(5 years, 6 months ago)
Commons ChamberOf course I will take a look at any particular cases that the hon. Gentleman brings to me. I have addressed the issue of direct payments of rent to landlords being made more frequently by saying that alternative payment arrangements should generally be more available. The fact is that universal credit is a more effective, more transparent system than what it replaces. One of the best ways to ensure that that is actually delivered on the ground is for MPs to engage with their jobcentres to make sure all that information is available.
We know from a series of academic and stakeholder reports that the rise in food insecurity can, at least in part, be put down not just to the implementation but to the value of social security benefits. The Secretary of State has acknowledged that, I think for the first time, this afternoon. We also know from Library figures that higher than expected inflation means that the benefits freeze will save an extra £1.2 billion in the coming year. Does the Secretary of State agree that those low-income families who are being driven into food poverty deserve a break and that the benefits freeze should stop this year?
May I just point out to the hon. Gentleman that, by 2020, payments made under universal credit are expected to reach £62 billion, compared with £60 billion under the previous system? [Interruption.] The hon. Gentleman raised the issue of the amounts, and I am merely pointing out to him that, with the changes in place, the amounts are larger under universal credit than they would have been under the previous system.[Official Report, 14 February 2019, Vol. 654, c. 10MC.]
I am happy to say that that is exactly the aim of universal credit: to ensure that it helps people while they are in work, gives them the additional funds they may need, and ensures that the taper rate, the amount of tax they pay as they move into more employment or a higher level of pay, does not adversely affect their ambitions and their ability to earn more.
The Government are about to enact an element of policy passed seven years, two Parliaments and two Governments ago without a debate or a vote. Mixed-age pensioner couples are set to lose £7,000 from their household income if the changes to pension credit go ahead. Surely, with the Joseph Rowntree Foundation saying that 300,000 more pensioners are in poverty now compared to 2012, the Secretary of State must seek a new mandate from this House for these cuts and have a debate and a vote?
(5 years, 6 months ago)
Commons ChamberI am grateful for the opportunity to speak briefly in this debate. I concur with the hon. Members for Birmingham, Erdington (Jack Dromey) and for East Renfrewshire (Paul Masterton), as well as the Minister, in what I am sure will be a largely consensual debate. The SNP will not oppose these statutory instruments this evening, but it is right that I outline some areas where we still have concerns.
First, with regard to the guaranteed minimum pensions increase order, we should acknowledge the context. The UK state pension is one of the most miserly in Europe. We lag far behind other European countries in the cash amount paid and the pension to earnings ratio. When we consider that alongside the proposed cuts to pension credit, the scandal of the state pension age increase for 1950s women, and the public sector workers who have been ripped off to the tune of £4 billion, we can see that the UK Government have been letting our pensioners down.
The GMP was supposed to provide a minimum weekly pension roughly equivalent to the amount of additional state pension that would have accrued if they had not been contracted out. The scheme operated until 1997, and although rights do not continue to accrue, they continue to be protected either by the general level of prices or 3%, whichever is less. However, the changes to the state pension mean that the rights accrued between 1978 and 1988 are not protected or subject to this statutory instrument. That is worth bearing in mind. Many pensioners will be getting much less than was anticipated when the scheme was operational. People who were contracted out were not made aware or did not understand what the implications could be long term, and were given the impression that their retirement income was protected at comparable levels. I would be interested to hear what the Minister is doing to ensure that people are properly advised of potential pension changes and that the pension entitlements accrued by workers are better protected in future, with particular regard to the Women Against State Pension Inequality Campaign—the WASPI women—I am sure.
The SI also highlights why it is so important that the UK Government speed up the pension dashboard process. Having one simple dashboard would make it much easier for people to know exactly what their anticipated retirement income should be. Right now, about 47% of UK adults do not know what is in their pension pot. A dashboard would provide that knowledge. One person in five has said they would be more likely to save if they had more information about their pension savings. When people are better able to plan for retirement, that saves the Exchequer. Once again, I suggest that an independent pensions commission would help to ensure that the complexity and vastness of pensions policy could be effectively studied and improved. I hope the Government will finally consider such a commission.
I turn briefly to auto-enrolment. We welcomed auto-enrolment and the Minister described it as a success story. I will explain briefly how he could make it even more so. What we are talking about this evening is the earnings trigger at which auto-enrolment comes into effect. This band sets a minimum contribution level for money purchasing pension schemes. The minimum of the band is also relevant for defining who can opt in if they earn under the earnings trigger. We had hoped the UK Government might have looked at expanding the workforce who would be eligible under auto-enrolment. Considering historical gender pay gaps in lower-paying industries and the fact that women are more likely to take career breaks to care for children, women have always had lower pension savings even though they need bigger pots due to longer life expectancy.
We also know that a large number of those falling below the income threshold will be women. It is therefore disappointing that the Government have not brought forward their welcome proposal to lower the threshold to £6,136, which under current plans will not come into force for some years. It is also disappointing that inclusion of 18-year-olds under auto-enrolment is also not expected for many years.
Finally, I would appreciate the Minister’s guidance on why these two SIs were not consulted on ahead of being presented this evening.
(5 years, 7 months ago)
Commons ChamberUrgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
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My right hon. Friend is absolutely right. That is the experience of colleagues on the Government Benches when we talk to people—[Interruption.] Well, I would just say to the hon. Member for Wallasey (Ms Eagle) that she ought to go out there and talk to work coaches. I would say that to all colleagues, because in my experience they are telling me that for the first time they are doing what they came into the Department for Work and Pensions to do, which is to provide one-to-one support rather than having to explain an incredibly complicated legacy benefit system where people have not been able to claim all the money due to them.
Thank you for granting this urgent question, Mr Speaker. I commend Labour for securing it. It is important because at the weekend, reading any of the papers, it would have seemed that everything had changed in the minds of Ministers on universal credit, with the Work and Pension Secretary’s apparent U-turn. In actual fact, however, nothing had changed. I am sorry that the Secretary of State is not here to respond, given that the misleading headlines were in her name.
