Disability Employment Gap

Debate between Owen Smith and Maria Caulfield

Wednesday 8th June 2016 Commons Chamber

[Owen Smith]

Let me give the hon. Gentleman the facts. I welcome every job provided for a disabled person, and I welcome every opportunity for disabled people to get into work, but the facts are that the Government have gone backwards on the target for disabled people. When our Labour Government left office, the disabled employment gap stood at 28%; today, it is 34%—an increase in the size of the gap between ordinary able-bodied people in work and disabled people. That is the truth of these circumstances. [Hon. Members: “Ordinary?”] What a ridiculous point. I mean the gap between able-bodied people without disabilities and disabled people. That stands at 34%— increasing on the Secretary of State’s watch and under this Government.

I will give this Secretary of State and his Government credit where it is due. I credit them for setting this difficult target to halve the disabled person’s employment gap. It was a clear pledge in the Conservative manifesto at the last election. On page 19, it said that the Conservatives would

“halve the disability employment gap…transform policy, practice and public attitudes, so that hundreds of thousands more disabled people who can and want to be in work find employment”.

That is a genuinely laudable aim. Labour fully agrees that if disabled people can find work and want to work, we should do everything we can to encourage and assist them in doing so. It would be good for all of us: good for them to be in work; good socially for our workplaces to be more integrated and rounded places; good economically, as reducing the gap by 10% would add £45 billion to our gross domestic product by 2030.

Unfortunately, a year on from that promise, the Government are either reneging on it or just failing to take the action needed to meet it. The volume of people currently employed who are not disabled stands at 80%, but the figure for those who are disabled stands at 46%—a gap, as I said a few moments ago, of 34%. The House of Commons Library, the Resolution Foundation and the TUC have all carried out analysis to show that the Government are making little or no progress towards the target. To hit it, they will need to get 1.5 million disabled people into work.

On the basis of the current state of activity by this Government, I cannot see how they are going to achieve it in a month of Sundays. I cannot see how they are going to get it back even to where it was at the end of the last Labour Government at 28%. It is a worse performance by this Government than that of the last Labour Government. What is even worse is that it is becoming more difficult for disabled people to get into work and stay in work because of the cuts that the Government are making. That will be my next theme.

[Maria Caulfield (Lewes) (Con)]

Is it not true that under the last Labour Government, by the time someone was 26, they were four times more likely to be out of work as a disabled person than they are under the current Conservative Government?

[Owen Smith]

I have repeatedly said that the last Labour Government were performing better in terms of the disabled person’s employment gap than this current Government, and I shall say so again in a few moments.

Housing Benefit and Supported Housing

Debate between Owen Smith and Maria Caulfield

Wednesday 27th January 2016 Commons Chamber

[Owen Smith]

We have not been in power for six years, and there is only so long that the hon. Gentleman can keeping waving that shroud at me. The key point is that under the hon. Gentleman’s Government there was a 40% cut, and we face the prospect of the end of supported housing in this country unless there is a change of course from his Government.

There is a lot of misunderstanding among Government Members about what we are talking about. I do not know whether they do not read the briefing from the Whips or the Whips do not tell them the truth, but there are two measures that we are debating. On the first measure—a 1% cut in social housing rents—there is now a one-year stay of execution. The second and more important measure, which the Minister did not address despite the questions raised by my right hon. Friend the Member for Wentworth and Dearne, is the equalising of the amount of housing benefit available to people in social rented accommodation with the local housing allowance. That is the biggest, most substantive change that the Government propose to make.

The hon. Member for Lewes (Maria Caulfield) said that the measure had not been introduced and is not happening yet. She really ought to read the Government’s statements. I shall read from the autumn statement, which said at paragraph 1.125:

“The Government will cap the amount of rent that Housing Benefit will cover in the social sector to the relevant local housing allowance. This will apply to tenancies signed after 1 April 2016”.

According to my maths, that is in a couple of months, with housing benefit entitlements changing across the board from April 2018. This is not shroud waving, nor is it jumping the gun: it is the Opposition drawing to the attention of the House and, it would seem, Government Members, a measure that will impact on their constituents in just a few months’ time.

