Local Housing Allowance: Homeless Young People

Matt Western Excerpts

Tuesday 4th February 2020 Westminster Hall

[Will Quince]

The hon. Lady is partly right; the solution is not just about local housing allowance. We can continue to pump money into housing benefit, which unfortunately in many parts of the country lines the pockets of private rented sector landlords. But if we are to tackle this in the long term, it is about affordable housing and a mixture of tenure between ownership, affordable housing, which is up to 80% of market rent, and homes for social rent, which is significantly lower. It is about addressing the supply issue as well as the demand issue, to ensure that we tackle the problem for the medium to long term. That is why the Department and I are working closely with the Ministry of Housing, Communities and Local Government, not to mention the other Government Departments involved. Between us, we hold the key—we hold the housing benefit bill, but they have a lot of the levers to address the supply side.

[Matt Western (Warwick and Leamington) (Lab)]

I commend the hon. Member for Brighton, Pavilion (Caroline Lucas) on securing this debate. The Minister will be well aware that only something like 6,480 social rent properties were built in 2018. We have a huge undersupply, as the Minister highlights. The other day, Shelter told me that people are finding themselves under so much financial pressure that they cannot meet the rent because of the low payment being given to them. People are moving from a two-bedroom to a one-bedroom and are doubling up in the properties. That is putting more pressure on single occupancy and double occupancy.

[Will Quince]

There is no question that the Government are committed to increasing the supply of social housing. Through the affordable homes programme to March 2022, we will deliver 250,000 new homes on a wide range of tenure. We will renew the affordable homes programme, building hundreds of thousands of new homes.

It is important to stress that, since 2010, we have delivered more than 464,000 new affordable homes, including 331,800 affordable homes for rent. As I said, I am working very closely with my counterparts at MHCLG on the interaction between housing supply and housing benefit. Until that supply is addressed, local housing allowance rates will continue to play a part. That is why we have increased LHA by 1.7%, in line with CPI. Of course, the ambition is to go further, and I personally would like to see it go back up to the 30th percentile. That comes, as I think I have said in response to written parliamentary questions, to the tune of about £1 billion. It is not a cheap intervention, so we have to address the supply issue alongside it.

The hon. Member for Brighton, Pavilion rightly raised the broad rental market area in Brighton. That is not an easy issue to address. There are 192 broad rental market areas and 960 local housing allowance rates, so looking at them is a considerable piece of work. I am doing that work, and it is important that we do so, but it cannot be done in one financial year. Unfortunately, since there are so many of these issues in all parts of the country, there are unintended consequences. However we draw the boundaries, there are winners and losers. I understand that there is an issue in Brighton at the moment. The same is true of Blackpool and, close to my constituency in Essex, of Jaywick, Frinton and Clacton. These issues do arise. I encourage the hon. Lady to write to me with the specifics—alternatively, I would be very happy to visit—so we can look at them in more detail.

I work very closely with Centrepoint, which is a wonderful charity. I have been on several visits and I intend to do far more. We have already done a considerable piece of work in this area. I can touch on the Government’s action on homelessness and local housing allowance, although I probably do not have enough time to go into the detail I would like. There have been considerable amelioration measures, such as discretionary housing payments, which we are increasing by a further £40 million this financial year to help local authorities support people where local housing allowance is not sufficient. Over the past three years we have also had targeted affordability funding; as I understand it, in the last financial year, that increased about 45% of shared accommodation rates by 3%. Nevertheless, I would like us to go further, and I think the steps we have taken to increase rates by CPI will make a difference.

The hon. Lady referred specifically to care leavers. We know that people leaving the care system can be particularly at risk of homelessness. We have provided £3.2 million per annum to 47 local authorities with the highest number of care leavers at risk of homelessness. That has led to a number of innovative ideas to support those leaving the care system into safe, secure and long-term housing. However, I understand the case put by Centrepoint, the hon. Lady and others about the rate. She suggested two items that would cost a little under £10 million. That is still a significant sum and would require Treasury approval. She may have got the impression that she is pushing against a half-open door. I am very sympathetic to that view, including in relation to those who have experience of homelessness. She asked me to commit to meeting charities and Members with specific interests in this area. I would of course be delighted to. Actually, I think a number of those meetings are already in train, but I will of course continue to do that.