The Government were of course quite happy to ride that wave of publicity, but yesterday at DWP questions the scale of that so-called U-turn became clear. We now know that at present there are no plans to make any changes to universal credit, which is what everyone is really interested in.
Delaying the vote on the managed migration of people from legacy benefits to universal credit is a small acceptance from the Government that things may not be well with universal credit. We have six years of evidence and lobbying to show the Secretary of State that. She knows she cannot get away with kicking the can down the road. She knows that changes need to be made and that what is on the line is not just her credibility but the lives of recipients who desperately rely on that support. After all, we never know when it might be us relying on that safety net.
My question to the Minister is clear and unambiguous, and I hope he will be, too. Will he commit, with the Secretary of State, to putting pressure on the Chancellor to release the money to repair universal credit, starting with ending the two-child policy, stopping the benefits freeze and overhauling the punitive sanctions regime?
The hon. Member for Wirral West (Margaret Greenwood) asked earlier why the Secretary of State is not here. The reason is that she is in Cabinet. Her commitment is absolutely clear. She has visited jobcentres and talked to stakeholders and organisations that care about getting universal credit right, so there should be no indication in the House that she is not taking her duties incredibly seriously. She is hugely committed to this.
As I said, earlier this year, we brought forward £1.5 billion of funding to help people by allowing advances of up to 100% on day one if individuals require that and having a two-week run-on for housing benefit, and another £4.5 billion was announced in the Budget. This is all about making a difference and helping the most vulnerable in our society—something the Opposition should welcome.
(5 years, 7 months ago)
Commons ChamberMay I particularly thank the people in the Rugby jobcentre? I have had an opportunity to visit many different jobcentres since being appointed, and I find universally that the people who work in them are enthusiastic about universal credit and passionate, caring and compassionate about the claimants they work for. I urge Opposition Members not to underestimate the good work being done by work coaches in their constituencies to help the people most in need.
Happy new year, Mr Speaker.
Most people will have thought that the weekend’s announcement was perhaps the start of a major shift by the Government with regards to universal credit, but unless it is followed up with meaningful interventions, changes and investment, such as to the benefits freeze, the two-child cap or the sanctions regime, it will be meaningless. Can the Secretary of State confirm if it is her plan to use the delay to the managed migration vote to introduce any changes to universal credit before the summer?
The hon. Gentleman will be aware that the whole principle of universal credit is test and learn, and so we are always looking to make changes and improvements. This is a tremendously ambitious project, bringing huge benefits to claimants and helping them into work and to stay in work, and we are always ready to learn from new developments as we proceed with the roll-out.
By delaying the vote and bringing forward 10,000 guinea pigs to test the transfer from the legacy system to universal credit, the Secretary of State accepted that there might at least be some problems with universal credit, and yet she cannot come forward with any ideas or bring forward any changes. Does she accept that, unless she brings forward the changes being called for by Members across the House, the United Nations and expert charities and community groups, this exercise will be little more than kicking the can down the road?
(5 years, 9 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
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I congratulate the hon. Member for Glasgow Central (Alison Thewliss) on obtaining the debate and on her tenacious campaigning on the issue over several years.
The policy is totemic, highlighting the callousness of conservatism at its core. By contrast, the previous Labour Government reduced child poverty from 3 million in 1998 to 1.6 million in 2010. That was a remarkable achievement, unprecedented in modern history—an amazing societal achievement for our country. It was not done by accident. If support for households had increased only with inflation, child poverty would have been 4.3 million by 2010. The reduction happened because of huge, sustained above-inflation increases in targeted support for families and children. That is how we were able massively to reduce child poverty in this country and it is why I am proud to be a Labour party Member of Parliament. It will always be the party that defends the most vulnerable in society. We can look towards the contrast between what was achieved under Labour, and the disgusting policy of the Tory Government with the introduction of universal credit, which the right hon. Member for Chingford and Woodford Green (Mr Duncan Smith) praised, saying it would allow the poorest families to make the same financial decisions as other families who are not reliant on welfare. That is clearly absurd, when we consider that approaching half the workers in this country earn less than £13,000 a year.
The hon. Gentleman is right to point to the record of the Labour Government; they have a strong record on the issue. However, does he regret the comments of his colleague, the right hon. and learned Member for Camberwell and Peckham (Ms Harman), when she was acting leader of the Labour party during the passage of the Welfare Reform and Work Act 2016, that she could not oppose the Government’s plan to reduce the benefit cap and would back the two-child limit?
Let me make one point clear: the evidence is that we voted against the Third Reading of that Bill, when it mattered. The rhetoric at the time is irrelevant. Also, the Labour party is of course now under very new management, with a radical approach to abolishing the policy. The point is irrelevant.
A Government who react to children’s pain in the way that is the subject of the debate—by callously making a comparison with a market decision such as buying a car or a house—are not fit to govern. That is what we face when the Conservative Government take that attitude towards children’s pain. The children do not make those decisions. We have a duty to establish a welfare state that goes back to its founding principles of drawing a line below which no one will fall, and above which everyone can rise. That is the fundamental principle of the universal system of welfare in this country. While I want a UK Labour Government who fulfil their pledge to end the rape clause across the whole UK, we should use powers wherever they can be found to mitigate the policy and reduce harms in society where possible.
I wish I had Andy Gray’s left foot, Mr Streeter. It is a pleasure to serve under your chairmanship, and to receive that footballing accolade. That was some light relief after a stark debate.
I welcome, congratulate and thank my hon. Friend the Member for Glasgow Central (Alison Thewliss), who secured the debate. She has been tenacious, dogged and diligent in her campaigning, and it has been a pleasure to be on the Benches with her as she has gone about that in the past three years, and to provide what support I have been able to give for her work. It has merited awards at all levels, although I know that is not why she does it. She does that work to make the lives of her constituents and of the people up and down these isles better. She recognises injustice when she sees it, and she seeks to tackle it. I commend her campaigning efforts, which continue today.
