Inequality and Social Mobility

Debate between Margaret Greenwood and Marsha De Cordova

Wednesday 12th June 2019 Commons Chamber

[Margaret Greenwood]

As I explained, I am short of time so, unfortunately, I am not going to give way.

Leaving people to wait for over a month without any income at all, when many may not have any savings, is simply callous, so will the Government end the five-week wait? The Joseph Rowntree Foundation has identified cuts to social security, low pay and high housing costs as key reasons for rises in poverty since 2011. It has said that the benefits freeze, which affects 14 million people on low incomes, is the single biggest driver of rising poverty levels. By the time the freeze is due to end in April next year, the JRF estimates that it will have increased the number of people in poverty by 400,000, but of course, the cuts to social security did not begin or end with the benefits freeze alone. By 2020-21, the Government will be spending £36 billion less each year on working-age social security than they did in 2010.

[Marsha De Cordova (Battersea) (Lab)]

Will my hon. Friend give way?

[Margaret Greenwood]

Apologies—I am short of time so I will not.

That lower spending includes a cut of £5 billion in support specifically for disabled people. The Institute for Fiscal Studies identified the two-child limit as a key reason for the increase in child poverty to a predicted 5.2 million by 2021-22. The Government must wake up to that reality and understand that as a country we have no option: child poverty must end.

When we consider social justice and disabled people, the picture is bleak. A report by the Social Metrics Commission shows that nearly half the 14 million people in poverty live in families with a disabled person, yet the basic disabled child element in universal credit is worth less than half that in child tax credits and there are no disability premiums. The equivalent support under universal credit for people who receive severe disability premium is around £180 a month lower than under legacy benefits.

Research by Scope demonstrates the inequality in living standards that disabled people face, driven by the additional costs that they face for essential goods and services. Social security support should ensure that disabled people can meet these costs and participate as fully as possible in wider society.

The Secretary of State said in a speech in March that she recognised that disabled people often feel on trial when claiming social security, yet she simply proposed merging personal independence payment and employment and support allowance assessments. The MS Society has likened that to

“harnessing two donkeys to a farm cart and expecting it to transform into a race chariot.”

Will she commit to scrapping the existing system of assessments, and replace it with a supportive environment that responds to people’s needs?

The Government repeatedly say that work is the best route out of poverty, yet this is not borne out by the statistics. About two thirds of people living in poverty live in a working household. The UK is second only to the United States in income inequality among the major world economies in Europe and North America. An IFS study in May found that average chief executive officer pay among FTSE 100 companies in the UK in 2017 was a staggering 145 times higher than the average salary of the worker, up from 47 times higher in 1998. This points to a huge social injustice. It cannot be right that those at the top earn so much more than the vast majority of working people.

All too many people are trapped in low-paid, insecure work, unable to pay the bills. In 2018, in-work poverty increased faster than employment, and 4 million workers were in poverty, a rise of over 500,000 over five years. About 840,000 people are on zero-hour contracts in this country, and women and young people in particular are more likely to be in insecure work. Research by the TUC shows that only 12% of people on zero-hour contracts get sick pay, while 43% do not get holiday pay, and they have average hourly pay over £4 lower than those not on zero-hour contracts, yet this Government still refuse to ban zero-hour contracts.

To make matters worse, under this Government employment support is based on the punitive sanctions regime, despite the fact that there is no evidence that it leads to people finding work that lasts and lifts them out of poverty. Shockingly, over 1 million sanctions have been imposed on disabled people since 2010, but there has been little progress in closing the disability employment gap, which is currently at 30%. Are we meant to believe that disabled people deserve this treatment? Clearly, disabled people are being punished by this Government, rather than supported. Young people are more at risk of being sanctioned, but again there is a real question mark over the effectiveness of the employment support they are being offered through the youth obligation.

I now turn to the high cost of housing. It has long been assumed that younger generations coming through would do better than their parents, but that is no longer the case. Millennials are half as likely to own their own home by the age of 30 as baby boomers, and the Office for National Statistics has estimated that about a third of young adults were living with their parents in 2017. How can they forge their own futures and start families of their own in these circumstances?

This Government have decimated the provision of social rented homes. Since 2010, the number of new social rented homes has fallen by over 80%, and the number of people in the private rented sector has increased by over 1 million households. The evidence of a crisis in housing is all around us. Rough sleeping has more than doubled since 2010, and over 120,000 children are recorded as homeless in temporary accommodation. What kind of a start in life is that?

Research has shown that greater equality has a positive impact on wellbeing for all, yet in the UK we see widening inequality and lack of social justice having a devastating impact on individuals, families and communities. We see a failure of this Government to tackle the most serious social problems that successive Labour Governments have sought to address—poverty, homelessness, disadvantage and destitution. This Government’s austerity programme has decimated social security and led to inequality of provision across education, health, social care and housing.

