Oral Answers to Questions

Mel Stride Excerpts

Monday 31st October 2022 Commons Chamber

[Mr Speaker]

Welcome, Secretary of State.

[The Secretary of State for Work and Pensions (Mel Stride)]

Thank you, Mr Speaker. I also associate myself with your remarks regarding Paul Pelosi and the Speaker in the United States. Our thoughts are with them both.

It is a huge honour to stand here as the new Secretary of State for Work and Pensions. In so doing, I pay tribute to all those who have preceded me, in particular my right hon. Friend the Member for Norwich North (Chloe Smith), who was an outstanding Secretary of State and also an outstanding Minister of State for disabled people.

The cold weather payment’s design ensures that support reaches those most vulnerable. The energy price guarantee is supporting millions of households with energy costs from now until April 2023. This is on top of the cost of living support worth more than £37 billion for around 8 million households on means-tested benefits.

[Nick Smith]

Mr Speaker, may I associate myself with your remarks about the Pelosi family?

I congratulate the right hon. Member on his appointment. The £25 cold weather payment rate has not been updated since 2008. In today’s money, it should be worth £37. Parts of Blaenau Gwent are more than 1,000 feet above sea level, and the constituency itself is one of the most deprived in the UK. Will the Secretary of State look again at the criteria for this scheme? Surely areas with bad weather, higher energy costs and lower incomes should get a fairer deal.

[Mel Stride]

I welcome the hon. Gentleman’s question, because these are very important payments. They are automatic, as he will know. Typically, they are received within 14 days and they are targeted at those who are most vulnerable. His point about the particular local conditions and the elevation of parts of his constituency are well made and I would be very happy to have further discussions with him about that. I should point out though that I believe there are 72 different weather stations to serve as reference points for different temperatures, so it may be that there is one very close to the area he describes.

[Andrew Bridgen (North West Leicestershire) (Con)]

I welcome my right hon. Friend to his new position. Will he tell the House what progress his Department is making to increase the uptake of pension credit, which means that more vulnerable elderly people will be eligible for cold weather payments?

[Mel Stride]

My hon. Friend is right to raise this very important benefit, pension credit. He will be aware that the Department has been fully engaged in encouraging pensioners who will qualify to take up this benefit, and it is important that they do, because it is worth more than £3,000 a year and it is a gateway benefit for other benefits in turn. I pay tribute to the Minister of State, my hon. Friend the Member for Hexham (Guy Opperman), who has done a great deal to push greater uptake, including a week of effort back in June when the uptake increased by 275% in that week.

[Sally-Ann Hart (Hastings and Rye) (Con)]

2. What steps his Department is taking to help reduce the number of people who are economically inactive.

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[The Secretary of State for Work and Pensions (Mel Stride)]

The labour market has recovered strongly since 2020, with payroll employment up on the pre-pandemic level in all 12 regions of the United Kingdom. We have comprehensive support in place to help people to find, progress and stay in work, with additional support for groups we know are more likely to be inactive, such as those aged 50-plus and people with a disability.

[Sally-Ann Hart]

Work is the best route out of poverty, and it is concerning that claimants of, and public spending on, working-age benefits have increased significantly since 2019. There is more that the Government can do beyond the conditionality regime, so can the Secretary of State confirm that implementing universal support, which is designed to help those facing barriers to work and to overcome the complex challenges holding them back, will be considered?

[Mel Stride]

I agree entirely with my hon. Friend that work is the best route out of poverty, and in that regard I commend her for her private Member’s Bill, which the Department is pleased to support. Our low unemployment rate demonstrates our extensive support for those moving into work; universal support has been replaced, as she may know, by Help to Claim, which provides tailored support to individuals making a universal credit claim across England, Scotland and Wales.

[Daniel Zeichner]

The economy is plagued by labour shortages, from care to hospitality. On Saturday, 200 bus services in Cambridge were cancelled because of a lack of drivers, leaving health workers unable to get to and from their places of work. After a decade of zero-hours and short-term contracts, it is no surprise that people want out—they do not want to be at work because it is too tough. Is it not time for the Government to recognise that good workplace rights are not just good for workers, but good for employers and good for us all?

