Oral Answers to Questions

Philip Hollobone Excerpts

Monday 26th January 2015 Commons Chamber

[Mr Duncan Smith]

My right hon. Friend puts his finger on it. The reality is that the Government have implemented a long-term economic plan. In that long-term economic plan, welfare reform plays a critical part in ensuring that people are ready and available for work. Our labour market is far more deregulated than that of many other countries in Europe. It is noticeable that today, in the light of the elections in Greece, everyone is talking about austerity, but the big problem in Greece, as in other countries, is that the labour market is so rigid that very few companies want to invest, because there is no flexibility whatever. That is why they come to the UK—this Government have a plan that works to help them to get profitability.

[Mr Philip Hollobone (Kettering) (Con)]

Unemployment in the Kettering constituency has halved since May 2010. What does my right hon. Friend think would have happened to the rate of unemployment in Kettering had Her Majesty’s Government followed the economic policies of France, which apparently are a blueprint for Her Majesty’s Opposition?

[Mr Duncan Smith]

That is the point. Opposition Members do not like it very much, but let us follow that theme for a minute. The Leader of the Opposition extolled the virtues of the alternative to the long-term economic plan—the French plan, which was no economic plan as far as I understand it. We have now seen French unemployment go through the roof, employment rates fall and economic activity stagnate. London is now something like the sixth or seventh-largest French city because so many French people are coming to the UK because—we welcome them—they like to look for jobs.

Pensions and Benefits Uprating

Philip Hollobone Excerpts

Thursday 4th December 2014 Commons Chamber

[Steve Webb]

My hon. Friend is quite right that when the previous Government paid 75p, they were sufficiently embarrassed that they had to put the pension up by £5 the following year—almost to apologise. That is no way to treat pensioners. My hon. Friend is right about the triple lock, too. This morning, I did one of the many radio phone-ins I have been doing, and people have been asking me why the pension is not more. I pointed out that we had 30 years of decline to reverse from when the earnings link was broken in 1980 through to 2010, and that we are now starting to restore the real value of the pension to give pensioners some dignity and security.

[Mr Philip Hollobone (Kettering) (Con)]

There was so much good news in the Minister’s statement that I was struggling to write it all down. So that I get it right for my Kettering constituents, will he confirm that what he has just announced is a 2.5% increase in the basic state pension, which is equivalent to an increase of £2.85 a week for a single person; that the basic state pension is now 18% of average earnings, the highest comparative level for 20 years; and that since the start of this Parliament, pensions have gone up by £950 a year, which is £560 a year more than if they had simply been increased in line with inflation?

[Steve Webb]

Indeed. My hon. Friend obviously writes very quickly, and he was correct in every particular. The increase in the pension rate for a single person is £2.85 a week and it is £4.55 a week for those on what we loosely call the couples rate. I can confirm that all the figures he gave were correct.

Universal Credit

Philip Hollobone Excerpts

Tuesday 25th November 2014 Commons Chamber

[Mr Duncan Smith]

My hon. Friend will forgive me if I do not repeat to the Prime Minister the first part of his question. Certainly, the Prime Minister and I are in complete agreement on all these measures, and I am of course implementing only what he wishes to see. I want that point on the record, if possible. Yes, the key thing is that we are trying to deliver universal credit safely and securely. I am pleased that my hon. Friend, from his position, is so supportive.

[Mr Philip Hollobone (Kettering) (Con)]

Her Majesty’s Treasury and the Major Projects Authority must have been attracted by the potential for universal credit to cut administrative costs and reduce benefit fraud or they would not have signed off the programme. Surely one major feature of universal credit is that it makes work pay by giving people extra incentives to keep more of their income as they move into the world of work. What evidence can the Secretary of State point to of jobseekers who are already recipients of universal credit changing their job-search behaviour?

[Mr Duncan Smith]

Interestingly, my hon. Friend is right. The whole point is that there is a static effect, which we know will save money even without any dynamic effect. In other words, offsetting the savings we make from changing tax credits and so on against expenditure puts us in a net positive position.