My hon. Friend’s speech, as ever, was detailed. She highlighted the fact that next year this abominable scheme is set to get even worse, as children will be targeted regardless of when they were born. She is right to challenge people—Ministers in particular—to state the circumstances in which those children will be living for the duration of their childhood and the ways parents should budget for them. I would love to see an 18-year family budget in front of me. She was also right to say that 73,500 households have already been affected, a large proportion of which already include people in work. The apparent principle behind this policy, which is to get more parents into work, is self-defeating as it is already happening. I suspect there is an ulterior motive that the Government do not wish to discuss.
My hon. Friend was right to mention the rape clause exemption, because that despicable, disgusting example of UK Government policy has meant that 190 women have had to note the names of children who were born as a result of rape. That we allow that to continue is a stain on us as a society. I find it extraordinary that the Minister can sit and listen to the stories that my hon. Friend read out and the examples from Turn2Us of people in desperate need of help, and then shrug his shoulders as if this is not an issue and nothing needs to be done. I suggest that he comes to one of our constituencies to hear how this policy is impacting on our constituents. Perhaps he could do a shift at Turn2Us and listen to people in desperate need of help as a result of policies that he continues to support. My hon. Friend was right to say that the children impacted by this policy have no say over events that control their lives. They have been targeted by austerity, which is shameful.
The hon. Member for Stretford and Urmston (Kate Green) was right to point out how incompatible this policy would have been if the Government had targets to reduce child poverty. No wonder that the new Secretary of State and Ministers were so desperate to attack Philip Alston personally for the initial findings in his report. I think they protest too much, because they know all too well the problems with child poverty that they are causing.
Again, I commend my hon. Friend the Member for Glasgow Central, and thank her for securing this debate. It has been a good, positive and largely consensual debate, not least because no Conservative Member chose to speak. From the Labour Benches, the hon. Member for Bethnal Green and Bow (Rushanara Ali) was absolutely right and made an interesting speech, and I welcome her support for my hon. Friend’s campaign. The hon. Member for High Peak (Ruth George) made another helpful speech, and I commend her work as chair of the all-party group on universal credit. She gave good, if horrible, examples of the traumatic devastation caused by this policy. The hon. Member for Bury South (Mr Lewis) was right to point out the poor choices made by this Government. We made those points clear during a debate on the Budget, and that was reinforced by the intervention of my hon. Friend the Member for Kilmarnock and Loudoun (Alan Brown), who highlighted that between 2017 and 2025, £80 billion will have been spent by the Government on tax giveaways. That should give us all pause for thought.
The hon. Member for Midlothian (Danielle Rowley) was right to say that the policy will have a disproportionate impact on women and people from ethnic minority groups, and the hon. Member for Glasgow North East (Mr Sweeney) was right to point to Labour’s record in government, which I acknowledged, although Labour policy has perhaps been rather sketchy from then until now. My hon. Friend the Member for Glasgow East (David Linden) was right to ask how on earth, when discussing policy around the Cabinet table, nobody stood up and said, “Actually, you know what? I see where this is going. This is a disaster of a policy. This is disgraceful, not just from a social perspective but economically in terms of forcing people, including children, into poverty.” How did nobody round that table, or since then, speak up and say that this is wrong? I find that incredible. My hon. Friend was also right to highlight the religious discrimination at the heart of this policy, and I commend him for that.
This would not be a Westminster Hall debate if I did not sum up a good speech by the hon. Member for Strangford (Jim Shannon). The question why we should make these choices for families was at the heart of his remarks, which is absolutely right. This policy is not about people making choices about being in or out of work, as my hon. Friend the Member for Glasgow Central so eloquently put it; this is about limiting the choices of people on low incomes and their families, and about how many children they can have and what they do in their circumstances. The hon. Gentleman was also right to highlight evidence from Women’s Aid and Refuge. The list of organisations that the Government are ignoring and being tin-eared about could go on.
In conclusion, let me mention the work that the Scottish Government have done since 2010 to mitigate the UK Government’s disastrous austerity policies. Work on the bedroom tax involving more than £100 million a year has been mentioned, but something that is often forgotten about, and one reason why Scotland performs much better than the UK on child poverty levels, is the council tax reduction scheme. That scheme has cost the Scottish Government £1.4 billion in recent years—a substantial investment to ensure that people on low incomes do not suffer the burden of council tax in the same way as other people across the UK, whose council tax reduction scheme has been scrapped by the Government. In Scotland we have also utilised some of the flexibilities available to us for universal credit, which costs another £1 million a year.
I am just about to conclude my speech and I am conscious of time.
The Scottish Parliament and the Scottish Government will continue to do all they can to ensure that we do the best possible, and the hon. Member for Caithness, Sutherland and Easter Ross (Jamie Stone) was right in his bipartisan and measured speech. He said that the Scottish Parliament cannot be a Tory mitigation Chamber; it has to be more than that. There must be a limit to saying that the Scottish Government must always paper over cracks that have emerged from Tory policies. We must go after the problem at source. Therefore, rather than having a party political fight with the Labour party—I am not interested in that—I want us to continue with what, for the majority of this debate, was a cross-party attack on the Government’s policies. If Scottish Labour Members continue with that focus, instead of attacking a Scottish Government who are already mitigating the effect and doing what they can to reduce child poverty in Scotland, we will have a fair debate. We must end this two-child cap and the benefit freeze, and ensure that the Government do what they can in terms of work allowances and universal credit. Until that time we will not stop campaigning against this Government, and I hope Labour Members will join us in that.
Of course I will address the issues, but it is important to look back and see where we have come from to reach the policies that we are now putting in place.
