Oral Answers to Questions
Philippa Whitford Excerpts(2 years, 9 months ago)
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Mr Speaker
The Minister should be answering the questions through the Chair.
Dr Philippa Whitford (Central Ayrshire) (SNP)
A recent report by Rethink Mental Illness has highlighted that the Department for Work and Pensions is not carrying out investigations of claimants who have suffered significant or serious harm, including a mental health crisis, self-harm and even attempted suicide. We are talking about the cost of living crisis and we know what that is going to drive people to, so will the Department instigate independent reviews of people who have suffered in the claims process so that they can make it more humane and supportive?
Dr Coffey
The hon. Lady raises an important point. I am confident that my Department and officials will undertake their duties carefully and considerately. I am conscious that there will be times when things go wrong and that sometimes the Department will be brought into local investigations, usually by social services. It is important that we respond to that, as well as to the ongoing lessons that we learn from broader themes that we investigate through the Serious Case Panel.
UN International Day of Persons with Disabilities
Philippa Whitford Excerpts(3 years ago)
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Dr Cameron
I absolutely do agree that those rights should be enshrined and that the democratic process should be open to all.
Dr Philippa Whitford (Central Ayrshire) (SNP)
Does my hon. Friend recognise that if we want people to vote, we want more people with disability in this House? Does she agree that it is a shame that none of the learning from the covid pandemic that might have made working here more flexible for someone with a disability or chronic illness has been kept?
Dr Cameron
I thank my hon. Friend. That is extremely important and I will move on to speak about many of those issues. We should continually be learning and applying best practice. It is extremely important that measures are taken to improve representation in this House for people with disabilities.
There are 14.1 million people with disabilities in the United Kingdom—one in five people—yet despite making up one of the largest minorities, disability often fails to reach the top of the equality agenda.
Supporting Disadvantaged Families
Philippa Whitford Excerpts(4 years, 1 month ago)
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Dr Coffey
My hon. Friend is right to point out that the Government continue to try to support people through this challenging time. They have put their money where their mouth is to get that direct support to families, as well as to businesses and communities more generally. On the national food strategy, Henry Dimbleby has produced his initial review, and once we get phase 2 of his work and suggestions, the Government will develop a food strategy. We are united in ensuring, particularly through Healthy Start vouchers, that the food that young children and expectant mothers have is nutritious, because that is important for the development of our young children.
Dr Philippa Whitford (Central Ayrshire) (SNP) [V]
Last year, the UN special rapporteur on poverty highlighted that disabled people have been among the hardest hit by 10 years of this Government’s austerity agenda. They are particularly reliant on legacy benefits which, unlike universal credit, have not been increased by £20 a week during the covid crisis. Will the Secretary of State commit to a permanent increase in universal credit, and support disabled people by extending the uplift to all legacy benefits?
Dr Coffey
People can move to universal credit, apart from that small cohort of people who currently receive the severe disability premium, and they will be able to make that move from January. It is important that people check to see whether they will be better off, but we think that the vast majority of recipients will be better off on universal credit than they are on legacy benefits, and we will do what we can to help them in that journey.
Child Poverty in Scotland
Philippa Whitford Excerpts(5 years, 1 month ago)
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Hugh Gaffney
I could not agree more. People used to think they were working to get out of poverty—not so nowadays. The figures highlight the fact that we have a real crisis with child poverty in Scotland. The Resolution Foundation has projected that child poverty across Scotland will likely rise to 30% by the mid-2020s, despite the target to reduce child poverty to 18%.
Dr Philippa Whitford (Central Ayrshire) (SNP)
One in four children in Scotland lives in poverty, but is not the real shocker that the figure is the lowest of those for the four UK nations? Child poverty was down at 21%, but has now risen, not because of the financial crash but, as the hon. Member for Edinburgh South (Ian Murray) said, because of changes in welfare. The rise started in 2012, and that was owing to policies made here in Westminster.
Hugh Gaffney
We are all here to help the children, whether in Scotland, England, Wales or Northern Ireland. That is what it is all about.
Hugh Gaffney
Yes. I will come on to two-child cap poverty.
