Social Security (Additional Payments) (No. 2) Bill

Debate between Mims Davies and Wendy Chamberlain

Committee stage
Monday 6th March 2023 Commons Chamber

[Wendy Chamberlain]

It is a pleasure to move amendment 4 on behalf of my party.

Additional support for struggling families is much welcomed, and I am pretty sure that no one in the Committee would oppose the provision of more help through the Bill. What my amendment seeks to do is ensure that those struggling families receive that support now, rather than having to wait. It has been a long cold winter, and we are expecting another cold snap this week, so it certainly is not over yet.

While the energy price guarantee has protected families from the worst increases, some households have seen their bills increase two, three or possibly even four times in the past year. We know from the scandal of the forced instalment of prepayment meters that many people have been unable to keep up with those bills, and that for many of them the debts continue to mount up. Hundreds of thousands, if not millions, of others are walking a tightrope—just managing payments, sometimes late, by making other cutbacks: being cold, eating less, or reducing travel. If we are not just to get those families back on an even keel but to help them to stay there, it is vital for the full cost of living payment that the Government wish to make to be made immediately—especially, I would argue, in the face of the impending increase in the energy price guarantee. We have all seen reports in the media over the last few days that the Government may well choose to extend that guarantee. I am sure you might have some thoughts, Dame Rosie, on whether that announcement ought to be made here before being briefed to the press. We cannot fully assess the impact of this Bill, given that we do not know for definite what is happening with the energy price guarantee, so we are left to make assumptions accordingly.

In any case, whether the guarantee lasts for another month or as, my party wants, for more months than that along with a reduction in the energy price guarantee to the Ofgem cap of £1,971 last April, cost of living support payments must be made now to have any impact. We are seeing a reduction in wholesale gas costs, which is why we argue that the Government can do more than they are outlining because they have the headroom to do so. What is the point in people paying some or even all of their bills, only to start struggling all over again? For people to get all the other benefits of affording the basics—being warm enough and fed enough to work, go to school and stay healthy—support needs to be geared to preventing them from falling below that line in the first place.

Moving on from my amendment 4 to the remainder of the Bill, I am left wondering if this really is it. You do not need to be a politician to know that this country is in crisis, although if you are a politician and have a modicum of responsibility or power, it is critical that you realise the severity of the situation. Just turning on the TV, opening a newspaper, speaking to parents at the school gate or spending any time out and about in our communities makes it very clear what is happening.

The difficulties felt by different communities vary, and that is what the Liberal Democrats’ new clause 8, and to some extent new clause 3, seek to address. For a lot of my constituents living in relatively rural North East Fife, the crisis is exacerbated by their countryside location, without easy access to local services and battling against unrelenting fuel costs. What I hear from them time and again is that they feel they are being let down. Farmers, for example, work long days seven days a week, without let-up and never taking a holiday, to provide the rest of us with the food that goes on our plates, but they are being left with next to no support for their fuel costs, no protection against foreign imports and no ability to plan for the future under the Government’s funding streams.

As has been mentioned many times in this House, many rural households rely on heating oil. I have discussed the price guarantee already, but heating oil is not even covered by that. Costs have almost doubled, yet those households have received just one £200 payment—that is if they have managed to receive it at all. We know that the system has been beset by practical difficulties. We have also seen the continued delays in the roll-out of the alternative fuel payment scheme. Applications are now open, but despite reassurances there has been no support for many until now. And when the shop—or too often now, the food bank—is not just around the corner for those in rural communities, they need to travel just for the basics. They cannot avoid getting into the car and paying for petrol, and although petrol and diesel prices have gone up everywhere this year, we always see much faster increases in rural areas.

Those in rural households are not the only group to suffer because of rising energy costs and fuel poverty. As has been discussed in this place before, disabled people have much higher living costs. I recently met representatives of Disability Rights UK, one of the organisations leading the Disability Poverty Campaign Group, as well as representatives from the Liberal Democrat Disability Association, and their message was clear: the additional £150 payment for people on disability benefits is so lacklustre as to be grotesquely offensive. It shows that the Government are taking no interest in, and making no effort to understand, the reality of the lives and expenses of disabled people.