Several hon. Members mentioned universal credit. I know that this debate is not about universal credit, but I am afraid I must point out that the legacy benefits system is not really fit for purpose. It is incredibly complicated, and as a result 700,000 households are not claiming—or are not able to get hold of—the full amount owed to them. Under universal credit, those households will be £285 better off on average per month. Likewise, 1.4 million people spent the best part of a decade on unemployment benefits under the last Labour Government, but that is changing.
I accept there has been discussion about finances, but I must say to SNP colleagues that, as Labour Members have pointed out, the Scottish Government have the power to create new benefits in devolved areas. They are able to provide assistance to meet short-term risk and they have the ability to top up reserved benefits from their own resources.
I will, but I point out for the record that the hon. Gentleman did not give way when Labour colleagues wished to raise that precise point with him.
The Minister points out that I did not give way, but of course I was at the end of my speech; I was winding up to allow him enough time to contribute to the debate. He says that the Budget interventions will make people better off, but the former Secretary of State, the right hon. Member for Tatton (Ms McVey), suggested that people on universal credit were £2,400 worse off. If the Government are suggesting that their intervention will make people £600 better off, does that not mean that people will still be £1,700 worse off as a result of their actions on universal credit?
Again, I must respectfully say to the hon. Gentleman and to other Opposition colleagues that it is one thing to say that they want to support their constituents and that I should be prepared to look people in the eye—but they too should be prepared to look their constituents in the eye and explain why they would not vote either for the additional £1.5 billion that we brought in earlier this year to support people on universal credit or for the Budget measures, which I will talk about in more detail.
(5 years, 9 months ago)
Commons ChamberI thank my hon. Friend and neighbour for raising the important work that Hastings Direct has done. It is a really good example of a public-private partnership making sure that the benefits of universal credit are set out for employers in an environment in which the employer and the employed can work closely together to get the best outcome.
I welcome the new Secretary of State to her place. Her predecessor suggested that a range of expert charities had welcomed the Chancellor’s intervention on universal credit, when in actual fact they wanted him to go further—much further. This new Secretary of State wields significant power, more than any of her five predecessors in the past three years, by virtue of the Prime Minister’s precarious position. Will she use that power to listen to those expert charities and halt universal credit until it is fixed?
I would not want to overstate what the hon. Gentleman calls my power, but I am certainly going to be listening very carefully. Part of the benefit of the universal credit roll-out will be making sure we get the expert guidance from the people who have been working in this field for many years, and we will certainly be doing that.
My hon. Friend is being very active in this area, and it is a key priority for us that access to support is available from day one. We have 137 work coaches in prisons to help prepare for UC claims, and we now have three pilots—in Norwich, Wayland and Belmarsh prisons—to make sure we can test the difference that completing UC claims will make. This is a real priority.
We have always known that austerity is a political choice, but now, thanks to Philip Alston, we know that poverty is also this Government’s political choice as we consider his findings into areas like the near-£5 billion benefit freeze cut next year, the 1950s women who have been impoverished by pension changes, and targeting children with austerity via the two-child limit. What different choices can we expect from this new Secretary of State?
I have to say that I think the hon. Gentleman’s comments are outrageous. It is in no way our intention to do any of the things he set out in that way. The purpose of this Department—[Interruption.] It is what the hon. Gentleman said, and I think I have made my views on the UN rapporteur absolutely clear. The hon. Gentleman need only listen to what we are saying and actually look at the evidence—look at the evidence of people getting back into work, of people getting higher paid jobs. The political choice that we are making on the Government Benches is for a stronger economy to deliver the jobs that are wanted by his constituents and mine.
(5 years, 10 months ago)
Commons ChamberMr Speaker, I will of course endeavour quickly to get through what I have to say in the protected time I have been given.
I very much thank the Labour party for using some of its Opposition day time to bring the subject of universal credit back to the House. We will support the motion this afternoon. However, for maximum pressure to be exerted on the Chancellor ahead of the Budget, we are calling on Labour and Tory Back-Bench MPs to work with us to make the case for the investment in universal credit that is desperately needed to make it work. The papers called for in the motion are required to be published fully to inform the political and civic debate in the country ahead of the Budget. We know what the expert groups are telling us. I imagine they are telling UK Ministers, too, so to what extent are they being listened to?
In some ways, we have the wrong Minister sitting on the Treasury Bench this afternoon. The Secretary of State for Work and Pensions has suggested that she has already made the case to the Chancellor for further investment in universal credit. We do not know how much she has asked for and for what purpose she wants those cuts reversed, but that is now for the Chancellor. Universal credit is already causing misery to millions. The Chancellor should be here to hear that, not just the Secretary of State.
There has been much rumour over recent days about what the UK Government’s plan for universal credit is, with some reports suggesting a delay to the roll-out until 2023. The Minister for Employment said yesterday that he does not comment on rumour, but when I asked him to circumvent that rumour by detailing the plans in the House, he came back with the same “flat-earth rhetoric” that was described by the BBC’s Michael Buchanan as his experience of talking to UK Ministers about universal credit.
Does the hon. Gentleman share my puzzlement at the experience of those of us in our constituencies where we have had universal credit rolled out and we have seen increases in food bank usage—in my own area, of 34%, which is 30 tonnes of extra food—and does he share my worry that the Government do not seem to understand that this demonstrates there is a real problem with this benefit?
I absolutely take what the hon. Lady has said, and I think she is absolutely right. At the weekend, the UK Health Secretary claimed that he had not received any correspondence on universal credit, only—three hours later—for the Mirror’s Dan Bloom to prove that was inaccurate as he had received an email from a constituent in West Suffolk just three days earlier. I will take with a lorry load of salt Conservative Members saying that they have had no problems with universal credit in their areas.
Let us be clear: even if the rumours are true, just delaying the roll-out will do nothing to sort out the problems people are facing with universal credit right now, such as in Airdrie and Shotts; it will only delay the inevitable for others. It will not solve the misery that is soon to be thrust on people in Aberdeen, Edinburgh and Glasgow. The only way to sort out those problems is by accepting that a significant investment needs to be made in universal credit at the Budget so that radical change can follow.
