Oral Answers to Questions

Michelle Donelan Excerpts

Monday 5th February 2018 Commons Chamber

[Kit Malthouse]

My hon. Friend makes a strong point, and he is absolutely right. National statistics, on a number of measures, have shown child poverty falling. In particular, we have seen 200,000 children over the past few years move out of absolute poverty.

[Michelle Donelan (Chippenham) (Con)]

For too long, parents have been able to hide their earnings from their child maintenance payment calculations, creating and adding to child poverty. What action are the Government taking to stop this?

[Kit Malthouse]

As my hon. Friend knows, the child maintenance system was put in place to enable greater co-operation between parents, on the basis that that often results in a much better outcome for children, but there are parents who fail to do that, and for those circumstances, we have invested significantly in the financial investigations unit of the Child Maintenance Service. We will be consulting further on what more we can do to strengthen our enforcement powers.

--- Later in debate ---

[Guy Opperman]

The position has not changed. The Government do not intend to change the Pensions Act 1995, or the 2007 and 2011 Pensions Acts. I would point out that a £1.1 billion transitional arrangement was put forward in the 2011 statute.

[Michelle Donelan (Chippenham) (Con)]

Some 70% of the rise in UK employment involves higher-skilled jobs. This is true in Wiltshire, which expects more than 2,500 jobs from Dyson alone. What work is the Minister doing with other Departments to tackle the science, technology, engineering and mathematics skills gap in the UK, so that Wiltshire can benefit from those jobs?

[Alok Sharma]

I have started to have conversations with ministerial colleagues, and my hon. Friend is absolutely right to say that we need to work as one Government to ensure that high-skilled jobs are created across our country.

Financial Guidance and Claims Bill [ Lords ] (Second sitting)

Michelle Donelan Excerpts

Thursday 1st February 2018 Public Bill Committees

I am sure that every member of the Committee has personal experience of heartbreaking cases in their constituencies where people are immersed in debt, and of the price they pay and how they suffer. Crucially, debt respite gives them the time and opportunity to sort their lives out. I know that the Minister agrees in principle and that there is common ground across the House that a debt respite scheme should be established, but it is a question of how quickly that can be made to happen. It is our strong view that it ought to be achievable within six months of the Bill becoming law.

[Michelle Donelan (Chippenham) (Con)]

Does the hon. Gentleman agree that rushing a scheme could impact the effectiveness of debt respite? Although I completely agree with everything he said about the problems that can be incurred via debt, it is important to get this crucial element of the Bill correct and to liaise with organisations such as StepChange and the others he mentioned.

[Jack Dromey]

The hon. Lady is absolutely right. It is important that we get this right at the next stages of the Bill. I do not disagree for one moment. Having said that, let me distinguish between two things. Making substantial changes to the machinery of government to deliver a new function willed by Parliament can take a long time, so the SFGB probably will not be operational until May 2019. I understand that. However, it is not beyond the wit of man or woman to send an unambiguous message now, on the face of the Bill, to those who are responsible for unreasonable pressure being put on people in debt that they are not allowed to do so. Introducing that within six months of the Bill becoming law is eminently achievable.

I stress again that I am the first to recognise that great change sometimes takes time to implement, but to be frank, given the times we are living through, I do not want people who could get respite to spend another six months not getting it. There is no good reason not to give them respite. As I said when we started this morning, we want to strengthen a good Bill, and inject into it a greater sense of urgency as appropriate.

PIP Back Payments

Michelle Donelan Excerpts

Tuesday 30th January 2018 Commons Chamber

[Sarah Newton]

I am having a conversation about prioritisation with Mind and stakeholders. It is really important that we work with experts and stakeholders to help us to decide the prioritisation. I can absolutely assure the hon. Lady and everyone in the House that this is of the utmost importance and that we are acting at pace to get it sorted as soon as possible.

[Michelle Donelan (Chippenham) (Con)]

Supporting the vulnerable and people with disabilities and health conditions should always be the Government’s top priority. Will the Minister confirm that personal independence payments are not subject to the benefits cap or means-testing, and that payments will continue to rise with inflation and to be untaxed?

