Universal Credit Roll-out

Peter Aldous Excerpts

Tuesday 24th October 2017 Commons Chamber

[Damian Hinds]

Not only considering, but over a third of tenants in the social rented sector have that arrangement under universal credit right now. It is available for vulnerable claimants and for those for whom that arrangement is important.

As you said last week, Mr Speaker, what we do in this House is important. Members’ insights are important, too. Indeed, Members of Parliament are uniquely placed to funnel and convey feedback and to critique and propose improvements.

[Peter Aldous (Waveney) (Con)]

I pay tribute to the Minister. Since February, he has engaged with my constituency to improve universal credit. Taking into account the debates we have had over the past few days, does he not agree that to make universal credit truly flexible and personalised but also fair, it is necessary to ensure that first payments are made far more quickly and that private sector landlords can set up alternative payment arrangements on the same basis as social landlords?

[Damian Hinds]

We are continuing to improve processes, and that includes my hon. Friend’s point about ensuring that alternative payment arrangements in the private rented sector work as well as they can. He and I have had the opportunity to discuss this issue.

Universal Credit Roll-out

Peter Aldous Excerpts

Wednesday 18th October 2017 Commons Chamber

[Peter Aldous (Waveney) (Con)]

In my constituency the full roll-out of universal credit began in Lowestoft in May 2016, and is due to begin in Beccles later this month. In Lowestoft significant problems have been encountered: many vulnerable people have been placed in very difficult situations, and at times the system has struggled to cope. Over the past nine months the position has improved, but challenges remain, and it is important for lessons to continue to be learnt as the roll-out accelerates in the coming months.

On 21 February, the Minister for Employment, who is present, visited Lowestoft. He sat down with local DWP and jobcentre staff, the council leader and council officers, and listened to their concerns. Since then there have been steady improvements. The various agencies involved in the delivery of universal credit are generally working well together. Good initiatives have been introduced: there is a vulnerable people officer front of house, the citizens advice bureau works from the jobcentre, and the district council is holding regular workshops with private sector landlords. There is evidence that universal credit is allowing the jobcentre to support those in low-paid work, which it could not previously do. It is therefore able to improve their life prospects, and get them into work. I also think it appropriate to highlight the Secretary of State’s decision to refresh the guidance for DWP staff to ensure that anyone who needs advance payments is offered them upfront, and to make the helpline free of charge.

While it is right to acknowledge the improvements that have been made in recent months, it is important to recognise that much work still needs to be done. First, the long delays before some claimants receive a payment must stop. The Government must seriously consider implementing the recommendation from Citizens Advice that those who need it must receive a payment within two weeks, which they will not have to pay back.

Secondly, the role of private sector landlords in providing housing for claimants must be recognised, and they must be put on a level playing field with social landlords when it comes to setting up alternative payment arrangements. The “give tenants a choice” initiative, launched by the Residential Landlords Association and Shelter, should be looked at closely. If something is not done, the housing crisis will be made even worse as private landlords refuse to accept universal credit claimants as tenants. That will put more pressure on social housing, and will almost certainly lead to an increase in homelessness.

Finally, it is important to have in mind the vital role played by local housing authorities working in partnership with the DWP in the implementation of universal credit. They are having to bear the costs of providing emergency temporary accommodation and recovering housing benefit debt. Either those costs should be transferred to the DWP, or the councils should be given additional funds.

I understand why the Government wish to proceed with the roll-out of universal credit, and I give them my support. However, they must proceed with caution. They must not stick rigidly to a preconceived timetable; they must slow down or speed up as circumstances dictate. They should be pragmatic and not dogmatic, and they should continue to listen and respond to feedback.

State Pension Age for Women

Peter Aldous Excerpts

Wednesday 5th July 2017 Westminster Hall

[Peter Aldous (Waveney) (Con)]

It is a pleasure to serve under your chairmanship, Sir Edward. I congratulate the hon. Member for Easington (Grahame Morris) on bringing forward this debate at a convenient and appropriate time.

