Oral Answers to Questions

Mel Stride Excerpts

Monday 5th December 2022 Commons Chamber

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

13. What assessment his Department has made of the potential impact of real-term reductions in local housing allowance rates on levels of poverty.

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

First, on behalf of the whole House, may I welcome the hon. Member for City of Chester (Samantha Dixon) to this House, and wish her every happiness and a productive time in the House?

The Government have maintained the uplift they provided in the local housing allowance in 2020, at a cost of almost £1 billion, targeting the 30th percentile of rents. Those who need assistance with housing costs also have recourse to the discretionary housing payments administered by local authorities.

[Gerald Jones]

I welcome the Secretary of State’s comments about my new colleague, my hon. Friend the Member for City of Chester (Samantha Dixon), but that is as far as I can go.

The local housing allowance is a lifeline for tenants to access the private rented sector. The Government have accepted the need to uprate most benefits in line with inflation, so why have they chosen to freeze the local housing allowance, which will have a disproportionate impact on constituents in my constituency of Merthyr Tydfil and Rhymney? Will he commit to reviewing that situation urgently?

[Mel Stride]

As the hon. Gentleman will know, annually I review all benefits, including LHA—indeed, around this time next year, I will do precisely that. It has to be borne in mind that we are currently spending almost £30 billion a year on housing allowance and that figure is expected to increase to around £50 billion by 2050, so there are cost considerations.

[Afzal Khan]

The ongoing impact of the freeze on LHA is that more people are effectively being priced out of the private rental sector, with more and more housing becoming unaffordable. Research by Crisis showed that just 4% of three-bedroom homes advertised in Manchester were affordable on LHA rates. Tenants are forced to use increasingly larger proportions of their income on rent, at the height of a cost of living crisis. Will the Minister commit to annually raising the local housing allowance in line with inflation?

[Mel Stride]

As I have just indicated, I will review that in just under a year. There are of course the discretionary housing payments, which are administered by local authorities for those who feel that they need additional support, and I also point the hon. Gentleman in the direction of the significant cost of living payments that we are providing at the moment to support those in most need.

[Dame Nia Griffith]

As my hon. Friends have said, the very least the Government must do is to raise the local housing allowance to keep pace with the real rate of rent inflation. The Department has also cut the funding of last resort, namely, that given to the Welsh Government to provide discretionary housing payments—a cut of 18% last year and a whopping 27% this financial year. Will the Secretary of State now commit to reversing that latest cut, so that local councils in Wales can at least offer some help to those in most dire need and avoid further evictions?

[Mel Stride]

I would just say to the hon Lady that there is the household support fund as well, which she did not mention. That is there to provide support in the circumstances that she described, along with the discretionary housing payments that I set out and the fact that, in 2020, we did indeed raise LHA to be in line with the 30th percentile of local rents.

[Rachel Hopkins]

The reality is that a family in one of the cheapest three-bedroom homes in Luton have faced a shortfall of about £2,300 over the last year, and that gap increased by £650 from five months earlier. That proves that the growing gap between housing benefit and the cost of the cheapest private rents is forcing people into poverty. When the Secretary of State chose to freeze local housing allowance for another year, did he consider how that might make more and more families across the country homeless?

[Mel Stride]

I did of course very carefully consider the points that the hon. Lady has made, just as I very carefully considered the extent to which there should be an uprating of benefits more generally; they went up by 10.1%—the level of the consumer prices index at that time. I also considered very carefully what the uplift in pensions should be and, again, that was 10.1%, the level of CPI. For pensioners, we also stood by the triple lock.

[Dan Carden]

In Liverpool, the shortfall between housing benefit and the cheapest rents has now risen to £1,360 over a year. Outside London, private sector rents are rising across the country at an average of 11.8%, yet no one from the Conservative party seems to recognise that rent increases also cause inflation. Conservative Members are frequently eager to call for pay restraint and for benefits to be held down but never for landlords to heed the same advice. My constituents now face homelessness. Does the Secretary of State recognise that high housing costs and completely inadequate housing benefit lie at the root of the cost of living crisis and that the choice for the Government should be between capping rents and raising support?