Disabled people are not all the same: they have a wide variety of unique needs, which I cannot cover here, but I shall give just a few examples. Imagine someone needing a hoist to safely manoeuvre between their bed and their wheelchair, but being unable to charge that hoist and having to watch their family risk their own health by lifting them unsafely. Or perhaps think about someone being unable to charge their electric wheelchair and becoming unable to mobilise even around their home to get to the toilet or to fetch a cup of tea.

Perhaps someone’s partner has a spinal injury and is incontinent, but they cannot afford to run their washing machine every day or to properly heat their water, so they find themselves washing dirty clothes by hand in lukewarm water. Perhaps someone’s child has cystic fibrosis and needs a nutritious high-calorie diet, but with 10% inflation—we know it is worse for food inflation —and shortages, they themselves are having to skip meals to let their child eat instead. It should not take a donation from an international celebrity to reassure families of the disabled that they can keep their homes warm and essential equipment functioning. There are many ways in which disabled people incur additional costs, all of which are incredibly important and all of which demand support additional to what the Government are offering in this Bill.

Unpaid carers, on the other hand, are not even explicitly considered in this package of support. I will not labour the point, as I have said all this before, but not all unpaid carers receive means-tested benefits, and given that the vast majority of them live on or close to the poverty line, they are also badly in need of cost of living support. I would like to say that they are unsung heroes, but I have been singing their praises and calling for more support since the start of the crisis and I am starting to think that the Government do not want to hear it.

Dame Eleanor, it is a pleasure to see you in the Chair, and I am sure that everybody in the Chamber will welcome you back.

Overall, my concern about the Bill, as we consider it clause by clause, is that it is just a sticking plaster that will not truly keep our communities afloat during this crisis. Fuel poverty is widening and deepening; meanwhile, energy companies continue to rake in record profits. The Government must make suppliers act responsibly towards consumers. I acknowledge that it is not just the political response that is causing trouble for my constituents, as an astounding number of them have come to me with problems including being charged incorrectly, often more than they should be, and sometimes by companies that they are not even with. Electricity is a vital service, so surely this type of predatory behaviour cannot be allowed.

Food poverty continues to soar. As early as last April to September, before the worst of this crisis and before winter took hold, the Trussell Trust reported its busiest ever spring and summer, with a 45% increase in the number of families needing its support. The figures will only have gone up since then, and I am not convinced that this package will help, especially with the payments spread out so far. We know that when the £20 universal credit uplift was in place during covid, food bank use went down. How we stop families going hungry or relying on food packages is a vital conversation, and one that needs more time for discussion, so I encourage all Members present to come to the report launch of the all-party parliamentary group on ending the need for food banks on 22 March to hear more on the outcome of our “Cash or Food?” inquiry.

In the long term, to end the need for additional cost of living payments we need economic growth, we need more people able to work and we need a healthier society. Poverty is the enemy of all those things. Poverty breeds worse health outcomes, it makes people cold and hungry and it drives away hope and drive. That is nobody’s fault except those who choose to look away and do nothing, and that is why we need the Government to review reinstating the uplift to universal credit and extending it to legacy benefits. It is why carer’s allowance needs reforming, and it is why we need all the cost of living payments at once, now, as a circuit breaker.

I want to end by reflecting on the words of one of my constituents who got in touch with me over the winter. He is a 79-year-old gentleman who struggles to heat his home and who has a mixture of health difficulties. He said:

“Maybe it would be better if I wasn’t alive, for everyone else’s benefit.”

He cannot wait for April to October and then again for months for additional support, so with him in mind, I urge Members to support amendment 4.

[The Parliamentary Under-Secretary of State for Work and Pensions (Mims Davies)]

It is a pleasure to see you chairing the Committee this afternoon, Dame Eleanor.