The biggest problem with universal credit is that, for years, it has been an all-consuming cash cow for Treasury cuts to social security. George Osborne’s 2015 Budget and the subsequent Welfare Reform and Work Act 2016 cut universal credit to ribbons. Everyone’s memory of the Budget in 2015 was George Osborne’s U-turn on tax credits, but as we and others warned then, that U-turn did not cover universal credit and the cuts were engrained but to be seen another day. For the many Tory MPs who thought George Osborne’s U-turn was enough, that day of reckoning is soon to arrive.
Before the hon. Gentleman finishes his speech, will he address the question that I wanted to ask the Secretary of State during her contribution: can we not have the roll-out until all these difficulties have been dealt with, so that we can safely ensure that each and every one of our constituents will not be messed around in the terrible way so many of them have been?
This week, South Lanarkshire Council informed employees that they could lose their universal credit over the Christmas period simply because they are paid four-weekly. Does my hon. Friend agree that this is yet another example of the shambles around universal credit, and will he urge the Secretary of State to do everything in her power to ensure that low-paid staff at South Lanarkshire Council are not penalised this Christmas?
My hon. Friend is making a very good speech. I am advised by one of my housing associations that every tenant—every single one—who has been moved on to universal credit so far has either gone into rent arrears or has seen their rent arrears rise. May I urge my hon. Friend to continue to press not simply for more money for universal credit, but for a complete halt to the roll-out and a complete redesign of the system?
I will give again later, but I will make some progress now.
When universal credit is thrust on people, it is catastrophic. The Secretary of State said as much last week. For many people on universal credit, incomes will fall by £2,400 a year, which is £200 a month or £50 per week. The Child Poverty Action Group estimates that taking all working age social security cuts together since 2010, they reach £37 billion. The benefit freeze is the single biggest cut, as support has failed to match rent or inflation rises for years. Over the decade, this will cost the poorest 10% of households over 10% of their income, and by far the worst hit are families with children and particularly those with more than two children.
Some 500,000 disabled people have lost £30 per week from the ESA work-related activity component cut, while 100,000 disabled children and 230,000 severely disabled adults will also have their money cut via universal credit. Bringing that together, the CPAG estimates that a single parent with a disabled child is set to lose £10,000 from tax and benefit reforms this decade. That should bring shame on every single Government Member. We cannot sit back and allow that to continue; we have to act for proper change. This does not need tinkering at the edges, but fundamental reform.
Talking about the incredible losses under this policy, is it not tremendous that the Scottish Government are continually being asked by the UK Government to mitigate the policies and mistakes this UK Government have made and that Scotland never even voted for?
As ever, my hon. Friend is absolutely right. The Scottish Government have already spent £400 million mitigating the Tory mess on social security. We have used flexibilities on universal credit to make the system better, but we cannot be expected to fill the gaps forever; the change has to happen at source.
Is the hon. Gentleman aware that total spending on benefits relating to disabled people stands at about £50 billion a year and that it has gone up considerably in real terms? Since 2010, spending in total has gone up, not down.
The hon. Gentleman has completely ignored the points I mentioned that have been made by the CPAG and other expert groups. He has completely ignored that. Government Members are deaf to the facts.
There are of course some cheerleaders for the version of universal credit before us. There are those who say nothing needs to be changed, and those whose loyalty makes them blind to reality. They continually say it gets people into work, but the National Audit Office has explicitly said that this claim is absolute patent nonsense. Page 10 of its report states:
“The Department will never be able to measure whether Universal Credit actually leads to 200,000 more people in work, because it cannot isolate the effect of Universal Credit from other economic factors in increasing employment.”
I would love to hear the evidence that directly correlates universal credit alone as the factor in increasing employment.
Is the hon. Gentleman concerned, as I am, by the fact that not only the NAO but the Universities of York and of Glasgow have shown, in a two-year study, that there is no evidence universal credit actually gets people into work and still less that it improves in-work progression? The Government continually misrepresent these facts. Is he concerned, as I am, about their doing this?
I could not get an answer to this yesterday. On the fact that the Government cannot prove that universal credit gets people into work, the number of claimants in my constituency is 930 higher than a year ago, which is an increase of 54%. The Library now confirms that we cannot make comparisons between one constituency and another where universal credit has been rolled out. It is a complete sham, and there is no way to measure this.
My hon. Friend is absolutely right. On making work pay, the CPAG says that rewards from work are limited. A single person on the minimum wage would have to work full time for an extra two months in the year just to make up for the cuts—I would love to hear Work and Pensions Ministers explain how 14 months goes into 12—because the taper rate for work allowances makes those who are on universal credit the most highly taxed workers in the UK, at 63%. For every £1 earned, 63p is clawed back. That needs to be changed.
I will make some progress, to allow other Members to speak. [Interruption.] The Secretary of State ignored my colleagues the entire time she was speaking, so it is only fair that I allow them to contribute to the debate.
We should also take with a lorry load of salt any claims from those cheerleaders on the Tory Benches who say, “Universal credit has been rolled out in my area and everything is fine,” after the UK Health Secretary’s embarrassment at the weekend.
No, I need to make some progress.
I have had dozens of emails about universal credit from constituents over the past few days, in the run-up to this debate. One was Leeanne from Salsburgh. She is unable to work but volunteers at her local citizens advice bureau, so she, too, is seeing at first hand the misery of universal credit. She says that it is having a major impact on the food bank she attends weekly to help to give advice. She wants the message to get across and for this change to happen.
In my constituency office we have had 10 new UC cases already this month—we receive about 20 to 30 a month, and that is just from those people who know to come to their MP. People are being left in poverty and having to go through an appeals process just to obtain what they are entitled to. While they appeal the DWP decision, they can be left with no money at all. People regularly wait hours on the phone to solve problems, and being able to put food on the table is literally a matter of survival. Does my hon. Friend agree that this delay is another admission?