There can be no excuses. We on these Benches call on the Government to end child poverty, invest in social housing and public services and take urgent action to tackle rising inequality and the suffering of millions.

Jobcentres and the DWP Estate

Debate between Margaret Greenwood and Marsha De Cordova

Thursday 20th July 2017 Westminster Hall

[Margaret Greenwood (Wirral West) (Lab)]

It is an honour to serve under your chairmanship, Mr Evans. I congratulate the hon. Member for Glasgow South West (Chris Stephens) on securing what is and remains a really important debate—although we have had it several times already. He spoke powerfully of the intergenerational poverty and deprivation in his constituency. That was a theme picked up by the hon. Members for Inverclyde (Ronnie Cowan) and for Glasgow North (Patrick Grady), and my hon. Friend the Member for Glasgow North East (Mr Sweeney), who spoke of the impact of the closures on some of the poorest in the UK.

There was also a strong contribution from my hon. Friend the Member for Coatbridge, Chryston and Bellshill (Hugh Gaffney), who talked about the impact that the 250 job losses will have on the local economy in his constituency. Members also spoke of the disproportionate impacts on certain groups in society—most notably my hon. Friend the Member for Battersea (Marsha De Cordova), on black and Asian people, and my hon. Friend the Member for Midlothian (Danielle Rowley), on WASPI women.

From the Government Benches, the hon. Member for Ayr, Carrick and Cumnock (Bill Grant) said that there will be pain and that for some people there will be extreme challenges. I ask the Minister to reflect on that.

As we know, the Government have recently confirmed plans to close around one in 10 jobcentres in the UK by March 2018. Public consultations were held on just 30 of the 78 jobcentre closures proposed in January, and only 16 have been reprieved, with three additional closures now confirmed. We understand that 590 jobcentres will be retained, 109 will be closed, and 50 collocations will go ahead. The future of eight sites is still to be negotiated. Yet the Department for Work and Pensions has yet to provide details of when each office closure is to take place, even though some could be as early as this summer. Will the Minister tell us when the first centres are scheduled to close, and which ones they are? People have a right to know. Will he publish the current closure dates planned for each office, so that people can have as much information as possible to make provision as they need to for the change in circumstances?

Jobcentres provide really important services in our communities, offering services that are designed to support people should they be unfortunate enough to lose their jobs or become ill or disabled, as well as for those who have been disabled throughout their lives. It is often said that how a society treats its most vulnerable is a mark of its civilisation. Our social security system is precious and should be there for people in their time of need. However, it appears that the Government are eroding our social security system and failing to pay heed to the needs of individuals and communities, at a time when we face the uncertainties of Brexit, increased job insecurity with 1 million people on zero-hours contracts, a crisis in low pay and the Government’s introduction of in-work conditionality—sanctions for working people, as it is also known.

It is increasingly clear that the impact of the closures on claimants will be considerable and the effect will be most acutely felt by the most vulnerable in our society, such as the chronically sick, the disabled and those with caring responsibilities, along with those with poor or no IT skills. Where, then, are the equality impact assessments for the closures? We have asked for them, but they are still yet to be seen. The Government are disregarding the needs of communities at the very time when the world of work is changing rapidly. The Government are yet to publish the equality analysis for the closures. Can the Minister give an exact date for when the full equality analysis will be published?

The Secretary of State said it is reasonable to ask claimants to travel further to another jobcentre as that is what people in work have to do every day, but he does not take into account the fact that those people have wages to pay their travel fares. People claiming social security are more likely to have a health problem or disability. They are more likely to struggle to travel longer distances, and as a result are at greater risk of being sanctioned for being late. People with children may also find it difficult to travel longer distances. What assessment has the Department made of the impact of the closures on claimants’ travel times, and of the associated costs? Can the Government specify whether the travel time includes those who cannot afford public transport and have to walk?

[Marsha De Cordova]

On the issue of the closures, it would be helpful if the Minister could talk about travel times and set out what mechanisms will be in place to support those with mobility issues or other disabilities, who will have to travel further. What adjustments will be made for those protected groups?

[Margaret Greenwood]

My hon. Friend makes a really good point, and it is important that the Minister responds to it.

What guidance does the Department intend to give staff on sanctioning people who miss an appointment because they have to travel further? We need to be clear about what sanctioning can mean to people. A first sanction means no benefits for four weeks. A second sanction means no benefits for three months. A third sanction means no benefits for up to three years. The system risks forcing people into destitution, crime or suicide, so this is a really important issue.