[Sarah Newton]

My hon. Friend makes a very important point. Keeping people safe and taking care of the most vulnerable people in society are the top priorities for this Government, and I know that my hon. Friend does a huge amount of work in her constituency to support the most vulnerable members of her community. I can absolutely provide that assurance—PIP is a non means-tested benefit that is not subject to the benefits cap. It plays a vital role in enabling disabled people to play as full a part in society as they can, which is something I know that my hon. Friend and I both want.

Financial Guidance and Claims Bill [Lords]

Michelle Donelan Excerpts

2nd reading: House of Commons
Monday 22nd January 2018 Commons Chamber

[Michelle Donelan (Chippenham) (Con)]

I am delighted to have this opportunity to speak in today’s debate. I am particularly passionate about the need to provide more support to help people out of debt, to give them that lifting hand. For that reason, I shall focus on part 1 of the Bill.

Debt creates a vicious cycle that leaves people unable to pay the bills and pushes them further into debt. It soon becomes a fast-moving, downward spiral that can leave people feeling isolated, alone and trapped, and it can create and exacerbate mental health problems, leading to family breakdown and even suicide. Like all hon. Members, I have heard constituents tell harrowing stories of how they ended up feeling that they could not get out of the situation they were in—stories that started with a small amount of debt that grew out of control. There is a strong relationship between debt and mental health, as a number of studies have shown, including a recent one from the University of Southampton. Debt is serious, complex and challenging in so many ways, which is why it requires a robust and comprehensive approach.

As has been discussed, the Bill creates a new, single financial guidance body that will replace the three existing public financial guidance providers. I echo the strong support that stakeholders have expressed for establishing a single body. It will improve access to free and impartial money guidance, pensions guidance and debt advice, enabling people to make informed decisions about their finances by offering a more co-ordinated and strategic approach. Most importantly, it will simplify the help on offer to people, because the current situation can be very confusing. For the first time, it will provide a statutory requirement to target help towards those most in need, particularly those in the most vulnerable circumstances. It will also remove the duplication of services and identify gaps in provision.

The levels of secured and unsecured debt in the UK are a problem. In the past few decades those levels have increased with the rise of the credit card and payday loan era. Debt is easy to access and easy to accrue. At quarter 3 in 2017, the total level of household debt in the UK was a staggering £1.9 trillion, according to the Office for National Statistics. As we heard in the House of Lords, part 1 will ensure

“that people have access to the information and guidance they need to make the important and effective financial decisions that we all have to make at some point in our lives.”—[Official Report, House of Lords, 7 July 2017; Vol. 783, c. 904.]

What is important, though, is implementation, so that people know that they have access to this free and impartial help and how to get it. Proactive promotion is key. I have met far too many constituents who are unsure of where to turn to and how to access the help that they need. The Bill seeks to rectify this, but it is important that there is proactive promotion. I would like to hear more from the Minister about the plans for that.

This includes starting financial education early, at school age. I was delighted when, in 2014, for the first time, the Government made financial literacy statutory as part of the curriculum for 11 to 16-year-olds. I am equally delighted that clause 2 outlines a key function of the SFGB as being to improve the provision of financial education for children and young people.

[Justin Tomlinson]

At the time, I was chair of the all-party parliamentary group on financial education for young people, and I was very grateful for my hon. Friend’s support in that campaign. I echo her comments. We live in a very complex society, with direct debits, standing orders and complicated marketing messages coming forward. Making sure that we equip people of all ages to make informed decisions is an absolute priority.

[Michelle Donelan]

I thank my hon. Friend for his intervention. I completely agree with his comments and commend him for the work that he did in this area.

After all, debt is more prominent among young people, with 71% of 25 to 34-year-olds having a credit card compared with only 20% of those aged 65 and over. It is time for this Bill, because the ease and availability of credit, over-lending, and the attendant consequences of problem debt are stark.