We are already beginning to run trials on the dynamic effect. So far, people are going into work quicker, and they tend to stay in work longer. They are doing many more job searches than before, because it is easier to do them. That proves my point that most unemployed people want work desperately. They want to be helped to get work, and if we make the system easier, simpler and more accessible, they will do a lot themselves. What is essentially happening is that they have cottoned on to the usability of universal credit, and it is gratifying to see the way in which they are getting back to work quicker.

Oral Answers to Questions

Philip Hollobone Excerpts

Monday 3rd November 2014 Commons Chamber

[Mr Duncan Smith]

I do not believe that that is correct. I have the highest respect for the people who man jobcentres all over the country, and who do a remarkable job in helping many of those who have fallen out of work to get back into it. Jobcentre staff now tell people that their own job is to help them to find and take work, but that they themselves have a responsibility to do whatever is necessary to find work and take it. Their job is a combination of helping people and ensuring that they perform their task of seeking work and taking it. I am sure that, actually, the right hon. Gentleman agrees that that is the right thing to do.

[Mr Philip Hollobone (Kettering) (Con)]

What assessment has my right hon. Friend undertaken of economies similar to ours that have ducked the challenge of welfare reform, and of how their economic performance compares with ours?

[Mr Duncan Smith]

We do not need to go very far to see the country that the Opposition held up as the paragon of virtue in the European Union. It is, of course, France. I should point out that the French pursued the policies that the present Opposition think are right for the British economy. Adult unemployment in France is at record, scorchingly high levels, and youth unemployment is far higher than it has ever been in this country, while it is falling here.

--- Later in debate ---

[Mr Duncan Smith]

Under this Government, take-home pay rose last year by more than inflation for all but the richest 10%. Average annual pay growth is 3.7% for those who have stayed in work between 2012 and 2013, and disposable income last year was higher than in any year under the previous Government.

[Mr Philip Hollobone (Kettering) (Con)]

T8. Which Minister is responsible for worklessness? Will they get to their feet and accept the grateful thanks of the nation that the number of workless households is the lowest since records began, and will they explain to the House how it has been achieved?

[Mr Duncan Smith]

This is a tough one, but I will endeavour to do my best. On behalf of my team and my Government, I accept that we are doing the right thing, and more people are going to work than ever before.

Relationships and Children’s Well-being

Philip Hollobone Excerpts

Tuesday 21st October 2014 Westminster Hall

[John Glen]

I agree absolutely that we must look at how relationships are formed in the home and recognise that families exist in a wide range of sometimes sad circumstances. We must not be squeamish about being honest about messy situations, but recognise that solid family relationships give children the best platform to develop good and meaningful lives in society.

I want to focus on the importance of children’s relationships with their fathers, especially when fathers cannot live with their children. I believe that fathers’ involvement boosts children’s self-esteem and confidence and that children with good relationships with their fathers are less likely to experience depression or exhibit disruptive behaviour at school. When fathers are actively involved in their children’s care, children are more likely to feel good about themselves, do well at school, avoid trouble and reach their potential.

Several months ago, a lady came to my surgery saying that her relationship with her partner had broken down after they had lived together for 10 years. During that relationship they had brought up their own child and another child who had been born a year before the relationship began. The acrimony of the breakdown of the relationship had led the departing father to arbitrate on which child—they were only a year apart in age—he would want to have contact with. The one who was not his blood relative—the stepchild—wanted to maintain the relationship because the man was the only father figure he had known, but his birth child was more reticent about seeing his father. The impact of the disruption on those children and the arbitrary removal of that father influence would have tragic consequences. That experience typifies many that we hear about in our surgeries and throughout society, and we must respond to it.

It is highly worrying that the Centre for Social Justice has estimated that more than 1 million children have no meaningful contact with their fathers by the end of their childhood. The shocking but quotable statistic that a young person is considerably more likely to have a smartphone than a resident father is a sad indictment of society.

The coalition’s programme for Government promised to encourage shared parenting from the outset and to look at how best to provide greater access rights to non-resident parents, but I would like to highlight three areas where we could do more. First, we should bring into force schedule 6 of the Welfare Reform Act 2009 on joint birth registration, which requires fathers to register themselves on birth certificates. As my hon. Friend the Member for Enfield, Southgate said, there seems to be some ambiguity about why that has not happened. At present, the law on birth registration signals that fathers are less important to children than their mothers and that less is expected of them. If they are not married, the mother, not the father, is named automatically. Crucially, the mother’s approval is required if the father wants to be named. Obviously, there must be appropriate exemptions, such as when the mother does not know the father’s identity or whereabouts, the father lacks capacity within the meaning of the Mental Capacity Act 2005 or the mother has reason to fear for her safety or that of the child if the father is contacted in relation to the registration of the birth.