Last October, I presented a petition signed by 2,249 Waveney residents in support of the WASPI campaign. At the same time, Waveney District Council unanimously endorsed that campaign on a cross-party basis. The general election campaign, when I was knocking on doors, confirmed for me that this a very real problem for many women who face serious hardship. It will not go away.

The all-party parliamentary group on state pension inequality for women, which will be re-formed shortly, will I am sure play its role in finding a solution. I ask the Minister, whom I know well, to consult and consider with his ministerial colleagues and to come forward with proposals to start a process to find a solution that is fair, fully considered and affordable.

Universal Credit: Lowestoft

Peter Aldous Excerpts

Tuesday 27th June 2017 Commons Chamber

[Peter Aldous (Waveney) (Con)]

I am pleased to have secured this debate, as it provides a timely opportunity to review the roll-out of universal credit in Lowestoft, which is in my constituency.

The full roll-out in Lowestoft began in May 2016. Significant problems have been encountered, with many vulnerable people placed in very difficult situations, and at times the system has struggled to cope. The position is now better than it was six months ago, but significant challenges remain. It is important for lessons to be learned before the roll-out to other areas accelerates this autumn.

Since the turn of the year I have been corresponding regularly with the Minister, highlighting the problems that have been encountered. I am grateful to him for taking those concerns on board, and for introducing measures that have led to improvements. I also thank him for visiting Lowestoft on 21 February, when he met staff from the jobcentre and representatives of Waveney District Council and Anglia Revenues Partnership to hear about the problems that had been encountered, and to hear their proposals for how the roll-out could be improved. That meeting was particularly poignant because the team from the council was led by its leader, Councillor Colin Law, who sadly passed away at the beginning of last month. Colin recognised that many vulnerable people in the local community were being placed in very difficult situations, and although not in good health himself, he was determined to ensure that the Government addressed their needs.

The principal problem with the roll-out has been the delay before claimants receive any payments. That has placed many vulnerable people in difficult circumstances, with no money to pay for the basic necessities of food and a roof over their heads. At the turn of the year my office was dealing with 20 ongoing cases, and when I visited a local food bank at that time, all the people whom it was supporting were there because of delays in receipt of their first payments. A further problem is that when those payments are received, they often do not include the housing element, which leads to a build-up of rent arrears.

The system that has been put in place is digitally based, requiring access to a computer. Many claimants immediately face the problem of either not having a computer or not being readily able to use one. The situation has been compounded by the fact that, initially at least, the IT systems were not functioning as well as they should have been. Constituents also experienced phone calls not being answered promptly, and then long delays while their problems were addressed. One constituent received very slow and inaccurate responses to his journal entries, and delays in the handling of his subject access request. When his housing element was eventually paid, it was for the wrong amount.

It is important to point out that universal credit requires those working at jobcentres—those on the frontline—to acquire new skills. They are no longer just the labour exchange. They need to be able to identify vulnerable customers at an early stage, to get to grips with housing challenges that were previously the responsibility of local housing authorities, and to work with the central universal credit team in building the universal credit model. All the Jobcentre Plus staff whom I have met are up for the challenge. They are determined to succeed, and it is vital that the Government provide them with the support and resources that will enable them to do so.

In the early stages of the roll-out, there was concern about the fact that the various agencies, including the Department for Work and Pensions centrally and Her Majesty’s Revenue and Customs, were not properly co-ordinated and working together with Anglia Revenues Partnership and Waveney District Council. In recent months that has improved significantly. The lesson to be learned for the future is that the roll-out will be successful only if everyone works together. There is a vitally important role to be played by the voluntary sector, including Citizens Advice and the local organisations that are helping people into work.