My hon. Friend is absolutely right. That is why we need to call for the changes to follow as quickly as possible.
At my surgeries, I have met constituents desperate for help with universal credit. I will give just two examples. The first is Shelby Bowrman from Airdrie, who has become a casualty of the disgraceful two-child cap. Shelby gave birth to her daughter, her third child, after the roll-out of universal credit locally—she was due to give birth before the roll-out but was late. Shelby has now been migrated on to universal credit, and it has cost her thousands of pounds. She has been told that the two-child limit, which did not apply to the childcare element of tax credits, now kicks in for universal credit. She returned to work just two weeks after giving birth, to provide for her three children, who are aged two and under. She worked as a dental assistant during the day and for Domino’s at night. The two-child cap in universal credit has made it impossible for her to work. After I raised the case with the Secretary of State on Monday, Shelby has been told that she can get support with childcare costs but has to pay up front and then be reimbursed. She therefore has to find £2,000. That is just ludicrous and highlights why the two-child cap is discriminatory, unfair, a barrier to work and needs to go.
Another constituent at one of my Friday surgeries highlighted how universal credit completely fails to support people with mental health conditions. Her son Jordon, from Airdrie, is currently receiving acute mental health treatment but needs his universal credit application to progress, for obvious reasons. Jordon’s mental health condition is such that he is in crisis and in hospital.
Order. I am simply pointing out that a lot of Members wish to speak, and that the hon. Gentleman has now been speaking for longer than the official Opposition Front Bencher.
The Opposition Front Bencher obviously made a decision about the length of their speech, and I am doing my best to get through what I have to say.
Yet jobcentre staff told Jordon’s mum that his claim could not continue until he signed his claimant commitment—[Interruption.] I think it is important that Members listen to this, because I am talking about someone with an acute mental health condition. If he did not sign, he would have to apply for jobs from his hospital bed if he was to avoid a sanction. At what level is that not an abuse? I am not criticising jobcentre staff; they do the very best they can while implementing a disastrous policy from this UK Government. I suggest that the experience of frontline jobcentre staff rather differs from what Ministers would have us believe.
Universal credit, in its current form, is doing real damage to individuals and families. It is not just me saying that; experts are calling for change. The Joseph Rowntree Foundation says that cuts announced in 2015 will mean that 3.2 million households will typically be around £50 a week worse off on universal credit compared with tax credits.
Policy in Practice said this month that almost two in five households on universal credit will lose an average of £52 a week and that some 2.8 million households will see their income cut. Gingerbread says that the cuts to work allowances mean that the average single parent will lose £800 a year, and some will lose £2,000. Figures from the Office for National Statistics suggest that 91% of single parents are women, so they are being disproportionately affected once again. Trussell Trust data from March shows that in areas of full universal credit roll-out foodbank use was up by 52%, whereas analysis of food banks in places yet to receive the roll-out showed the rise to be 13%.
Shelter Scotland submitted evidence to the Scottish Parliament’s Local Government and Communities Committee last year, stating that the UK Government’s
“ongoing roll out of Universal Credit, the benefit cap reduction and the capping of housing benefits...directly threaten tenancies and risk pushing more people into homelessness.”
Other expert groups are demanding change, included the Resolution Foundation, Macmillan Cancer Support, Together for Short Lives—I could go on and on. The Scottish Government are using what limited powers they have to influence change, but as I have already said, we cannot continue to mitigate the mess forever.
So what needs to change? At the Budget, the Chancellor should start by investing to lift the benefit freeze, restore work allowances, scrap the two-child limit, lift the application waiting time, reduce the clawback from advances, sort the self-employed income floor, cut sanctions and restore the ESA work-related activity group and the disability components of UC. There should then be a halt to the roll-out until a fundamental review of universal credit is carried out, which should look at areas such as the digital-only approach, implicit consent, introducing split payments, rethinking the way people with mental health problems interact with the system and fixing the problems with the assessment period.
The problems with universal credit are fundamental and are causing misery, but they are problems that can be fixed with political will. This afternoon is the first test of that political will. We need to see the Government’s analysis and the papers should be released. When that confirms what we all know, this House should unite and force the desperately needed change.
With the greatest of respect, I have listened, and nobody has said that; nobody believes that universal credit is perfect. People in this House can keep repeating this stuff—to make themselves believe it; to get a clip for social media so they can say they have had a rant at the Tories—but it is poor politics and it has to change.
No, I will not give way to the hon. Gentleman. The other thing I will not accept in this House is the illusion that Conservative Members come to work to keep the poor poor and to feather their own nests. You gave the impression that nobody on the Conservative Benches cares about getting people out of poverty, but that is simply wrong. Individuals like me would not speak up against universal credit—and so become the lightning rod for abuse whipped up by some of the creatures on social media—and do something about it simply for our own ends. We would not be able to change this policy if we listened to you—
Order. Obviously this debate is heated, but it is important that the hon. Gentleman not refer to other hon. Members using the word “you”. If you use the word “you”, it is to me.
If any Member assumes that individuals on the Conservative Benches are driven by anything other than the evidence, they are seriously mistaken. I absolutely accept that there are groups in this sector working night and day that agree that we need to do more on things such as taper rates and work allowances, and we on the Conservative Benches will keep pushing for that, but the assertion that we do not see any of this evidence in our constituencies and act on it is just plain wrong. We have plenty of people coming into our surgeries talking about universal credit, but instead of launching into a diatribe about how the Conservative party is attempting to keep people in poverty, we should look at the things that this Government have done, such as the reduced waiting times and the landlord portal—things that are actually making a difference in places such as Plymouth.