On Third Reading in the Lords, the Government amended the Bill to enable the introduction of a debt respite scheme in England, Wales and Northern Ireland. This was in the Conservative party manifesto, and it is crucial. It will offer breathing space to people who are trapped in debt—a ladder out of the hole they are stuck in—by stopping further interest, charges and enforcement action for a set period, and enabling a realistic repayment plan to be put in place. Budgeting advice is all well and good, but if the levels of interest and charges are compounding to an extent that people do not have the money to budget with, it is simply useless. That is why the debt respite scheme is so essential. It is crucial that it is offered and promoted effectively to help people in need.

This does, though, pose the question of how long the respite scheme would last for, which will be in the Secretary of State’s power. Charities in the sector are urging a six-month period. It is important that it is a meaningful amount of time that will allow people enough time to address their debt problems and get achievable plans in place. It is in everyone’s interests that it is not a mere six-week period. In fact, StepChange, the debt charity, says that its clients usually take six to 12 months to stabilise their finances. The debt respite scheme will particularly help families. One in five parents say that they have had problems in the past year with problem debt, whereas in Scotland, where there is already a respite scheme, only 10.9% of families said the same thing.

I believe that our role as parliamentarians is to open doors and create opportunities. However, opportunities are useless if people are unable to access them. The debt respite scheme will offer people the helping hand that they need to seize those opportunities and the help that will be available from the Bill. In addition, we need the current system to work with the Bill, actively referring people and taking a more proactive approach to debt.

Universal credit streamlines benefits, which can assist with debt management and making work pay, but we are still offering and giving budgeting loans to those in considerable debt. More work needs to be done to identify and to help people with chronic and severe debt problems. I would like a debt review to be done when people make applications for budgeting loans. This is similar to what StepChange does when it reviews how to help a person. If the applicant has severe problems with debt, they can be referred and given the help, information and advice they need, as well as offered the debt respite scheme, with an achievable repayment plan.

It is irresponsible to add to such people’s debt in the way we currently do, so I urge the Minister to consider the matter in the context of debt support and management, especially given the disproportionate link between debt and unemployment. I have seen far too many constituents crippled by debt and then given a budgeting loan on top, which eats into the amount of universal credit that they have to manage with. Such people do not come forward and offer information about their debt for fear of stigma, fear of losing benefits and concerns about the legitimacy of having so many bank overdrafts and credit card debts. They therefore do not get the help they need and, instead, we give them a budgeting loan, which further compounds their problems. Budgeting loans are an excellent way to help many people with short-term finance issues and start-up costs, but they are not right for those already swimming in debt, who are often the most vulnerable. Those are the people the Bill is designed to help.

In conclusion, debt is arguably the biggest challenge to social mobility in this country and it is time we had a more proactive response in giving support. That is why I support the Bill. It is in the interests of all of us to address debt: this is not just a personal problem, but a national one. In fact, StepChange estimates that the cost to the state and society of problem debt, on top of the personal cost, is about £8 million. Although I applaud the Government for the Bill and their appreciation of the need to tackle debt, I also ask for a much more proactive approach to its implementation to ensure that the Bill is as effective as it can be.

Cross-departmental Strategy on Social Justice

Michelle Donelan Excerpts

Wednesday 14th September 2016 Westminster Hall

[Fiona Bruce]

Yes, Jonathan Sacks, who is so respected and speaks from a heart of compassion, indeed said that. I very much support those words, because we know that about 1 million children have little or no contact with their fathers, and they are vastly over-represented in our poorest communities.

What I said about the poorest 20% on the income spectrum holds true for those who have a bit, but not a lot more. The Institute for Social and Economic Research found that, on average, women’s incomes dropped by more than 10% after a marital split, and that family breakdown is a route into poverty for many. The single fact of family breakdown can tip people out of a degree of financial security and into a much more precarious and uncertain set of circumstances, in which they are also far more dependent on the state.

As I always state in such debates, I make no criticism or condemnation of single parents. So many of them strive so valiantly to support their children and to do their very best for their family, often in challenging circumstances. However, the fact is that lone-parent households are twice as likely to be in poverty as couple families. In 2015, 44% of children from lone-parent families were in households living on less than 60% of median income, as compared with 24% of children from two-parent families. Inevitably, single parents struggling to juggle their time will face greater challenges to spending time with their children.