[Maria Caulfield]

The hon. Gentleman is being misleading, because the motion is about supported housing. Now he is speaking about general needs housing benefit, and there is a difference. There is no change in legislation: an extensive review is under way on housing benefit for people in supported housing. There is a difference, and I am sorry that he does not appreciate that.

[Owen Smith]

I am, unusually, lost for words. It is extraordinary that the hon. Lady does not understand what we are talking about. Supported housing—specified housing—is caught within the envelope of social housing.

[Maria Caulfield]

rose—

[Owen Smith]

I will not give way to the hon. Lady. There is no point—she does not understand.

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[Owen Smith]

It is interesting that the Minister did not ride to the rescue of his hon. Friend the Member for Lewes: he knows that she does not know what she is talking about on this subject.

The hon. Lady could have a further look at the Budget book produced by the Government for the same spending review, which shows clearly that £515 million is the saving anticipated from the cuts. The IFS goes further and says that by the time the cuts are fully implemented, the Government might save £1.1 billion. The largest part of that is the change equalising housing benefit with local housing allowance, not the one-year stay of execution that we have heard about today. Now that I have explained the position, does the hon. Lady wish to intervene?

[Maria Caulfield]

I thank the shadow Minister for his reply. I am even more worried that he does not understand the difference. The supported housing allowance is much higher than the ordinary general needs housing benefit. The Opposition called this debate and we are supposed to be discussing supported housing, not general needs housing. I am shocked that the shadow Minister does not understand the difference.

[Owen Smith]

I have made the point about general social housing catching specified supported housing. That is clear. It is also clear, because Ministers admitted it at the Dispatch Box today, that the hon. Lady is right—supported housing does cost more because it is bespoke and it is intended for people with, for example, complex autistic needs or physical disabilities, women fleeing persecution and violence, or elderly vulnerable people. It costs more money to look after those people because an in-house concierge and other things are needed. That is why it is so wrong for the Government to equalise the amount of housing benefit that they can get with local housing allowances available for the private rented sector. That is the issue we are discussing.

The issue was not raised by us initially. Those in the sector have approached us and Ministers on many occasions. I shall quote a few. Andrew Redfern, chief executive of the specialist housing association Framework, said that the planned cut

“ would mean the end of supported housing. All our schemes would close, and I think all others would as well.”

That seems fairly straightforward. Other housing organisations such as Great Places, New Charter, Hightown Praetorian and Family Mosaic all confirmed that many of their schemes would be unviable if the cut went ahead. AmicusHorizon, which I believe has 119 such supported housing bodies across London, has confirmed that it will have to close supported housing in London and elsewhere if these changes go ahead. Charlotte Norman of PlaceShapers and St Vincent’s housing said:

“We cannot believe that government understands the consequences of these changes and the vast extra costs that would fall to the public purse as a result of scheme closures. Nothing short of exemption for all such housing will be adequate and we very much hope that common sense will prevail.”

We heard a lot of common sense from Opposition Members, including from the hon. Member for Glasgow South West (Chris Stephens) and in particular from my hon. Friend the Member for Sheffield South East (Mr Betts), the Chairman of the Select Committee, who asked the central question: what will happen to the LHA equalisation with housing benefit that the Minister failed to mention? Will there be an exemption for supported housing associations and for specified housing? He asked a further question that the Minister failed to answer, which I hope the Under-Secretary of State for Disabled People will answer in a moment. If the rents are to go up next year and are not cut by 1%, will they go up in line with the formula, as they would have done ordinarily, or are they to be frozen? I would be grateful for an answer from the Minister.

