Devolution of Welfare Debate
Full Debate: Read Full DebateNeil Gray
Main Page: Neil Gray (Scottish National Party - Airdrie and Shotts)Department Debates - View all Neil Gray's debates with the Department for Work and Pensions
(5 years, 4 months ago)
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My hon. Friend makes an excellent point. It is quite telling that there are only three SNP Members here, given the number of Scottish Conservatives and Scottish Labour party Members. I sense that on this issue, they feel a deep sense of embarrassment about how their Scottish Government colleagues have delivered. They are not bobbing up to make interventions to challenge the points that are being made; instead, they sit and they laugh. The reality is that it is our constituents, the people of Scotland, who are being let down by this Scottish Government failing to deliver.
I just want to make a bit more progress. [Hon. Members: “Oh!”] Fine, on you go.
I thank the hon. Gentleman for giving way and commend him on securing this debate, as it will give us an opportunity to set out the positive things that the Scottish Government are doing on social security, as I will when I make my speech. The hon. Gentleman is laying all the blame at the Scottish Government’s door. Can he advise the Chamber on how many occasions the Secretary of State for Work and Pensions has met with the Cabinet Secretary for Social Security and Older People in Scotland, or with the joint ministerial committee, and how often those meetings have been cancelled as a result of the Department for Work and Pensions’ failure to engage?
The hon. Gentleman is doing his best to try to justify this, but the Secretary of State for Scotland regularly meets officials from the Scottish Government about the devolution of welfare powers.
The Secretary of State and other Ministers in this Government have been working hard, because we recognise how important the continuation of welfare support is to our constituents and the people of Scotland, and that the Scottish Government have failed to deliver as they have promised. These delays are of huge concern to our constituents, because they raise doubt about the Scottish Government’s ability to take on functions of the Department for Work and Pensions and to deliver benefits in Scotland. People are looking at those delays and are rightly asking whether the Scottish Government are up to the job.
Although the Department for Work and Pensions has stepped in to ensure that benefits will be paid notwithstanding the delay, how long can that go on for? It is far from satisfactory for the DWP and Scottish Government to be working to a presumption that social security will be devolved by 2021, only for the Scottish Government to suddenly announce a three-year delay. Perhaps in his closing remarks, the Minister could provide some clarity about whether his Department was made aware of the new timetable, and whether any further delays are anticipated.
The hon. Gentleman is being very generous with his time. Does he acknowledge the comments that have been made by Inclusion Scotland and the Scottish Commission for Learning Disability about the timetable for the delivery of Scottish social security powers? Given that those organisations speak for the people who will rely on those powers being delivered effectively, why is the hon. Gentleman so willing to challenge what they have said in welcoming the timetable set out by the Scottish Government?
I am grateful for that point, but it is astonishing—it is a Scottish Government timetable that has slipped. The hon. Gentleman’s colleagues in Edinburgh—the Scottish Government, the SNP—said that they would try to put the new welfare system in place by the end of 2020. That deadline then became 2021, and then became 2024. It is an absolute failure by the SNP Scottish Government to deliver and match their promises, and I think supporters of Scotland will judge them when the next election comes.
In the event of any further delays, I am confident that the DWP stands ready to step in, but perhaps the Minister could provide my constituents with some reassurances that that will be the case. There are also questions about the additional cost of these delays. Given that the Scottish Government are meant to be taking on these powers, and are spending considerable money on setting up Social Security Scotland, any extra spending by the DWP is an additional, duplicate cost to the public purse. The welfare system is crucial to the life of many of our constituents, and it is vital that these powers are devolved in an orderly fashion so that nobody falls through the cracks. It is important that a new timetable is developed so that the Scottish Government get ready to take on these powers, and there are no further unexpected delays.
One issue that is unique to my constituency, I think, is about the devolution of cold weather payments. In the Scottish borders, the TD12 and TD15 postcodes include homes on either side of the border. For the purposes of cold weather payments, other postcodes in Northumberland use a weather station in Scotland. Some properties will get their cold weather payment from the Department for Work and Pensions, while others in the same postcode should get theirs from Social Security Scotland. If cold weather payments are eventually to be taken on by the Scottish Government, could the Minister confirm whether there have been any discussions about how those payments will be delivered where postcodes are split across the border?