History shows that we can tackle child poverty in Scotland. The largest falls in the poverty rate recorded in the past 20 years were among pensioners and children. From the late 1990s, child poverty across Scotland fell significantly because of the policy choices made by the Labour Government. The Labour Government redesigned the welfare state with the purpose of tackling child poverty, which is why policies like child tax credits and the national minimum wage were introduced. Those policies were designed to target the underlying causes of child poverty, such as low pay. The success of the Labour Government in reducing child poverty highlights the fact that it can be done when there is the political will and the right policies.
We need to show that political will, because the impact of poverty on children is simply unacceptable. Children living in poverty suffer greater health and social outcomes than their better-off peers. Children living in poverty are much more likely to suffer health problems, such as poor mental health and wellbeing, and obesity. They are more likely to lag behind in reading, writing and numeracy. Child poverty affects not just childhood, but individuals throughout their whole life.
Dr Whitford
I thank the hon. Gentleman for giving way again. One of the most shocking figures that I have heard in my time in Parliament was through the all-party group on health in all policies. We heard from the UK Faculty of Public Health that 1,400 children a year die before they reach the age of 15 as a direct result of poverty. As he has said, those who do not may still face blighted lives thereafter.
Hugh Gaffney
I thank the hon. Lady for that staggering fact. How sad is it that, in this day and age, children are dying from poverty before they are 15?
If we are to tackle child poverty in Scotland, we must look at whether current policies help us to do so. Since 2010, the Government have implemented a series of welfare reforms, such as universal credit. As we all know from our surgeries and constituents, universal credit is having a negative impact on families. In particular, it is hurting low-income families, pushing more children into poverty. Universal credit could be considered a success only if its aims were to push up rent arrears, increase food bank use and drive people deeper into poverty. That is the success that some think universal credit is creating.
Earlier this year, I led an Adjournment debate on food poverty in Scotland, after it was revealed that more than 210,000 food parcels had been distributed by the Trussell Trust last year. Nearly 70,000 of those food parcels were issued to children. That means that about one in three food parcels distributed in Scotland last year was for a child. What a shameful situation we are in. The UK is meant to be the world’s fifth largest economy, but we have children going hungry in our constituencies.
Rising food bank use is linked directly to the Government’s welfare reforms. Trussell Trust figures reveal that almost 50% of all food bank referrals are the result of a delay to benefit payments to claimants. Almost 35% of all emergency food supplies are distributed to those individuals who find that their benefits regularly fail to cover their cost of living. In areas where universal credit has already been rolled out, the Trussell Trust observed a 30% increase in food bank use after a year of the roll-out.
Jim Shannon (Strangford) (DUP)
I congratulate the hon. Member for Coatbridge, Chryston and Bellshill (Hugh Gaffney) on bringing forward this debate. He always speaks passionately on behalf of his people, and on this occasion he did so on behalf of all children in poverty.
I am here to support my colleagues and friends. Although the debate is about child poverty in Scotland, the fact is that child poverty is not specific to Scotland. It is also rampant in other areas of the United Kingdom of Great Britain and Northern Ireland—particularly Northern Ireland—so I want to say a couple of words in support of colleagues who have already spoken and those who will speak after me. Much of what we say will be very similar.
I am a proud Ulster Scot. I love my heritage. I come from the Stewarts of the lowlands of Scotland, so my heritage goes way back to Scotland. I share a cultural identity with the hon. Gentleman and other friends and colleagues in the Chamber, and my values are very similar to theirs.
Unfortunately, the children in my constituency face the same difficulties as those in the hon. Gentleman’s constituency. Official estimates published by the Northern Ireland Department for Communities—the figures are a matter for the Northern Ireland Assembly—show that in 2017-18, 19% of children in Northern Ireland from birth up to the age of 16, including dependent children aged between 16 and 19, lived below the poverty line, in households with an income of less than 60% of the UK average. I suspect the figures are the same in the hon. Gentleman’s constituency and in those of the hon. Member for Motherwell and Wishaw (Marion Fellows) and the hon. Members who speak after me.
In 2017-18, the poverty threshold in Northern Ireland stood at £19,016 of annual income for a single person with two children, and £24,245 for a couple with two children. The Minister knows that I am very fond of him and what he does, and I believe he will answer our questions to the best of his ability, but I say to him that we need a UK strategy and additional funding to tackle child poverty. The situation in my constituency is the same as the situation that the hon. Members for Coatbridge, Chryston and Bellshill and for Motherwell and Wishaw described. Society, the Government and elected representatives are marked by the way they respond to those who are less well off. I do not believe for one second that we can ignore them; the Government must reach out and help.