My hon. Friend the Member for Southampton, Test (Dr Whitehead) talked about the Society of St James, which helps 2,000 people and will lose £1 million. The hon. Member for Macclesfield (David Rutley) and my hon. Friend the Member for Bolton South East (Yasmin Qureshi), drawing on their personal experience and deep knowledge, spoke about what this will mean for their constituents. My hon. Friend the Member for Birmingham, Yardley (Jess Phillips) spoke with particular expertise about her experience of running a women’s refuge. She explained how these changes would shut that refuge and begged Ministers to listen to her and to the Home Secretary about the value of women’s refuges and the damage that will be done to them. My hon. Friends the Member for Bootle (Peter Dowd) and for Cambridge (Daniel Zeichner) also spoke.

On the Government side, Members were sanguine. On the Government side, Members dissembled. On the Government side, Members have a choice about what to do today. Will they agree with us that nothing short of the exemption of specialised supported housing is required in order to safeguard the most vulnerable in our communities and that what we have heard today from the Government is welcome but insufficient? When the Minister comes to the Dispatch Box, will he agree with me that it is time for the Government to admit that they got it wrong and, as they have done so many times this week, reverse ferret?

Universal Credit Work Allowance

Debate between Owen Smith and Maria Caulfield

Wednesday 6th January 2016 Commons Chamber

[Owen Smith]

Where do I start? I start by telling the hon. Gentleman that 7,000 of his constituents will be hit by this by the time he next stands before them at the election, and he ought to reflect on that. More importantly, I tell him that it is precisely people in work paying tax—working hard, long hours, many on the minimum wage, working every hour they get—who are getting hit by his Government. That is what these cuts are doing. This is not a different set of people—they are not the scroungers that the Government like to talk about; they are the strivers, and they are being hit by the Government. The truth, as the Institute for Fiscal Studies has said, is that there is no difference between these cuts and the ones to tax credits that the Government proposed, on which they U-turned. According to the IFS, the U-turn makes “no difference”. The Government will end up saving the same £5 billion, at the end of the Parliament as opposed to the beginning, and they will strip £10 billion out of the pockets of working families. They should be ashamed of themselves.

[Maria Caulfield (Lewes) (Con)]

I understand what the hon. Gentleman is saying, but he has previously said in the House that he is committed to making £12 billion of savings to tackle the country’s deficit. How would he make those savings if not through these changes?

[Owen Smith]

What I absolutely would not do is cut the incomes of 5.5 million working families, many of them in the hon. Lady’s constituency, by an average of £950. I would not take £1,600 from 2.6 million working families—[Interruption.]

Welfare Reform and Work Bill

Debate between Owen Smith and Maria Caulfield

Tuesday 27th October 2015 Commons Chamber

[Owen Smith]

Well that may or may not be true, but it is a very large proportion. Without doubt there has been a welcome increase in employment and self-employment, but my point is that 60% of self-employed sole traders are currently eligible for tax credits.

[Maria Caulfield (Lewes) (Con)]

Will the hon. Gentleman give way?

[Owen Smith]

I will in a moment.

That is why the Bow Group, the Adam Smith Institute, Lord Lawson and many other respected Conservative economists think that this change is a false economy. Not only will it damage the incomes of working people; it will damage our economy. The Bow Group—which you will remember well, Mr Speaker—said that these cuts will be “devastating” for our economy.

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[Owen Smith]

The hon. Gentleman should start by explaining to the 3,700 constituents in his constituency who will lose out as a result of the measures for which he will no doubt vote and speak today—[Interruption.] I will answer the specific question he asks. The truth is that under the previous Labour Government, when this iteration of tax credits was introduced, the steady state amount of money we spent on tax credits was £23 billion per annum. In 2009-10, after the crisis, that went up to £30 billion. The bankers’ recession saw a spike in the necessary spending on tax credits, and it has stayed at £30 billion under his Government—another measure of this Government’s rotten economic record.

[Maria Caulfield]

Many of my constituents have contacted me to say that they are just above the tax credit limit and that their hard-earned taxes are subsidising low pay. What does the hon. Gentleman say to them?

[Owen Smith]

I would first of all say to the 3,000-odd people in the hon. Lady’s constituency of Lewes who are going to be hit by the changes that they should be ringing her up and asking her why on earth she is voting for a 10% reduction in their income. I think they would be interested to hear her justification.