On the shared accommodation rate, our approach is based broadly on the principle that young single people in the private rented sector should have their housing benefit limited to the rate appropriate for shared accommodation, but the hon. Lady rightly made the point that there are exceptional circumstances and there need to be exceptions to policy. We already have a number of exceptions, as she pointed out, but where there are opportunities for us to go further and there is a clear evidence base for doing so, of course we will look at that.

An obvious example of other interventions is the Homelessness Reduction Act 2017, which has enabled us to make great strides in the support that we can give to young people in particular. Many of them would not have been eligible under the previous system of priority need but now will be eligible on the basis of the duty to refer. The Act is making a huge difference, and I have no doubt that the hon. Lady knows that from speaking to her local authority, as I do to mine. We must ensure, through the MHCLG, that it is suitably resourced, but we know it is making a difference, including to young people. Importantly, the Act also places a duty on public bodies, including children’s services, youth offending institutions and youth offending teams, to ensure better partnership working. That is really important for ensuring that young people get the wraparound support they need.

The MHCLG is the lead on broader Government action on homelessness, but we very much support its efforts. The Government are committed to tackling homelessness and rough sleeping. As the hon. Lady will know, we committed in our manifesto to end rough sleeping by the end of this Parliament and to fully enforce the Homelessness Reduction Act.

There are a number of issues, including local housing allowance rates, that I would love to cover in more depth. As the hon. Lady rightly pointed out, we have an opportunity ahead of the fiscal event—the Budget—on 11 March to look at housing in the round. We are having conversations with the MHCLG and the Treasury to see how we can look at supply and the way that investment in supply—in particular supply of affordable homes and homes for social rent—would interact with our housing benefit bill. It pains me that we spend around 30% of our housing benefit bill on the private rented sector. It pains me even more that, because of LHA rates and other demand and supply issues, a percentage of that—I do not have a figure, but there is research to be done there—is spent on housing that I do not believe is of a standard that the taxpayer and the Government should fund or invest in.

In conclusion, I would be very happy indeed to work with the hon. Lady—

Local Housing Allowance and Homelessness

Matt Western Excerpts

Wednesday 24th July 2019 Westminster Hall

[Jim Shannon (Strangford) (DUP)]

It is a pleasure to speak in this important debate. I thank the hon. Member for Ealing, Southall (Mr Sharma) for setting the scene so well, and all hon. Members for their substantial contributions. As always, I will give a Northern Ireland perspective on the matter and give an idea of what is happening there.

It is good to see the Minister in his place. He has not been in post long, but hopefully he will continue in it long after today. I know that he has a deep interest in this subject, and we look forward to hearing his response to the genuine questions that we have, because I know that he will do his best.

Despite targeted affordability funding, less than 10% of the local housing allowance rates now cover the rent of the cheapest 30% of private homes. That is a chasm of difference, which is very hard to equate, as other Members have said. Many people who cannot get on the social housing ladder and who have no family to take them in realistically have to resort to sleeping on the streets. It is not by choice; it is almost by design that they are unable to find accommodation.

I have had a number of such cases in my constituency. Entering the private housing system is not an option for many benefit claimants, given how high the cost of rental is in the private housing sector. People without a partner who are benefit claimants cannot realistically get a one-bedroom flat through social housing and cannot afford to get one through private rental under the current allowances, because the two figures just do not equate, as I have said.

The hon. Member for Westminster North (Ms Buck) mentioned a mother with two children who are visually handicapped, who has to use the money that should be purposely set aside for their disability to pay the rent, so that they have accommodation and the children can get to school. That is a supreme example of the problems that people have, and I am sure that the Minister will respond to it specifically if he can.

Given the issues, why should we expect people to try and get suitable accommodation? I know the difficulties in my area. My staff and I were working with a young man who was literally sleeping in a garage. He was 40, so not entitled to homeless points, despite our efforts on his behalf. We all tried to get him into accommodation in the area, but he could not get a one-bedroom flat in his price range. His elderly mother—very often, family members step in—ended up paying the difference, but when she passes away, hopefully not for a long, long time, I do not know where this troubled young man will be. He will certainly not be in a private rental.

Nobody should have to sleep on the streets in this day and age, as I think all of us—the Minister, the shadow Minister, the hon. Member for Stockton North (Alex Cunningham), and all right hon. and hon. Members here today—realise. I believe that we must try to bring more people into employment, so that they do not have to rely on benefits to provide them with a stable home. I will make some comments and ask some questions about that shortly, because this issue is not just the Minister’s responsibility; other Departments have a role to play as well.