If that change was made and the mother wanted the father to be recorded, but that was against the father’s wishes, the mother could identify the father independently. Similarly, a father who wanted to be named but was obstructed by the mother could declare his paternity and have his name recorded against her wishes. Being named on a birth certificate confers parental responsibility and the right to be involved in decisions affecting where the child lives, their education, religion and medical treatment. If fathers are not registered on the birth certificate, that predicts both less involvement in their children’s lives and low or non-payment of child maintenance. Australia achieved a reduction of 20% in mother-only registrations during the 10-year period between 1994 and 2004 by adopting a similar measure.

Secondly, if parents separate, it is often highly beneficial to children if they continue to have a relationship with both parents. Yet it can be incredibly difficult to ensure there are well functioning contact arrangements with children. That can be incredibly painful for children, but it is understandable because parents’ inability to work together rarely repairs itself naturally after they have split up.

At this point, I want to refer to a meeting I had on Saturday in Salisbury, where I gave out some awards to volunteers at Salisbury’s contact centre, and in particular to Liz Sirman, who has spent the last five years managing that contact centre. I said then, as I do now, that it seems we can either say that the glass is half-full or half-empty. We can either say that it is lamentable to have children’s contact centres, where parents’ relationships are so broken that they have to rely on volunteers to arbitrate—one partner delivers the child and goes, and another comes to collect the child, and then there is the same process in reverse—or we can pay tribute to the work of such centres, as they try to rebuild relationships and help those families form better relationships in the interests of the children.

We need to be willing to support families once parents have separated. The Department for Work and Pensions innovation fund has invested significantly in better ways of doing that. Additionally, we need family relationship centres, such as those that have been functioning in Australia for several years. Pioneering centres such as Island Separated Families on the Isle of Wight and the Jersey Centre for Separated Families will shortly be joined by other centres in the midlands and the north-west of England. Their help for separated families could be delivered within the system for family hubs mentioned by my hon. Friend the Member for Congleton.

Finally, although the contributory principle in child maintenance is indispensable, it should not have the unintended consequence of preventing non-resident parents from playing a meaningful role in their children’s lives. Some low-income parents are being left with too little money to look after their children adequately while they are in their care after paying child maintenance. That is because the current thresholds at which maintenance is paid are fixed at 1998 prices, and there is no self-support reserve in our system, unlike in many other countries.

This is a critical and controversial area, but we have to examine the reality of how these dynamics are working for the poorest in our society. We need to look at making interventions that change those rules to facilitate better dynamics between, and more involvement of, both parents in bringing up a child. I know that the Minister, who is universally seen as one of the most capable and thoughtful individuals in Parliament, will reflect very carefully on these points. I look forward to hearing what he has to say in response today and subsequently by letter, if some of these issues cannot be responded to today, but I urge him to reflect on the spirit and the substance of what has been said this morning. We are here because we can see an epidemic of family breakdown in our society. We are concerned about the life trajectory of those children, and I urge him to do anything that he can to improve that situation, such that those children can look forward to better lives, with both parents involved in their upbringing.

[Mr Philip Hollobone (in the Chair)]

The debate is due to end at 11 o’clock and we have two Front-Bench speakers. If they split the time, it is 18 minutes each, but the debate does not have to run all the way to 11 o’clock —it is entirely up to them. I call Steve McCabe.

--- Later in debate ---

[Mr Harper]

My understanding is that the family test will effectively apply from November. From that time, as Departments develop domestic policies they should consider the impact on families. My hon. Friend made some sensible points about grandparents and wider family relationships. I am particularly familiar with the extra responsibilities of parents with disabled children and the help that they receive from grandparents and the wider family. He raises sensible points, and the Government are considering such issues. We have ensured that grandparents can claim child maintenance if they are the main carers. I know he also welcomes the Department for Education’s guidance on care, which recommends that local authorities now consider family options first before taking children into local authority care. There are obviously further ideas, and I think he ascribed both to himself and to my hon. Friend the Member for Salisbury (John Glen) the Prime Minister’s invitation to contribute ideas both directly to him and to other Ministers on how we can make further progress in this area—not that either of my hon. Friends need inviting to contribute on policy areas in which they both have a long-standing interest.