One final issue concerns other welfare powers devolved to the Scottish Parliament by the Scotland Act 2016. As well as delays to taking on devolved benefits, the Scottish Government seem less than enthusiastic about accepting these powers. The Scotland Act devolves the ability to top up reserved benefits, provide short-term payments and create new non-reserved benefits. UK Ministers have repeatedly made their view clear that these powers allow the Scottish Government to compensate women affected by the equalisation of the state pension age. The Scottish Government do not often accuse the UK Government of giving powers away, so the fact that UK Ministers say that these powers have been devolved is a compelling reason to believe this to be the case.
A more detailed look at the legislation clearly shows that the Scottish Government could act in three ways. First, section 24 provides the Scottish Government with the ability to top up pensions and, therefore, compensate women affected by this change once they reach the new pension age. This may not be an ideal solution; none the less, the Scottish Government accept it as possible.
Secondly, section 26 allows for payments to provide help with short term needs if payment is required “to avoid a risk” to the person’s wellbeing. The Scottish Government claim this requires each case to be individually assessed, but this is simply not true. The legislation allows payment merely to avoid a risk of harm. That is a low threshold. If the Scottish Government’s language about the impact of these changes is accurate, the threshold is clearly met.
Thirdly, section 28 allows the Scottish Government to create new non-reserved benefits, except to provide a pension or provide assistance merely by old age. This does not prevent the Scottish Government from taking action, because compensating Women Against State Pension Inequality Campaign women before they reach pension age does not amount to a pension nor to assistance due to old age, which, in the context, clearly means the state pension age.
A letter from the then Minister for Pensions, my hon. Friend the Member for Watford (Richard Harrington), in 2017 made the Scottish Government aware of this point. My hon. Friend wrote about section 28:
“Whilst this power cannot be used to provide pensions to people who qualify by reason of old age, many of those affected by changes to the state pension age will not have reached state pension age. As a result, this broad power does offer the Scottish Government the possibility of introducing financial support to help this group.”
Clearly, this is another way in which the Scottish Government could step in but fail to do so.
I have huge sympathy for the women affected by this change and I have been working with a number of them in my constituency to help them manage the process. However, I have no time for the SNP’s position on this matter, which is completely inconsistent. The SNP might not want to take action to compensate these women; that would be a perfectly legitimate position. The SNP might want to take action but feel it would be too costly; again, that is an entirely legitimate position. It is not legitimate to try and make political capital out of a group of women who clearly feel wronged, and mislead them about the Scottish Government’s ability to help.
It is a fantastic thing, but it is bad that most of those children are in poverty when they were not before. Social security is a sensitive subject, and we must be careful about the language we use.
I want to reflect on what the Smith commission has done. In response to the 2014 independence referendum, a commission was put in place that allowed all the parties to come together to find consensus about what the next stage of devolution to the Scottish Parliament should be in the devolution journey.
I am glad that Members across the House now extol the virtues of sections 24, 25 and 26 of the Scotland Act 2016, because while the Conservatives and SNP argued about the minutiae of what was not in the Bill, Labour were promoting changes at the Dispatch Box. We proposed amendments to put stuff into the Bill that could have been there, such as my amendment 31. The amendments that went through in the House of Lords gave Scotland the power to create its own social security system. The Scottish Government can top up any reserved benefit and create a new benefit in any devolved area; that is incredibly important. That is why it is so frustrating that the devolved powers have been delayed. I am delighted that the hon. Member for Berwickshire mentioned the WASPI issue, because it is a key aspect of the way the whole issue has been dealt with.
The hon. Gentleman will understand the difficulty and complexity of delivering a combined social security system—one that has to interact with a Department that is putting roadblocks in the way of some of the flexibilities and changes that the Scottish Government are looking to achieve. Can he outline an area where the Scottish Government could have gone more quickly, such as the passage of the Social Security (Scotland) Act 2018? Could that have been quicker? Is there any area where he thinks things could have moved more quickly than they have?