A specific problem in Lowestoft, which has created particular difficulties, is the seasonal nature of employment. That is a problem that will be encountered in other coastal towns, as well as in rural areas where there is seasonal agricultural work. The situation has improved, but challenges remain with housing, which I will come on to in a minute, and particularly with the transition from employment and support allowance to universal credit. At present, no transitional provision is in place for customers moving from income support ESA.

--- Later in debate ---

Motion made, and Question proposed, That this House do now adjourn.—(Craig Whittaker.)

[Peter Aldous]

I have a constituent who was an ESA claimant. He was required to take part in a work capability assessment. His WCA was carried out, and it was decided that he no longer had limited capability for work and work-related activity. His ESA claim was thus disallowed. His appeal against that decision was successful, but as income-related ESA had been abolished and he had been required to transition to universal credit, he has found himself significantly worse off and facing serious hardship through no fault of his own and with no support to help him through a very challenging time.

Waveney District Council and Anglia Revenues Partnership have also identified the following ongoing concerns. First, universal credit payment delays and cash flow difficulties continue to be a problem for the council in respect of providing temporary accommodation. They urgently need a decision to be made to restore such administration back to councils so that it is treated in the same way as supported accommodation. Secondly, housing benefit recovery in universal credit remains a significant concern. Local authorities and the Local Government Association have proposed that housing benefit debt should be transferred to the Treasury to produce a better outcome for the public finances. Recovery from universal credit will be non-existent, thereby burdening councils with debt that they will not be able to recover.

Thirdly, although universal credit decisions appear to be improving, the housing element is often still being received only in the second or third monthly payment. This is a deterioration compared with national housing benefit performance. Fourthly, the continuing lack of universal credit management information does not provide an insight to assist councils to manage customers’ and landlords’ expectations. Finally, there are no plans for universal credit to share data with councils about housing benefit cases migrating to universal credit. This is needed for local council tax support schemes, discretionary housing payments and supported accommodation claims.

A further issue that should be highlighted is the fact that since universal credit was rolled out in Lowestoft, the level of unemployment has increased. In May 2015, it was at a low of 2.5%. It stood at 3% when universal credit was introduced in May 2016, and it had risen to 5.1% in May 2017. Much of the increase is due to the fact that, under universal credit, a broader span of claimants are required to look for work than was the case under jobseeker’s allowance. However, this raises the question of whether universal credit is fulfilling one of its objectives—that of better preparing claimants for the workplace and making it easier for them to move into full-time employment. We need to look at that to ensure that it is being adequately addressed.

[Jim Shannon (Strangford) (DUP)]

I sought the hon. Gentleman’s permission before asking him to give way. Does he understand, as many of us do, that the switchover to universal credit is proving very difficult? Does he agree that those who have physical and mental issues need a dedicated helpline to ensure that those vulnerable people do not feel overwhelmed and that they can understand the process of change? Many of them do not.

[Peter Aldous]

I am grateful to my hon. Friend for that intervention, and I agree with him. He talks about a dedicated helpline and, yes, that may be one way forward. I would also suggest that there needs to be front of house support and assistance in the jobcentres themselves.

Delays in the paying of universal credit have led to rent arrears building up and, as I mentioned, the situation is being compounded by the fact that the housing element has often not been included in the first payment. The feedback from the DWP nationally is that the timing of payments is improving and that if a tenant has a reasonable expectation of receiving their housing cost as part of the universal credit payment, the landlord should not take action to gain possession of a property and thus the tenant should not face the risk of eviction. In real life, it needs to be borne in mind that that approach is easier said than done and that the landlords have many costs and commitments themselves. Landlords are often in a position to reluctantly have to issue eviction notices as a last resort, but it should be pointed out that many landlords own only one or two properties and that the rents that they receive are a vital part of their income—often retirement income.

Delays in the payment of the housing element are triggering a downward spiral of events: arrears leading to evictions, leading to an increase in homelessness, putting added pressure on local authorities and housing associations to house those who are evicted. In due course, there will be a reduction in the supply of housing as landlords decide not to let to universal credit claimants.

