(5 years, 5 months ago)
Commons ChamberI thank the Secretary of State for advance sight of her statement.
Universal credit was meant to simplify the social security system. In fact, it is deeply flawed, and has caused real hardship to so many people across our country.
In March, the Secretary of State shockingly announced her intention to pilot managed migration even before she had secured approval from Parliament. Now she has left it to the eleventh hour to bring these regulations to Parliament. Managed migration is deeply controversial. The Government’s original intention to send nearly 3 million people a letter saying that their benefit would stop on a particular day, and that they would have to apply for universal credit, shifted the responsibility for securing essential support for millions of people from the state to the claimant. In so doing, the Government would have risked catastrophic consequences for many of the most vulnerable in our society. Understandably, the plans were met with outrage from many sections of society: how could a Government visit such a plan on the people?
It really is important for these important regulations to be debated on the Floor of the House. The Government committed themselves to doing that on 8 January, when the Minister for Employment, the hon. Member for Reading West (Alok Sharma), said:
“We will…ensure that the start date for the July 2019 test phase…is voted on.”—[Official Report, 8 January 2019; Vol. 652, c. 175.]
Can the Secretary of State therefore guarantee today that the regulations will be debated in full, and voted on in the House? To do any less would be an absolute disgrace.
It is hardly surprising that universal credit is so controversial, given that it has caused so much misery. During the geographical roll-out, we have seen a sharp increase in the number of people where it has been introduced going to food banks. That is a source of shame for the Government. It cannot be right that in one of the richest countries in the world, children are going hungry and their parents are having to seek help from food charities.
In its report “The next stage of Universal Credit”, the Trussell Trust says:
“Benefit transitions, most likely due to people moving onto Universal Credit, are increasingly accounting for more referrals”
to food banks.
In a report published last month entitled “Universal Credit: What needs to change to reduce child poverty and make it fit for families?”, the Child Poverty Action Group says:
“The DWP stated in response to the Social Security Advisory Committee…report on managed migration that”
the Government
“would ‘explore options’ to remove the need for a new claim, so it is disappointing that the regulations put forward for the managed migration pilot do not allow for this by giving the department the power to create claims.”
So can the Secretary of State enlighten us: do the regulations she lays today address that?
The Child Poverty Action Group goes on:
“We understand that officials are reluctant to go down this route but we believe that their concerns are surmountable and do not justify the risks involved in the current proposed approach: that people will be given a deadline for claiming universal credit and will have their legacy benefits terminated if they do not manage to do so on time.”
The Secretary of State says in her statement that the Government do not intend to stop the benefits of anyone participating in the pilot; intentions are all very well, but the regulations we have seen thus far show Government giving themselves the power to do just that, so will she guarantee today that no one will have their benefits stopped?
The Secretary of State says that the Government have revised their approach to claimants entitled to severe disability premium, and that the regulations she is laying today will enable the Government to begin to provide support for claimants who are entitled to severe disability premium and have already moved to universal credit. These are severely disabled people who have had vital financial support cut by this Government, so why is it only now, after months on end, that the Government are going to begin to provide support? What thought has she given to the hardship her lack of action has caused? What assessment have the Government made of the hardship that severely disabled people may have been suffering because of their loss of income? What assessment have the Government made of the impact on the children of the severely disabled who may be asked to take on additional caring responsibilities because of their family’s loss of income? What would the Secretary of State say to the Disability Benefits Consortium, which wrote this month:
“Many disabled people have not yet felt the full extent of the cuts made to welfare benefits, as many have not yet moved on to Universal Credit. When that happens, there will be dramatic increases in the levels of poverty among people who are already at crisis point. It is a disaster waiting to happen”?
The role of any pilot is to justify the whole, yet we know the flaws in universal credit are causing real hardship; the five-week wait and the insistence on making and managing a claim online build in disadvantage to the millions who are deeply disadvantaged already through low literacy levels or lack of access to IT. I note the Secretary of State’s comments on support during the pilot, but that will do nothing to help subsequent claimants. There is also the requirement of monthly assessment periods for the self-employed while their tax assessment period is annual, creating additional expense and administrative costs for that group. The abject failure of the Government on irregular payments means the issue remains unaddressed too, and the stories of people having all their benefits stopped because they are paid twice in one month through no fault of their own are going unheard. The two-child limit is penalising families despite the horrific child poverty statistics, with over 4 million children going without sufficient food, shoes that fit and the security of knowing their families have enough. It is vital that these regulations are debated on the Floor of the House so that all these issues can be addressed.