[Mel Stride]

I could not agree more with the hon. Gentleman. He is right to raise the issue of economic activity. That will be a major focus of mine as Secretary of State: we have 9 million people who are economically inactive, and we desperately need to get as many as we can into the workforce, not least because under this Government we have very low unemployment, very high levels of employment and 1.25 million vacancies in the economy.

[Stephen Crabb]

I congratulate my right hon. Friend and send him my best wishes for his time in this important job. May I suggest that he has a look at some research published earlier this year by the Prince’s Trust, which found that there are hundreds of thousands of young people not in education, employment or training, many of whom are economically active? They want to work, but many of them are living with physical or mental disabilities. Does he agree that the right support would enable them to stay in touch with the labour market and prevent patterns of worklessness from setting in at a very young age?

[Mel Stride]

I recognise the great work that my right hon. Friend did as a Secretary of State. There are 820,000 young people out of work and not in full-time education, and he is right that there are many things this Government can do, and indeed are doing, with our youth offer. That includes our youth employment programme, youth employability coaches and 150 youth hubs across Great Britain.

[Mr Ben Bradshaw (Exeter) (Lab)]

I welcome the right hon. Gentleman, who is one of my neighbours, to his new post and congratulate him on his appointment. What estimate has he made of the number of people who would like to work but currently cannot do so, because they are among the hundreds of thousands waiting on record-long NHS waiting lists?

[Mel Stride]

I thank the right hon. Gentleman for his warm words. That is a question that would probably be best answered by the Department of Health and Social Care, and I would be happy to look into that for him. We know that there is a long tail of people who would otherwise like to work but who are long-term sick—some 2.5 million in total—and, to go back to my earlier answer, it will be a prime focus for our Department, working with the Health Department, to see how we can assist and support them back into the workplace.

[Chloe Smith (Norwich North) (Con)]

I wish my right hon. Friend and his team every success in leading this vital mission in Government, helping people into work and protecting the most vulnerable. As he says, with more vacancies than people unemployed, and with 9 million people—and rising—economically inactive, does he agree with British business that labour shortage is one of its greatest obstacles? What is his plan to unlock the talents of those who have not recently looked for work?

[Mel Stride]

My right hon. Friend’s analysis is entirely right. We have an overheated labour market and a high number of vacancies, and the key issue that businesses up and down the country constantly raise is a lack of staff to be taken on. Broadly speaking, economic inactivity breaks down into several sectors, although I will not go through all of them; we have already touched on the 2.5 million long-term sick, and we have 900 disability employment advisers within the Department for Work and Pensions. We also have 1.2 million people who retired early, for whom we do have some schemes, but we need to give further attention to coming up with new ways forward for that group.

[Kirsten Oswald (East Renfrewshire) (SNP)]

At last week’s Work and Pensions Committee meeting on the plan for jobs and employment support, Tony Wilson from the Institute for Employment Studies highlighted the role of Scotland’s local employability partnerships in providing tailored support that reflects local circumstances. In the light of recent analysis by the Institute for Fiscal Studies showing that health-related economic inactivity in the working-age population has had its largest increase since the end of 2019, will the UK Government consider following Scotland’s approach of providing more customised support and helping people into work, instead of the Department’s punitive sanctions regime?

[Mel Stride]

We already have a local skills improvement plan, but I would be delighted to listen to the hon. Lady’s thoughts; we are always happy to share best practice, and to learn from her experience and that of the devolved Administration in Scotland.

[Mr Speaker]

I call the shadow Minister, Alison McGovern.

[Alison McGovern (Wirral South) (Lab)]

I welcome the new Secretary of State and all the new Ministers to their positions. We have heard Conservative Ministers, not least the many Prime Ministers we have had in recent months, crowing about low unemployment, but the new Secretary of State will know from his time chairing the Treasury Committee that sometimes it is important to look at the figures yourself. There are 1.2 million people unemployed in our country, but also 1.8 million inactive people who say they want a job. Taken together, that is a disaster for our country. I want to know what it is about years and years of Tory misrule that always leaves 3 million people on the scrapheap.

