Department for Work and Pensions

Debate between Neil Gray and Alex Burghart

Tuesday 2nd July 2019 Commons Chamber

[Alex Burghart (Brentwood and Ongar) (Con)]

It is an honour to have the opportunity to talk in this important estimates day debate. I congratulate the hon. Member for Wirral South (Alison McGovern) on introducing the debate.

Record and rising employment is the central fact of the Government’s economic record. It is sometimes easy to brush over the fact that we now have the highest rate of employment in this country than at any time since the early 1970s. That is not only important on an economic level, although obviously it has wonderful economic benefits for the country, but extremely important on a social level and a personal level, because of the way it benefits families and communities and gives people opportunity and optimism that they otherwise might not have.

For four years before I came to this place, it was very much my privilege to serve as the director of policy at the Centre for Social Justice, which is a think-tank that looks at the root causes of poverty in the UK. That background is what lies behind my exchange with the hon. Member for Wirral South earlier. One can of course say that the root cause of poverty is people not having enough money. It is true that poverty is people not having enough money, but it is unquestionably the case that the reason why some people do not have any money is that they do not have a job in order to earn money, and that the reason why some people—not everybody at all—are unemployed is that something has gone badly wrong in their life, and that thing needs to be corrected with the help of public services, with the support of their family and with their own personal determination. That must always be an absolutely essential part of any welfare policy, which is why it is so important that the significant changes that have been introduced in the Department for Work and Pensions have been coupled to the work of the troubled families programme in the Ministry of Housing, Communities and Local Government. It is by helping people to overcome some of the root causes of poverty that we can help more people to move into the workplace and so help to support themselves and their families.

There is a group of people who are lucky enough and fortunate enough to come from stable homes, to get a decent education and not to suffer from addiction or any such problems, who still find it difficult to make ends meet, which is why it is extraordinarily important that any Government have an economic policy that generates jobs and drives up wages. The Government have been extraordinarily successful, without parallel, in the creation of jobs. Life has undoubtedly been harder in the generation of higher wages, but it feels like in recent months—over the past 15 months, I think—we have turned a corner on that score and, for the first time since the financial crisis in 2008, we are starting to see wages rise above inflation. Ultimately, that is excellent news for people who are moving into the jobs market and for people who are starting off on low salaries.

It must be remembered that none of that success was predicted by commentators before the 2010 general election. I remember in 2009 listening to a Bank of England economist forecast that the incoming Chancellor of the Exchequer would have to deal with unemployment of more than 5 million. In 2011, he repeated that the policies of the Conservative and Liberal Democrat coalition would unquestionably lead to record unemployment and a massive social security problem. That simply did not happen, because of the business-friendly policies that the Government adopted, which increased investment and business growth and saw employment rise in very many parts of the country.

It was a pleasure to sit and listen to the speech by my hon. Friend the Member for Middlesbrough South and East Cleveland (Mr Clarke). I do not believe it can be an accident or a coincidence that his constituency has not traditionally had a Conservative MP, yet after seven years of Conservative employment growth in his area, it elected a Conservative. After seven years, following a major economic meltdown under the previous Labour Government, the Conservatives delivered the job growth in his area that Labour had been incapable of doing for the 13 years that it was in power. We see it not just in Middlesbrough, but in a whole range of seats from Mansfield to Stoke-on-Trent. This new era of Conservative representation in parts of the midlands and the north is a result of this policy, which has helped people to find jobs and improve their lives and the lives of their families. This has been termed the British jobs miracle, because unemployment is now at about 3.8% in the UK, compared with 7.5% in the euro area.

[Neil Gray]

I do not doubt that properly paid work is the best route out of poverty, but when will the hon. Gentleman’s so-called jobs miracle extend to children living in poverty? How can he explain what is currently going on when we see that two thirds of all children living in poverty do so in a working household?

[Alex Burghart]

The hon. Gentleman raises a very good point, but, as I have already said, we had a long period of employment, but with little or no wage increases. We have now started to come out of that period. What he will see is that, if wages and wage growth are maintained in the months and years ahead—as I have no doubt that they will be—we will start to see the number of young people in poverty go down. We will see that their parents have more money because they are in work and their wages are rising above inflation. I am sure that he would accept that point.