[Ruth George (High Peak) (Lab)]

I thoroughly commend what the hon. Gentleman has been doing to support people on universal credit in his constituency and the enormous amount of work and effort that has gone into that. As someone who has been working for the shop workers’ union for 20 years, I have considerable experience, particularly from the past 12 months, of members who have been transferred on to universal credit and are suffering incredible difficulties and hardships, as the hon. Gentleman says.

The hon. Gentleman calls for councils to have their debt underwritten by the Government, but the situation is also a severe problem for housing associations where many universal credit recipients live, and many associations are suffering. I hope that he will allow me to support such cases being made to the Government before the scheme is rolled out any further.

[Peter Aldous]

I am most grateful to the hon. Lady for that intervention. I will come to address the concerns that housing associations have mentioned to me. Her point is interesting in that jobcentres have in the past dealt with people who are not in work to get into employment, but now they are also dealing with people who are already in work, which is a major game change for jobcentres to deal with.

There is a concern that universal credit, the objective of which is to bring people closer to the workplace and to prepare them for work, may actually be doing the opposite. People need a secure and stable home life to be able to prepare and plan for regular work. That cannot happen if they are sleeping on the streets, sofa surfing or living in a hostel. Housing associations also face problems and are taking on more staff to liaise with tenants at an early stage to prevent rent arrears from increasing and to limit the serving of eviction notices. That is an added cost that they can ill afford, and they would prefer to be spending time and money on repairs and on building much-needed new homes.

The alternative payment arrangements are in place to help prevent such problems from arising, but in many cases they are not working properly and the process is taking too long. By the time decisions have been made to put in place such an arrangement, the landlords have invariably obtained court orders for possession. It is important to identify at an early stage where it is appropriate to make direct payments to landlords, and the jobcentre in Lowestoft has put in place arrangements to do that. Consideration should be given to changing the system of universal credit staff only communicating about an account with a tenant’s explicit consent. The feedback that I am receiving from both social and private landlords is that a change to allow the landlord to open communications and make a request for an alternative payment would be welcome and positive.

Although I understand that the Government wish to empower tenants to manage their own money, there is an argument that such empowerment involves choice. Tenants should therefore be able to decide whether to have the rent paid directly or for it to pass through their own hands. Again, the feedback I am receiving is that many tenants would prefer their rent to be paid direct.

There is a need for full and proactive engagement with private landlords. That did not happen initially, but the situation is now improving and a local meeting between the DWP, Waveney District Council and private landlords is scheduled for 17 July to explore how best to address the problems. Hopefully my suggestions on alternative payments will be on the table for discussion.

The roll-out in Lowestoft has not gone well, but there are signs of improvement and examples of good practice have emerged, which I suggest should be replicated as universal credit is rolled out in other areas. Lowestoft jobcentre has a vulnerable persons officer, and I propose that additional attention and support is given to those with mental health challenges. The jobcentre works closely with the citizens advice bureau, which provides a money advice service in the jobcentre. There is an officer who liaises with the national universal credit team in the building of the model, and there are good working relationships not only with Waveney District Council and Anglia Revenues Partnership but with MyGo, the new youth employment service promoted by Suffolk County Council. Such joint and collaborative working is very much the way forward and must be promoted and properly resourced.

Consideration should be given to the following. First, the Government should respond to the Public Accounts Committee’s most recent report on the impact of the changes and delays to the universal credit programme on operational costs, staff and claimants. They should also update the Committee on how staff are being enabled to engage in testing and learning processes and to feed back concerns. I appreciate that the general election purdah period has delayed that feedback, but it is important if the universal credit model is to be improved as the roll-out accelerates.

