Group is sitting on a surplus of £2.4 billion. That is a staggering amount given its VAT exemption from the Treasury, which means that it does not compete on a level playing field.

When the National Audit Office last examined Motability in detail in 1996, it found that the then £61 million reserves

“exceeded the necessary margin of safety”.

What assessment has the Secretary of State made of the current necessary margin of safety, and what assessment has she made of the £200 million annual underspend that has allowed such a large surplus to accumulate? Given that the funding of Motability effectively comes from the taxpayer via social security payments, what assessment has she made of value for money for disabled people who rely on their cars for independence? Finally, value for money for taxpayers is not currently one of the criteria for Motability’s remuneration committee. Does the Secretary of State believe it should be?

[Ms McVey]

The Department has worked closely with Motability to ensure that disabled people get good value for money for the cars that they choose to spend their money on. The Charity Commission, which recently undertook a detailed review of the charity’s financial accounts and its relationship with the non-charitable company Motability Operations, said:

“That review did not identify regulatory concerns about the charity’s governance or its relationship with the commercial company. It is not for the Commission to comment on the pay of the CEO of a large non charitable commercial company. However, we have made clear to the trustees of the charity Motability that the pay of the CEO of its commercial partner Motability Operations may be considered excessive and may raise reputational issues for the charity.”

It also found

“the level of operating capital held by the company in order to guarantee the scheme to be conservative”,

but said that it should be “kept under continuous review.” I would say that that review needs to start again. The Charity Commission should again look into what has happened.

It is the Government who permit disabled people to have a benefit, but where that money is spent is always the choice of the people who receive it. When the scheme was originally set up in the 1970s, with cross-party support, that was deemed the best way forward, but as I said, the NAO must now look into the matter. When I personally looked into it in 2013, I ensured that Motability paid £175 million more to disabled people, and I will continue with that direct action from my new elevated position.

Oral Answers to Questions

Margaret Greenwood Excerpts

Monday 5th February 2018 Commons Chamber

[Kit Malthouse]

As my hon. Friend knows, the child maintenance system was put in place to enable greater co-operation between parents, on the basis that that often results in a much better outcome for children, but there are parents who fail to do that, and for those circumstances, we have invested significantly in the financial investigations unit of the Child Maintenance Service. We will be consulting further on what more we can do to strengthen our enforcement powers.

[Margaret Greenwood (Wirral West) (Lab)]

I welcome the Minister to his place. When the benefit freeze was introduced in April 2016, inflation stood at 0.3%; it is now over 3%, and food prices in December were over 4% higher than a year earlier. A recent study by the Institute for Fiscal Studies showed that one in four of Britain’s poorest households are struggling with problem debt, and new figures from the End Child Poverty coalition show that in some parts of Britain, such as Bethnal Green and Bow in London and Ladywood in Birmingham, over half of children are living in poverty. Their families are no longer just about managing. Will the Government end the social security freeze that is pushing families into poverty?

[Kit Malthouse]

I would advise the hon. Lady to be slightly careful about the statistics she is using. As we heard earlier, there are some particular problems, but in that report in particular there were enormous caveats saying that the measures were not accurate and the numbers not necessarily reliable, particularly on a constituency basis. The Government are committed to a strategy to tackle poverty that involves work, and since 2010 we have 954,000 fewer households in unemployment and moved into work. That is the best thing we can do for their futures.