The local housing allowance should be a safety net for people, so that they can find a job to provide them with a bit more stability. Yes, some people may undoubtedly seek to take advantage of the benefits system as an excuse not to find a job, but I have to say that, from my evidential basis, I do not see that. I am not saying that it does not happen, but I do not see it in my constituency.

There is a genuine lack of housing at these prices, and private rental landlords are sometimes loth to take universal credit or housing benefit tenants, and especially not at a discounted rate. There is a very difficult balance to strike between a rental that is correct and a housing benefit or universal credit system that helps people to stay in the accommodation they are in.

[Matt Western (Warwick and Leamington) (Lab)]

The hon. Gentleman is making an extremely powerful and important speech. He seems to be making the case for much-needed and industrial-scale social rented housing, which would provide people with basic security of tenure for their home, so that they can then get a job and enter the workplace with that assuredness. I think he is also saying that there is such a big gap between housing costs and local housing allowance provision, particularly for one-bedroom accommodation.

[Jim Shannon]

I have been a great believer in social housing. I have supported it all my life, and I regularly have people coming to me trying to access it. It is incredibly important for those who cannot afford to buy their own home—even more so today. Alongside that, when it comes to social housing, we must provide a benefit system, and the LHA enables people to stay in their accommodation, so the hon. Gentleman is absolutely right. I totally agree with what he said.

I have sympathy for those experiencing difficulties and recognise that people may be experiencing difficult times that prevent them from finding a job. I believe that help should be available to them, but there is another aspect of this issue, and that is getting the right qualifications to find a stable job—a reality that some people fail to face up to in school. In 2017, 16.6% of Northern Ireland residents aged between 16 and 64 had no qualifications. I believe that these problems are intrinsically linked, which is the point I made earlier. It is not just the Minister’s Department; the Department for Education, the Department of Health, the Department for Work and Pensions and others all have a role to play. To tackle homelessness, we must tackle the problem of people having no qualifications, as low-skilled jobs are becoming harder and harder to come by nowadays.

Unfortunately, homelessness and deaths are linked, and I will give hon. Members some statistics—I cannot say that they are exactly linked together, but the stats may just tell us something. In Northern Ireland from October 2017 to the end of August 2018, an average of 13 homeless people per month had their housing applications closed due to death. Of the deceased, 63% were aged 60 or younger and the youngest was only 18. The majority, 93, were male. Their cause of death is unknown; I make that comment clearly. This is a problem, and I believe that these people should be helped. These figures are distressing, and it is horrendous that people cannot get a helping hand to lift them out of the difficult situation they are in.

A new strategy is required if we seek to solve the homelessness problem across the UK. Getting more people into work and getting people with the right qualifications would be steps in the right direction.

To conclude, support should be available to those in need, and certainly used as a springboard to get them into employment and keep this fine nation going forward, but in the short term we need affordable housing—the hon. Member for Warwick and Leamington (Matt Western) referred to social housing. That housing simply is not there at present. We need funding to build affordable housing, and for rent control as well. We simply should not have people on the streets in this nation, and we need to do all we can to ensure fit-for-purpose allowances in areas with a lack of one or two-bedroom accommodation, as compared with those on the housing stress list.

--- Later in debate ---

[Liam Byrne]

We do not know, because obviously there is not a safeguarding adult review for everyone who dies. There should be a safeguarding adult review for everyone who dies, because my hon. Friend the Member for Ealing, Southall made a sensible but crucial point: that local housing allowance is absolutely part of this crisis. He is absolutely right. The average LHA in Birmingham, which is £132 a week, covers only two thirds of the cost of a median home in our city. However, it would be delusional to pretend, as our current Mayor has tried to do, that local housing allowance is somehow the nub of the changes we need to make.

The truth is that to fund tax cuts for the lucky, this Government have reduced social insurance for the unlucky to a clutch of shreds and patches. This Government have now cut back so hard that social insurance in this country is now in systems failure. I know the Minister will say that it was a hard choice, but the truth is that it was the wrong choice. The tax cuts that have been handed out to British corporates now total £110 billion. Overwhelmingly, that money has either gone back to shareholders or is lodged in those corporates’ bank accounts. It was the wrong choice, because rather than strengthen the hand that helps, this Government chose to feather the nests of those who already had plenty.