Secondly, there needs to be an initial assessment as to whether universal credit is achieving its objectives of better preparing people for the workplace, making it easier to move in and out of work and improving incentives to work. Thirdly, with the roll-out scheduled to move into more rural areas, work is needed to ensure that both digital services and broadband connectivity are resilient enough to cope and that the system takes account of claimants’ use of the public transport system, which may in places be far from ideal.

Finally, there needs to be more transparency and closer working with all the partner organisations involved in the roll-out. There is a lot of heavy lifting involved, and jobcentre staff cannot do this all on their own if we are to ensure that universal credit customers receive the fair and efficient service that they are entitled to expect and that, up to now, has unfortunately let down a lot of people, placing some in very difficult and desperate situations.

Oral Answers to Questions

Peter Aldous Excerpts

Monday 20th February 2017 Commons Chamber

[Damian Hinds]

The proposals will raise utilisation across the city of Liverpool from 66% to 95%, which will make better use of buildings. Where movement from one jobcentre to another involves travelling less than three miles or 20 minutes by public transport, we consider it is reasonable to ask people to make such a move.

[Peter Aldous (Waveney) (Con)]

14. What steps the Government are taking to ensure that employers are encouraged to recruit and retain disabled people.

[The Minister for Disabled People, Health and Work (Penny Mordaunt)]

In “Improving Lives: The Work, Health and Disability Green Paper”, we asked about the barriers preventing employers from recruiting and retaining disabled people and people with health conditions. We will shortly bring forward measures to address those barriers.

[Peter Aldous]

I am grateful to the Minister for her reply. I recently held an engagement event in Lowestoft in my constituency to consider the Green Paper. The conclusion reached was that the disability employment gap is best tackled with bespoke local solutions worked out with local employers. Will the Minister give this approach fair and full consideration as she assesses the feedback from the consultation?

[Penny Mordaunt]

First, I put on the record my thanks to my hon. Friend and Members of all parties in the House who have held local consultation events. Doing so was incredibly important and has made this a very good consultation, but it is also vital in establishing and building such local networks. My hon. Friend is absolutely right that the solutions have to be local ones, not least because healthcare is commissioned locally. I can give him reassurances that we will bear that in mind as we go forward.

Oral Answers to Questions

Peter Aldous Excerpts

Monday 9th January 2017 Commons Chamber

[Damian Green]

The Government are committed to the triple lock for the whole of this Parliament.

[Peter Aldous (Waveney) (Con)]

T3. Waveney District Council has been working proactively with the Department for Work and Pensions to support the roll-out of full-service universal credit. Although the council has committed considerable resources to the work, local people are still facing challenges. Can the Secretary of State assure me that his Department will urgently seek to resolve those issues that have been raised constructively by the council and other authorities through the national steering group?

[Damian Green]

I am happy to give my hon. Friend that assurance. He and I have exchanged correspondence on this—he may not yet have received a letter from me offering a meeting with my hon. Friend the Minister for Employment. We absolutely want to work through any teething issues with local councils.

State Pension Age: Women

Peter Aldous Excerpts

Wednesday 30th November 2016 Commons Chamber

[Damian Green]

My hon. Friend hits the nail on the head. We are in the early stages of this change, and it will be increasingly important for future generations, assuming that we continue to live longer and be healthier for longer.

[Peter Aldous (Waveney) (Con)]

My right hon. Friend is making some very good points. He touched on the issue of carers. Is he aware that many of the WASPI women have dual caring arrangements, looking after not only husbands who might be ill but parents who might be very elderly?

[Damian Green]

Indeed. Like my hon. Friend, who has considerable expertise in this area, I have read the reports that suggest that the gap between childcare responsibilities and elderly care responsibilities for many families will get narrower and narrower. We are now piloting people who will teach employers how to deal with workers who are also carers. As with the point made by my hon. Friend the Member for Macclesfield (David Rutley), we are in the early stages of a journey that will become hugely important for society and the whole workforce in future decades.