[Mel Stride]

The hon. Gentleman rightly raises inflation, which we are all having to contend with at the moment. That is why my right hon. Friend the Chancellor came before the House at the time of the autumn statement and set out a clear plan as to how to bring inflation down. The Office for Budget Responsibility forecasts that it will be half its current level in a year’s time. A large amount of support has been put forward, with the £650 cost of living payment this year to those low-income households that he describes, covering some 8 million people up and down the country.

[Mr Speaker]

I call the shadow Minister.

[Ms Karen Buck (Westminster North) (Lab)]

May I also warmly welcome my hon. Friend the Member for City of Chester (Samantha Dixon) to her place?

Fifty-nine per cent. of private renters on universal credit—844,000 households—have rents above the maximum level that local housing allowance will cover. That means that they have to make up the difference, which, as we have heard, is often substantial, either by reducing spending on other necessities such as food and heating, or by getting into arrears, risking homelessness. With homelessness already rising, local authorities predicting how much more they will have to spend and the Government only today announcing an extra £50 million having to be spent on the homelessness prevention grant, does the Secretary of State accept that what the Government are saving through the freeze on housing allowance is merely popping up in additional spending elsewhere and that it is time to get a grip?

[Mel Stride]

As I set out, the amount being spent on housing and housing support is almost £30 billion a year. That has grown strongly over the last decade or so and is on a trajectory to reach £50 billion by 2050. The Government are therefore putting huge support into that area. In addition to LHA, there are, as I have said, discretionary housing payments. When it comes to the homeless, we have brought forward a £2 billion package to help to resolve those issues.

[Wera Hobhouse (Bath) (LD)]

3. Whether his Department is taking steps to support parents in receipt of universal credit with the financial transition when a full-time caring role changes following the death of a child with a life-limiting condition.

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[Sara Britcliffe (Hyndburn) (Con)]

20. What steps his Department is taking to support people on low incomes with the cost of living.

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

In 2022-23, the Government provided £37 billion in cost of living support. We also uprated benefits, pensions and the benefit cap, as I described in previous answers.

[Elliot Colburn]

I welcome the steps my right hon. Friend has taken to support Carshalton and Wallington residents. Will he join me in welcoming the work of Wallington Jobcentre Plus in putting on advice events with local charities, especially in St Helier and Roundshaw? Will he commit the Department for Work and Pensions to supporting me when I put on my cost of living advice fair, which I hope to host very soon?

[Mel Stride]

I thank my hon. Friend very much for his question and put on record my support and thanks to Wallington Jobcentre for its extraordinary work, which I know is encouraged by him. I will certainly look at what the Department can do to support his job fair.

[Sara Britcliffe]

I praise the Secretary of State for his work to help those on benefits get the support they need this winter, but does he agree that with inflation running high, a symptom of Putin’s barbaric war in Ukraine, we need to ensure we get support to households on low and middle incomes, too? Will he work with me to ensure we protect constituents such as mine in Hyndburn and Haslingden?

[Mel Stride]

My hon. Friend makes an important point. She is perhaps referring to those who are not necessarily on benefits but are still struggling. I would point to the £400 payment, which has gone out through fuel bills; the increase in the personal allowance over the years, taking many of the lowest paid out of tax; the recent increase in the national living wage to historically high levels; and the energy price guarantee, which has been rolled out to support those struggling with their energy bills.

[Marsha De Cordova (Battersea) (Lab)]

Given the cost of living crisis, or emergency, we are living in, it is deeply worrying that the Government have still chosen not to uprate local housing allowance, despite there being no change since 2016. Even those on the lowest income will face challenges in relation to being on housing benefit and universal credit. Could the Secretary of State say how much additional resource is being given to local authorities to pay for additional housing costs via the discretionary housing payment? Can he set out the Government’s rationale, because I do not believe he has answered why they are still freezing local housing allowance?

[Mel Stride]

On the discretionary housing payments, I believe the figure is about £1.5 billion over the last few years, but I will get—[Interruption.] There was a recent announcement about further moneys which are included in the figure I have just provided to the hon. Lady. I will look to get a more precise answer, but it is of the order of £1.5 billion.

[Mrs Paulette Hamilton (Birmingham, Erdington) (Lab)]

Research shows that nine in 10 disabled people are worried about their energy bills this winter. People with disabilities have been one of the hardest-hit groups during the cost of living crisis, yet many are being denied crucial support. One of my constituents is a disabled single mother who is currently undergoing chemotherapy. She told me that the mobility element of her personal independence payment has recently been removed and that without it she is really struggling. With many disabled people worrying about rising costs and unable to afford basic essentials, do Ministers really think they have done enough to support them through this cost of living crisis?