I will illustrate the systems failure that we now face. From all my interviews with homeless citizens in Birmingham through the long nights, what has become clear is that three systems are needed: a benefits system, a health system and a housing system. All three are now in crisis. Mental health caseloads in our region are now rising four times faster than funding. Addiction services in our region have been cut back by between 12% and 20%. The University of Birmingham has concluded that the health services provided to homeless people are now so bad that those people are actually being denied access to basic health services. Housing benefit hands cash to the landlords of houses in multiple occupation in a way that is completely unregulated, with no obligation on them to provide much-needed counselling or support. There is no regulation of private landlords worthy of its name, and as my hon. Friend the Member for Westminster North (Ms Buck) said, the conditions that we now contend with are absolutely disgraceful.

We are building affordable homes in our region so slowly that it will take us until the 2050s to clear the council waiting lists across the region, which now number well over 50,000. Just to add insult to injury, although the Government promised £211 million to build new homes, according to parliamentary questions they have handed out only £2 million. That means that £209 million is left in the Treasury when we have people dying on the streets of our city.

[Matt Western]

My right hon. Friend is making a powerful and important speech. Does he agree that there are two issues: that the Government are hiding behind statistics about housebuilding that are inflated through permitted development rights and in other ways, and that we are seeing an increase in HMOs? The provision is completely inappropriate for the housing and social needs in our communities.

[Liam Byrne]

My hon. Friend is absolutely right. We are hiding behind definitions of “affordable housing” that are frankly meaningless in the real world. What we need to be doing is building houses for social rent—what used to be called council houses. Let us again build council houses that communities can be proud of.

This systems failure is now killing people, as should be obvious to all of us in this House. I pay tribute to the incredible coalition of kindness in my city that is trying to turn the tide, particularly Councillor Sharon Thompson, who knows a thing or two about homelessness, Jean Templeton, who is chairing the Mayor’s taskforce, and the 14 or 15 different outreach groups that make sure that the homeless people in our city are not actually starving on the streets. However, what those people need is a Government who are on their side, and are prepared to make sure that the Mayor does not spend £1 million on secret consultants, but puts that money into ensuring that there are more emergency shelter places than there are rough sleepers.

We need a hard duty on all public services to act together and collaborate to prevent homelessness from happening in the first place. We need a region-wide private landlord licensing scheme. We need to expand accommodation in refuges. We need a universal offer on all public services for vulnerable people. We need to double the pace of council house building. We need to end the Vagrancy Act 1824 and reintroduce housing benefit for the under-25s. We need to end the lunacy of the “no recourse to public funds” rule, and we need an urgent review of the exempt accommodation rules.

George Dawson, the founder of the civic gospel in our city—the precursor of municipal socialism—once asked his congregation,

“Are you prepared to vindicate the enormous wealth of some men, side by side with the extreme poverty?”

I am not prepared to live in a city where we have cranes in the sky, but homeless people dying in the doorways. We need an emergency response to this moral emergency, and I hope the Minister will drive it through with today’s new Prime Minister.

Pension Funds: Financial and Ethical Investments

Matt Western Excerpts

Wednesday 22nd May 2019 Westminster Hall

[Matt Western (Warwick and Leamington) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Howarth. I thank the right hon. Member for Kingston and Surbiton (Sir Edward Davey) for bringing this important debate to the Chamber.

Pension funds are hugely important—they are also personally important to me—because they are major stakeholders in the UK and global investment markets, with £2.8 trillion invested in assets and more than £90 billion invested a year on behalf of 84% of UK workers. That is why leadership is so important in this sector. In 2015, when I was a councillor at Warwickshire County Council, I wanted the council to show leadership and go fossil fuel free in recognition of what the Rockefeller Brothers Fund and several other major investors had done at that time by diverting from the fossil-fuel industry into the renewable sector. I felt that if that necessity was recognised by the once all-important Rockefeller company and family, we should look to follow. Sadly, that motion was put to the vote and lost.

The motion failed because of the rules of the local government pension scheme, the LGPS, which are set nationally but administered locally. Its responsibilities include managing the investment funds within a statutory framework. The 2014 Law Commission report on “Fiduciary Duties of Investment Intermediaries” concluded:

“Where trustees think ethical or environmental, social or governance (ESG) issues are financially material they should take them into account. However, while the pursuit of a financial return should be the predominant concern of pension trustees, the law is sufficiently flexible to allow other, subordinate, concerns to be taken into account.”

For me, that is important. More recently, I checked the Local Government Association legal advice, which says that

“the precise choice of investment may be influenced by wider social, ethical or environmental considerations, so long as that does not risk material financial detriment to the fund.”