During Northern Ireland questions today, an hon. Member—in fact, it was the hon. Member for Motherwell and Wishaw; I should have recognised her name earlier—asked the Secretary of State:
“What economic assessment he has made of the potential effect of the Government’s proposed withdrawal agreement on Northern Ireland.”
In a subsequent question, the hon. Member for Birmingham, Selly Oak (Steve McCabe) asked about
“legislative proposals to maintain welfare mitigation payments in Northern Ireland after March 2020.”
The right hon. Member for Birkenhead (Frank Field) and the hon. Member for Bermondsey and Old Southwark (Neil Coyle) tabled the same question.
My party—the Democratic Unionist party—and our Minister at that time were instrumental in achieving those welfare mitigation payments. At the end of March 2020, those provisions will end, and members of the public from all communities and of all political and religious persuasions across Northern Ireland will be disadvantaged because of Sinn Féin’s intransigence. We have an opportunity because my party put on the statute book legislation that enabled welfare mitigation payments to be made. Those payments came out of the block budget, by the way, but we agreed to that and acted accordingly. I did not get the chance to ask Northern Ireland Office Ministers directly earlier, but I ask this Minister: what can be done to mitigate the impact, which will be severe?
I will make a final comment about food banks, Sir David. Food banks are often talked about, and have probably been mentioned by everyone who is present here. The first Trussell Trust food bank in Northern Ireland was in my constituency. It came to Strangford because a number of church groups got together and recognised the need to reach out as faith groups, in order to help others who found themselves in difficulties making payments or paying bills, or when everything seemed to turn against them.
On the television this morning there was a discussion about debt organisations; I have not had a chance to watch it yet. It is not always a person who has benefit delays or benefit short payments who needs debt management; more often it is people who do not fit into the normal category. Minister, when it comes to addressing child poverty, what has been done to help those who need debt management? It is always better to try to address debt management early on, rather than let people get to the final moment, when letters are coming through their door, they are under pressure, their credit cards are over-egged and they find themselves in difficulties. People who are in employment, have a mortgage and who own a house may also need help.
There are people who come to my office who use the Thriving Life food bank in my area. I highlight the DWP and the changes that have been made to benefits, as referred to by the hon. Members for Motherwell and Wishaw and for Coatbridge, Chryston and Bellshill. There is a follow-on that is down to benefits being reduced or, when the issue of housing benefit is looked at, delayed. It is also down to employment issues, such as shorter hours and changes to minimum pay.
Dr Whitford
The hon. Gentleman raises the issue of food banks. There is hardly an area that does not now have a food bank. My local area is supported by churches that have a rota to collect goods. Recently, our food bank has often had to put out crisis calls because its shelves are simply empty; it cannot keep up with demand. As the health spokesperson for his party, does the hon. Gentleman recognise the impact on life expectancy and on long-term physical and mental health that comes from growing up in poverty?
Jim Shannon
I thank the hon. Lady; she is always good in this House when it comes to bringing forward issues that are pertinent to the debate. She again excels today in bringing forward this issue of food banks and the needs they address. The people who use them are under pressure emotionally and mentally, which transfers to physical issues. When that happens, the problems that the hon. Lady refers to become real for them.
I recognise, as I know the hon. Lady does, that those who have set up the food banks are genuine, interested people who bring the best of people together. They reach out to those who need help, as their faith tells them to do, which is a great motivation. I almost feel encouraged by the food banks and those who are motivated to make them happen, but calls go out to ensure that people bring in more stock, because demand is sometimes high.
We appreciate what the food banks, the volunteers and the churches do when they work together. When it comes to child poverty, whether it be in Scotland or Northern Ireland, we all want the same. We want children to have a good quality of life and we want their families to be able to look after them in the way it was designed in life that they should. For that to happen I believe, with great respect, that the Government must look genuinely at what they do.
The issue of debt management is important to child poverty; it is crucial. Nothing disturbs me as much as seeing children in difficulty; there are two or three such children who come to my office. The hon. Member for Motherwell and Wishaw mentioned Christmas. As Christmas comes, the child who lives three doors down will probably get almost anything he or she wants, but the child living in poverty will not get anything. There is a terrible injustice in society when we come to Christmas, a time of giving and good will, that those who are in poverty will not be able to have the same as everyone else.