The hon. Lady is determined to demonise what is a very sensible approach to trying to ensure that universal credit delivers what it is intended to deliver. She has given us a catalogue, as always, of the things that she disapproves of, but let me just highlight the things that are relevant, perhaps, to what we are discussing today.
On the one hand the hon. Lady criticises me for, as she puts it, coming out at the last minute, but on the other hand she asks why this has not been done before. She cannot have it both ways: we are determined to get on with this, which is why I am here today, and which is why I am sticking to what I said we would do, which is to make sure that we come back to the House before the managed migration pilot begins.
Getting support for this measure is incredibly important, which is why we are proceeding by negative resolution. We are doing that—to answer one of the hon. Lady’s questions—because that was the advice we received from the Joint Committee on Statutory Instruments. The benefit of that, which I hope she will agree with, is that we can begin making the payments as soon as possible. She asked why we have not got on with making the payments; on the basis of what we are doing today, we will be able to get on and start that on Wednesday.
The hon. Lady asks particularly about how we will ensure that nobody actually loses their benefits. As I said in my statement, I am absolutely committed to ensuring that the managed migration is handled in such a way that nobody loses their benefits. The numbers that we are dealing with in Harrogate and the support that we are getting from the jobcentre and, happily, from the Member of Parliament my hon. Friend the Member for Harrogate and Knaresborough (Andrew Jones), who is present, will make a huge difference to ensuring that every single person has that positive experience.
I know that somebody—hopefully me—will have the opportunity to come back next year and report on the outcome from this managed migration pilot: getting it right and engaging with stakeholders and making a success of it are going to be absolutely crucial to continuing to build on the success of universal credit.
(5 years, 5 months ago)
Commons ChamberAlthough I recognise the good work that the hon. Gentleman has done in many of these areas, I respectfully disagree. I think that it is right that those elements are held together in one Department. If we look at the results, we are seeing record levels of pensioner poverty—[Interruption.]
I say quickly to the hon. Lady on the Opposition Front Bench that we are seeing the lowest levels of pensioner poverty, as well as the highest levels of employment.
(5 years, 7 months ago)
Commons ChamberI understand where the hon. Gentleman is coming from and his desire to ensure that these people, who are often on very low incomes and in difficult circumstances, are looked after when they first make their application. We believe we have made the right changes to be able to address that, not only with the advance payment, but with the housing benefit run-on that comes after two weeks, which should give them additional funds in order to be able to support themselves. Of course we will also be introducing further run-ons of other benefits from next year. We are improving the ability of people to access money all the time.
The Government’s plans for payments to severe disability premium recipients who lost about £180 a month when they were forced to transfer to UC were found to be discriminatory by the High Court on 3 May. Severely ill and disabled people should not have to fight through the courts for the support they should be entitled to, so will the Government now ensure that people receive payments, as soon as possible, that fully reflect the loss they have suffered?
As the hon. Lady will be aware, my hon. Friend the Minister for Disabled People, Health and Work took an urgent question on this last week and fully answered the questions that many people in the House had. The issue is the access that we put in place through a gateway and whether it is the right amount—the amount that was paid previously or the amount that is paid subsequently. We have decided that we will consider this before replying in full to the Court.
New research from the Children’s Commissioner found that the introduction of UC, the two-child limit and the benefit cap combined will mean that the number of children in families struggling to make ends meet will almost double in some areas. The Trussell Trust distributed nearly 600,000 emergency food parcels to children last year. When will the Government wake up and once again make tackling child poverty the priority it should be?
Tackling child poverty and poverty in general is absolutely a priority of this Government, which is why we are so focused on ensuring that UC supports people into work as well as providing the necessary safety net. Last week, I made a speech about ensuring that there is additional support for people when they are on low income and finding new ways of getting better access to different skilled work.
(5 years, 8 months ago)
Commons ChamberI thank the Secretary of State for advance sight of her statement.
The figures published today are truly shocking. They highlight the devastating impact of austerity on families throughout the country. It is a national scandal that 14 million people, including 4.1 million children, are living in poverty in one of the richest countries in the world; yet the statement was marked by complacency and denial. As universal credit has been rolled out throughout the country, we have witnessed a sharp increase in food bank use. We are one of the richest countries in the world, and that increase is a source of national shame. We see families unable to feed their children. As a former schoolteacher, I know what it is like when children are hungry in school: they cannot learn, they are unhappy and worried, and they do not want their parents to know how worried they are. It is a scandal that has to be addressed.