That is an interesting intervention. I admit I am not an expert on social security, and I would not claim to be. I look forward to hearing the Minister’s response to the intervention. However, is it not interesting that, whereas the Scottish National party social security spokesperson was telling everyone in 2014 that an entirely new state could be set up in 18 months, the matters we are discussing have been delayed not twice but three times, in 2016, 2018 and 2019? That was with respect to benefits that the SNP claimed had to be in the Bill and had to be devolved immediately, and that it would be able to deal with.
It is a pleasure to serve under your chairmanship this morning, Mr Betts. I thank my hon. Friend the Member for Berwickshire, Roxburgh and Selkirk (John Lamont) for securing this important debate.
We have already heard about the foundation Acts of 2016 and 2018, enacted by the UK and Scottish Governments respectively to devolve various welfare powers to the Scottish Parliament and facilitate delivery of the new social security benefit scheme in Scotland. The Scottish Government’s website states that
“the benefits we will deliver may be different in nature but there is one common thread which binds them—an investment in the people of Scotland”.
I am afraid that that common thread is fraying. Delivery is delayed. The Scottish Government’s investment to date is not timeously delivering the promised benefits for the people of Scotland. The Scottish Government will, over time, take on only 10 of the original 11 devolved benefits. The severe disablement allowance remains with the UK’s DWP. The transfer of responsibility for a number of other devolved benefits, such as personal independence payments, is on hold—not until tomorrow or next week but until 2024.
My hon. Friend is correct; there is no issue that it is beyond the SNP’s powers to politicise and use for its own nationalist agenda. Clearly, these things are more complex than they seem, and I accept that. I do not really want the SNP taking these powers and using them if it cannot handle them, because we are talking about the lives of the most vulnerable people in Scotland, who deserve to be protected from any possible incompetence on the part of the SNP. The SNP’s track record on IT systems alone is a horror story, and the farm payments fiasco is a warning.
The hon. Gentleman warns of the problems that his constituents could face if this system is not delivered effectively. To his credit, he has been a critic of this Government on universal credit, so does he not think it a tad ironic to be speaking about the potential incompetence of the Scottish Government who are delivering a safe system when his Government have presided over the shambles of universal credit and personal independence payments?
The hon. Gentleman is someone I respect, but we are talking about the Scottish Government’s willingness to accept powers that have been devolved to them, and their unwillingness to touch those powers speaks volumes about them. They will now take until 2024 instead of 2020. That is more than 3,000 days’ notice—six times the number of days the SNP told us it would need to set up the new Scotland that it promised the Scottish people in 2014. This is the sad state of affairs of the SNP.
The fact is that the SNP does not want to have to handle these powers, because they are difficult powers to handle. Welfare and benefits are expensive and complex; they need politicians to be grown up, to make difficult decisions and to show leadership. Let us be clear: the next time we hear SNP politicians in this place or elsewhere deriding welfare reform or bemoaning a decision that they view as disadvantageous to their constituents, they will be complicit. The SNP Government could have set up a social security system; they could have grasped the nettle and dealt with this, but, through either political cowardice or sheer incompetence, they have failed the challenge.
The people of Scotland are sick and tired of the SNP and its excuses. Devolution works. The powers are there. It is simply the nationalists who, through their wilful negligence, are leaving Scotland to stagnate.
Thank you very much, Mr Betts. It is a pleasure to speak in this debate with you, my Finance Committee colleague, in the Chair. I congratulate the hon. Member for Berwickshire, Roxburgh and Selkirk (John Lamont) on securing the debate, as it gives us an opportunity to talk about the great work being done by the SNP Scottish Government—
At least let me get started.
With support from other parties and brilliant stakeholders in Scotland, we are working to build our new social security system. I welcome the fact that the hon. Member for Berwickshire, Roxburgh and Selkirk has a newfound interest in this area. Until now, he does not appear to have had much of an interest in the work and pensions brief since arriving in this House. A quick look at his speaking record shows that he has never mentioned universal credit or employment support allowance, and has raised personal independence payments—[Interruption.] I will not be shouted down, Mr Betts. The hon. Gentleman has raised personal independence payments just once, which, given the case that I and other colleagues have in this area, I find surprising.
