Universal Credit (Children)

Nick Thomas-Symonds Excerpts

Tuesday 10th May 2016 Commons Chamber

[Nick Thomas-Symonds (Torfaen) (Lab)]

I am grateful to the Backbench Business Committee for agreeing to hold this debate in the main Chamber. I pay tribute to my right hon. Friend the Member for East Ham (Stephen Timms), whose erudite and considered opening speech was a great contribution to the debate. The hon. Member for North Devon (Peter Heaton-Jones) talked about the broader context, and I will be only too pleased to do the same in a moment. My hon. Friend the Member for Edmonton (Kate Osamor) spoke powerfully about the plight of lone working parents, who are particularly affected by cuts to the work allowance. I certainly agreed with the hon. Member for Gloucester (Richard Graham), who is no longer in his place, on the idea of ensuring that we visit Jobcentre Plus offices to see universal credit in action, something which I did recently with my right hon. Friend the Member for East Ham, but it is equally important to be in contact with local citizens advice bureaux and to visit food banks to see what is happening on the ground.

We heard a useful contribution from the hon. Member for Airdrie and Shotts (Neil Gray), who pointed out very well the new approach promised by the new Secretary of State of looking at people, not statistics. I look forward to the Minister telling us how she has changed her approach under her new boss, as I am sure everybody does. We also heard useful contributions from the hon. Members for Lanark and Hamilton East (Angela Crawley) and for Banff and Buchan (Dr Whiteford); my hon. Friend the Member for Neath (Christina Rees); the hon. Member for Horsham (Jeremy Quin); my hon. Friends the Members for Salford and Eccles (Rebecca Long Bailey) and for Cardiff South and Penarth (Stephen Doughty); the hon. Members for Foyle (Mark Durkan) and for Rutherglen and Hamilton West (Margaret Ferrier); and my hon. Friend the Member for Westminster North (Ms Buck).

This debate comes at a key time—a key moment of test for the new Secretary of State—because the outlook is bleak. The Institute for Fiscal Studies expects absolute child poverty to increase from 15.1% in 2015-16 to 18.3% in 2020-21. The Resolution Foundation believes that 200,000 more children, predominantly from working households, will fall into poverty this year. Gingerbread powerfully makes the point that my hon. Friend the Member for Edmonton made about cuts to the work allowance hitting single parents particularly hard. There is a set of damning statistics on this, which the Children’s Society has set out. A working single parent can lose up to £2,628 a year. What was the Government’s response to that? What did they say could be done about that? They told the Social Security Advisory Committee that parents could work three to four additional hours a week on the national living wage.

[Carolyn Harris (Swansea East) (Lab)]

Does my hon. Friend agree that to expect hard-working families to work an extra 200 hours a year just to make up for the cruel cuts in universal credit is an outright insult?

[Nick Thomas-Symonds]

My hon. Friend is absolutely right about that. The hon. Member for North Devon wanted the broader context to be taken into account, so let us take into account the national living wage as well. A single parent who is already working full time on the national living wage of £7.20 an hour will have to work 46 extra days a year, which is more than two additional working months. How on earth can that be put forward as a reasonable proposition by anybody? It obviously is not reasonable.

The Government were warned about the problems they face today as a result of cuts to universal credit. The Social Mobility and Child Poverty Commission report released just before Christmas, on 17 December, said that the “immediate priority” had to be ensuring that the cuts to the work allowance planned for this April did not go ahead, but the Government simply did not listen. The problem that they are getting to is that their approach is starting to deny the very purposes that universal credit was set up for. The Resolution Foundation states:

“But it is also much changed as a result of the increasingly tight financial restraints placed on it over recent years. These have involved more than just a reduction in the money available under UC, they have also altered the very structure of the policy—changing the composition of winners and losers and fundamentally damaging its ability to deliver against its purported aims.”

Perhaps that explains why the Government are so terrified of publishing an up-to-date impact assessment. Perhaps it explains why they are so terrified of telling us the figures as to what they expect will happen to child poverty over this Parliament.

[Christina Rees]

Does my hon. Friend agree that we also urgently need an analysis of the gender impact of the Government’s policy since 2010, because the design of universal credit, like that of other Government policies, does seem to have a disproportionate impact on women?

[Nick Thomas-Symonds]

My hon. Friend is absolutely right about that, and we all know that the brunt of the cuts has fallen on women. That is precisely what the Government should be taking into account and they should carry out such an analysis. It is not as though it would be that difficult for the Government to come up with these figures. My hon. Friend the Member for Oldham East and Saddleworth (Debbie Abrahams) chairs the all-party group on health in all policies, whose excellent report, produced in February, made it absolutely clear that there is a danger of the progress on tackling child poverty made by the last Labour Government going into reverse as a result of what this Government are doing.