Patricia Gibson (North Ayrshire and Arran) (SNP)
I congratulate the hon. Member for Coatbridge, Chryston and Bellshill (Hugh Gaffney) on securing the debate. In my constituency, one third of children live in poverty, and it has the third-worst statistics in the whole of Scotland for child poverty. That is shameful in this day and age, and it matters, because I grew up in abject poverty and I know what it is like. Poverty is not just about a lack of money, although clearly that is the foundation on which all poverty is built. It bleeds into every single area of life, and it is hugely damaging for the children affected. It does not just mean a cold house, or going to bed with an empty, hungry tummy, which is bad enough and completely unacceptable in this day and age. It also brings with it a poverty of hope, aspiration, self-confidence and self-belief.
Material poverty reduces and lays waste to the things we want all children to have. It is life-limiting, and too often leads children into a pit from which it is hard for them to escape. Even if, on growing up, they manage to drag themselves out of poverty, it leaves scars behind that do not vanish on reaching adulthood.
I have spoken in the past about how poverty brings isolation. When people live in poverty, there is no money to access local services. Parents cannot take their children out for a treat for the day; they cannot go to the pictures or visit the local café. They cannot have the everyday pleasures that ought to be part of every child’s life. It means that their life is limited and their horizons are not broadened. Many things are out of reach for them. That life limiting brings another kind of poverty, which arises from material poverty. That is a shocking indictment of a country as rich as ours.
Dr Whitford
My hon. Friend was a teacher in a former life, before she came here. I am sure that she recognises the impact of the cold house and the hungry tummy on trying to concentrate and study. These children will struggle at school, which will impact on all their opportunities for the rest of their life.
Patricia Gibson
Absolutely. My hon. Friend makes an excellent point. The fact is that unless child poverty is addressed, raising aspiration and attainment is like working with one hand tied behind your back. Children who are hungry or go home to a cold house tend to find it much more difficult than other children to attain their goals at school, whether those are academic or vocational. Their life is limited in ways that are difficult for people who have not experienced poverty to imagine.
The Scottish Government are doing what they can to tackle child poverty. Their Child Poverty (Scotland) Bill sets tough targets to reduce child poverty levels. A £50 million fund will support innovative approaches to tackle child poverty. Free early years childcare has been expanded to 30 hours per week, and there is a new best start grant to provide financial support to low-income families. The popular baby box gives practical support to new parents. An initiative that has been unveiled recently is the Scottish child payment, which provides £10 per week for each child.
These measures are welcome and can ease the scourge of child poverty, but they cannot remove it. We need to use all the levers of tax and benefits to make the inroads required to remove it. The Scottish Government have power over 16% of social security spending, and that is better than 0%, but it is far from what is required to tackle this scourge on our society.
It is no accident—the Minister has heard this—that the roll-out of universal credit brings with it a spike in food bank use. In my constituency in the past year, 8,173 people relied on food bank assistance, of whom 2,192 were children. That is an absolute disgrace in this day and age, although I pay huge tribute to the food bank organisations in Ardrossan and Largs in my constituency, which do tremendously good work against challenging odds.
Brendan O'Hara
Had the hon. Gentleman wished to make a speech of that length, he would have turned up in time and perhaps brought one or two of his Scottish Conservative colleagues with him.
As we have heard, there are 1 million people living in poverty in Scotland, and almost one in four of them are children. In 2019, 250,000 children living in one of the world’s richest nations are growing up in poverty. That is nothing short of scandalous. Poverty is not inevitable. People not having enough money to feed and clothe their children is not something that happens by accident. The existence of poverty in a country as rich as ours is a direct consequence of political choices.
The decade of austerity was a political choice. Massive long-term cuts to the social security budget were a political choice. The widening of the holes in the social security safety net so that more families and children would fall through was a political choice. The ill-conceived and hopelessly financed introduction of universal credit was a political choice. Making the poorest, weakest and most vulnerable in our society carry the can, and bear the brunt of a financial crisis that had nothing to do with them, was a political choice.