If other search terms are entered, however, the number of mentions made by the hon. Gentleman rockets up. “The Scottish Government” gets 242 mentions, “the Scottish National party” gets 37, “the SNP” gets 116 and “independence” gets 43. That is quite the contrast. Those speaking records perhaps speak not just to his intentions today, but more to what he regards as his purpose in this place: not so much being part of a bloc of Scottish Tories holding this shambles of a British Government to account, but trying to do the job that he left as an Opposition Member of the Scottish Parliament.
I will tackle some of what the hon. Gentleman said and highlight some of what he conveniently forgot to say. I note that he did not once mention how the Scottish Government could safely deliver the new system any faster. I think we were right, having learned from the unsafe and disastrous delivery of universal credit and the personal independence payment, to take our time, do this properly and deliver it safely for our constituents who depend on it.
The hon. Gentleman speaks about delivering functions in Scotland. Could he perhaps advise Westminster Hall how the SNP has done when it has tried to deliver things in Scotland—for example, paying our Scottish farmers, delivering i6, the IT system for Police Scotland, or delivering a social security system? Is it not the fact that it is failure, failure, failure under the SNP?
I wish to put on record my congratulations to the hon. Gentleman and his wife on the safe delivery of their new born—I think this is the first chance I have had to put that on record. He has a bit of cheek when he talks about farmers, given the way that the Tory Government robbed Scottish farmers of their convergence uplift money. I do not think that is a safe area of ground for him to be campaigning on.
The hon. Member for Berwickshire, Roxburgh and Selkirk described the timetable that the Scottish Government have come forward with as a failure, despite it being welcomed by Inclusion Scotland and the Scottish Commission for Learning Disability. I challenge him to point out the areas of contradiction with those organisations, which speak for those who depend on the safe delivery of this system.
The hon. Member for Edinburgh South (Ian Murray) was right that the Scottish Government can do something different, and we are. We are creating a system that is based on dignity and respect, which I think is something that the Scottish Government and the Labour party agree on. We are looking to do something different in Scotland, which is why we have been working together in Holyrood on so many areas, in order to deliver that system. However, the hon. Gentleman did not answer how the system could have been delivered more quickly and fairly, so I am happy to allow him to intervene and describe that.
The narrative from the SNP Scottish Government has always been, rightly, about generating a new system that is more respectful of its claimants. Can the hon. Gentleman lay out why the Scottish Government are completely refusing to do anything about the WASPI women?
That is not actually true, and the hon. Gentleman knows it. We have been campaigning very hard in Westminster for the problem faced by the WASPI women to be sorted across the United Kingdom. He constantly talks about not having any differences between people in Livingston and people in Liverpool; we are in agreement on that. This issue should be sorted out for those women across the United Kingdom, and his ire should be directed at the Minister to resolve the situation.
The hon. Member for East Lothian (Martin Whitfield) asked why there was a delay. Again, we have been working hard to deliver the system as quickly and safely as possible, but sadly there has intransigence on the part of DWP Ministers. There has been good engagement—[Interruption.] No, it is not nonsense. There has been a good level of engagement at official level, but successive Secretaries of State have missed joint ministerial working group meetings and refused to allow the Scottish Government to utilise some of their powers, such as separate payments, which the hon. Gentleman mentioned. There are areas where we are looking to make changes and develop new policy, but sadly the DWP is putting roadblocks in the way of that progress.
The hon. Member for Stirling (Stephen Kerr), who to his credit has been critical of this Government on the roll-out of universal credit, has not quite taken his concerns in that area to their logical conclusion when it comes to the safe delivery of a new devolved system. We have learned from the shambles of the poverty-inducing roll-out of universal credit and the problems with personal independence payments, and we are determined to deliver the new system safely. It benefits and supports the people of Scotland.
Last year, my hon. Friend the Member for Ayr, Carrick and Cumnock (Bill Grant) secured a debate on the delivery of welfare. In criticising that debate, the hon. Gentleman said:
“Of course, the Scottish Government are proceeding quite nicely as they build the new Scottish social security agency.”—[Official Report, 20 March 2018; Vol. 638, c. 119WH.]
Does he stand by his comments in last year’s debate?