In the face of such human misery, we hear the Secretary of State attempt to justify austerity and the Government’s clear political decision to balance the books on the back of the poor and disabled. It is a disgrace. The Joseph Rowntree Foundation estimates that continuing the benefits freeze for a fourth year will mean families will be on average £560 worse off. On 10 January, the Secretary of State said that the freeze was
“the right policy at the time.”
If it is not the right policy now, why is it being continued until April 2020? And why was there nothing in the statement to address that?
In the past, the Government have responded to our criticism of the rises in relative child poverty by saying that it is absolute poverty that matters. Well, we all know that we have to look at all measures of poverty, so what is the Secretary of State’s response to the figures released by her Department today, which show that in 2017-18 the number of children living in absolute poverty before housing costs increased by 300,000, and after housing costs by 200,000? It is truly shocking that the number of people in absolute poverty before housing costs increased by 600,000 in that same year.
Evidence of the crisis in poverty in our country is clear, yet last year the Secretary of State criticised what she said was the political nature of the report by the UN special rapporteur on extreme poverty and human rights, when he delivered it last November. That was a shocking statement—as if somehow poverty has nothing to do with politics. After her own Department’s figures have shown a 600,000 increase in the number of people in absolute poverty in 2017-18, will she now accept that he was simply telling the truth about poverty in this country?
The number of pensioners living in poverty rose by 100,000 in 2017-18, which means it has increased by 400,000 since 2010, under the Conservatives. Will the Government therefore reconsider their plans to force mixed-aged couples to claim universal credit rather than pension credit when one partner has reached state pension age but the other has not? Or are they determined to go ahead and break the Conservative party manifesto promise on that?
The Secretary of State claims that health and wellbeing are being improved. I ask her to think about those on zero-hours contracts. There are individuals with three zero-hours contracts who cannot secure a pension because the different contracts do not meet the threshold. She talks of universal credit as a force for good. That is laughable to those who have studied universal credit and those who are experiencing the misery of it. We have seen delays, five-week waits and an inability to deal with fluctuating incomes, meaning that people on the same income are getting very different levels of benefit from the social security system. When will the Government wake up to the poverty crisis besetting our country and deliver to people the security they need?
It is because we care so much about the changes in poverty that I have come here to make a statement about today’s statistics and to answer questions.
It is because of the Government’s commitment to the triple lock that pensioner poverty is at a near-record low. I gently point out to the hon. Lady that the only reason we are able to fund the triple lock is that this Conservative Government are running a strong economy. A focus on how we deliver benefits, whether to pensioners or working-age people, is absolutely key to being able to deliver those important contributions.
The hon. Lady mentioned the Joseph Rowntree Foundation, but its analysis shows that universal credit will reduce the number of people in working poverty by 300,000. That she continues to attack universal credit shows a fundamental misunderstanding of the changes it brings to people’s lives. I urge her to engage with her jobcentre and speak more to the work coaches and clients. If she does, she will find, as I have, how positive the response to universal credit is. Many people I know are still concerned about it, but in my experience, and that of many other MPs from across the House, once people have engaged with universal credit—once they are on it—they realise it is a much more positive source of income than the previous benefits.
There are many different sources of poverty. One area we have particularly made sure we put more money into is the lowest-income children in schools, because that is a way to bridge the gap between people born into different households. Under this Government, the education attainment gap between disadvantaged pupils and all other pupils at key stage 4 has narrowed by 9.5% since 2011. The pupil premium, which most colleagues will be aware of, is incredibly important for focusing additional funds on pupils on the lowest incomes. This combination of initiatives, funded by this Government, will help to reduce the poverty gap.
(5 years, 10 months ago)
Commons ChamberI thank my right hon. Friend for his support. In his constituency, 21,000 people and 4,290 employers are now auto-enrolled. It is working well in his constituency. In April, we will increase the amount of contribution from employers.
Social security sanctions can be detrimental to the health and wellbeing of claimants, and, in extreme cases, push people into destitution. The Government’s response to the Work and Pensions Committee report was shocking. Apparently, they are only prepared to consider increasing the length of sanctions, not reducing them. What has happened to the concept of compassion? Will the Secretary of State end the Government’s cruel and counterproductive sanctions regime?