We are also looking at piloting relationship education in both antenatal and post-natal provision, and we are looking at national guidance for health visitors, who are well placed to spot early signs of relationship distress. Through Early Intervention Foundation pioneering places, we are also considering joined-up approaches that we can take with local authorities. Those ongoing trials may shed light on the suggestions for What Works centres made by my hon. Friend the Member for Congleton, including using those children’s centres as family hubs. The shadow Minister also specifically mentioned the What Works centres.

I think there is general consensus among colleagues that we should recognise and support the involvement of both parents, and I hope colleagues welcome that following the Children and Families Act 2014 there is now presumed shared involvement of fathers and mothers alike. The welfare of the child still rightly comes first, but there is now explicit recognition that, except where there are specific reasons why not, the presumption is that the child should have contact with both parents. That recognition in the legal system is welcome.

The Government are also spending £10 million on the help and support for separated families innovation fund—it is admittedly not a catchy title—which covers 17 projects aimed at testing interventions to help parents going through a separation to work together and resolve conflict. Up to September 2014 those projects engaged some 53,500 parents. The projects consider innovations in delivering those services and the outcomes that we receive from them.

My hon. Friend the Member for Congleton also mentioned the appointment of a Cabinet-level Minister with responsibility for families. The Prime Minister said in his speech that, as well as bringing together all relationship support policy within the Department for Work and Pensions, my right hon. Friend the Secretary of State for Work and Pensions will be that Cabinet-level Minister. The Secretary of State has a long history in this area, and he is very pleased to have been given that responsibility by the Prime Minister. The Secretary of State considers himself responsible and accountable for families, and he is already effectively doing that within the social justice Cabinet Committee, which he leads on some of those issues.

Those are some of the things that the Government have been doing, and in the remaining minutes I will address some of the issues that colleagues have raised in this debate. Both my hon. Friends the Members for Salisbury and for Enfield, Southgate mentioned joint birth registration, which was introduced in the Welfare Reform Act 2009. I was shadowing this brief at the time, and I distinctly remember those debates. Joint birth registration is a more complicated issue than it seems at first glance because, as both my hon. Friends mentioned, there are exemptions in the legislation for difficult cases. Other ministerial colleagues are considering that issue, so it would be sensible if I arranged for the relevant Minister to write to both my hon. Friends, to all Members attending this debate and, indeed, to you, Mr Hollobone, so that we can have a detailed response. In my constituency I have experienced cases such as those raised by the shadow Minister in which fathers have been involved in the upbringing of their children and want that important relationship to continue, regardless of the fact that their relationship with the children’s mother has broken down. I will consider that carefully.

The shadow Minister spoke about children’s centres. As of February 2014 there are 3,019 main children’s centres, with a further 531 sites open to families and children. Since 2010, despite the significant financial challenges that we inherited from the Labour party, only 76 centres have closed. Indeed, six new centres have opened, and 90% of eligible families in need are registered with their local centre. That sounds like a pretty good record on providing such support at local level, even where there have had to be very difficult financial savings to rebalance the public finances.

I welcome what my hon. Friend the Member for Enfield, Southgate said about mental health. My Department is working on the improving access to psychological therapies pilots with the Department of Health. Those pilots are important for ensuring that we do a much better job not just of addressing children’s mental health—he will know that that is one of the passions of the Minister of State, Department of Health, my right hon. Friend the Member for North Norfolk (Norman Lamb), who has responsibility for care and support, and it is a passion shared by both coalition parties—but of helping adults with mental health problems either to stay in or return to work. Less than half of adults with mental health problems currently work, so the Government must improve what we are doing. I hope my hon. Friend welcomes what we have done so far, and I hope over the months to come he will welcome our work to improve that still further.