Some might suggest that parents raising children on their own should simply receive more support from the state, but single parenthood is a risk factor for poverty internationally. Swedish statistics show that parental separation is the biggest driver into child poverty, by a large margin, and that is in the country with the most generous welfare regime in the world. The state does not and cannot protect a child against the absence of a relationship missed with one parent or another. As this Government’s emphasis on life chances has made clear, however, we cannot look only to the effects on income. Poverty is not only about income, but about many other things in life, not least, particularly in a child’s life, poverty of relationships. How are the nation’s children and young people faring in terms of their mental health and wellbeing?

Research commissioned by the previous Labour Government shows that children who experience family breakdown are more likely to experience behavioural problems, to perform less well in school, to need more medical treatment, to leave school and home earlier, to become sexually active, pregnant or a parent at an early age, and to report more depressive symptoms and higher levels of smoking, drinking and other drug use during adolescence. The most up-to-date research also demonstrates those associations. The recently published “Longitudinal Study of Young People in England” found that young people in single-parent families had greater mental health challenges than those with two parents, and there was a greater likelihood of them being above the “caseness” threshold, which means that someone is suffering from such psychological distress that they need clinical help.

[Michelle Donelan (Chippenham) (Con)]

I welcome my hon. Friend’s comment that social injustice is based not just on financial poverty but, in effect, on social poverty—things such as bereavement, family breakdown and children’s time being consumed by them acting as carers. Does she agree that we should look at how things such as the pupil premium are calculated to ensure that they take into account the whole range of social injustices that children in this country face?

[Fiona Bruce]

We certainly need to look at a range of solutions for supporting such children more, and that could be one. My hon. Friend raises the concerning issue of young carers, who are certainly under-supported and under-resourced and whose number is underestimated, as I know from my own area.

I am patron of a young persons’ mental health charity, Visyon, which cannot cope with all the requests for help that it receives, including from children as young as four years old. I recently asked how many of those children have mental health issues because of relationship difficulties, and the answer was virtually all of them. Similarly, young people in step-families were reported by the longitudinal study that I referred to as being significantly more likely to be above the caseness threshold than those living with two parents. We are often reminded of the need for more and better mental health services, but the role of family breakdown in fuelling that need is almost never mentioned. Would it not be wonderful if we could start to look earlier in the chain of difficulties and challenges that such children experience at how we can prevent family breakdown from occurring, as it does in so many cases?

When the study that I referred to was publicised, digital media received the lion’s share of the blame for driving poor outcomes. I have no doubt that over-exposure to screens and the online world does children and adolescents no favours—I and many other Members spoke about that only yesterday during the debate on the Digital Economy Bill—but digital media are here to stay, and we must be ruthlessly honest that family background can make children more likely to get less help than they need to navigate the challenges of the digital world. That is why I said in that debate that

“whatever protections the Government devise, they cannot be comprehensive. Parents need to be given as much information and support as possible to enable them to engage with and protect their children from harmful behaviour online in what is a very challenging environment for many parents.”—[Official Report, 13 September 2016; Vol. 614, c. 841.]

That might not be the responsibility of the Ministers promoting that Bill, but I believe that it should be grasped by someone in government.

Families with two super-invested parents who have time and motivation to supervise their children’s internet use and coach them to be savvy digital natives are at a distinct advantage over others in helping to protect their children from self or other, abusive sexual experimentation. My main point is simply that when it comes to social harms, there is still a tendency to emphasise factors external to families and to look for solutions at a safe distance. However, the report of the Government-commissioned “Longitudinal Study of Young People in England” stated:

“Schools would seem ideally placed to cut through to all young people in year 10 and provide them with the support that they need around wellbeing”.

I accept that schools have an important role to play—many do so and support children with difficulties and disadvantages well—but the challenges are huge. We should surely also equip and educate parents so they can help their children. I commend Keith Simpson, headmaster of Middlewich High School in my constituency. When he seeks to support children with challenges in his school, he seeks to work with their parents, too.

The Institute for Public Policy Research, in its report “A long division”, found that no less than 80% of the factors influencing pupil achievement come from outside school, and family influence is particularly strong. Equipping and educating parents must include helping them when their own relationships are under strain and being honest about the effects that a culture of family breakdown has on the next generation.