I do not recognise the hon. Lady’s description. I have been around jobcentres. I always make a point of speaking to work coaches, asking them about the way they impose sanctions and when. They always say to me that it is a last resort only done after a series of engagements. This is a personal choice that work coaches make. They have a lot of discretion and in my experience they are using it correctly.
(5 years, 11 months ago)
Commons ChamberI think that the hon. Gentleman misunderstands me. I am completely committed to the benefits of universal credit and to ensuring that it remains a force for good, helps people into work and does not repeat the terrible mistakes of the past under Labour and the legacy benefits. The new system will work much better for people, and, with the help of all Members of Parliament, people will find that their jobcentres are enthusiastic about it.
If reports over the weekend are true, it seems that the Government are finally waking up to the potentially devastating impact of their managed migration plans on claimants, over one third of whom will be sick or disabled. Therefore, will the Secretary of State now clarify the situation and what action she will take to address the central flaw in these regulations, which places all the onus on claimants to make a new claim for universal credit or risk losing support if they do not make an application on time?
I am grateful for a second opportunity to clarify the situation. As we announced last year, there will be a 10,000-person pilot this summer that will help us to learn how to be most effective in the managed migration. We have 1.4 million already on universal credit through natural migration and 1.6 million are expected to come on during the next 12 months. Making sure that the managed migration is effective, efficient and compassionate is absolutely central to the success of universal credit, and that will be coming forward in 2020.
Only about one third of households due to be claiming universal credit by the time it is fully rolled out were ever scheduled to transfer under managed migration and so receive transitional protection. Universal credit is being used as a vehicle for cuts to social security and is pushing many people into poverty, rent arrears and food banks. Will the Secretary of State now stop the roll-out?
I would ask the hon. Lady to think again about her approach to universal credit. It is doing a good job. I urge all Members who have not had the opportunity to visit their jobcentres and experience it for themselves—talk to the claimants and work coaches—and above all to compare it to the legacy benefits. If they do, they will see the confusion and complication that was there. Now, with our one simple system, it will be much more straightforward for individual claimants.
(6 years, 1 month ago)
Commons ChamberI would not want to overstate what the hon. Gentleman calls my power, but I am certainly going to be listening very carefully. Part of the benefit of the universal credit roll-out will be making sure we get the expert guidance from the people who have been working in this field for many years, and we will certainly be doing that.
I welcome the Secretary of State on her return to the Government Front Bench.
The report of the UN special rapporteur on extreme poverty and human rights said, when asked about the problems that universal credit claimants are facing, that:
“Government ministers were…entirely dismissive”.
Thus far, the Government have been determined to press ahead with the next phase of the roll-out, despite clear warnings from over 80 organisations working with disabled people who will be affected that many people could fall out of the social security system altogether and be in risk of destitution. Will the new Secretary of State end the Government’s state of denial, scrap the managed migration regulations and stop the roll-out of universal credit?
I have seen the report by the rapporteur—I read it over the weekend—and I must say that I was disappointed, to say the least, by the extraordinary political nature of his language. We on the Conservative Benches will always engage with professionals, experts and non-governmental organisations—we are not so proud that we do not think we can learn as we try to adjust universal credit for the benefit of everybody—but that sort of language was wholly inappropriate and actually discredited a lot of what he was saying. We look forward to working with experts in the area to make sure that we get the right outcome for the people whom we want to look after.
The UN special rapporteur on extreme poverty and human rights said in his report that the rising level of child poverty is not just a disgrace but is a
“social calamity and an economic disaster”,
and that Government policies are locking millions of children
“into a cycle of poverty from which most will have great difficulty escaping.”
According to Joseph Rowntree Foundation research published today, the current freeze on working-age benefits is the single biggest driver behind rising child poverty levels. Will the new Secretary of State end the benefits freeze and make tackling child poverty the priority it should be once again?
Of course, tackling all poverty is a priority for the Department for Work and Pensions, and we know that the best way out of poverty is to make sure people get into work. But more than that, we know that a strong economy will deliver the higher paid jobs, and that is what this Government are going to focus on, and we will listen and engage with non-governmental organisations and others to make sure we can deliver that.
(7 years, 5 months ago)
Commons ChamberI have received that letter and I will be speaking to all the individual leaders of those groups. The issue to which they are drawing attention is that they are under tremendous strain because of the events of the past three months. Additional resources are being deployed in order to work on the ongoing investigations into some of the terror events, including the investigation in Manchester. We recognise that and will work with them to see how we can support them.
