Universal Credit (Children)
Debate between Neil Gray and Peter Heaton-Jones(8 years, 6 months ago)
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Peter Heaton-Jones (North Devon) (Con)
I echo the words of the right hon. Member for East Ham (Stephen Timms). The Backbench Business Committee has, properly, allowed this debate and he has introduced it very wisely indeed.
In my mind, there is a difficulty with the motion as it currently stands on the Order Paper: it seeks to look at universal credit in isolation. That is a problem, because what we need to consider is the entire package of measures the Government have introduced with regard to changes to benefits and very significant movements forward in seeking to tackle child poverty. We need to look at all of those measures in the round and as a whole, and not focus solely on universal credit. The package of measures we need to be thinking about are the increases in the personal tax allowance, the introduction of the national living wage and better childcare provision, which goes to the heart of what this debate seeks to address.
Neil Gray (Airdrie and Shotts) (SNP)
The hon. Gentleman talks about needing to take these issues in the round. Does he accept that in February this year the IFS predicted that, taking all issues in the round including planned tax and benefit reforms, child poverty will increase from 15.1% in 2015-16 to 18.3% by the end of this Parliament?
Peter Heaton-Jones
I am glad the hon. Gentleman mentions the IFS, because it also said that
“universal credit should make the system easier to understand, ease transitions into and out of work, and largely get rid of the most extreme disincentives to work or to earn more created by the current system.”
The IFS seems to quite like the introduction of universal credit, which has to be looked at in the round. The Government are introducing a whole package of measures. I listed some of them. The growing economy and rising employment also help.
The other issue that is not taken into account when we consider universal credit is what is sometimes referred to as the dynamic impact—a horrible bit of jargon—of universal credit. This seeks to take into account changes in individual behaviours in response to the introduction of universal credit. It is quite difficult to analyse but it means improved opportunities for people to move from welfare into work, which changes people’s behaviours. This is a vital point. Even though it is in its early stages of introduction, as pointed out already, there is significant evidence that universal credit is doing well and succeeding at ensuring that more people move off welfare and into work. The latest figures show that for every 100 people who found work under the old jobseeker’s allowance system, about 113 universal credit claimants move into a job. What matters, however, is not just the fact of moving into a job but the quality of the job and the pay, and people are actively looking to increase their hours and their earnings as well.
Welfare Reform and Work Bill
Debate between Neil Gray and Peter Heaton-Jones(8 years, 9 months ago)
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Peter Heaton-Jones (North Devon) (Con)
It is a particular pleasure to follow the right hon. Member for Birkenhead (Frank Field), who speaks with unrivalled expertise on these matters. I agree with his fundamental point. I speak to oppose Lords amendment 1, which seeks to amend clause 4, as passed by this House. I do so as a member of the Bill Committee that scrutinised the Bill—during 15 sittings or so, if I recall—last autumn. Clause 4, as passed by this House, introduces a new duty for the Secretary of State to report annually on two Life Chances measures: first, the proportion of children living in workless households; and secondly, as has been mentioned, their educational attainment at age 16. In effect, therefore, it repeals most of the Child Poverty Act 2010.
The Lords amendments in effect seek to replicate the parts of the 2010 Act that relate to the measurement of the proportion of children living in poverty. In particular, their lordships’ amendments seek to require the Secretary of State to report on four specific measures: relative low income; combined low income and material deprivation; absolute low income; and persistent poverty.
However, the Bill, as passed by this House, does not mean that the Government will stop measuring and publishing such data on household income. The Government will continue to publish annually low-income data in the HBAI publication. Those data include—Members may get a sense of déjà vu all over again—relative low income, combined low income and material deprivation. They probably ring bells, because those categories replicate almost exactly the measurements that the amendments from the other place seek to reinstate in the Bill. To put it simply, the Government are already doing it. The information is available for all to see and will continue to be so. The HBAI publication has protected status as a national statistics product and Ministers have undertaken in this House to publish the data annually. Lords amendment 1 is—I say this with the greatest respect—simply unnecessary. Its effect would merely be to replicate something the Government are already doing.
Peter Heaton-Jones
The Government have made a commitment to continue to publish the data annually. They have been very clear about that fact. When it comes to the relationship between those measurements and the eradication of child poverty, under the previous Labour Government the number of households where nobody worked doubled and in-work poverty increased: the Government missed their child poverty target by 600,000.
The Bill, as passed by this House, does not redefine poverty to exclude income, as some of its opponents often say. That argument assumes that measuring income is an effective, helpful or comprehensive way of measuring poverty in the first place. It is, in fact, none of those things. In that respect, the 2010 Act was flawed in its approach. The current income measures enshrined in the Act show that the number of children in relative poverty can actually go down in a recession and up in times of growth. That is simply perverse. Furthermore, the measures incentivise what is often known as a “poverty plus a pound” approach, where families can seemingly be moved out of poverty without any change whatever in the underlying factors that got them into the position of low income in the first place. The Act is simply not doing what it is intended to do.
Neil Gray
That is why, of course, it is important to have a package of measures, so that we can look at all aspects of how children and their families are living in poverty. We should not assess just relative low-income measures; we should include other measures such as material deprivation, which is critically important.
Peter Heaton-Jones
Material deprivation is one of the things that will continue to be measured by the HBAI statistics. It will still be included—[Interruption.] I am sure that the Minister will rise to her feet and reflect this fact; a commitment has been made that the measure of material deprivation will continue to be published annually. It will continue to be part of the official ONS Government statistics. The hon. Gentleman says that we need a package of measures, but that is exactly what we get. We get the HBAI information; we get those statistics; we get the commitment that these data will be published annually and enshrined, as I say, by the ONS. On top of that, we get what the Government suggested in the original Bill, which this House passed—further measures of attainment. We get the best of both worlds.
Peter Heaton-Jones
If the hon. Gentleman does not mind, I will not give way again. He has already had a couple of bites at this particular cherry—