The Government has a self-interested responsibility in this area, given that young people with poor mental health and wellbeing often grow up into adults who struggle, with implications for employers, national productivity and health services. University College London’s research department of epidemiology and public health has shown that 60-year-olds still suffer the long-term effects of childhood stress linked to the trauma of family breakdown. As someone who has been involved in a law firm that has undertaken family work for three decades, I can confirm that the bereavement and grief that young people feel from missing relationships can be profound and last a long time.

Members will be pleased to hear that that brings me back to the title of the debate, “A cross-departmental approach on social justice”, which has clear implications for the Prime Minister’s broader social reform goal. I have touched on just some of the social problems that restrict a child’s life chances and make life in Britain much less fulfilling and prosperous for so many than we in this place want it to be. If we are to cut through and make a lasting difference to those problems, a much more concerted and co-ordinated effort has to be made from the very top of the Government to address family breakdown than has been made to date.

Oral Answers to Questions

Michelle Donelan Excerpts

Monday 14th March 2016 Commons Chamber

[Mr Duncan Smith]

Universal credit is now pretty much rolled out all over the country. The Institute for Fiscal Studies made it clear in respect of anybody transitioning from tax credits that

“no family will take an immediate…hit”

because they are “transitionally protected”. I said at the time that we would do our level best, working with the advisers and through the flexible support fund, to make sure that people’s situations continued and actually improved. That is exactly what universal credit will do. That is why I wonder why the Opposition do not support it. More people go into work quicker; they get into work faster; they actually earn more money; and they stay and work longer.

[Michelle Donelan (Chippenham) (Con)]

The Minister will be aware that almost 15% of the working population are self-employed, and that in five years’ time, about 40,000 of them will be living in Wiltshire. Does he agree that something needs to be done and that a self-employed auto-enrolment scheme could be looked at? Would he welcome the inclusion of such a thing in this week’s Budget?

[Mr Vara]

Auto-enrolment is a very important issue that this Government are undertaking. I am happy to report that some 6 million people have already taken part in the initiative. This is something that will be of particular benefit to women, who will have the opportunity to enrol as part of a pension, which will certainly help their chances in the future.

Oral Answers to Questions

Michelle Donelan Excerpts

Monday 7th December 2015 Commons Chamber

[Mr Duncan Smith]

The hon. Gentleman is right to raise that. All support will be given by Jobcentre Plus. If it has not already done so, I will ensure that it puts a specialist team in to make sure that all those people are seen as a priority, that all their skills are assessed and that they are got into jobs as quickly as possible. If, however, he would like to come and see me about this or if he can think of anything else we can do, I can assure him we will do everything we can to help his constituents at this time.

[Michelle Donelan (Chippenham) (Con)]

Will the Minister please inform the House of the specific plans for constituencies such as mine which have very high rates of employment but suffer proportionally high rates of long-term unemployment?

[Priti Patel]

I know that my hon. Friend is doing a great deal of work locally in the employment space through apprenticeship fairs and things of that nature. When it comes to supporting people who are suffering long-term unemployment, we are working with our jobcentres and employers and, importantly, Work programme providers to get people closer to the labour market, to support them through training schemes and to nurture them so that they have an easier, smoother journey into work.

Oral Answers to Questions

Michelle Donelan Excerpts

Monday 2nd November 2015 Commons Chamber

[Justin Tomlinson]

I thank the hon. Gentleman for raising that issue. I am very disappointed to hear what he says and I will make sure that a formal response is sent. I was very grateful to both the hon. Gentleman and the Batten Disease Family Association UK for taking the time to help proactively support the changes that we needed to make.

[Michelle Donelan (Chippenham) (Con)]

Does the Minister share my view that a huge part of tackling youth unemployment is ensuring that people leave the education system work-ready? What has been done to help achieve that?

[Priti Patel]

My hon. Friend is absolutely right in what she says. I know that she is doing a great deal in her constituency to champion apprenticeships, which of course support young people not just in getting into work, but in developing long-term careers.