My hon. Friend the Member for Salisbury referred to an award he gave to Liz Sirman, who works at a children’s contact centre in his constituency. I am a glass-half-full kind of guy, so I welcome the Government’s support for the work of volunteers in helping to support families and children who have experienced difficult relationship breakdowns. Such work is welcomed, and I am pleased that my hon. Friend was able to recognise it so publicly at the weekend.

The shadow Minister referred to the importance of mediation when a relationship breaks down, and in the Children and Families Act there is now a statutory requirement for people to consider mediation before they rush off to court, which is helpful. There will clearly be cases in which mediation simply cannot work, but the fact that it has to be considered and in people’s thought processes before lawyers get involved is helpful—I am an accountant, so I can be slightly rude about lawyers. Having more mediation to support relationships means that, even if the parents’ relationship cannot be preserved, the relationship with their children can be preserved, which is welcome. My hon. Friend the Member for Salisbury mentioned child maintenance thresholds, and the Minister for Pensions has committed to reviewing the formula and the threshold once the current reforms have been safely implemented.

My hon. Friend the Member for Enfield, Southgate did a good job of responding to the shadow Minister on the economic issues, but I have a couple of further points. First, children are three times more likely to be in poverty if they live in a workless family. My hon. Friend is absolutely right that there are now 290,000 fewer children living in workless households, which is good news. That means that there are 300,000 fewer children living in relative income poverty than when the Government came to office.

Finally, the shadow Minister referred to the importance of work and people being in jobs, which is why I am sure he will join Government Members in celebrating that there are now 1.8 million more people in work who are able to bring home a pay packet and contribute to their family. That is a positive note on which to finish this excellent debate, which was secured by my hon. Friend the Member for Congleton.

[Mr Philip Hollobone (in the Chair)]

I thank all Members who have taken part in this extremely interesting, informative and important debate.

Oral Answers to Questions

Philip Hollobone Excerpts

Monday 1st September 2014 Commons Chamber

[Mr Duncan Smith]

That is exactly the point that I have been making from the beginning. We have always said to the European Commission that this matter lay outside the treaties. It is a national Government responsibility, and it is national Governments who should take that responsibility. The Opposition did very little about organising this so that they would be able to stand against the EU Commission on that basis.

[Mr Philip Hollobone (Kettering) (Con)]

9. How much his Department spent on benefits in 2010; and what estimate he has made of such spending in 2015.

[The Secretary of State for Work and Pensions (Mr Iain Duncan Smith)]

In 2010-11, the Department for Work and Pensions spent £54 billion on working-age claimants and children at today's prices, and £106 billion on pensioners. Total expenditure was 9.8% of GDP. In 2015-16, as a result of our changes, the Department will spend £54 billion on working-age claimants and children at today's prices, and £116 billion on pensioners. Therefore, total expenditure is expected to be £170 billion, which is 9.6% of GDP. In this Parliament, we will therefore have saved cumulatively £50 billion, the equivalent of £1,900 for every household in the UK.

[Mr Hollobone]

Will my right hon. Friend confirm that for the first time in 16 years, thanks to his stewardship, the relentless annual increases in welfare spending have at last been brought under control, so that the proportion of our national output that goes on welfare spending has finally been controlled, allowing our economy more room to grow and more spending on important areas such as health and education?

[Mr Duncan Smith]

My hon. Friend is right. Last year, welfare spending fell in real terms for the first time in 16 years as a share of GDP, and will continue to do so. In 2010, spending was at 12.5%, and next year it will be at 11.9%. By 2015-16, the out-of-work benefit bill will fall back to pre-recession levels, down to 2.3% of GDP. It peaked under the last Government at nearly 3% of GDP.

Universal Credit

Philip Hollobone Excerpts

Wednesday 9th July 2014 Commons Chamber

[Mr Philip Hollobone (Kettering) (Con)]

Does my right hon. Friend agree that the very worst example of how to change any tax and benefits system was the introduction of tax credits by the previous Government, when more than £6 billion of overpayments were made within just the first three years?

[Mr Duncan Smith]

Absolutely. The Labour Government—the Labour party needs to own up to this—used to sign off business cases from day one, only to see the programme crash and burn. Tax credits left 400,000 people without money, and their reforms to the health service benefits system were an absolute disaster. We will take no lessons from Labour on how to manage a programme.