[Mel Stride]

I am very sorry to hear the details of the hon. Lady’s constituent; if she writes to me, I will be happy to look into the matters that she raised. More generally, it is only fair to say that the Government have done an extraordinary amount to support those who are disabled, not least into work, beating all the targets that we set to get 1 million more disabled people into employment. As for the cost of living payments, along with various other payments, there was a £150 payment to 6 million disabled people up and down the country.

[Stephanie Peacock (Barnsley East) (Lab)]

This Christmas, the £66 energy voucher will be the difference between heating and eating for many of my constituents, but many on prepayment meters are still waiting for their vouchers. Ministers have been warned countless times about the gap in payments, so what are the Government doing to ensure that those on prepayment meters do not miss out?

[Mel Stride]

The vouchers that are administered by the energy companies come under the remit of the Department for Business, Energy and Industrial Strategy, rather than the DWP. None the less, that is a concern right across Government. We have been liaising with BEIS, and I am satisfied that the Secretary of State there is totally aware of the situation and has been in close contact with the companies to see that things improve. My understanding is that very much a minority of the payments are affected, but for everybody who is affected, that is clearly a serious matter.

[Mr Speaker]

I call the shadow Minister.

[Alison McGovern (Wirral South) (Lab)]

I am glad that the Secretary of State has expressed concern for my hon. Friends’ constituents. He is keen to explain just how much money the Government are spending, but let us look at what the results of 12 years of Conservative Government mean for the money in people’s pockets, especially those on low incomes. We have double-digit inflation and 2.5 million working-age adults out of work, and more than 2 million emergency food parcels were handed out in this country last year. Could that be the reason that the public in Chester looked at the Government’s record and gave the Tories their worst result in that seat since 1832?

[Mel Stride]

I am rather surprised that the hon. Lady raises unemployment, in particular. Under Labour, we saw unemployment rise by nearly half a million; female unemployment go up by a quarter; youth unemployment rise by 44%; the number of households with no one working in them double; and 1.4 million people spending most of their last decade on out-of-work benefits. That is not a record to be proud of.

[Mr Speaker]

I call the Scottish National party spokesperson.

[Amy Callaghan (East Dunbartonshire) (SNP)]

A recent report for the Aberlour children’s charity found that the DWP deducts an average of £80 a month from Scottish families on universal credit to cover debts such as advance payments caused by the five-week wait. Does the Secretary of State think that it is acceptable that 56% of our constituents claiming universal credit have been left with such tiny sums of money that they have been forced to go without food or to eat just one meal a day? Will he consider replacing the advance payment loans with a non-repayable grant?

[Mel Stride]

On deductions from universal credit, the hon. Lady will know that, during the pandemic, when things were extremely difficult, we paused that entire process. As a matter of principle, it is important that, when claimants are in debt, arrangements are made such that they can work their way through that and come out of debt. That often means deductions—I say “often” because it does not always mean that, and our debt management team are always very aware of the circumstances of those with whom they are dealing. We also reduced the maximum amount that can be deducted—first, from 40% to 30%, and now to 25%—so I am satisfied that the balance is broadly correct, but wherever there are individual instances where somebody feels that they are not being treated appropriately, they always have recourse to appeal.

[Mark Pawsey (Rugby) (Con)]

7. What assessment he has made of the potential merits of reducing the universal credit taper rate on the levels of people’s incomes.

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[Vicky Ford (Chelmsford) (Con)]

15. What steps his Department is taking to reduce benefit fraud.

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

Dealing with fraud is, of course, a key mission for the Department. We have recently announced two tranches of additional investment totalling £900 million to prevent more than £1 billion-worth of fraud by 2024-25.

[Vicky Ford]

At difficult economic times like this it is particularly important for us to protect taxpayers’ money, so I welcome the Government’s further investment to tackle fraud, but what efforts are they making to address organised crime in the benefits system?

[Mel Stride]

My right hon. Friend has raised an extremely important matter. Unfortunately, fraud does not happen just at the level of the individual, but involves organised crime as well. Since July 2019, the Department has secured the removal of 1,500 social media accounts, many of which were related to organised crime, and since May 2020 it has suspended 170,000 claims.