[Mel Stride]

I have taken a personal vow not to engage in too much Punch and Judy politics with the hon. Lady during Question Time, so I will not talk about what happens to unemployment when different parties get into power; I will leave that for another day. She is absolutely right about the key challenge around economic inactivity. That is why the Department doubled the number of new work coaches in the last two years; there are an additional 13,500 people working to support the exact people whom she rightly identified as needing that assistance to get into work. As I said, I intend to put considerably more energy into the whole issue of economic inactivity, and to bring announcements on the subject to the House in due course.

[Dan Carden (Liverpool, Walton) (Lab)]

4. What assessment his Department has made of changes in the level of the sanction rate for universal credit between November 2021 and May 2022.

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[Sir Stephen Timms (East Ham) (Lab)]

7. What assessment he has made of the impact of the level of universal credit on food insecurity.

[The Secretary of State for Work and Pensions (Mel Stride)]

I begin by recognising the important work that the right hon. Gentleman carries out as Chair of the Work and Pensions Committee and thank him for the co-operation that he showed me when I was a fellow Chair of a Select Committee. I look forward to appearing before his Committee before too long.

As the right hon. Gentleman will know, universal credit is but one factor in addressing food insecurity. The Government have provided significant support with the £37 billion cost of living package.

[Sir Stephen Timms]

I congratulate the Secretary of State on his appointment and warmly welcome him. We already have a date in the diary for him to come before the Committee and we look forward to that.

Current large-scale food bank dependence is shameful. It was up by 46% in August and September on a year previously, according to the Trussell Trust, and it is reported in the press today that hospitals are seeing a big rise in malnutrition cases. The family resources survey also says that food insecurity among universal credit claimants fell from 43% to 27% after the £20 a week uplift was introduced. Does not all that show how crucial it is that the Prime Minister keeps the promise he made as Chancellor to uprate benefits next April by 10.1%?

[Mel Stride]

I am not going to pre-empt my decision on the uprating of benefits or indeed the triple lock. We will need to wait until at least 17 November when my right hon. Friend the Chancellor will come to the House with his autumn statement and those details will be known at that point.

The right hon. Gentleman raises the family resources survey. One statistic that caught my eye was that the percentage of households with UC claimants who are in food security rose from 57% in 2019-20 to 73% in 2020-21. Any element of food insecurity is too much—I recognise that—which is why this Government and this Prime Minister are absolutely determined to use whatever we have at our disposal to work on those figures and to improve them. That includes the various interventions that we have already discussed during these questions.

[Martin Docherty-Hughes (West Dunbartonshire) (SNP)]

8. What assessment he has made of the adequacy of social security payments in meeting the cost of living.

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[Kenny MacAskill (East Lothian) (Alba)]

13. What recent discussions he has had with (a) Cabinet colleagues, (b) the devolved Administrations and (c) other relevant stakeholders on uprating benefits in line with inflation.

[The Secretary of State for Work and Pensions (Mel Stride)]

I am currently conducting my statutory annual review of state pensions and benefit rates. The outcome of that review will be announced in due course.

[Kenny MacAskill]

I thank the Secretary of State for that answer. The Trussell Trust is reporting that 40% of universal credit claimants are skipping meals due to budgetary constraints. Does he accept that with the full energy crisis costs yet impacting them and, indeed, with winter still to arrive, it would be perverse if bankers’ bonuses were to be uncapped while pension benefits were not to increase at least in line with inflation?

[Mel Stride]

The hon. Gentleman will be aware of the various answers given from the Dispatch Box about the support that the Government are giving, particularly to those who are most vulnerable, across winter. In respect of food and food banks, that is pertinent. However, I am afraid that he will receive the same answer about when the House will come to know of the uprating that may be applied to pensions and benefits more generally, and the pensions triple lock. That is a decision for me as Secretary of State, of course in conjunction with discussions with the Treasury, and those figures will be available at the time of the autumn statement on 17 November.