Let us consider the roll-out of the full service of universal credit. The DWP is reducing its estate at the same time as it is speeding up roll-out of the full service of UC. Over the past two years, the full service of universal credit has been rolled out to five new areas each month. This month, it has been extended to 30, and there are plans for it to be accelerated in October to 55 new areas per month. If the DWP feels able to announce such far-reaching plans to close jobcentres, it must surely have a clear idea of what the impact will be on work coaches, who are at the centre of its plans for employment support, but the Minister’s answer to a written question I submitted asking for the DWP’s assessment of the optimal number of universal credit claimants in a work coach’s caseload was vague to say the least. Will the Minister give us a clearer response today? What is his Department’s assessment of the optimal number of universal credit claimants a work coach can deal with, for both the live service and the full service? Or is his Department forging ahead with plans to close jobcentres without a clear idea of the number of staff needed?

The closure of jobcentres and the migration to online applications will make it harder for many people to claim social security. Many people do not have access to computers or mobiles, are unable to carry out transactions, or are not able to use the internet at all. A 2015 study by Citizens Advice Scotland found that 59% of respondents were unable to make an application for benefits online without help, and 30% of respondents were not able to apply for a benefit online at all. In Glasgow’s most deprived areas, almost half of respondents had never used the internet. More than half of clients did not have a computer or a device they could use to access the internet, and more than 40% of survey respondents could not use a computer at all. The Minister’s response, when questioned on claimants’ access to IT, has been to say that jobcentres provide access to PCs. If jobcentres are closing in large numbers, surely there will be less access to PCs for those who need to use them.

It is becoming clearer that the full digital service roll-out is experiencing major problems. Claimants are forced to spend increasingly long periods on the phone to try to resolve issues relating to their claims. A recent Citizens Advice report suggests that sometimes the only way to resolve a problem is to go to a jobcentre directly. The report calls for a comprehensive support package to be put in place, offering face-to-face help with all aspects of making and managing a universal credit claim. Will the DWP listen to Citizens Advice’s call for such a package? What is the DWP’s assessment of the effectiveness with which the full digital service is being rolled out? The process is called “test and learn”. Can the Minister please tell us what has been learned so far?

Let me turn to back-of-house offices. Front-facing jobcentres are not the only service the DWP is cutting. All but two back-of-house offices face closure, and staff are to be concentrated in a small number of hubs. That will have serious implications for staff, who will be forced to travel further or move. For some people, that will be practically impossible. Can the Minister tell us how many people will be made redundant, first, from the planned jobcentre closures, and secondly, from the closure of back-of-house offices?

Let me turn to the health and safety impact. The transfer of staff and claimants from jobcentres that are closing also raises health and safety issues. The closures will put more pressure on overstretched staff. The Minister said that work coaches are the central customer-facing role, but Jobcentre Plus staff dealing with phone inquiries about claims are also frontline staff. It can be extremely stressful to answer calls from people who are frustrated about a problem with their claim or delays in processing it. The Public and Commercial Services Union reports that staff are already being taken away from processing claims to answer phone lines, which leads to a vicious cycle: claimants are more likely to phone to ask what is happening to their claim because it has not been processed due to the delays. Apparently, among staff, it is known as the “cycle of hell”—a circle of inefficiency and stress, which they are struggling to get out of. Will the Minister tell us what steps he is taking to ensure the health and wellbeing of staff in DWP offices?

The Secretary of State said on 6 July that the DWP is actively recruiting. That is welcome, but I would be grateful if the Minister could share with us the DWP’s current assessment of Jobcentre Plus’s performance on staff retention. Will the DWP publish statistics on the turnover of Jobcentre Plus and back-of-house office staff?

[Mike Gapes in the Chair]

In the debate on 6 July, my hon. Friend the Member for Lewisham, Deptford (Vicky Foxcroft) rightly raised the issue of the safety of young people who travel from different parts of south London, in the context of increasing youth violence. PCS raised similar concerns with me in relation to other major cities. Problems are likely to arise when services are merged in one office in an area with a gang culture. That serious issue is likely to affect staff and claimants, so it is important that the DWP listens to and acts upon the concerns of staff in such cases. Will the Minister give an assurance that he will do that? What support is DWP offering staff to ensure they maintain their emotional and physical wellbeing at work?

It is important that there is sufficient room space available in the remaining jobcentres so claimants who have to disclose personal information can do so in privacy. Has the DWP carried out a health and safety assessment of the impact of the planned closures? If not, why not? If it has, will it publish it?

My concern is that acceleration of the roll-out of the full digital services of universal credit, together with the programme of the rapid closure of jobcentres, will put intolerable pressure on staff and create chaos for claimants—especially the most vulnerable. The Government’s answer to any criticism of cuts to social security is that work is the best route out of poverty. Why, then, are they closing jobcentres on such a scale, when they offer services that are specifically designed to help people find employment?