[Justin Tomlinson (North Swindon) (Con)]

16. What recent assessment he has made of the adequacy of processing times for personal independence payments.

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[Gary Sambrook (Birmingham, Northfield) (Con)]

T1. If he will make a statement on his departmental responsibilities.

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

Since my last appearance at Question Time, there has been the benefits uprating we have been discussing this afternoon. I am very pleased to have had a 10.1% increase across the board, including for pensions as we stood by the triple lock.

I also had the great pleasure of appearing before the Select Committee on Work and Pensions, which was particularly looking at the issue of economic inactivity. I urge all Members to read the transcript of those exchanges. I thank the right hon. Member for East Ham (Sir Stephen Timms) for giving me almost two and a half hours of the Committee’s attention.

[Gary Sambrook]

I was kindly asked in April to open the new jobcentre in Kings Norton, which has since enabled 973 people to get back into work. Will the Secretary of State set out how we can help jobcentres such as those in Kings Norton and Longbridge in my constituency do even more to get even more people into work? Will he visit Kings Norton so we can both thank the jobcentre’s fantastic teams that have got so many people back into work?

[Mel Stride]

My hon. Friend is absolutely right. The talented and hard-working people at Kings Norton jobcentre do an extraordinary job, and I know he has personally done a great deal to encourage them. This is why overall unemployment is as low as it is. I will certainly consider his request for a ministerial visit.

[Mr Speaker]

I call the shadow Secretary of State.

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

The Secretary of State will know that employment is lower than before the pandemic, that 2.5 million people are out of work for reasons of sickness—a record high—and that half a million young people are not in education, employment or training. There is a £1 billion underspend on Restart and other schemes, so why not use that money to help the economically inactive get back to work?

[Mel Stride]

As the right hon. Gentleman will know, we look at our budgets on an ongoing basis. Where we have an underspend, such as on the Restart scheme, it is largely because the Government have been so successful in lowering the level of unemployment. Compared with 2010, youth unemployment is down by almost 60%. It is 29,000 down on the last quarter, and 77,000 down on the year.

[Jonathan Ashworth]

The Secretary of State will have seen the Office for Budget Responsibility’s projection that we are likely to spend more than £8 billion extra on health and disability benefits. We are getting sicker as a society, yet only one in 10 unemployed disabled people or older people are getting any employment support. Does he think that is acceptable? How will he fix it?

[Mel Stride]

On assisting the disabled into employment, this Government have an excellent record through Disability Confident. Our work coaches do a huge amount of work to ensure that those with disabilities are in work. The right hon. Gentleman will know the Department is currently undertaking a large amount of work on economic inactivity. I heard his recent comments, which were very interesting, and my door is always open to conversations about working together.

[Greg Smith (Buckingham) (Con)]

T2. Research by Macmillan shows that 83% of people with a cancer diagnosis experience a financial impact from that, with the average figure being £891 a month on top of their usual expenditure, which sometimes means they cannot afford to get to their medical appointments. What more can be done to ensure that those with a cancer diagnosis get rapid access to everything to which they are entitled?

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[Amy Callaghan (East Dunbartonshire) (SNP)]

Recent figures from the Department for Work and Pensions, acquired from an answer to a written question from my hon. Friend the Member for Glasgow South West (Chris Stephens), show that the Department took £2.3 million from claimants in Scotland, at an average of £250 per sanctioned household. Sanctions against young people in Scotland have almost doubled since 2019, undermining the significant investment the Scottish Government are making in tackling child poverty. Does the Secretary of State stand by the practice of sanctioning the most vulnerable and leaving them hungry?

[Mel Stride]

As we focused on in our earlier exchange, the most important thing is that there is a proportionate response to those who are in debt, for whatever reason. It is appropriate that we help people out of debt, and reductions—or deductions—are part of that process. As I explained to the hon. Lady, the maximum that can be taken from the universal credit standard payment is now 25%—it used to be 40%. We are very careful to assess every case on its individual merits, to take into account the circumstances of those impacted.

[Duncan Baker (North Norfolk) (Con)]

T3.   One of my constituents has motor neurone disease. She became disabled after she reached pensionable age and the only support she can now claim is attendance allowance, which, as we know, has no additional mobility element of payment. Others who have the same condition but are under pensionable age can claim and receive the mobility addition. Does my right hon. Friend agree that people on benefits who end up with these health issues should be able to claim for their disability based on a disability and not their age?