This is not, however, just about the Government’s lack of compassion on these things; it is also about their complete lack of competence. We should not forget how universal credit has been implemented. On 1 November 2011, the former Secretary of State told us in a press release that there would be no fewer than 1 million people claiming universal credit “by April 2014”, but by November 2015 the actual figure was 155,568, which, by my reckoning, is less than a fifth of the target he had set himself in 2011. The day on which the roll-out is to be completed seems to be forever going back. When I was younger, my great aunt and uncle used to own a pub, in which there was a brass plaque just above the bar saying, “Free beer tomorrow”. The problem being that every time people went in it still said, “Free beer tomorrow”. I am afraid that that is where we are getting to with universal credit: six years later, we are still waiting for it to be implemented.

This is not just about the speed of the implementation; it is also about the risks that the Government have identified. Let us also not forget the universal credit risk register, whose disclosure the Government, again, fought tooth and nail against. They were forced to disclose it; they love spending legal fees on defending the indefensible. It identified 65 open risks to the programme, including that of skilled staff resources not being in the right place at the risk time. The list of incompetence does not end there. The former Secretary of State made clear—this was the point made by my right hon. Friend the Member for East Ham about people being broadly the same on universal credit as on tax credits—the following when answering departmental questions:

“Here is the key: I have already said that those who are on universal credit at the moment will be supported by their advisers through the flexible support fund, to ensure that their status does not change.” —[Official Report, 7 December 2015; Vol. 603, c. 707.]

The idea being of course that the discretionary flexible support fund can make up the difference. I have with me the letter that the Department is sending out on this issue. I do not know whether the Minister has seen this, as the rumours are that since she declared for British exit she does not get to see all the documents in her Department—I am happy to show it to her if she has not. It sets out what the new amount of money is, but there is not one mention of the flexible support fund.

When we are talking about incompetence, it is almost as though some Department for Work and Pensions Ministers have been in competition with each other. We will have to give the top award to the Under-Secretary of State for Work and Pensions, the hon. Member for North West Cambridgeshire (Mr Vara), although I feel bad in doing so because he is only a part-timer in the Department. However, his answer on mitigating the effect of cuts was as follows:

“let us not forget, the fact that every time we fill up our tank with petrol there is a saving…because of the freezing of the fuel duty.”—[Official Report, 6 January 2016; Vol. 604, c. 342.]

If the answer in 2016 from the Tories to those who lose out is, “Go and fill up your car”, it shows how out of touch they are. I picked him out for the top spot in the incompetence league, but in recent months the Minister for Employment has become used to missing out on the top spot. [Interruption.] I will certainly carry on.

The problem is that naked politics is interfering with universal credit. Do not take my word for it; take the word of the former Secretary of State who, when interviewed on the Andrew Marr show on 20 March, said that

“it looks like we see benefits as a pot of money to cut because they don’t vote for us”.

Let us never forget that, because what it says to children in poverty is that we are only interested in their parents if they voted for us or are likely to vote for us at the next election.

What else did the former Secretary of State say about what was happening to the Government’s social security changes? He said this:

“There has been too much emphasis on money saving exercises and not enough awareness from the Treasury, in particular, that the government’s vision of a new welfare-to-work system could not repeatedly be salami-sliced.”

We heard even worse from him, including his damning criticism of the Treasury:

“I am unable to watch passively while certain policies are enacted in order to meet the fiscal self-imposed restraints that I believe are more and more perceived as distinctly political rather than in the national economic interest.”

Any arguments made today by the hon. Member for Gloucester that these cuts are about a reduction in our deficit were blown apart by what was said by the former Secretary of State. What he was saying is that it is all about the politics and career of the Chancellor.

[Mark Durkan]

Does the hon. Gentleman also remember that the former Secretary of State made it very clear that the Treasury was imposing the cuts through the welfare cap, which, unfortunately, was supported by both sides of the House in the last Parliament? Now, however, that cap has become the search engine for cut after cut, and, given that even he was expressing criticism of it, it does need to be addressed.

[Nick Thomas-Symonds]

Yes, it does need to be addressed. As ever, the hon. Gentleman makes a distinctly useful contribution to these matters.

There is no greater moral and economic purpose that we could have in this place than eradicating child poverty. In 1999, the Labour Government promised to do that by 2020. To do it and to achieve it is to ensure that every single child has the ability to unlock their potential regardless of their background.

The European Union—dare I say it—has pledged to take at least 20 million out of poverty and social exclusion by 2020. I very much fear that the Minister for Employment wants not only to leave the European Union, but to pursue policies that will plunge more people into poverty by 2020 than would be the case if we were inside the European Union. The levels of child poverty today are a damning indictment of this Government. They bring shame on this country. The Government must act urgently, and I commend this motion to the House.