[Neil Gray]

Will the hon. Gentleman not accept that, while we wait, children remain in poverty? What are his Government doing? They are continuing to cut universal credit, which is supposed to help move these families away from poverty. Why is this continuing to happen? Why do they have to wait all this time for the never-never of jam tomorrow?

[Alex Burghart]

I do not believe that it is correct to say that the Government are taking money out of universal credit. I am sure the hon. Gentleman remembers the previous Budget when a considerable amount of additional money was put into universal credit. I think that he is, perhaps, slightly out of date on that score.

Welfare Reform and Work Act

Debate between Neil Gray and Alex Burghart

Wednesday 21st March 2018 Westminster Hall

[Alex Burghart (Brentwood and Ongar) (Con)]

It is an honour to serve under your chairmanship, Mr Gapes. I congratulate the hon. Member for Central Ayrshire (Dr Whitford) on securing this debate on a very important subject. Although I disagree with her on several points, I fully respect the tone in which she delivered her remarks.

Something that has not yet been spoken about today is the context in which many of the welfare reforms since 2010 were introduced. In 2010, as we all remember, we faced a broken economy and a broken welfare system. We had a deficit that was spiralling out of control. There was a very real threat to public finances and a danger that if Britain did not control its spending, the international bond markets would take action against us, further undermining our ability to pay for our essential public services. That was acknowledged across the House at the time and still holds true.

At the same time, but for entirely different reasons, the welfare system that we inherited was not fit for purpose. Over many years, through no grand design, it had grown into a system of great complexity that was confusing for users and expensive to administer. It had to be reformed. Peculiar, perverse disincentives had arisen, not because anyone had wished for them but because different benefits clashed at different points in the system. The most obvious and regularly cited example is that people were disincentivised from taking more than 16 hours of work, but many people were also disincentivised from moving into the initial stages of work at all. Unfortunately, the system often trapped people out of work or in low wages. That was completely unacceptable, because we all know the importance of work.

[Neil Gray]

Is the hon. Gentleman seriously still attempting to use the banking crash to justify the cuts to welfare? That is what they are: reform would be one thing, but these are cuts to social security. Are the bankers seriously still to blame for the projected 7% rise in child poverty over the next few years?

--- Later in debate ---

[Alex Burghart]

I am extremely grateful to my hon. Friend for stealing my thunder and taking away my next paragraph. Yes, I am fully aware of that fact and she is right to emphasise it. One of the great things that has happened since 2010, which must be acknowledged in a balanced debate on the subject, is that we have achieved record employment in this country. Unemployment has fallen substantially—in all constituencies, I believe—but it is unfortunate that so far my hon. Friend has been the only hon. Member to welcome that in this debate.

It is right to talk about the full package. Yes, there have been cuts and freezes to welfare payments but, as my hon. Friend mentioned, they must be seen alongside increases to the national living wage, increases to the tax threshold, a new offer on childcare and the creation of universal credit, which enables people to progress in work without the disincentives that existed before. Alongside all that, the most important thing that has happened is that far fewer people are in out-of-work benefits. When we talk about assessments that people may have lost money under the welfare changes, we must always acknowledge that this is a dynamic system. The whole point is that people move into work and progress in work so that they earn more money. I fear that that has not been acknowledged in this debate.

The Welfare Reform and Work Act introduced several changes, as hon. Members have already mentioned, but they must be seen in the context of fairness. The welfare cap limited the amount of money that some families receive, because it was deemed by Parliament that it was unfair for families out of work to receive more than families in work. It was not just a parliamentary majority of Conservatives and Liberal Democrats who agreed with that; regular polling has found that 77% of the population do, too.

I am delighted to draw attention to a new report by Policy in Practice, “Low Income Londoners and Welfare Reform”, which has examined the effect of the welfare cap on 600,000 low-income people in London. It shows that there has been a positive impact on employment outcomes for those families and no measurable impact on homelessness in comparison with a control group of similar households. The welfare cap is working in London, and the most serious piece of analysis so far conducted upholds that. It is a good example of how adjusting the welfare system carefully can create work incentives to help people to make positive choices to improve their lives and those of their families.

The hon. Member for Central Ayrshire mentioned the four-year benefit freeze. I acknowledge that inflation is now higher than it was when the freeze was set. I also acknowledge that it is now falling. As my hon. Friend the Member for Redditch (Rachel Maclean) pointed out, the value of benefits increased by 21% between 2008 and the 2016 Act, while the value of wages increased by only 11%. The freeze is therefore not quite as stark a corrective as the hon. Member for Central Ayrshire makes out.