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[Bob Blackman (Harrow East) (Con)]

T4. My right hon. Friend will be aware that my private Member’s Bill on supported housing exempt accommodation is making its way through Parliament. He will also have seen the Inside Housing exposé that demonstrates that more than £1 billion is going out in housing benefit to providers. Many of them are providing an important service for vulnerable people, but a large number of rogue landlords are ripping off the system. Will he undertake a review to make sure that people who are claiming this benefit are properly assessed and provided with the support they need?

[Mel Stride]

I recognise the extraordinary work that my hon. Friend has done over many years to campaign for those in social housing, private housing and also, indeed, those who are homeless. I fully support his Bill. It is absolutely right that we clamp down on these rogue landlords. I think I recall him saying in this House how he had examples of those who were supposed to be supporting people living in their accommodation simply knocking on the door, calling up the stairs to say, “Are you alright?” and then leaving. That is completely and utterly unacceptable. I look forward to the progress of his Bill.

[Chris Elmore (Ogmore) (Lab)]

T7. My constituent, Mr Hudson, has raised with me that the DWP has not been paying any of his national insurance contributions for his state pension for the past three-and-a-half years, and that the Department has been unable to advise him on when he will receive the update to his records, because he is in receipt of class 3 benefit contributions. Will the Secretary of State or his Ministers explain when this will be undertaken, so that my constituent can get the much-needed contributions re-established, enabling him to claim his state pension when the time comes?

[Mel Stride]

I thank the hon. Gentleman for raising Mr Hudson’s situation. If he would care to write to me, or have Mr Hudson write to me, I will be very happy to make sure that it is thoroughly looked into.

[Sir David Evennett (Bexleyheath and Crayford) (Con)]

Can my right hon. Friend give the House an update on the new disability action plan that the Government are preparing at the moment?

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

We were grateful for the answers that the Secretary of State gave at the Work and Pensions Committee meeting last week, and we are looking forward to him returning on 11 January. He has been pressed this afternoon, repeatedly and rightly, about local housing allowance, and I have heard his answers to those questions. Next year will be the fourth year that the local housing allowance has been frozen at its current level, during a period when rents have risen sharply. Does he recognise that the case for rebasing local housing allowance, so that it reflects actual local rents, is becoming a very pressing one?

[Mel Stride]

Once again, I thank the right hon. Gentleman for the opportunity to appear before his Committee last week. He raises again the LHA. In 2020, it was, of course, raised to be in line with the local 30th percentile of rents at a cost of approaching £1 billion. He is absolutely right that, clearly, the higher the rate of inflation, and house rental inflation in particular, the more pressure that is put on that particular allowance. All I can undertake to do is to look at this matter very closely the next time I review these particular benefits, which will be in about a year’s time.

[Dan Jarvis (Barnsley Central) (Lab)]

I raised 11-year-old Harry Sanders’s disability living allowance appeal at the last DWP questions, but despite a letter from the Minister, for which I am grateful, his parents are still waiting for a tribunal date. Will the Minister look again at Harry’s case, understand why the long wait is causing such anxiety and work with me to resolve this matter as soon as possible?

[Dame Nia Griffith (Llanelli) (Lab)]

The Secretary of State mentioned the reduction to 25% of the deductions to universal credit to claw back overpayments or advances, but deducting 25% of money that barely covers the essentials is far too much. A report by Lloyds Bank Foundation says that even at 25% the deductions are pushing people into other debt and leaving them without enough to live on. The Secretary of State will also know that the Work and Pensions Committee has recommended pausing debt recovery during the cost of living crisis. Will the Secretary of State now pause that debt collection and, when it resumes, resume it at a lower level?

[Mel Stride]

The hon. Lady will know that the level of 25% she refers to has been decreasing through time; it was 40% not that long ago, then 30% and now it is 25%. It was paused altogether during the pandemic, and the experience then was that debt started to increase among claimants, in many cases in a way that was not helpful to the claimant. It is an important principle that, where people are in debt, we work with them to make sure we get them out of debt through time, but I accept that we need to do that with great care, hence the various elements of the process that I described earlier.

[Cat Smith (Lancaster and Fleetwood) (Lab)]

What measures are the Government taking to speed up repayments to the 200,000 pensioners who have yet to be compensated for the historical underpayments in the state pension?