Oral Answers to Questions

Debate between Margaret Greenwood and David Gauke

Monday 18th December 2017 Commons Chamber

[Mr Gauke]

We should be clear: if people need cash before Christmas, they are able to get it under the universal credit system, which is designed so that they can do that. People trying to discourage claimants from taking an advance, which I am afraid is the tone that we hear too often from the Labour party, are causing unnecessary anxiety for claimants.

[Margaret Greenwood (Wirral West) (Lab)]

The chief executive of the Financial Conduct Authority has recently warned about high levels of debt among young people incurred just by their covering basic household bills such as rent. Young people aged 18 to 21 are not entitled to housing support under universal credit. Why did the Government ignore a Social Security Advisory Committee recommendation that young people on the edge of care should be exempted from that?

[Mr Gauke]

As the hon. Lady will be aware, there are a whole host of exemptions that do allow 18 to 21-year-olds to access housing benefit, if those exemptions apply to them. I have to come back to this point, which the Labour party does not seem to accept: the best way in which we can sustainably lift people out of poverty is to have a welfare system that encourages them to work and to progress in work. That is what universal credit does and it is what the legacy system failed to do, which is why we are making these changes.

Oral Answers to Questions

Debate between Margaret Greenwood and David Gauke

Monday 13th November 2017 Commons Chamber

[Mr Gauke]

My point was that the Scottish Government are delivering universal credit differently and in a way that I think is worse than the situation in England and Wales. The point about universal credit is that it will help people into work. I will give one brief example: I heard of an account last week of a single mother on income support not previously able to claim for her childcare costs but now able to do so under universal credit. She is taking up a job, working eight or nine hours a week, which she could not do previously—a first step on the ladder. That is an example of what universal credit is delivering.

[Margaret Greenwood (Wirral West) (Lab)]

A recent report by the Resolution Foundation using new data based on bank transactions shows that 58%—the majority—of new claimants moving on to universal credit as a result of leaving employment in the last year were paid either fortnightly or weekly in their previous job, which is a far higher percentage than in the economy on average, where about one in four of all jobs is paid fortnightly or weekly. The Government should ensure that no claimant has to wait more than 10 days, so will they end the six-week wait and ensure that universal credit mirrors the world of work for those who claim it?

[Mr Gauke]

Universal credit is replacing tax credits, and under tax credits 57% of claimants are paid monthly and 12% four-weekly—nearly 70%—so if we are to have a system that works for everybody, it has to be a monthly system.

Oral Answers to Questions

Debate between Margaret Greenwood and David Gauke

Monday 9th October 2017 Commons Chamber

[Mr Gauke]

We must constantly learn from experience—this is about testing, learning and improving. We must ensure that awareness of the advances system is high, and clearly that has increased in recent months. My hon. Friend makes a point about jobcentre staff, and my experience of meeting such people up and down the country is that they are enthused by what universal credit can do for claimants to help them to get into work.

[Margaret Greenwood (Wirral West) (Lab)]

Twenty-four per cent. of new universal credit claimants wait longer than six weeks to be paid in full. Only one advance payment is allowed for a new universal credit claim, and the maximum award is 50% of the claimant’s estimated benefit, so how will advance payments really prevent families from getting into debt while waiting for their first universal credit payment?

[Mr Gauke]

The timeliness of payments has improved since the figures that the hon. Lady cites were compiled, and we continue to improve it. As I have said, 90% of claimants receive some support within the six-week period. Advances are an important part of the system to ensure that people get the support they need. It is incumbent on all of us not to worry people that they will be left without any support whatsoever, but to draw their attention to the fact that they can access funds when they need to—generally waiting no more than five working days or, if necessary, receiving them straight away.

[Margaret Greenwood]

According to the Trussell Trust, food bank referrals have increased at more than double the national average in areas where the universal credit full service has been rolled out. Does the Secretary of State agree that the social security system should prevent people from having to visit food banks, rather than exacerbating need?

[Mr Gauke]

We are very keen to ensure that the advances system means that people can access funds so that they do not have to visit food banks. In recent months we have seen an increased use of that system, because we have done more to publicise it, and I want to go further on that. I think that is an important part of a system that, when we step back and look at it, is ensuring that more people are able to work and to progress in work, and that should not be forgotten.