No matter how we look at it, it is an inescapable fact that the Tory Government, and indeed the Liberal Democrats, who were in the previous coalition Government—they, too, are conspicuous by their absence today—are directly responsible for plunging children and families into poverty across Scotland and the UK.
Dr Whitford
Is it not a disgrace that it has not been confirmed at this point that the benefit freeze brought in when inflation was at 0.3%—it is now 2.5%—will be done away with, as originally planned in April?
Brendan O'Hara
I thank my hon. Friend for that intervention and will touch on that in a moment.
There can be no doubt that, as we have heard this afternoon, one of the main drivers of child poverty in Scotland has been the Government’s package of welfare reforms, which by any measure has been an abject failure. How else could one describe a package of reforms whose result is that 65% of all the children who live in poverty come from households where at least one adult is working? There is no need to take my word for it. The United Nations special rapporteur on extreme poverty said:
“Changes to benefits, and sanctions against parents...are driving the increase in child poverty”.
Some would still have us believe that it will take decades to turn things around and lift children out of poverty, but that is simply not true. There are measures that the UK Government could take right now that would immediately stop children and their families falling into poverty. One of those, which my hon. Friend the Member for Central Ayrshire (Dr Whitford) just mentioned, would be to end the benefits freeze immediately. The Government should then immediately stop the roll-out of universal credit, take their time, and find the money to fix the major problems in the system, which they are only too well aware of but choose to ignore.
As my hon. Friend the Member for Glasgow South West (Chris Stephens) said, the scrapping of the five-week minimum wait for a first universal credit payment must come to an end. The idea that poor people who are given advances need to pay them back serves only to plunge people further into debt. I congratulate the Select Committee on Work and Pensions on today’s report recommending putting an end to the two-child limit and its despicable rape clause. The idea that sanctions work for people has been proven untrue.
There is therefore a package of things that the Government could do immediately to stop the situation and turn it around. Of course, none of what I say will come as a surprise to the Minister, as we and others have been making the argument in this place for some time. We will continue to make it until the UK Government do something about it, or until the Scottish Government are given full powers over welfare or, better still, until they have them as an independent nation within the European Union.
My hon. Friend the Member for Motherwell and Wishaw (Marion Fellows) spoke passionately and eloquently about the situation in her constituency, but her most powerful words came at the start of her speech when she quoted her constituent, Derek Kelter, who said:
“Poverty destroys everything in your life.”
Consider that. It is all that politicians need to hear, because it cannot be unheard.
As always, I am delighted that the hon. Member for Strangford (Jim Shannon) has taken the time to be here. He made the powerful point that, although the debate is about Scotland, child poverty is not confined to Scotland but is rampant across every part of the United Kingdom. If it is a disgrace in Dundee, it is a blight in Belfast. If the UK Government cannot or will not do something about it, they should give the devolved Administrations the power to do so themselves.
My colleague, my hon. Friend the Member for North Ayrshire and Arran (Patricia Gibson), gave a powerful and moving personal testimony about poverty in childhood and how it leads to poverty of hope, aspiration and opportunity. Most movingly, she said that even though one might escape material poverty as an adult, the deep scars do not easily go away even in adulthood.
We have heard much this afternoon about what the Scottish Government are doing, and I am extremely proud that they are using the limited powers at their disposal to tackle child poverty. What sets them apart from the United Kingdom Government is the fact that they are determined to use every possible way to eradicate child poverty. The Joseph Rowntree Foundation recently reported that the building of 87,000 affordable homes since 2007 was a huge help, and that enshrining essential child poverty measures in statute is having an impact on how Scotland tackles child poverty.
My hon. Friend the Member for North Ayrshire and Arran was right to praise the new Scottish child payment, which will mean that £10 is given to every child in a low-income family that is in receipt of qualifying benefits. Initially, 170,000 children will be eligible for the payment, which will lift 30,000 children out of poverty by putting £1,000 a year into the pockets of their parents. John Dickie, director of the Child Poverty Action Group in Scotland, described the new payment as a “game-changer”, and he is right. The Scottish Government care about people and, despite the meagre resources available to them, will do what they can. Just think what they could do if they had full powers to create a more progressive, economically healthy and socially just welfare system.
It is worth recognising that the achievement of the Scottish Government in tackling child poverty has been singled out by the United Nations special rapporteur on extreme poverty, who praised their
“ambitious schemes for addressing poverty, including the Fairer Scotland Action Plan and the Tackling Child Poverty Delivery Plan”.