Mark Carney, the Governor of the Bank of England, recently wrote about that. He said meeting the Paris targets

“requires a massive reallocation of capital. If some companies and industries fail to adjust they will fail to exist.”

He pointed out that fossil fuel investments carry major financial risks since overvalued carbon assets may be left stranded. This stranding could cause a global wealth loss of $1 trillion to $4 trillion, posing major risks to pension funds.

One does not have to look just in the UK or at what happened with the Rockefeller Brothers Fund. The California Public Employees’ Retirement System and the California State Teachers’ Retirement System divested themselves of any holdings of thermal coal in 2015. Norway’s sovereign wealth fund is dumping investments in firms that explore for oil and gas. This strategy shift, on the back of advice from the country’s central bank, will affect 1.2% of its holdings, worth about 66 billion Norwegian krone, which is a significant amount. According to Norway’s Minister of Finance:

“The objective is to reduce the vulnerability of our common wealth to a permanent oil price decline. Hence, it is more accurate to sell companies which explore and produce oil and gas, rather than selling a broadly diversified energy sector.”

More recently, the Environment Agency decarbonised its £2.9 billion pension fund by increasing climate positive investments, reducing its exposure to the coal industry by 90% and greatly reducing its exposure to oil and gas. More parochially, Southwark Council has moved £450 million into passive funds that track low-carbon and fossil-free indices produced by MSCI. It has invested £30 million in the Glennmont Partners clean energy fund III, which invests in western European wind and solar companies. For me, that shows great leadership and is to be commended.

Sadly, according to the 2018 report of the parliamentary contributory pension fund, its largest holding is in BP. The fund has no positive investments that are committed to bringing about a zero-carbon world, which is a real shame. Hence, 244 serving and former MPs have signed the Divest Parliament pledge calling on the trustees to phase out investments in fossil fuel companies; I have signed that pledge. As if to underline this move, the Church of England’s General Synod—its parliament—voted 347 to 4 in favour of removing its holdings in fossil fuels. That type of leadership is widespread and it is something we should follow.

In following the leadership of others, and going for socially, environmentally and economically advantageous investments, let us ensure that we are Paris compliant. Almost 20 years ago, BP rebranded as Beyond Petroleum. Let us go beyond petroleum, beyond BP and show leadership.

Oral Answers to Questions

Matt Western Excerpts

Monday 11th February 2019 Commons Chamber

[Justin Tomlinson]

Auto-enrolment is a success, with 10 million new savers, and we intend to lower the starting age from 22 to 18 and remove the lower earnings limit.

[Matt Western (Warwick and Leamington) (Lab)]

14. What steps she is taking to ensure that disabled people can access the social security benefits to which they are entitled.

[The Minister for Disabled People, Health and Work (Sarah Newton)]

Universal credit has been designed with accessibility in mind, and we are committed to providing a tailored service that recognises those with complex needs. We are improving accessibility features and we are adding to the system all the time, allowing people to claim online, by telephone or through home visits. We really want to work with many community partners or those who are supporting people with complex needs to make sure they do get that support.

[Matt Western]

A year ago I wrote, with 100 MPs from across the House, to the then Secretary of State to highlight what was really faced by so many disabled people, which is a hostile environment in trying to access payments. It now transpires that seven reviews are being undertaken by the DWP into the serious administrative mistakes that have been made, including why 4,600 disabled people have wrongly had their personal independence payments stopped. Will the Minister update us about what progress has been made on those seven reviews and, indeed, about what learnings are going to be taken forward?

[Sarah Newton]

We work very hard in the DWP to make sure that decisions are made accurately the first time. However, where there have been mistakes, we work really quickly to remedy them as soon as possible. The hon. Gentleman is quite right that we are going through some wide-scale administrative exercises on both employment and support allowance and PIP, and I regularly provide written ministerial statements to the House—the most recent ones were in December—setting out exactly what we are doing.

Oral Answers to Questions

Matt Western Excerpts

Monday 7th January 2019 Commons Chamber

[Alok Sharma]

I thank my hon. Friend for the enormous amount of work that he does in supporting employers so that they can create jobs. He is right. We need to make sure that the jobs market is very strong, and that is why we make support available through universal credit, with one-to-one interaction.

[Matt Western (Warwick and Leamington) (Lab)]

T7. Does the Minister think that a 47-week average wait for a PIP appeal hearing at the Coventry centre is acceptable, particularly considering that the person appealing will not receive any money during that time and that 80% of decisions are overturned at tribunal?