[Dr Neil Hudson (Penrith and The Border) (Con)]

I very much welcome the Prime Minister’s commitment that compassion will be at the heart of Government. It is so important that we support the most vulnerable in society. With that in mind, does my right hon. Friend agree that we can show that compassion and support by uprating benefits in line with inflation?

[Mel Stride]

I am afraid that, unfortunately, I need to refer my hon. Friend to my previous reply.

[Chris Grayling (Epsom and Ewell) (Con)]

16. If he will review the calculation of the housing element of universal credit.

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[Luke Pollard (Plymouth, Sutton and Devonport) (Lab/Co-op)]

T2. If he will make a statement on his departmental responsibilities.

[The Secretary of State for Work and Pensions (Mel Stride)]

I am honoured to have been appointed as the Secretary of State for Work and Pensions. I can inform the House that I have two early key missions: to focus on those who are economically inactive, as I have been suggesting already at the Dispatch Box; and to pursue with vigour the Prime Minister’s personal commitment to us being a compassionate, caring Department supporting the most vulnerable, which, at the end of the day, is a hallmark of a civilised society.

[Luke Pollard]

I welcome the Secretary of State, a fellow Devon MP, to his position. Will he agree to meet me and Barnardo’s to discuss the concerns of care leavers from Devon, whom I recently hosted in Westminster, who without a rent guarantor cannot afford a deposit on a rental property of their own. Will he consider a pilot to help those young people get a better start in life?

[Mel Stride]

I thank my hon. Friend—I will call him an hon. Friend, certainly—and colleague from Devon for his question. I know of the excellent work he has been carrying out with Barnardo’s in that area. I would be delighted to meet him and Barnardo’s, and whoever else he feels appropriate, to discuss those issues.

[Mark Pawsey (Rugby) (Con)]

T5. We heard earlier about those who are economically inactive. Figures show that in the west midlands, including in my constituency of Rugby and Bulkington, over-50s have been less likely to return to the workplace after covid than their younger counterparts. Businesses in all sectors tell me just how badly those workers are needed. What initiatives is the Department working on to get more older people back into work? Will the Minister join me in coming along to an over-50s fair we are holding in Rugby in the new year?

[Jonathan Ashworth (Leicester South) (Lab/Co-op)]

I welcome the new Secretary of State to his post. I also welcome the new Ministers and welcome back returning Ministers. I listened carefully to the Secretary of State saying that he wants a compassionate approach, so may I press him further on the point that numerous Members have put to him? He will know that not sticking to the triple lock for pensioners will mean a real-terms cut in their pension of hundreds of pounds. He will know that not inflation-proofing universal credit will mean an average household will lose £450 and that a household with a disabled person in it will lose over £550. Why does he no longer agree with himself when he said, on 4 October, that this is

“one of those areas where the Government is going to have to think again”?

[Mel Stride]

I reassure the House that I always agree with myself. That is not the same thing as saying that I am always right, incidentally, but at least I am always consistent in that respect. We will have to wait—sorry, I should say that it is a pleasure to serve opposite the right hon. Gentleman and that I look forward to many months of constructive engagement with him.

It is very important that we do not overlook the huge amount that the Government are doing to target assistance at the most vulnerable. In the cost of living support package alone, there is £650 for 8 million of the most vulnerable households, £300 for pensioners on pension credit and £150 for those who have disabilities. That is very important.

[Jonathan Ashworth]

The Prime Minister tells us that we do not need a general election because the 2019 manifesto gives him and the Conservative party a mandate. Given that that manifesto committed to the triple lock, why can he not give pensioners the reassurance that they deserve? Let me ask him about a second point: can he give a categorical assurance that, in the autumn statement, he will rule out means-testing personal independence payments, carer’s allowance, attendance allowance and disability living allowance for children?

[Mel Stride]

The right hon. Gentleman is inviting me, in a whole host of areas, to break with what has been a very long-standing and quite correct convention that Ministers simply do not provide a running commentary about what may or may not be in a major fiscal event. However, he has my personal assurance that when and as it is appropriate to pass him information of that kind, he will be the first to know.