Yes, I do. The hon. Gentleman is a former Member of the Holyrood Parliament, so he knows how quickly legislation can progress through Parliament, and he knows the steps that need to go through in order—[Interruption.] I will not be shouted down. The hon. Gentleman knows how legislation goes through Holyrood, and knows that these things take time. Sadly, we are now, thanks to the intransigence of DWP Ministers, in a position whereby certain things are being delayed. I go back to the point that the hon. Gentleman had never mentioned universal credit and had mentioned PIP once before today’s debate. I am very surprised at that. He does not seem to have a problem with the delay—
No, I am answering the hon. Member for Berwickshire, Roxburgh and Selkirk first. He does not appear to have a problem with the delay or the problems in the roll-out of universal credit or the roll-out of PIP. He has never mentioned those before, despite the constituency case load that I imagine he has in those two areas, yet he uses this place as a battering ram to criticise the Scottish Government. That says more—[Interruption.] That says more about the hon. Gentleman’s intentions than it does about the Scottish Government’s.
I have listened to this gang of Trumpists shout and bawl and try to shout people down. Does my hon. Friend agree that the main issue, the real issue, is that the DWP and Social Security Scotland will truly share clients? Not once have we heard from a Conservative in this debate about clients—about people, about the poor—and what that means. The Conservatives have completely ignored the fact that universal credit is being delayed to 2023, which will have a real impact on all claimants.
I thank my hon. Friend for his intervention. He serves on the Select Committee on Work and Pensions, so he knows these issues well. Of course, what the hon. Member for Berwickshire, Roxburgh and Selkirk and some others in the debate forgot to talk about was the fine work that the SNP Scottish Government, as a minority Government, have achieved by gaining cross-party consensus to protect the people of Scotland from the worst damage being inflicted by this poverty-inducing Tory Government. The hon. Gentleman’s constituents do not need to pay the bedroom tax and can still receive council tax benefit. If they are in receipt of carer’s allowance, they will have had a significant uplift in their payments. They can still get access to education maintenance allowance. Some 316,000 low-income households in crisis in Scotland have been helped to buy essential items, such as nappies, food and cookers, through the Scottish welfare fund—a local crisis grant system almost completely abolished elsewhere by the Tories. And we have set a clear path to deliver a new—sadly, it is limited to just 15% of spend—social security system based on dignity and respect. That is all with 55% of taxpayers in Scotland paying less than they would elsewhere in the UK. It is a more progressive tax system that sees those at the top paying a little more and those on the lowest incomes paying a little less.
I am concluding.
The hon. Member for Berwickshire, Roxburgh and Selkirk also forgot to mention the catastrophic introduction of universal credit and PIP, which has literally ruined lives. He calls a debate to attack a responsible Government making responsible progress to deliver a fairer social security system, but ignores the tragedy of his own party’s disgusting attack on low-income families. He ignores disabled people having their Motability cars removed. He ignores people on universal credit left in poverty. He ignores a freeze on benefits that is predicted to plunge 400,000 more children into poverty. So forgive me, Mr Betts, but the Scottish Government, the Scottish Parliament and the people of Scotland will take no lessons from the hon. Gentleman or any other Tory party member preaching about how to deliver a social security system.
I call Mike Amesbury for the Opposition. [Interruption.] Order. Calm down a bit, please.
Yes; it is another failing of fine and warm words but nothing happening in reality.
While those agency arrangements are in place, SNP Ministers are blocked from making changes to any of the benefits the DWP delivers. They are not able to intervene in aggressive debt recovery or even to change the inflation measure to uprate benefits. While the SNP dithers and sits on its hands, as my hon. Friend the Member for East Lothian (Martin Whitfield) has pointed out, thousands of families are falling into poverty every year. Both parties are concentrating on avoiding responsibility, rather than using what levers of power are available to change the failing policy.
The hon. Gentleman rightly talks about the high poverty levels that we have throughout the United Kingdom. However, will he reflect on the fact that the poverty rate in Scotland—although far too high—is significantly lower than elsewhere in the United Kingdom, and that that might have something to do with the different policies that are being pursued in Scotland to ensure that we eradicate poverty as quickly as possible?