My hon. Friend is absolutely right, as always. Where there have been systemic issues, measures have been taken to address them. One example is that housing benefit now gets paid for another two weeks after the change to address some of the issues with rent arrears that Members have properly raised. Secondly, claimants can now get a 100% advance, which addresses the point raised by the right hon. Member for East Ham. The seven-day wait has also been eliminated.
The Minister will also want to think about fine-tuning the period when calculating eligibility. A person who receives their last salary payment, particularly if it is quite a large salary payment, towards the end of their last month in employment may not be eligible to receive a universal credit payment in the following month because their final salary payment counts towards the calculation. I have such a constituency case, and the dates need to be fine-tuned and studied a little more carefully. I would be happy to sit down with the Minister to go through the particulars of the case, which is quite technical and complicated, if it would assist him in his work.
Croydon South has the joint highest proportion of claimants who have been moved across to universal credit, at 43%. Only two or three other constituencies in the country have such a high rate, so we have quite a good base of evidence in my constituency. The SNP Front Bencher said that we should take with a pinch of salt what Conservative Members say—
He said we should take with a lorry load of salt what Conservative Members say about how UC operates in their constituencies. That was of course a slur on the integrity of Conservative Members, but I contacted my caseworker during this debate to ascertain the facts. In Croydon, about 4,000 people are currently in receipt of UC, because 43% have migrated; that is my estimate and so it may not be exactly right, but the figure is probably somewhere in the region of 4,000. In the past six months there have been 21 cases where someone has contacted me as their constituency MP, some of which were to do with eligibility questions, such as where the person lives. I would say that 21 individual cases out of about 4,000 is not an excessive number of queries, but when they are raised I know that Ministers will look to deal with them.
Opposition Members have suggested that this is about cuts, but I respectfully remind them again that benefits paid to people who are disabled have gone up to £54 billion in total—that is a substantial real-terms increase. This is not about cuts, as more money is going into disability benefits now than at any time in history. I shall conclude by saying that a measure of compassion, and of Government success in policy and welfare, is not how much money we spend on aggregate, but how many people we get out of poverty and into prosperity, and that is done through work.
(5 years, 10 months ago)
Commons ChamberUrgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
Each Urgent Question requires a Government Minister to give a response on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
I beg the hon. Gentleman’s pardon. This is the trouble when there is a lot of noise. It is everybody else’s fault, not mine. [Laughter.] No, it is my fault and I apologise to the hon. Gentleman. I shall come to him. I call Neil Gray.
Thank you for granting this urgent question, Mr Speaker.
In spite of what the Minister has just said, which I think was a return to the flat-earth rhetoric referred to by the BBC’s Michael Buchanan, it appears that the Secretary of State is finally starting to recognise what her predecessors failed to recognise: the fundamental problems with universal credit. Of course, just delaying the process, or reducing the clawback rate, as has been rumoured, will not fix the misery that is being faced in areas where universal credit has already been rolled out, such as Airdrie and Shotts, or in those areas progressing to roll out, such as Glasgow, Edinburgh and Aberdeen.
Yesterday, the Secretary of State hinted to me that she has made requests of the Chancellor for additional funding in the upcoming Budget. In that regard, the Chancellor should really be sitting with the Minister, listening to proceedings on how to make universal credit work. It appears that moves are afoot to change universal credit. If the Minister will not comment on rumours, why will he not be straight with the House now and tell us what the plans are? Does he not agree with the many concerned expert groups listed by the shadow Secretary of State that have called for a halt to the roll-out, dramatic and fundamental intervention in the Budget and a full review of universal credit thereafter?
As I have said and suspect I will have to keep saying, I am not going to comment on rumours. The Secretary of State was clear yesterday that matters relating to the Budget are for the Chancellor and the Prime Minister. Indeed, the Chancellor will be here in a couple of weeks and the hon. Gentleman can ask questions then. I have already set out our plans for managed migration. If the hon. Gentleman is keen for universal credit to work properly, he should support the measures that we have introduced and will be bringing in to support the most vulnerable. The shadow Secretary of State talked about the £1.5 billion; the debate was on 13 March this year and she did not support the £1.5 billion for the most vulnerable.
(5 years, 10 months ago)
Commons ChamberUnder the process of managed migration, the roll-out will be slow and measured. It will start not in January 2019, but later in the year. For a further year we will be learning as we go with a small amount of people—maybe 10,000—to ensure that the system is right. The roll-out will then increase from 2020 onwards. It will be slow and measured, and we will adapt and change as we go.
Has the Secretary of State requested any additional funds for universal credit from the Chancellor ahead of the Budget?
That was barely a response, let alone an answer. Given the week that universal credit has had, where the Secretary of State has suggested that it will cost claimants up to £2,400 a year; two former Prime Ministers have called for her to rethink; dozens of Back-Bench MPs led by the former Secretary of State, the right hon. Member for Chingford and Woodford Green (Mr Duncan Smith), have called for a rethink; and expert groups like the Joseph Rowntree Foundation, the Resolution Foundation and the Child Poverty Action Group have all called for a rethink, does she not see that universal credit in its current form is causing misery? The roll-out must stop and the cuts must be reversed at the Budget.
We all agree on the founding, sound principles of this benefit, which is helping more people into work. It will give extra money to the most vulnerable. One million more disabled people will get, on average, £110 more a week. We will also be helping the 700,000 people who were getting the incorrect amount of benefit, plus we will be bringing in transitional protection to help them. If the hon. Gentleman wanted to reverse this, what would he do for those most vulnerable people?
(5 years, 11 months ago)
Commons ChamberYes, and that is why I am making these comments. These are actual people who are on PIP. One said:
“I found it humiliating.”
Another claimant said that she found
“the whole experience was brutal and gruelling.”
Finally, one asked:
“How low do these assessors go? I was asked if I had thought about killing myself.”
Can Members imagine somebody going to an interview and being asked that? Let us think about that:
“I was asked if I had thought about killing myself.”