[Lee Anderson (Ashfield) (Con)]

T6. Now then: last week in Parliament, I met a young lady called Florence who has Down’s syndrome. She told me that she has five paid jobs and three voluntary jobs, because she is trying to get into the workplace, and she is coming across lots of barriers. Does the Minister agree that we should do more to help people with special educational needs, like Florence, to get into the workplace? What better place to start than right here in Parliament?

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[Karl Turner (Kingston upon Hull East) (Lab)]

T4.   I, too, congratulate the Secretary of State on his appointment and welcome his team of Ministers on to the Treasury Bench. He will understand that lots of people, including many, many people in east Hull, work incredibly hard and incredibly long hours, but despite all their efforts still rely on benefits. Does he agree that it would be incredibly mean if the Chancellor of the Exchequer was now to row back on the commitment of uprating benefits in line with inflation?

[Mel Stride]

The hon. Gentleman has been in the Chamber during questions for long enough to know that I cannot comment on the uprating or otherwise of benefits. However, he should take into account the numerous positive tax changes that there have been over the years for the hard-working constituents he refers to—not least the very significant increase in the personal allowance since 2010 and the change to the taper under universal credit, which makes a difference to many millions of people up and down the land.

[Mary Robinson (Cheadle) (Con)]

My constituent suffered months of worry and stress because his employer failed to pay any pension contributions into his workplace scheme. Raising it with his boss made him fear for his job. The regulator gives no feedback on investigations, so will the Secretary of State consider whether the current £400 statutory penalty notice and regulatory powers are sufficient to ensure that employers fulfil their pension contributions duties?

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[Mike Amesbury (Weaver Vale) (Lab)]

Does the new Secretary of State—whom I welcome to his place—still agree with his statement that cutting maternity rights will be good for business?

[Mel Stride]

Given that I never made that statement, I do not agree with it, no.

[Dr Caroline Johnson (Sleaford and North Hykeham) (Con)]

Thank you, Mr Deputy Speaker—sorry, Mr Speaker. [Laughter.] I will not be called next time, will I?

The Government have done a great deal to help people with their cost of living challenges, but elderly residents in my constituency are troubled by reports in the newspapers suggesting that we may not meet our manifesto commitment to retain the pensions triple lock. Pensioners face a triple whammy of dwindling savings value due to low interest rates, rising costs due to inflation and, owing to their age, an inability to go out and earn any more. Will my right hon. Friend please confirm that we will increase pensions in line with inflation?

[Mel Stride]

I admire my hon. Friend’s persistence on this matter, but I am afraid I must give her the same response that I have given on numerous occasions this afternoon, namely, that we will have to wait until at least 17 November for an answer. I understand the particular pressure that pensioners are under because they are often unable to change their economic circumstances, as others within the labour force can; but we will have to wait.

[Ronnie Cowan (Inverclyde) (SNP)]

A number of my constituents who work for the DWP have told me that they are not being given the enhanced holiday pay that they were promised in return for working overtime consistently. In response to my inquiry, the DWP has told me that current legislation provides no definition of regularity. Will the Minister please address this issue?

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[Rachael Maskell (York Central) (Lab/Co-op)]

This morning I attended the York cost of living summit and heard about the impact that food poverty, heating poverty and housing poverty are having on my constituents. One issue is the rate at which the benefits cap is set. By 2027, it will not have been reviewed for 11 years, so will the Secretary of State make representations to the Chancellor to ensure that it is reviewed before 17 November?

[Mel Stride]

I am in the process of reviewing just that matter and many of the others that we have discussed, so we will have to wait, but it is one of the matters that is under review.

[Chris Stephens (Glasgow South West) (SNP)]

We look forward to the Secretary of State appearing before the Work and Pensions Committee. Can he give us an assurance before he does so that the Department will publish the systematic evidence-based review of food bank use that it promised to publish and place in the Commons Library two years ago, so that we can debate the policy issues required to eliminate hunger across these islands?

[Mel Stride]

I look forward to appearing before the hon. Gentleman and his fellow members of the Committee. He raises a specific point, and I will look into it and come back to him.