[The Minister for Employment (Priti Patel)]

I welcome the debate and congratulate the right hon. Member for East Ham (Stephen Timms) on both securing it and making an incredibly thoughtful contribution. I want to put my tributes to him on the record, especially as I have spent time with him in Committee. He mentioned the early stages in the development of universal credit and the first Welfare Reform Act 2012. I was also on that Bill Committee and know that he made some notable contributions to the discussions on universal credit and on the changes that the Government were undertaking at the time.

I also want to thank Members from all parts of the House—my hon. Friends the Members for North Devon (Peter Heaton-Jones) and for Gloucester (Richard Graham), and the hon. Members for Edmonton (Kate Osamor), for Airdrie and Shotts (Neil Gray), for Lanark and Hamilton East (Angela Crawley) and for Banff and Buchan (Dr Whiteford)—for contributing to this important discussion. I will come on to the points that they made a little later.

Before I move on to the details of universal credit, it is probably worth setting out the Government’s commitment to—yes—universal credit and also to what has been at the heart of universal credit and our welfare reform changes. Universal credit has been revolutionising the welfare system by focusing on making work pay, and I will go into detail on the points that have been made about incentivising work.

For the first time, we are helping people not only into work, but to have personalised support while they are in work. We are seeking to transform individuals’ outcomes when it comes to employment support. We want to ensure that they are supported in work and have sustainable employment outcomes as well. That has been very much at the heart of our welfare reforms. When we discuss universal credit in the broader sense, it is important to recognise that it has been instituted and developed so that it is easier to start work and to earn more, and that is because of the personalised support that it offers. Under the old system, there was little or no support when someone started work.

Universal credit provides for a Jobcentre Plus work coach. As Members have said, work coaches are focused on providing support and in-work progression. Universal credit mirrors the world of work. Like most jobs, universal credit is paid in a single monthly amount. It aims to make work pay. It stays with the claimant after they move into work. On top of that, universal credit is part of a package of reforms that runs alongside the introduction of the national living wage.

There were comments about the delivery of universal credit. What we have seen is that the national roll-out is now complete and that the digital service for all claimants will start to roll out nationally from May. Once completed in June 2018, it will no longer be possible to make newer claims from legacy benefits. We have been very focused on the agile delivery of universal credit. Just yesterday, my right hon. Friend the Secretary of State re-emphasised the fact that we would rather have an agile delivery of universal credit than a big bang approach, which more often than not jeopardises the delivery of our benefit system. [Interruption.] Does the hon. Member for Pontypridd (Owen Smith) have something to contribute, or is he just chuntering for the sake of it? [Interruption.] It is a well-developed system, and I am sure he is shaking his head in acknowledgement. The fact is that universal credit is in every jobcentre. The vast majority of claimants are now receiving support that, obviously, did not exist under the legacy system.

[Nick Thomas-Symonds]

Can the Minister define agile delivery, and will she tell us how universal credit will take into account the 65 open risks that have been identified in the universal credit programme?

[Priti Patel]

The hon. Gentleman is talking about the risk register that was published many years ago. Let me explain agile delivery. This is a system that is adapting. It has adapted following feedback from work coaches. The delivery is the test of the system. All Front-Bench Members will be familiar with this, as we have been very public about it. We have taken the insights from the delivery so that we are supporting people. The reality is that universal credit is out there and is supporting people in work, and we are seeing positive benefits as well.

I am very conscious that a number of points have been made about child poverty, which, of course, was subject to much debate in the Welfare Reform and Work Act 2016. For the first time, the Government have a statutory obligation to report annually on worklessness and educational attainment, because they are two factors that have the biggest impact on child poverty and children’s life chances. Previous debates on poverty have focused purely on the symptoms of poverty, rather than on the root causes. We now believe that, through our commitment to ending child poverty and improve life chances, our two measures will ensure that there is real action in the areas that will make the biggest difference to poor children, both now and in the future.

We have also committed to publishing a life chances strategy, and it will set out a comprehensive plan to fight disadvantage and extend opportunity. It will include a wider set of non-statutory measures on the root causes of child poverty, including family breakdown, problem debt and drug and alcohol addiction.

When the strategy is published, I will be working not just with my colleagues on the Conservative Benches, but with all Members of the House, as this is such an important issue. The hon. Member for Edmonton talked about it, and I am alarmed to hear how high her constituency is ranked in terms of child poverty. We will need to develop the right ways to tackle these deep-rooted social problems and work collectively to transform children’s lives so that ultimately they too can reach their full potential. It is important that all Members work constructively towards that aim.