Let me make some progress, as I am conscious of the time. I said I wanted to deal with women who find it impossible to work, and of course the system needs to be designed to deal with problems such as disability that prevent them from working and mean that they are most in need as they approach state pension age. We are committed to supporting these vulnerable groups, spending around £50 billion a year on disability benefits, which equates to more than 6% of all Government spending. Carer’s allowance and related benefits provide financial support and safeguards for carers and their families, including those who are disabled or who are ill, and this week I was pleased to announce that the earnings limit for carers will be uprated by £6, which will help those with caring responsibilities.

Early in the new year, we will propose a new strategy specifically for elderly workers—the fuller working lives strategy—and I would be very happy to deal with colleagues on both sides of the House who have suggestions about how we can specifically help older workers in general and, specifically, older women. I do not believe that a monopoly of wisdom in this area lies in Whitehall. We will propose a new strategy that will involve many Departments, but we will also need to include ideas from employers, charities and Members and their constituents.

--- Later in debate ---

[Peter Aldous (Waveney) (Con)]

I am grateful to you for getting me in, Mr Deputy Speaker. I will be brief. I will not hear any aspersions cast against the WASPI women. The women whom I have met have been completely sincere. I have received much correspondence from people facing difficult and challenging circumstances.

In Waveney, 2,249 people have signed a petition and the Conservative-controlled Waveney District Council unanimously passed a motion in support of the WASPI petition. There is an injustice here that we need to correct. I acknowledge that the finances are tight, something which I fear the SNP has not taken on board, but there are times when we need to do the right thing. This is one of those times. I urge the Government to sit down with the WASPI women and engage the experts in the DWP and the Treasury to come up with a fair, considered and affordable solution.

Supported Housing

Peter Aldous Excerpts

Tuesday 29th November 2016 Westminster Hall

[Peter Aldous (Waveney) (Con)]

It is a pleasure to serve under your chairmanship, Mr Howarth. I congratulate the hon. Member for Bermondsey and Old Southwark (Neil Coyle) on securing this debate.

It is fair to say that there was a significant policy vacuum earlier this year, which was causing much concern for those involved in the sector. Credit is due to the Government for coming forward with proposals to fill that void. I particularly commend the ministerial team at the Department for Work and Pensions for the speed with which it responded with its statement on 15 September. It should be acknowledged that, back in July, it was a brand new team. This is not a straightforward matter, and it moved quickly to address the sector’s worries.

I believe that the framework within which the Government are working up their proposals is sensible. They carried out an evidence review, and they have acknowledged that the proposals cannot be worked up just within the confines of the Department for Work and Pensions and the Department for Communities and Local Government. There is a need to work with other Departments and providers.

The Government are also right not to be rushing to put the new system in straight away. As they move into the consultation and detailed design stages, I have six specific concerns that I want them to address in their work with those involved in the sector day to day. First, there is a widespread concern that the 1% cut in rents to commence from next March will impact on the viability of schemes, in particular those of small providers, and will lead to either a reduction in much-needed services or the closure of schemes altogether. Another worry is that the cut will lead to housing associations drawing back into cheaper, general needs housing.

I acknowledge that the Welfare Reform and Work Act 2016 provides that social landlords can be exempted from the requirement to reduce rents if that would result in serious financial difficulty or jeopardise their financial viability. The feedback that I am receiving, however, is that so many providers will be adversely affected and the measure is casting such a shadow of uncertainty over the sector that it would be simpler to exempt all supported housing from the provision.

Secondly, there is concern among providers that the Government’s proposed model from 2019-20—in which core rent and service charges will be funded through housing benefit or universal credit, and costs above the local housing allowance rate will be paid from devolved funding—could lead to a postcode lottery. The National Housing Federation expressed that opinion, and Riverside has provided regional maps to illustrate it. Emmaus, which serves my constituency, has similar worries, as has the Salvation Army, which is concerned that the housing support entitlement of vulnerable men and women will be substantially reduced everywhere except certain parts of London and the south-east. I acknowledge that London has serious homelessness challenges, but so do other cities, towns and coastal communities such as the one that I represent. We need a one nation solution.

