Oral Answers to Questions Debate
Full Debate: Read Full DebateMims Davies
Main Page: Mims Davies (Conservative - East Grinstead and Uckfield)Department Debates - View all Mims Davies's debates with the Department for Work and Pensions
(1 year, 9 months ago)
Commons ChamberWe are committed to helping parents to increase their income through work. We have cut the earnings taper on universal credit and increased work allowances, meaning that families are, on average, better off by £1,000 a year. Additionally, eligible parents can claim up to 85% of their childcare costs through UC, and further assistance is available through the flexible support fund, Jobcentre Plus and work coaches.
On Friday, I visited my local citizens advice bureau at its new offices on George Street in Lancaster, where I heard at first hand of the challenges that single parents are having with the amount of the childcare element of universal credit being capped at the level set in 2005 and with its being paid in arrears. What steps has the Minister taken to ensure that benefits go up in line with the cost of childcare and to look at paying this element up front?
I thank the hon. Lady for that question. The UC childcare element can be used to top up a claimant’s eligible free childcare hours if more hours are worked and more childcare is required. We also use the flexible support fund to support those up-front costs, as we heard earlier. However, I would like to take this opportunity to talk about employers; this is not solely about what the Government can do on our own to help lone parents. Job design, the opportunity to progress and flexible work are really important too, as is the opportunity to return and progress. We cannot do this on our own.
It is alarming that last year the employment rate for single parents had the biggest annual fall on record, and it is all the more worrying because the single parent employment rate has been on an upward long-term trend since the mid-1990s. Surely the Minister would agree that the eligible cost limit on childcare in universal credit needs to be uprated to reflect the ground reality of today’s soaring childcare costs.
I thank the hon. Gentleman for his question. Under this Government since 2010, we have seen a significant increase in lone parents in work, with the rate going up from 56.1% in 2010 to 65.5% in 2022. However, the reality—and I think he describes it—is that there are too many challenges for lone parents, and it is absolutely right that we look at this. As we have heard from the Secretary of State, we are hoping to hear more: the Chancellor is ever present in our minds. As a lone parent, I again make the plea to employers to help people come back to work, because we know it is more than just a pay packet; it is really important to see the whole of society represented in the labour market.
Figures published today by the Centre for Progressive Policy show that the lack of affordable childcare prevented a quarter of parents of children under 10 from working more hours, with all the implications that has for family finances, but also for economic productivity. In fact, parental underemployment is estimated to cost this country over £20 billion. With expectations having been raised again this afternoon that next week’s Budget will do something about the cost of childcare, can the Minister tell us how long it will be before she expects the level of lone parent employment to rise again to where it was three years ago?
I thank the hon. Lady for her question. I think we have some amazing childcare out there and some brilliant opportunities for lone parents, as I have described. It is important to let people know that, on universal credit, they can claim back 85%. It is better than legacy benefits, and they should please look at the benefits calculator on gov.uk and use the flexible support fund. We should also recognise that it is not right for everybody to go straight back to work—this needs to be individualised—and that we should support the lone parent and make sure they can get the skills and the opportunity to always be better off in work.
The Government recognise the pressures people are facing and have acted, providing cost of living support worth over £37 billion in 2022-23. In April, we are going further by uprating benefits, state pensions and the benefit cap by 10.1%. We are also providing £1 billion for the extension of the household support fund in England, with Barnett consequentials for the devolved Administrations. That includes £12.4 million for Rotherham Metropolitan Borough Council residents from October 2021 to March next year.
Will my hon. Friend confirm that her Department has changed the way it makes cost of living payments, so that those in the most need continue to benefit, while ensuring that we do not overburden the hard-working majority of my constituents in Rother Valley with ever higher taxes?
I thank my hon. Friend for making that point. We are legislating this afternoon for the three further cost of living payments for the next financial year, ensuring that more people are eligible for support and that we are reaching the most vulnerable. The payments will be worth up to £900, with a further £300 for pensioners and £150 for those with a disability. In Rother Valley, we estimate that 10,600 households will be eligible for means-tested cost of living payments, and that 11,800 households will be eligible for disability cost of living support.
It has been nearly 12 months since the Equality and Human Rights Commission issued a section 23 notice against the Department for Work and Pensions, following concerns about the deaths of and discrimination against disabled claimants. Has an agreement yet been reached, and, if not, when will it be?
I thank the hon. Lady for her point. I am assured by the Minister for Disabled People, Health and Work that constructive conversations are ongoing and that this matter is being taken seriously. I am sure that he will have the hon. Lady’s question.
The Government are projected to spend £30 billion—about 1.3% of GDP—on support for renters. Approximately £100 million has been allocated for the discretionary housing payment in 2023-24 to help local authorities, if necessary, which can top up from their own funding to help the hon. Lady’s constituents.
We are focused, across Government, on helping young people to become involved in science, technology, engineering and maths projects and careers. A new science and technology framework was announced today, and will be vital for long-term economic success. DWP Train and Progress helps claimants take advantage of the bootcamps run by the Department for Education, and our partnership with Google is helping to boost digital skills. These activities are flexible in that people of any age and at any stage in their careers can engage in them.
Further to the question from the hon. Member for Strangford (Jim Shannon), I have a constituent who is facing the consequences of an overpayment in employment and support allowance. She has been able to show that she gave the Department the correct information time and again, but according to the Department, that is not relevant to whether she should pay the full sum. If the Department is not subject to any comeback after making mistakes, how will it ever improve?
I know that my hon. Friend takes great interest in supporting women in work, and working with employers is crucial to ensuring that they can both retain and recruit women and that there is no stigma in the workplace for those experiencing the impact of the menopause. I am delighted to announce the appointment of Helen Tomlinson as the DWP menopause employment champion. She will have a key role in driving awareness and promoting the benefits of a fully inclusive workplace to both business and the economy, and I will be sharing further details of her appointment later today.
Research conducted by the Bevan Foundation has established that local housing allowance is not a solution to the cost of living and housing crises for families on low incomes and for the most vulnerable because it is too low, and has been frozen since 2020 while private rental costs have soared. Will the UK Government help those in need and uprate the allowance?
We recognise that rents are increasing, and that a challenging fiscal environment means we need to support people effectively. We have therefore announced a support package for the most vulnerable households, which includes help through the household support fund. Those who are entitled to housing benefit or the housing element of universal credit and who have a shortfall can reach out for discretionary housing payments from local authorities.
There are some notable and fantastic businesses in my constituency, including Argus Fire and Pegasus, which do a brilliant job in recruiting young adults and providing career opportunities. What more can the Department do to bridge the gap between employers and young adults and create that one-stop opportunity for 16-year-olds to find employment?
As you know, Mr Speaker, I am very supportive of getting young people into work. The Dudley youth hub is a classic example of the Department’s working in partnership locally, providing a single location for employers to engage with the under-25s from Stourbridge and the wider area. Claimants can attend recruitment events and take advantage of a range of on-site services, and I know that they greatly welcome the opportunity to work with Argus Fire and Pegasus.
Public and Commercial Services Union members in Scotland get a raw deal from this Government on pay, with many civil servants themselves using food banks. When will the Government give them a proper pay rise?