The rapporteur also praised the Scottish Government for using their
“newly devolved powers to establish a promising social security system, guided by the principles of dignity”.
Perhaps the Minister should take note of what the United Nations has said about Scotland and encourage the UK Government to follow our example.
Dr Whitford
Does the hon. Gentleman recognise that part of that has been the change from what used to be “social security”, to what is now called “welfare”? In the past, no matter whatever happened to someone, we knew that they would somehow be safe, but that has been removed. I served on a committee with the hon. Member for Washington and Sunderland West (Mrs Hodgson) to consider the children’s future food inquiry. We took evidence from children about the hunger that they suffered from at school—I kept having to put my glasses on to hide that I was crying. That is ridiculous in a country such as this.
Mr Sweeney
It is ridiculous. The scourge of things such as people having no recourse to public funds is a particularly horrific example of that. A couple of weeks ago a lady came to my surgery. She looked emaciated. I asked if she was all right, because she looked as if she was going to faint. I brought her in, sat her down, and we gave her a plate of shortbread. She scoffed it in front of us in a couple of minutes in a way that otherwise would have been impolite, but under the circumstances we were horrified that she could be so hungry that she was grabbing food in front of us. I could not believe that someone was in that situation because of having no recourse to public funds. She was destitute; she had left an abusive relationship with her child, and she was trying to find somewhere to shelter. There was no availability of homeless accommodation in Glasgow at that point. She was being helped by a women’s refuge charity, but it did not have long-term accommodation. That she was driven to that sort of desperation is just one example of the circumstances in which people find themselves.
The case of Alison in the report that I mentioned is typical. The hon. Member for Central Ayrshire (Dr Whitford) mentioned the concept of social security as a system that would save everyone, and the change from that to a welfare system—it is almost like a return to the poor laws of the Victorian era, with the idea that this involves some sort of virtue and vice.
My constituency has seen the biggest loss of anywhere in Scotland resulting from the change from the disability living allowance to the personal independence payment—£1.9 million a year out of the pockets of my constituents, and behind that figure is a lot of pain. This is about how fragile people’s lives are, not just about immediate need. Most people’s finances are delicate, and one unexpected crisis in their life—a failed relationship or job, an unexpected cost because their central heating has failed, or whatever it might be—could push them into relying on welfare. The truly horrendous thing is when they get into that spiral. Alison says,
“I vowed I wouldn’t take out credit cards or loans. But you find you get gobbled up, you have to do it because there’s no other way”.
People end up in the debt spiral, compounded by this Government’s universal credit policies. Instead of focusing on the immediate need for cash and income and the ability to bridge finances, there is the initial loan, which creates a spiral of decline as people dig themselves into compounded debt. That is the biggest tragedy.
In the case of Alison, we can see the build-up of debts. The milestones are indicated in the report. She is a lone parent with two sons, both of whom have disabilities. Alison loses her personal independence payment. Her son’s DLA is downgraded. Alison loses the carer’s allowance. Her son attempts suicide. As we all too often see, after she went to her Member of Parliament for help, the PIP and the higher-rate DLA were both reinstated—so it was an injustice from the start. But where was the pain? The pain was that her son tried to take his own life.
That is someone in Dundee. I cannot believe that it is happening in 2019. This is what we are up against, and it is seen as socially acceptable. All of it has been clouded out and displaced by the squabbling over Brexit and the high-level stuff that we have been consumed by. Going into this election campaign, I think most of us want to get down to saying, “This is a choice between death and life for so many people in this country.”
That is what is on offer here. It is not about what flags are where, what borders are where or what is going on in the constitutional sense; it is about whether we can get money into people’s pockets quickly through political decisions made here and elsewhere in this country, to improve lives. That is the priority for us all, I think; let us hope we can achieve that as best we can and make those arguments out there.
There is a multifaceted approach. Many hon. Members have talked about different aspects of child poverty. It is fair to say that it mostly tracks decisions made at a UK Government level, because the primary driver of the social security system, the dynamic in this country, is the Department for Work and Pensions. That is the primary driver, and the behaviour of incomes will track the decisions made there.