Thirdly, it is important that any funding mechanism has the ability to maximise the amount of finance that can be leveraged in from external sources, whether banks or pension funds. Bear in mind that new developments are invariably funded over long periods of between, say, 10 and 30 years, because lenders are looking for certainty that their investments are secure over the lending period. Rents eligible for housing benefit provide that comfort, because that is Government-backed income. The worry, however, is that the local discretionary top-up funding does not provide the secure, long-term solution that investors seek—it is too risky. As the NHF has pointed out, we need to ensure that the ring fence for funding is iron-clad into the long term.

My fourth point concerns mental health. Rethink Mental Illness has expressed serious concerns that the position of those with mental health challenges could be seriously compromised. Housing is the foundation stone for those facing mental health challenges to get their lives back on track, so we need to look very closely at the proposals as they affect that. Fifthly, the sector is very diverse. It has a number of different parts and, although we should have a core system, we need add-ons to address particular worries and concerns. Finally, as has been mentioned, this is complicated and not straight forward, so I ask the Government for a pilot project, which is necessary before the scheme is rolled out across the country.

In conclusion, the Government are to be commended for providing a framework within which a sustainable system of funding for supported housing can be delivered. Our challenge is to address the devil in the detail. This is very complicated and we need to work with the sector during the consultation period and beyond to deliver a system that fairly and properly provides for many vulnerable residents.

Oral Answers to Questions

Peter Aldous Excerpts

Monday 21st November 2016 Commons Chamber

[Damian Green]

Hon. Members are entitled to vote in this House as they like. I am not sure that the Chief Whip would agree with me at all times, but it is a fact. I disagreed with the case that the hon. Gentleman made in that debate. As has been explored over the past hour in this Question Time, a balance clearly has to be struck between keeping the public finances in order and ensuring that our benefits system works as well as possible to help as many people as possible into work. That is what we have been doing successfully for many years now, and that is what we will continue to do.

[Peter Aldous (Waveney) (Con)]

Universal credit was rolled out in Waveney on 25 May. I am sorry to report that at present it is not going well and many vulnerable people are finding themselves in difficult situations. Can the Secretary of State assure me and my constituents that everything is being done to address these technical issues as soon as possible so that universal credit can play the role for which it was intended?

[Damian Green]

I am always happy to talk about any technical issues that arise as we roll out this important benefit, and if my hon. Friend wishes to bring them to my attention in detail, I will happily talk to him about them.

Employment and Support Allowance and Universal Credit

Peter Aldous Excerpts

Thursday 17th November 2016 Commons Chamber

[Peter Aldous (Waveney) (Con)]

I do not think I will be taking the full eight minutes, Mr Speaker. I am grateful to the hon. Member for Airdrie and Shotts (Neil Gray) and to colleagues on both sides of the House for securing this important and timely debate.

Any welfare-to-work system needs to satisfy four criteria. First, it should support people and families in their times of need. Secondly, it should provide every assistance to people in moving forward and in getting back into work, where that is a realistic objective for them, taking into account their personal circumstances. Thirdly, there should be an underlying theme that work must pay, so that welfare does not become a lifestyle choice. Fourthly, any system must be affordable to the nation as a whole.

The system we have, which has evolved over many years, has, I am afraid, become incredibly complicated. It would be great if we could start with a clean sheet of paper, but I fear that is not possible, given where we are at present. The Government should be commended for taking on the challenge of seeking to reform the system and for not filing it away in the “too difficult” tray. Credit is also due to them for some of their initiatives in this Parliament and the last Parliament: taking the low-paid out of tax altogether, the introduction of the national living wage and the provision of 30 hours of free childcare.