[The Minister for Disabled People, Health and Work (Sarah Newton)]

No, I do not think that that time is at all acceptable. That is why we have been working so closely with our colleagues in the Ministry of Justice to make sure that people can have their appeals heard much more swiftly. The hon. Gentleman will be pleased to know that more than 200 new judges have been recruited to the tribunal, and that through the use of automation we are beginning to see waiting times for appeals reducing greatly. But let us look at this overall: PIP works for the vast majority of people, and of the decisions that have been made, only 9% have been taken to appeal and 5% overturned. We are constantly looking to make sure that we make the right decision the first time, but the situation is improving.

Oral Answers to Questions

Matt Western Excerpts

Monday 19th November 2018 Commons Chamber

[Sarah Newton]

I am afraid that the hon. Lady is just factually incorrect. The vast majority of jobs have been full-time, well-paid jobs. I have the honour of representing my home, the area where I grew up, and I can tell her that I have seen at first hand the growth of full-time well-paid jobs all around my constituency since 2010. That is what this Government are delivering all over the country.

[Matt Western (Warwick and Leamington) (Lab)]

We have seen an exponential increase in underemployment since 2010, through the growth of part-time jobs and zero-hours contracts. Does the Minister therefore agree that what we have actually seen is a jobs mirage rather than a jobs miracle?

[Sarah Newton]

I am afraid that the hon. Gentleman is just factually incorrect. We have seen the growth of many full-time jobs, and the number of zero-hours contracts is going down. Speaking as a woman who raised her family, I can tell him that part-time employment can be an extremely good option for many people in our labour market.

Employment Rates

Matt Western Excerpts

Wednesday 6th June 2018 Westminster Hall

[Luke Pollard]

Indeed. The hon. Gentleman makes a good point. How statistics are presented by Government can sometimes devalue some of the credibility that the original source may provide, and I am sure that we can all bring to mind examples of that. On the subject of statistics, I am a great believer in the way inflation is calculated. If hon. Members will indulge me for a few seconds, I will explain. Inflation is calculated by taking a basket of measures, of everyday goods, and calculating the inflation rate based on the real-world experience of many measures, many goods, not just one of them. In that sense, a basket of measures can create a fuller, more thorough illustration of what is actually happening.

The reality gap between individual employment statistics and the lived experiences, especially of young people, would be addressed much more thoroughly by having a basket of measures than by focusing just on the jobless figures or any other singular reality. I suggest that when we look at how we talk about unemployment statistics, employment statistics and debt, we look at a basket of measures, which needs to include employment, wages and wage growth, in-work poverty, child poverty, homelessness and temporary housing, disposable income, the number and penetration of zero-hours contracts and especially their demographic targeting, benefit take-up, sanction levels, household debt and overall personal indebtedness. Perhaps those things could be wrapped up together as a new basket of measures whereby we can look at the lived experience of people in employment, because all too often the fact that someone is in a job and that there is a tick beside that box is what is presented by Governments of all colours. We know that the lived experience of people in work, especially in today’s economy, where simply having a contract does not guarantee that someone will get any wages at the end of the week or month, devalues some of the credibility that the jobless figures or employment figures may have carried in the past, when employment was more secure and long term.

[Matt Western (Warwick and Leamington) (Lab)]

My hon. Friend is making a very important point. I thank the hon. Member for Mid Dorset and North Poole (Michael Tomlinson) for initiating the debate. My hon. Friend discusses a basket of measures. Does he agree that one thing that we would want to establish, if it was a business that we were looking at, would be the number of hours being worked by those in work—that is, the number of hours or days available to work? That could be one of the measures showing that we actually have significant under-employment in this country and that, rather than a jobs miracle, we have something of a jobs mirage.

[Luke Pollard]

My hon. Friend has a way with words. Looking at the measure to which he refers as part of the basket of measures could well be useful. Indeed, we might also look at the number of jobs that individuals have, because although we have seen a rise in the number of people with contracts, many of those are part-time contracts, and people in Plymouth have certainly been telling me of needing not just one job but two, three or, in some cases, four or five jobs to pay their bills, because of the insecurity of those jobs and the hours they provide. Consideration of all those measures together would make possible a more informed value judgment about the state of the economy.