The Secretary of State mentioned that there were 20% cuts to fire services across the country. On Merseyside, the figure is much higher. Since 2011, we have lost nearly 300 firefighters —that is a loss of 31%—and a third of fire engines. Both of the only two fire stations in my constituency are closing, which will make the situation less safe for my constituents. Will she look again at the funding for Merseyside fire and rescue service as a matter of urgency?
I would ask the hon. Lady: what are the outcomes in her constituency? What is the level of incidents of fire in her constituency? What work are those bodies doing? I would ask her to first look at the outcomes before coming back for more resources.
My hon. Friend makes a good point. Consumers are sometimes put off from switching not only by the complications that they perceive, but by the length of time it can take. We are working with Ofgem and are confident that it will reach reliable next-day switching by 2018.
My hon. Friend the shadow Secretary of State for Energy and Climate Change recently visited the award-winning eco-house in my constituency, where heating and lighting bills are kept below £100 a year. What action is the Minister going to take to promote carbon-neutral homes?
I thank the hon. Lady for her question. She is right to point out that some fantastic innovations are taking place through private sector business investment to make sure that innovations are delivered in this sector that will help to drive down bills. On zero-carbon homes, I can reassure her that a European Union directive, due to come in by 2020, calls for near-zero carbon emissions, which I believe will help to reduce people’s bills.
(8 years, 11 months ago)
Commons ChamberI beg to move, That the Bill be now read a Second time.
This Government are focused on securing a better future for Britain. As the Chancellor set out to the House in his autumn statement:
“our job is to rebuild Britain...so that we leave to the next generation a stronger country than the one we inherited.”—[Official Report, 25 November 2015; Vol. 602, c. 1357.]
Achieving this vision for Britain means ensuring our energy security.
Our modern society simply could not function without the electricity, oil and gas we use to heat our homes, power our business and industry, and drive our transport system. The wellbeing of our economy and our citizens requires that the first priority of the Department of Energy and Climate Change should be energy security. But no responsible Government should take a risk on climate change either, because it is one of the greatest long-term threats to our economic security.
Order. Before the hon. Member for Wirral West (Margaret Greenwood) intervenes, I should have said to the House, in case people are waiting with bated breath, not least an hon. Member from Brighton, that the amendment, although orderly, has not been selected. I wanted to release the hon. Member for Brighton, Pavilion (Caroline Lucas) from her misery before we proceeded further. We took the view that there was adequate opportunity for her to dilate on these important matters, and I feel sure that she will not disappoint us in that, or any other, regard.
As the Government are proposing to end burning coal in coal-fired stations above ground, will the Secretary of State now clarify their position on underground coal gasification, which involves burning coal underground?
I urge the hon. Lady to participate in the consultation we will be having shortly about the timing of the ending of coal. That would be an ideal opportunity for her to make her point on behalf of her constituents.
The historic agreement in Paris in December is a significant step forward towards reducing, on a global scale, the emissions that cause climate change. For the first time, nearly 200 countries have made a commitment to act together and to be held accountable. This agreement will help protect not just our environment, but our national and economic security.
Our national progress has been good to date, with greenhouse gas emissions down around 30% since 1990. Between 2010 and 2014 the UK’s greenhouse gas emissions fell by 15%, one of the biggest reductions in a single Parliament. Indeed, in 2014 we saw a reduction of 8%, the largest reduction measured in a single year. That is a fantastic achievement against the backdrop of an economy that grew at 2.9%. In June we will be setting the fifth carbon budget covering 2028 to 2032 and by the end of the year we will publish our new emissions reduction plan, on which we are already working with colleagues across Whitehall.
The emissions reduction plan will provide full details of our policy approach, but we already know where we will need to take more action: energy efficiency; a long-term framework for heat; emissions reduction in the industrial sector; and, of course, in transport, where progress has been slow. In all these areas we will need new thinking and we will work with academia and business to develop proper long-term plans.
(9 years, 3 months ago)
Commons ChamberThe hon. Lady is entirely wrong. This Government have a clear plan, and in a way she summed it up in her conclusion. We are committed to ensuring that energy security is at the forefront, to carbon reductions, and above all—a feature that never appears except on the Conservative Benches—to keeping consumer bills down.
2. What steps her Department is taking to promote investor confidence in low-carbon energy generation.