I know the hon. Gentleman will agree that a million people in poverty in Scotland is still shameful—
If I may continue, when we have seen SNP and Tory politicians working together, they have done so in an alliance, preventing any significant improvements to social security in Scotland.
It is a pleasure to serve under your chairmanship, Mr Betts. I congratulate my hon. Friend the Member for Berwickshire, Roxburgh and Selkirk (John Lamont) on securing this important and timely debate. He spoke with great passion. He cares deeply about his constituents and he wants an effective welfare system in Scotland that leaves no one behind, which is something that we all want to see. We have heard passionate speeches. If I have time I will refer to some of the points raised. I thank my hon. Friends the Members for Ayr, Carrick and Cumnock (Bill Grant) and for Stirling (Stephen Kerr) for their contributions today.
To reiterate the context of where we are—colleagues have set this out—the Scotland Act 2016 provided a significant shift in the way that welfare would be delivered. As has been said, we are transferring responsibility for an estimated £2.8 billion of welfare powers to the Scottish Parliament, which currently support around 1.4 million people in Scotland. That will of course have a major impact on people living in Scotland as we move into a shared welfare space for the first time.
We should not underestimate the significance of the task. We recognise that responsibility for many vulnerable claimants will be transferred to the Scottish Government, and it is vital that both Governments get it right. The DWP has been instrumental in the Scottish Government’s delivery to date of certain benefits, and we will continue to support them to achieve their plans. We must ensure that the transfer of the welfare powers proceeds in a safe and secure manner with the claimant at the heart of what we do. That is why we have established strong Government structures, including a joint ministerial working group on welfare and joint working practices to oversee the transfer of powers and to ensure that we work together to identify and mitigate any issues that arise.
The hon. Member for Airdrie and Shotts (Neil Gray) raised points about the ministerial working group. As he knows, there was a recent meeting that was both cordial and constructive. In terms of the support from DWP, we have approximately 80 DWP staff working exclusively on the Scottish devolution programme. Between 2015 and October 2018, DWP managed more than 2,297 requests for information from the Scottish Government. I gently point out to him that I do not think there is any intransigence on our part. He knows that I am happy to take up cases, and we are meeting later today to discuss a constituency case that he has.
Following Royal Assent to the Scotland Act 2016, the DWP has worked hard to support the Scottish Government in the transfer of powers. We have given them access to DWP payment and customer information systems to support their delivery, as well as providing training and knowledge transfer as they build up their capability. We have provided support to enable them to deliver their new employment support programme, Fair Start Scotland, with DWP work coaches making the majority of referrals.
As we approach the first anniversary of the programme, the Scottish Minister for Business, Fair Work and Skills has recently written to me to praise our staff in Jobcentre Plus for the work that they have done to date. It is important that politicians talk not only about the challenges. Of course we should challenge each other to get things right, but we should also praise and acknowledge good joint working when it takes place.
Since 2017, we have also delivered Universal Credit Scottish Choices, giving people in Scotland a choice over the frequency of their payment and whether their housing element is paid directly to their landlord. We supported the Scottish Government to deliver their first new benefit, the best start grant, and we are on track to support delivery of their replacement for funeral expenses payments later this year. Critically, since September 2018, we have been paying carer’s allowance on behalf of the Scottish Government, enabling them to pay a six-monthly supplementary payment to carers in Scotland.
The Minister is setting out well some of the areas where there has been good working between the Scottish and UK Governments, particularly at ministerial level, as I said in my speech. I should put on the record that there have previously been problems at ministerial level between the two Governments, but in the most recent exchange of letters the Secretary of State appears to make a more conciliatory and helpful suggestion for work going forward. So I hope that the two Governments will be able to work together constructively, whereas previously that has not happened.
I thank the hon. Gentleman for his intervention. Over the past few years we have been working constructively, and we want that to continue. My hon. Friends definitely want that. They come in to see me and the Secretary of State regularly to raise issues, and it is right that we continue in that spirit.
Many lessons have been learned in the first wave of devolution, such as in the transfer of accountability of carer’s allowance, where the DWP continues to pay carer’s allowance on behalf of the Scottish Government but under the same rules and rates as for people in England and Wales. It is vital that we consider these lessons as we move forward with the next wave of delivery.