In recent years, we have seen a rapid shift towards a gig economy, and despite calls for an end to zero-hours contracts, many people are still struggling with the precarious nature of those contracts. There are some people who value zero-hours contracts, but my fear about what has happened with zero-hours contracts is that their utility for that small group of people has been overtaken by employers using them as a way of being more flexible with their workforce or cash flow. As a consequence, the utility of those contracts for a small number of individuals, because of the workplace flexibility they provide, has been eroded because they are being used to devalue secure work.

Before I came to the debate, I posted on my Facebook page—if anyone has not visited it, the address is facebook.com/LukePollard—to ask people what their experience was. I said, “I am going to a debate about employment statistics. Can you tell me your stories?” Normally on my Facebook page, I have a few regular posters, as I am sure other hon. Members do. What struck me about the response to this post was how personal, emotional and honest people were in telling me their experiences. If hon. Members have not done this on their own Facebook page, I encourage them to do so, because it helps to create a fuller picture.

Let me give some examples of what people said. Erin, who is one of my constituents, is a qualified secondary school teacher who has been forced to take zero-hours contracts by an employment agency for the past three years. She told me that, despite years of training, she was struggling to find permanent work, and that that has impacted her ability to pass the tenancy checks required for private renting. The figure for private renters in Plymouth, Sutton and Devonport is 43.5%, which shows just how important that can be. Erin now plans to leave the teaching profession for good and will be retraining in September. She is just one example of someone we need to retain in their role with more secure work.

Melanie is another example. She worked for three years at Royal Mail in Plymouth. She was on a fixed-term, 20-hours contract that was reviewed every six months. As a single parent, she spoke of the stress that the uncertainty of that brought, as she could never be sure that she would still have a job once the end of her contract rolled around. Although Melanie has managed to secure permanent employment elsewhere, her story is not uncommon.

Those types of lived experience are the stories behind the statistics. I am talking about the frequency of needing to go to another interview to get extra hours and then the concern and worry about what happens if an employer wants their hours to coincide with another employer’s hours. Those are concerns that many in this Chamber may not have experienced themselves, but they are genuine worries for many people up and down the country. That situation is adding to the complexity and inequality within our system.

Colleagues will know of the problems that universal credit has brought to the system. Indeed, the House of Commons Library points out that the roll-out of universal credit, which is taking place in part of the area that I represent but not all of it, skews the jobless figures for this period, so looking behind those figures is a little more complex and complicated than it might have been before universal credit was rolled out. I ask the Minister whether there is a way of navigating through that complexity and that added dimension to see what the underlying picture is. The roll-out of UC complicates that and affects our ability to get an accurate sense of where we are.

Universal credit is failing many people. We know the experiences that have been shared in this Chamber and elsewhere. Our benefits system should not allow people to spiral into more debt, and I am concerned about the sustainability of the system in its current form. Concerns around UC and the roll-out on to UC, especially for people in insecure work—although they may not be in the jobless figures that the Government provide—need to be addressed.

We also need to look at in-work poverty. I believe it is fundamental to most people’s reasons for entering politics in the first place—be they on the red team or the blue team—that they want to make the world a better place. The only disagreement I perhaps have with colleagues on the Conservative side is how to do that. In-work poverty should be anathema from the perspective of the Labour party, the Conservative party and other parties as well. We all aspire to help people into work so that they can provide for their families through the hard work of their own labour. If someone is in work and still unable to provide for their family, something is wrong with our economy.

We know that that is the case in Plymouth and elsewhere at the moment, because we are seeing a rise in food bank use. One day I hope that we will no longer need food banks and that the fantastic volunteers who staff them can be redeployed to other endeavours. However, I know that food bank use is going up, and having seen the work of the fantastic soup kitchens and soup runs in Plymouth, I know that demand is increasing among not just rough sleepers, but those in insecure work and temporary accommodation, who cannot make ends meet and who struggle to feed themselves and their families.

I highly recommend that Members of Parliament and those watching at home go out on a soup run. It is an eye-opener in terms of the lived experiences of those in our communities whom we may not see during the day. When they are handed a pasty or a banana from the back of an old Transit van—as happens every now and then in Plymouth—they give back stories and gratitude. It is a really humbling experience to see people who, in many cases, are now in work but still struggling to make ends meet.

We need safeguards to help those who are struggling to break into the job market and permanent employment, as well as to help those who are in the job market by making sure that work can truly pay. That is not where we are at the moment, and that is especially true for those with disabilities. One of my constituents, Jo, who works in the employment sector, told me that the job opportunities advertised for students and graduates often involve temporary contracts in low-skilled roles. Similarly, Mat, from Plymouth, shared his experience of having high-functioning autism and described his job search as “impossible”. That should shame us all. The challenge for us is how and where we present job adverts, what the employment process is and the jobs themselves. I am concerned that the lack of opportunities is impacting people in Plymouth on a personal and economic level, and we must act to contain the ongoing effects of not only unemployment, but under-employment and the impossibility of getting employment in many cases.