This is the country that we live in, in 2018. These are comments from people who have gone through the process and we should be listening to them and we should be supporting them, with action not words.
I thank my constituency neighbour for giving way and congratulate him on securing this debate and on his speech. The examples that he has given, presumably from his constituents, are echoed by my constituents in Airdrie and Shotts. Like me, does he welcome the changes that will be made by the Scottish Government when we take control over some of these areas to ensure that there will no longer be face-to-face assessments unless they are requested and that there will be paper-based medical assessments carried out first? This is one of the most demeaning and most problematic aspects of the PIP assessment process.
I am glad that the hon. Gentleman mentioned Scotland. Let us take Scotland separately, with the special Government up there. In Scotland, we must not walk by on the other side. The SNP Government have the powers to abolish PIP assessments, and that is what they must do as a matter of urgency. I will give my assurance that the Labour Benches in Holyrood will support that.
In Wales, Keith Jones from Wrexham was refused PIP, having been on DLA since 1997. Keith died before his appeal was heard. He died weighing just 6 stone because his mouth cancer meant that he could not eat solid food, and he struggled to walk more than 20 metres. I could go on about more cases, but I want to encourage interventions.
The hon. Lady is a very experienced Member of Parliament, and she understands that in an Adjournment debate we have very little time. My door is always open to all Members here tonight if they want to raise constituency cases or broader points with me. I will not be able to address these points if I take interventions. [Interruption.] I ask the hon. Lady please to come and see me, and I will be more than happy to listen and respond carefully to what she wants to say.
These disability benefits are also exempt from the benefits freeze, so they will increase again this year to make sure that they are going up in line with inflation. We have about 5.25 million people of all ages on benefits, but we are supporting 1.8 million on PIP. Again, we have heard the misquoting of information about appeals. Of all the people who have applied for PIP, about 9% have gone to appeals, of which only 4% have been overturned. One person who has a poor experience of PIP—one person who does not get the treatment that these people all richly deserve—is one too many. We are utterly committed to a continuous improvement programme.
It is really important to remember why we looked again at the disability living allowance. It was a benefit for its time. It was mostly focused on physical disability. It did not take into consideration all the mental health conditions that we know people live with. It did not take into consideration learning difficulties or sensory impairments like blindness. Understanding of other conditions such as autism has changed immeasurably. DLA was too reliant on self-assessment, and people had very little opportunity to be reassessed, so they could be underpaid in their benefit.
In fact, PIP has achieved many of its objectives. We can absolutely see that when we look at the results. Over 1.88 million people are now in receipt of PIP. Over 225,000 more working-age disabled people are now receiving DLA or PIP compared with when PIP was first introduced, and more support is now going to those that need it the most. Over 30% of claimants are receiving the highest level of support under PIP, compared with 15% under DLA.
There has been much talk, quite rightly, about people with mental health conditions. It is really important to note that 65% of PIP recipients with mental health conditions receive the enhanced rate of daily living component, compared with 22% of people on DLA. Clearly, where we were aiming to make sure that people with mental health conditions were benefiting from this new benefit, that is happening. It is a holistic benefit that looks at a whole range of conditions with regard to people’s ability to lead independent lives.
I have consistently listened to colleagues in the House. I regularly meet charities and stakeholders to ensure that we make improvements to PIP. We have had independent reviews of PIP. We have had a Select Committee inquiry, which made many recommendations that we have accepted. We are absolutely committed, and a lot of changes have already happened.
I would like to take this opportunity to update the House on the extensive work we have been doing on implementing the reforms to PIP that I have set out and communicated regularly to the House. Starting with the beginning of the applicant’s journey, we have done work on improving communications, including making changes to the forms, ensuring that people understand that they can bring people along to support them and providing far more access for disabled people. We have independent evaluation where we engage with our PIP claimants to ask them how we can improve the process. Some 87% of them found it a positive experience, but of course other people are not finding it a positive experience, and they are the ones we are working with. We are working with individual disabled people and organisations, and we have listened and acted.
I have been asked about particular changes we have made. Over the summer, we have done a huge amount of work to get ready for a proper pilot of recording PIP assessments. I would like to say to the hon. Member for Coatbridge, Chryston and Bellshill that using the private sector to undertake assessments is not a new thing. It was brought in by the Labour party when it brought in ESA back in 2008. It was the Labour party that introduced work capability assessments and used health professionals to undertake those assessments.
Let us remember who these health professionals are: they are the nurses, physiotherapists, doctors and occupational therapists we all depend on when we go to our local hospital or engage with our local health service. Those are the healthcare professionals undertaking the process. They are highly dedicated and motivated healthcare professionals who receive very thorough ongoing training, particularly in mental health. There is a huge amount of stakeholder engagement from voluntary sector organisations that support disabled people to ensure that the assessors undertaking these assessments are completely up to date, and this is a continuous improvement process. We have also introduced a lot more guidance, support and training for our case managers. Healthcare professionals undertake the health assessments, and that information is then passed back to the Department, where experienced case managers are the decision makers.
Over the summer, I was also able to ensure that we implemented other important changes that we said we would to PIP. For people who have severe conditions from which we know, from their medical information, they will not recover, we have built on the work we have done on ESA by working in partnership with disabled people and the voluntary sector to make changes so that once people on ESA receive the highest level of support, they have a lifetime award, with a light-touch review after 10 years. We have now introduced that to PIP.
I have so much more that I would like to update the House on, but we are simply running out of time.
We remain absolutely determined to roll out at pace the whole suite of reforms to PIP that we have set in train. We are already seeing improvements in those processes. This is something we take extremely seriously, and we are working at pace and with great urgency. There is no doubt that Government Members want exactly what Opposition Members want, which is to ensure that all disabled people and people with health conditions in our country are treated with respect and dignity and get the support that they richly deserve. We have committed to and continue to spend more money than ever on benefits supporting people, and we will continue to do that every year in this House.
Question put and agreed to.