Oral Answers to Questions

Philip Hollobone Excerpts

Monday 23rd June 2014 Commons Chamber

[Esther McVey]

My hon. Friend makes a very good point. As I have said, sanctions have always been a part of the benefits system, because it is about compliance. I would welcome an announcement today from Opposition Front Benchers on whether they would remove sanctions. That would be very interesting.

[Mr Philip Hollobone (Kettering) (Con)]

11. If he will take steps to reduce (a) the number of benefit claimants who appeal against decisions and (b) the length of time it takes to have such appeals heard.

[The Minister of State, Department for Work and Pensions (Mike Penning)]

Appeals on all benefit decisions have dropped by 79% in the first quarter of this year compared with the same period last year. The introduction of mandatory reconsideration and the decision assurance call is having a positive impact.

[Mr Hollobone]

My right hon. Friend will be as concerned as I am that some of the waits for first-tier tribunal appeal hearings for Kettering constituents have been up to 40 weeks, which is more than twice the national average. What success is he having with the Ministry of Justice to get the appeal waiting times down?

[Mike Penning]

One of the first things we can do to get appeal waiting times down is to have fewer people needing to appeal. I accept that it is taking too long in Kettering and perhaps in other parts of the country. That is for another Department, but I will contact it today.

Quality Workplace Pensions

Philip Hollobone Excerpts

Thursday 27th March 2014 Commons Chamber

[Steve Webb]

I am grateful to the hon. Lady. The principal change, although not the only one, is the introduction of the requirement for independent governance committees. With trust-based governance there are member-nominated trustees and a fiduciary duty on trustees, but with contract-based pension schemes provided by insurance companies there is a question, as has often been argued, of who is acting on the members’ behalf. The IGCs will have to be in place by April 2015 and they will have various duties. The way in which they are set up is described more fully in the document—I know she will not yet have had a chance to read it. I think that she will welcome the changes, which mean that whatever sort of pension scheme someone is in, there is somebody there looking out for them.

[Mr Philip Hollobone (Kettering) (Con)]

Residents of Kettering will welcome these measures to improve the quality of workplace pensions. The reason for automatic enrolment in the first place is that a lot of people are either frightened by pensions or do not understand them, or they might be young people who think that pensions are irrelevant. Under the quality scheme that the Minister has announced, may we have a stamp of quality on the documentation to reassure workplace employees? May we also have a common-sense, plain-English helpline that people can phone without any difficulty so that they can have the complexities of their pension arrangements explained? Can we also ensure maximum transparency of portability of pensions between workplaces?

[Steve Webb]

My hon. Friend raises a number of important points. On kitemarks and the like, we are placing a legal duty on firms to use for auto-enrolment only schemes of a requisite quality, so it will not be a matter of individual employees wondering whether their scheme is good enough—they will know it is good enough because their employer will not be allowed to enrol them into a scheme that is not so. All schemes will be of the requisite standard. He is right that people need places to go for advice in amongst the complexity. Our Department sponsors a body called the Pensions Advisory Service. I encourage all Members of the House to refer their constituents to TPAS, which is a free, expert and very good service. I must confess that I occasionally ring it myself.

Oral Answers to Questions

Philip Hollobone Excerpts

Thursday 13th March 2014 Commons Chamber

[Mr Vaizey]

Working with social media companies in a flexible, responsive way is the best way forward. We have covered a whole range of issues, including age and identity verification, the reporting of abuse, adjudication, auditing, filtering and funding; we can cover all of those comprehensively and flexibly through dialogue.

[Mr Philip Hollobone (Kettering) (Con)]

Adam Simmonds, the police and crime commissioner for Northamptonshire, is determined to tackle online crime, and particularly the issue of child victims. He set up a child exploitation prevention team, which is a national lead pilot. Will the Minister work with colleagues in the Home Office to ensure that Government funding for such pilots can be directed at local police forces, and not just at regional or national crime agencies?

[Mr Vaizey]

I will certainly bring my hon. Friend’s concerns to the attention of the Minister for Policing, Criminal Justice and Victims; in fact, this afternoon, he and I will chair the UK Council for Child Internet Safety, which brings together a range of stakeholders to talk about these issues.