I thank hon. Members for the useful debate on Second Reading and I welcome this opportunity for a more detailed examination of the Bill in Committee. Clause 1 enables the Government to make three separate cost of living payments of £301, £300 and £299 to individuals or couples with a qualifying entitlement to an income-related social security benefit or tax credit. I have listened carefully to the hon. Member for North East Fife (Wendy Chamberlain). We have looked in the round at what we have done before, and I want to set out strongly to the Committee that we have worked very hard, whether on the household support fund or on this Bill, to support the most vulnerable through the really tough times that she described. I hope to give the Committee answers that will show that.

To be clear, the clause sets out that the qualifying days for each of the cost of living payments will be specified in secondary regulations, which will help to minimise work disincentives and fraud risks. In response to amendments 4, 5 and 6, it might be helpful if I clarify for the hon. Lady that the dates set out in clause 1 are backstop dates, meaning the latest possible qualification dates that could be set out in regulations. Bringing those dates forward could not achieve the amendment’s desired effect, although I understand the sentiment.

In any event, making all cost of living payments by 1 April 2023 would not support our ambition to spread the support through 2023 and into 2024. In fact, we have increased the number of payments from those made in 2022, having listened and engaged with the feedback from MPs across the land. This ensures that as many people as possible will qualify for a payment at some point, including those who become entitled to a qualifying benefit later in the year and those whose earnings fluctuate from month to month. Making all the payments in one lump sum would mean that more people miss out.

I understand the hon. Lady’s point, but I must be robust in saying that we simply cannot do what she suggests, as it runs contrary to what we should be doing in spreading out support for the most vulnerable. It is also the total opposite of the Select Committee’s request for more payments. I hope she understands that and will withdraw her amendment.

--- Later in debate ---

[Mims Davies]

I thank my hon. Friend and agree that it is right that we raise the situation of that sector. He has made his point and we have heard from other Members across the House about the same scenarios.

New clause 13 tabled by the hon. Member for North East Fife requires us to make all payments under this Act by 1 April. As I previously stated, we have deliberately staggered payments over the course of the next year to ensure that as many people as possible will qualify for a payment at some point. I therefore ask the hon. Member to withdraw the motion.

I think I have made all my points.

[Wendy Chamberlain]

I am grateful to the Minister for giving me a short time to reply. I accept that amendments 4, 5 and 6 are fairly blunt instruments, but during the debate I heard from both sides of the Committee, including the Government side, that we want to get money to people as soon as possible. The purpose of our amendments is to ensure we can do that. Giving people in need cash gives them dignity as well; it gives them choice, as I have heard in my role as co-chair of the all-party group on ending the need for food banks. The hon. Member for Glasgow East (David Linden) raised inflation, too, and giving people money now would help them ameliorate that. Amendment 4 merely asks the Government to make a payment at the start, rather than the end, of April, so I will not withdraw it.

Question put, That the amendment be made.

Oral Answers to Questions

Debate between Mims Davies and Wendy Chamberlain

Monday 25th January 2021 Commons Chamber

[Mims Davies]

Mr Speaker, would you like to be a 3D animator, a disabled riding school assistant, a camera operator or maybe a trainee fencing coach? These are all kickstart roles that are available. We have made it simpler for employers to get involved with kickstart, cutting the 30 posts minimum threshold so those applying for any number of roles can now apply direct to the DWP. We have also made it easier for sole traders to sign up. We have had a great response, with over 6,500 employers stepping up to offer placements in different fields and sectors, as we have heard, and also to be crucial gateways.

[Wendy Chamberlain (North East Fife) (LD)]

People who receive legacy benefits were excluded from the uplift to universal credit, but the Government have now announced plans for an uplift this April of 0.5%. If people are claiming ESA in the work-related activity group, that equates to 37p a week, which is derisory. We need to ensure that people on legacy benefits receive a proper degree of support, so as part of the Secretary of State’s review of the UC uplift that she mentioned earlier, will she commit to providing a similar uplift to legacy benefits?