Jobcentre Plus: Closures

Debate between Margaret Greenwood and David Gauke

Thursday 6th July 2017 Commons Chamber

[Margaret Greenwood (Wirral West) (Lab)]

(Urgent Question): To ask the Secretary of State for Work and Pensions to make a statement on his plans to close Jobcentre Plus offices, and the impact on local communities and Department for Work and Pensions jobs.

[The Secretary of State for Work and Pensions (Mr David Gauke)]

Yesterday’s announcement confirmed the proposals that were published in January. These changes will mean that the DWP will be able to offer a more efficient service, while delivering good value for the taxpayer, saving more than £140 million a year for the next 10 years. Eight out of 10 claims for jobseeker’s allowance and 99% of applications for universal credit full service are now made online, which means that DWP buildings are used much less, with 20% of the estate currently underutilised. Our estate plans must reflect the way customers interact with DWP now and in the future, not how they behaved in the past. I can assure the House that these changes will not lead to a reduction in the number of frontline jobcentre staff; in fact, to continue improving the service provided to customers, jobcentres are actively recruiting in many areas.

These changes are being made in consultation with DWP employees and their trade unions, which will ensure that the important connections that jobcentre staff have with the local community are preserved and customer services can be maintained.

The DWP’s private finance initiative contract with Telereal Trillium expires next March, which gives us an opportunity to review how we deliver our services. We have sought to rationalise our estate in a way that delivers value for the taxpayer and makes best use of the space available, while continuing to deliver vital support to our claimants and enabling the delivery of our reform agenda.

[Margaret Greenwood]

Members will recall that in December last year the Government announced that they were planning to close half the jobcentres in Glasgow. In January this year, they set out plans for further closures, amounting to the closure of more than one in 10 jobcentres across the UK. These closures have the potential for the loss of up to 750 jobs. Yesterday, the Department announced via a written ministerial statement that just six of the original 78 jobcentres earmarked for closure will remain open, and only 11 of the 80 planned to co-locate with local authorities have been given a reprieve. Two additional jobcentres that were to stay open have been added to the closure list.

The impact of the closures will undoubtedly be felt most by the poorest and most vulnerable in our society. By closing such a large proportion of the DWP estate, the Government would be forcing claimants to travel further to access the vital services that they need, thus having an impact on the lives of sick and disabled people, carers and parents with young children, so will the Minister commit now to publish the equality analysis on each site that is being closed? Currently these are secret, and they should be made public. Furthermore, the Government plan to subject an additional 1 million claimants to in-work conditionality, a process under universal credit by which people in work may be required to attend jobcentres. What assessment has the Minister made of the impact on demand for jobcentre services as a result of increased in-work conditionality?

The decision to close jobcentres on this scale at the same time as accelerating the roll-out of the universal credit full digital service makes no sense. It is simply not good enough to quote figures about online claims to justify closure plans. Universal credit will place other, new demands on staff, who will, for example, have to assess whether self-employed people claiming universal credit have a viable business plan. What assessment has the Minister made of the increased demand placed on jobcentre staff as a result of the roll-out of universal credit?

Finally, the closures will have an impact on jobs within the DWP. Will the Minister outline the number of jobs that will be lost as a result of these closures, among frontline jobcentre staff and in the corporate centre sites as a result of the new “hub strategy” for the corporate centre? The Government must immediately pause these closures to allow proper scrutiny of their plans.

[Mr Gauke]

I shall begin with the hon. Lady’s first point about Jobcentre Plus staff. The reality is that in every nation and region there will be an increase in the number of jobcentre staff, from the beginning of the process to its end. Job numbers are going up, particularly as we roll out universal credit. She talks about 750 job losses, but only a small minority of them are likely to be redundancies among frontline jobcentre staff. She asked how many; we are probably looking at a range of 80 to 100 or so—I do not want to be too precise about that, but that is the maximum we are looking at, and we hope to be able to bring it down.

The fact is that the reforms take account of the changes in the welfare system resulting from the rolling out of the universal credit full service. It is absolutely right that we make use of the fact that it is the end of a contract and take the opportunity to find savings. We are talking about taxpayers’ money. We can find savings in the DWP’s estate and, at the same time, provide modern, up-to-date jobcentres that provide the service that is needed. That is the right thing to do. I am disappointed that the Labour party is going to stand against the careful and sensible use of public money, which is exactly what the Government are delivering.