On the two-child limit in universal credit, it is only right that we have a welfare system in which people who are out of work have to make similar decisions to people in work. However, it is extremely important that people in the welfare system understand the potential consequences. I have become concerned that there may be people who are thinking of having a third child but are not aware that they will not be entitled to further benefits under universal credit. The system cannot work as intended if people are not aware of how it works.

[Neil Gray]

The hon. Member seems to have a basic misunderstanding of the impact of this measure. Does he not appreciate that many people start planning their families from a very different perspective from where they end up? We cannot continue to punish people who have fallen on hard times, as he is suggesting should happen.

[Alex Burghart]

I think the word “punish” is entirely wrong in this context. I think we have to say that if people are aware of the consequences of their actions—that there are benefits available for certain decisions they make but not for others—they can make their own decisions. It is up to the state to decide where the balance of benefit lies.

--- Later in debate ---

[Neil Gray (Airdrie and Shotts) (SNP)]

It is a pleasure to serve under your chairmanship, Mr Gapes. I warmly congratulate my hon. Friend the Member for Central Ayrshire (Dr Whitford) on securing this debate and her magnificent speech, which set out perfectly the issues before us. I also thank Emily Cunningham from the SNP research office. She has helped to drive this week of campaigning on the pernicious Welfare Reform and Work Act 2016. I also thank our press office, led by Catriona Matheson, which has helped to highlight our campaign.

This is rather pertinent to some of the issues being discussed this morning, but today is World Down Syndrome Day. They are out of sight, but I am wearing colourful odd socks to help celebrate difference, and I hope others are, too.

I remember well the great frustration and anger—some of that has been brought back to me by some Conservative contributions today—I felt when speaking at the various stages of the Welfare Reform and Work Bill. I remember the anger I felt when we put across the evidence from the expert charities and those arguments were ignored. I remember the meticulousness with which the former Member for Banff and Buchan, Dr Eilidh Whiteford, dismantled the Government’s basis for introducing the Bill and the erudite way she evidenced what the impact would be.

We warned then that the four-year freeze to social security would mean a rise in child poverty, but we were ignored; the Government marched on. We warned then that cutting disability employment support would hurt those who need the support most, but we were ignored; the Government marched on. We warned then that introducing a two-child limit to tax credits would push low-income families on the edge into poverty, but we were ignored; the Government marched on. We warned that lowering the benefit cap would arbitrarily hit low-income families, women and children the hardest, but we were ignored; the Government marched on. Sadly, on all those areas the Government knew what was coming. It was not just the SNP telling them; all the expert charities lobbied hard against the Bill, but they were ignored, too.

Two years on, we can start to see the impact of the arbitrary, austerity-driven cuts to the DWP that have forced arbitrary austerity-driven cuts to social security. My hon. Friend the Member for Central Ayrshire covered that well. She also gave a very good, if sad and desperate, history lesson on the cuts from 2010. In addition to the Welfare Reform and Work Act 2016, cuts have hammered the incomes of the sick, the disabled and those living on low incomes. She also gave constituency examples of people who have been affected by this Government’s policies and said there was no cumulative impact assessment of the Government’s cuts to various elements of social security.

The hon. Member for Redditch (Rachel Maclean) did not have time to talk about the correlation between this Tory Government’s cuts and increased food bank use, including at St Stephen’s church in her constituency—that was highlighted by my hon. Friend the Member for Glasgow East (David Linden)—but I do. The Trussell Trust has highlighted a clear correlation between cuts or delays to benefits, low incomes and those using its food banks. Mary Anne MacLeod’s report, “Making the Connections: A study of emergency food aid in Scotland”, made the very same connections. I encourage the hon. Member for Redditch to read those reports before coming to another debate like this.

My hon. Friend the Member for Glasgow East made another good speech based on his lived experience and what he sees in his constituency. The hon. Member for Brentwood and Ongar (Alex Burghart) said he appreciated the speech of my hon. Friend the Member for Central Ayrshire, but did not agree with much of it. My hon. Friend quoted many facts, so the hon. Gentleman can disagree on policy,

“But facts are chiels that winna ding”.