Many hon. Members will know of my desire to talk about transport. I occasionally talk about trains in this place. Connectivity for the far south-west is a complicating factor in the economic performance of Plymouth and the wider south-west economy, as it is for many other parts of the country. The investment we need in structural transport, both on road and rail, and bus services within cities, can open up and transform job opportunities.

I want to talk about buses for a moment, because when we look at under-employment, one concern that a number of people tell me about is that, without a car, they are sometimes unable to get to their workplace. That is because there is no public transport available or the buses stop at a certain time. That is especially true of low-wage service work. The hon. Member for Mid Dorset and North Poole talked about our hospitality sector. Without decent public transport, it is impossible for those people to get to shops, tourist attractions, cafes and restaurants early in the morning to provide sleepless people with their coffee on the way to work. The concern is that that means some people are spending their already low wages on taxis to get to work before the working day has started, eroding the value of that day’s work for them.

There is a lot we need to do to look behind the statistics. I encourage the Minister to look at whether a basket of measures could be more appropriate. To an extent, the debate as to what goes in that basket of measures—just as the debate as to what goes into the inflation measure—tells a story about our modern Britain. For example, when we take a record player out from the basket of inflation measures and put in an MP3 download, we can see the way the economy is changing. That same principle should apply to how we look at employment statistics and the lived experience of people seeking employment or in employment. One day I hope we will be able to take out sanctions and food bank use from that basket of measures. That should be a collective aspiration for all parties. Until the time when they are no longer in use, we should feature those as part of that collective basket of stories—that human lived experience—that sits behind the unemployment statistics. There are many other things we could add into that basket, such as mental health provision, which I have not spoken about, but I hope colleagues might add to the list in the debate.

So I ask the Minister whether the Department has considered a basket of measures in how it presents these stories, and I encourage all hon. Members to do as I did on my Facebook page and to get the lived experiences of constituents, because it is the most powerful and humbling experience.

Oral Answers to Questions

Matt Western Excerpts

Monday 26th March 2018 Commons Chamber

[Guy Opperman]

I thank the hon. Gentleman for his question, and I will take it up with him after this debate; I will be delighted to sit down with him and be clear on that matter. The Minister for Employment is at the G7 in Canada, so he cannot answer that point, but we will take it up.

[Matt Western (Warwick and Leamington) (Lab)]

6. Whether her Department has made an assessment of the potential merits of introducing a legal obligation on parents paying child maintenance to report increases in their income.

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

Such an obligation already exists.

[Matt Western]

If that is the case, can the Minister explain what the lead time is in respect of someone having to declare that change in income? What would be recommended—for example, would it be one month or two months?

[Kit Malthouse]

Paying parents who are in the Child Maintenance Service must declare changes in income immediately if they vary by more than 25% of the previously declared level. Of course every paying parent is subject to an annual review, where adjustments are made to the payments if required.

Supported Housing

Matt Western Excerpts

Wednesday 25th October 2017 Commons Chamber

[Matt Western (Warwick and Leamington) (Lab)]

Will the hon. Gentleman give way?

[John Lamont]

I just want to make some progress, if I may.

Today’s announcement by the Prime Minister that the cap will not be rolled out for supported housing is just further evidence of the Government’s willingness to listen. I look forward to the Government’s detailed plans for supported housing funding, which will be published next week, as promised. I also welcome the Prime Minister’s announcement that the UK Government have listened to concerns about the local housing allowance cap and that it will not be applied to supported housing or, indeed, the social housing sector more widely. I welcome the fact that the UK Government are engaging with the sector to decide how best to proceed. This is sensible.

[Matt Western]

I hear what the hon. Gentleman says, but the criticism is actually about the cuts to local authority funding. To challenge his point, Warwickshire County Council’s budget has been halved, and we have seen wholesale closures of much housing and many refuges, which has led to the number of people sleeping rough on the streets doubling in recent months. The issue is down to the lack of funding from central Government to our local authorities.

[Madam Deputy Speaker (Mrs Eleanor Laing)]

The time limits in this debate are really tight, so we cannot have long interventions. An intervention should be a quick point.