The question today is whether the proposed changes to universal credit and ESA satisfy the four criteria I outlined. I would just like to make three observations as to whether they do or not. First, I would like to look at whether the changes are properly researched, backed up by evidence and supported by impact assessments.

When the Welfare Reform and Work Bill was going through Parliament in the spring, it was made clear to me that reductions in ESA WRAG would be followed by a full consultation on the package of support measures to help the disabled into work. At that time a White Paper was proposed, and we were assured on the Floor of the House that it would be published before the summer recess. In the event, a Green Paper, which is actually very good, was published at the end of last month, and a consultation will now run until 17 February. I say to the Government that it surely makes sense to digest the outcome of that consultation—to get feedback from non-governmental organisations and other groups that have the detailed first-hand knowledge as to what changes we need—before making any radical changes.

There is a concern, as we heard from the hon. Gentleman, that there has not been a full and proper impact assessment on the proposed changes. It has been suggested that the impact assessments published with the original Welfare Reform and Work Bill may fall short of the Government’s statutory obligation to properly analyse policy, according to the Equality and Human Rights Commission. In its report, “MS: Enough—Make welfare make sense” the MS Society has recommended that the Government undertake a full impact assessment of any changes they make to disability benefits.

There is also a concern that what is emerging is a lottery, with some family types being more adversely affected than others. Research has highlighted that two thirds of single-parent families will be hit particularly hard by the work allowance cut and the delay to childcare support.

I move on to my second issue—support for vulnerable groups. Again, there is concern that particular groups are being unfairly hit, and I have in mind those with fluctuating conditions such as Parkinson’s and MS. There is also a worry that it has not been recognised that not every disabled person is able to work. The all-party group on multiple sclerosis, under the chairmanship of my hon. Friend the Member for North Dorset (Simon Hoare), has just published a report on support for people with MS in the workplace, and I urge the Government to take on board its three recommendations.

It must always be borne in mind that Parkinson’s and MS are degenerative conditions: people do not get better, there is no cure, and the severity of symptoms fluctuates not just from day to day but, very often, from hour to hour. The consultation on the work capability assessment is to be welcomed, but the feedback I receive, such as that from Waveney Suffolk Help in Multiple Sclerosis—an MS support group I will be with tomorrow—is that more needs to be done.

My third issue is the roll-out of universal credit. The full roll-out of universal credit went live in Waveney on 25 May. While I acknowledge the hard work of Jobcentre Plus and DWP staff on the ground, I have to report that it is not going well. Those in my constituency office are spending most of their days addressing very real problems that people face in having nothing to live on, nothing to pay for food, and no money to pay the rent. The DWP is being helpful in addressing these cases, but I have to question whether it is right to make further changes to universal credit at a time when there are major practical problems in its roll-out.

[Heidi Allen (South Cambridgeshire) (Con)]

Is the universal credit that my hon. Friend has in his constituency the full version or the initial straightforward version just for single claimants?

[Peter Aldous]

We have the full version being rolled out at the moment.

I am concerned about research showing that people in areas now on universal credit will, as a result of these changes, be significantly worse off than their neighbours and those in other regions who remain within the tax credit regime. Will the Minister address these concerns? Why should the people I represent in Waveney, and indeed those in other areas where universal credit has been rolled out, be unfairly treated in this way? It is a really unfair postcode lottery.

[Justin Tomlinson (North Swindon) (Con)]

There is also early evidence that those on universal credit are 13% more likely to go into work, and are getting in-work support to help them progress. They will often enter low-paid work and continue to progress, so in some cases the lottery is very beneficial to my hon. Friend’s residents.

[Peter Aldous]

I thank my hon. Friend. We are yet to receive those benefits in my area, where universal credit was rolled out only on 25 May, but I am happy to look at that information.

The Government have the time to get this right. They should use the autumn statement to address these concerns, consider targeting support at those who need it most, and pause and consult. If they do those three things, they can get it right.