The facts show clearly how low-income families, children, women, the sick and disabled are paying the price of this Government’s cuts. At the end of his speech, he made a number of inaccurate statements not only about the social security system we are building in Scotland, but his Government’s policies. The UK Government sadly no longer wish to halve the disability employment gap. That policy was removed in the manifesto he stood on.

[Alex Burghart]

I am looking to the Minister for confirmation, but I believe it is still very much our policy to halve the disability employment gap.

[Neil Gray]

I am looking to the Minister to intervene, but he is looking down at his notes sheepishly. As of the Conservative party’s last manifesto, it is clearly no longer an aspiration to halve the disability gap; it merely wishes to reduce it. Rather embarrassingly for the hon. Member for Brentwood and Ongar, that commitment was removed at the time of the last election.

My hon. Friend the Member for Inverness, Nairn, Badenoch and Strathspey (Drew Hendry) focused on universal credit, as he has done so diligently for years. He also called out the empty Tory and Labour Benches. That is most stark when compared with the debate last night, when Scots Tories and Scots Labour MPs teamed up to try—they failed—to attack the Scottish Government’s policies.

My hon. Friend the Member for Glasgow Central (Alison Thewliss) has been a diligent and award-winning campaigner on the two-child policy and the rape clause. Perhaps this Minister will be the one who finally listens on that pernicious policy.

We know that in Scotland things could have been much worse had it not been for the Scottish Government’s intervention and early action. We have already stopped anyone paying the bedroom tax, and we have ensured the continuation of council tax benefit, which has been stopped by the UK Government in England. The Social Security (Scotland) Bill has just completed its Committee stage. With that, we have seen some of the actions we will take to help build a new and fairer social security system with the limited powers at our disposal in Scotland. We will develop a new benefit to overcome the removal by this Government of housing benefit for most 18 to 21-year-olds. We will make assessments fairer, with no private companies involved and a reduced need for face-to-face assessments. We will set up an independent scrutiny body to ensure that this Scottish Government and future Scottish Governments adhere to human rights and scrutinise social security actions.

More will come out on what we have planned in the areas we control, but it will be a stark departure from the UK Government’s approach to social security. Sadly we cannot clear up all the mess that the UK Government have left for Scotland, and that is why we want social security devolved to Holyrood in its entirety. Until that happens we will keep fighting from Westminster for fairness for people across the UK who need that safety net.

This has been a perfectly timed debate brought to the Chamber by my hon. Friend the Member for Central Ayrshire. It has highlighted the desperate need for the Government to revisit their punitive and indiscriminate social security cuts. The Welfare Reform and Work Act 2016 led to international condemnation of the UK Government, led by the UN committee on the rights of persons with disabilities, which highlighted grave and systematic violations of the convention on the rights of persons with disabilities. The Government have lost court battles on their social security cuts, and just today the National Audit Office said that the DWP has underpaid an estimated 70,000 people on employment and support allowance by an average of £5,000 a person. That is yet more evidence of how this Government are letting people with disabilities and long-term health conditions down. It is time they acted. It is time they helped low-income families. It is time they properly supported people with disabilities. It is time they looked again at the Welfare Reform and Work Act. If the Prime Minister is still serious about tackling burning injustices, this is the place to start.

Work Capability Assessments

Debate between Neil Gray and Alex Burghart

Wednesday 13th December 2017 Westminster Hall

[Alex Burghart (Brentwood and Ongar) (Con)]

It is a pleasure to serve under your chairmanship, Ms McDonagh. I congratulate the hon. Member for Glasgow East (David Linden) on securing this important debate. It is always refreshing to be in a debate where there are so many shared views from different parties. I congratulate him on the tone with which he conducted his speech.

I echo some of the comments that remind us of how we have come to this position. There is absolutely a need for a work capability assessment within our benefits system. It is extremely important that people who suffer from physical and mental conditions have their conditions assessed to see whether they are able to work today or tomorrow. It allows the state to give them the requisite support that they need and deserve.

When the Labour party introduced the system in 2008, it did so with the laudable intention of creating a benefits system that identified what people could do rather than what they could not. That is a value to which we should remain attached. I am not sure that between 2008 and 2010 the then Government managed to achieve that. To be honest, I am not sure that we have managed to achieve it since, but the value of that principle is one that we should hold dear.

I should prefix what I say with my belief that there is substantial room for improvement within the system and perhaps a need to go back to some basic values. One thing that I find often gets lost in the powerful and personal stories that I come across in my surgery, and that colleagues from all parties come across in theirs, is that the system works well for a great many people. Of the 1.6 million people who completed the assessment process between October 2013 and December 2016, 85% did not appeal, so the vast majority were content with the decision that was made. Only 3.5% of the 1.6 million had a successful appeal. I do not wish to belittle those numbers because that 3.5% still represents tens of thousands of people, many of whom have very serious conditions, and many of whom will have been left substantially worse off by a negative decision. I want us to remember that the system is not wholly bad, but that there is substantial room for improvement within it.

[Neil Gray]

The hon. Gentleman quotes figures that I am happy to accept, but does he accept that many people who have been through the system, particularly with work capability assessments, feel so frustrated by the process they have gone through that they self-deny the support that might be available to them, and that that is perhaps part of the reason why there is a low appeal rate in some periods?

[Alex Burghart]

I absolutely accept what the hon. Gentleman says, but I think he would accept that some people do not appeal because they are pleased with the outcome. That is why my hon. Friend the Member for North Swindon (Justin Tomlinson) mentioned that the Government and the previous Government have always been in a process of ongoing review—we have had annual reviews and a Green Paper. I am sure everyone has read “Improving Lives”, published last month, which sets out the Government’s future commitment to reform, and that we all welcome it.

As a member of the Work and Pensions Committee, I have been fortunate enough to come across a great many cases and a great amount of submitted evidence. It is becoming clear to me that there are four key areas in which we should seek to improve the system. The first, which resonates with a lot of what has been said, is the accuracy of the assessments. I have had people through my surgery in my constituency who have presented me with information that is clearly wrong and clearly relates to somebody else. Basic errors creep in before we even get to the validity of the assessment process. That makes me think that the accountability system for the accuracy of the reports should also be revised. If an assessment company sees its assessments overturned, there should be consequences. I would certainly like, at the very least, the cost of the assessment process to be charged to that assessment company, and I would certainly be open to the idea of compensation for people who had been wrongfully denied benefits because assessments had been mishandled.

The matter is bound up with the question of expertise. The Work and Pensions Committee questioned witnesses from the major companies the other day about the level of expertise that they employed.

Universal Credit Roll-out

Debate between Neil Gray and Alex Burghart

Wednesday 18th October 2017 Commons Chamber

[Neil Gray]

At the start of the year, Mr James Moran from Harthill in my constituency qualified as an HGV driver and managed to find work on a zero-hours contract as a driver while also receiving universal credit—exactly the sort of scenario under which universal credit was supposed to work better. Not long after gaining employment, however, Mr Moran was sanctioned, despite being in employment. As he started the process of appealing the sanction, he suffered a stroke, which meant that he was no longer able to work as a driver. As the sanction was still in place, he returned home from hospital with no means of receiving an income. Despite getting some help from his elderly parents, Mr Moran struggled with no money whatever for more than a month. He then suffered a second stroke. Mr Moran has advised me that the doctors who treated him in hospital at the time of his second stroke admission told him that the low blood pressure that caused the second stroke was almost certainly caused by malnourishment. That malnourishment was a direct result of a DWP sanctioning error, forcing Mr Moran to live without an income—to live on fresh air.

I wrote to the Secretary of State about the case on 1 September and have repeatedly chased his office for a reply, but I have received nothing in return to date. The six-week minimum wait appears to be built into the Secretary of State’s correspondence turnaround as well. I do not take that personally, because I gather from press reports that the Chair of the Select Committee on Work and Pensions has had similar problems with getting the Secretary of State to put pen to paper. Perhaps he will now chase a reply.

The revelation last week that our constituents on universal credit had to pay 55p a minute was a further dent to the public’s confidence in this Government’s handling of universal credit. It should not really have been much of a revelation, as my hon. Friend the Member for Glasgow South West (Chris Stephens) has been raising the telephone tax issue for months—and what a win for my hon. Friend this morning, as, following his ten-minute rule Bill in February, the Government have finally announced that the phone line will be free. But why must we wait until the end of the year for all telephone charges to be scrapped? The Government should bring in that welcome concession now.

[Alex Burghart]

Did any SNP Members, when they raised this issue, ever point out that there was a call-back service?

[Neil Gray]

Yes, we did. The hon. Gentleman’s intervention completely misses the point. [Interruption.]