I will point out that there is a big opportunity in Scotland now, with the changes in devolved policy. I welcome the measures that have been taken. There has been a divergence between Scotland and the rest of the UK in terms of poverty after housing costs, but there is an interesting aspect to that. The reality is that that happens because more people in poverty in Scotland live in the social rented sector than in the private rented sector, and the larger social rented sector has long been considered a key reason why poverty after housing costs is lower in Scotland than in the rest of the UK.
We can see why that would happen. It is all about income. The rents are lower in social housing because there is more opportunity to control them—but that is still not going far enough. My hon. Friend the Member for Coatbridge, Chryston and Bellshill mentioned house building; I do not want to get into the quibbles over it, because I find them a bit tedious, but I point out that the records have been fairly consistent. If we look at completions per year, it was 3,617 units per year over the eight years of the Labour-Lib Dem Government in Scotland under devolution. Since then, it has been 3,316 per year under the 12 years of the SNP Administration from 2007.
However, there has been a significant drop-off in the rate of completions since 2010-11, which we need to address. Let us work together on this, because there is an opportunity to recapitalise Scotland’s social housing capacity, which is a key driver of bringing down poverty. Not only must we do that, but we must focus on rent controls. I am very proud of the idea of a Mary Barbour Act. Putting rent controls on not only the social rented sector but the private rented sector is a huge opportunity to reduce the overall cost burden on families living on the breadline. That is a major impact and we can make it now. Those policies are devolved. We can have an impact on that front. We can also improve aspects of poverty and access to work through transport improvements; removing the costs of transport and commuting can help families. However, we must also utilise the great capacity of financial powers to top up and enhance welfare benefits wherever we can.
The introduction of certain benefits has been positive, but we are seeing some teething problems. We know that the Scottish child payment is generally a great thing—it is a good idea and I congratulate the Scottish Government on it—but we also know that 58,000 children face losing out on the £520-a-year benefit on their sixth birthday, because their low-income families will stop getting the payment.
I know that that is to do with the transfer of information and so on between the DWP and Social Security Scotland, but we need to get a grip of it quickly. We need better management and better collaboration between the two Governments to get that sorted out, to ensure that we can lift another 30,000 children out of poverty more rapidly. I hope that that can be achieved, and that we can really make some inroads on it.
We must also look at the aspect of childcare—I will finish on this issue. One of my constituents, who I went to school with, wrote to me and said:
“My second child arrived in April this year. He is a very healthy child who I hope will go on to great things when he is older. However for the moment he is only 6 months old and when he is 9 months old my wife is to return to work after 9 months on maternity leave.”
They are a typical working-class Glaswegian family, with only relatively modest incomes. His wife is currently receiving the bare minimum statutory maternity pay, so as a family they are struggling financially, and have been since their first child was born. He states that he is,
“extremely dissatisfied with this mediocre maternity pay amount in what is supposed to be 5th largest economy in the world”.
My constituent’s main issue is how this new 30 hours of free child care scheme is being applied. His argument is that it is essentially
“robbing Peter to pay Paul”,
as resources for nursery are being pulled from the baby stage, from nought to two years, and reallocated to the toddler stage at two years-plus. He goes on to say:
“For a long time this government have been woefully inept at providing sufficient support to families, who particularly during the 9 month to 3 years stage…where the mother is required to return back to work as state/employer benefits stop at this point. How this 30 hour free scheme is being applied is just the icing on the cake.”
My constituent’s argument is that we cannot continue to allow this gap of nearly two years to continue. As it stands, his boy cannot get a place in nursery, because the cheaper ones are full and cannot take more, and the ones that are available charge a hefty day rate of £50 a day. It is completely unfair, and certainly does not make work pay for his family, so he wants that looked at. Access to childcare liberates people to get to work as well, so that is a critically important point in tackling this, and it cuts across Government, so let us hope something can be done.
I will not take any more time, but I think we can see that the problem is multifaceted. I hope that all Governments can work in collaboration to solve this intractable problem in our society. We know it can be done through political action, political agency and political choice, so let us make it a priority in this election campaign.
Will Quince
I will talk about in-work poverty, because that issue was raised. We take child poverty extremely seriously. I raise the additional 3.6 million people in work—around 1,000 per day since the Government came into office in 2010—because of the clear evidence that children in working households are not only less likely to grow up in poverty but have significantly better life chances.
To give the hon. Member for Motherwell and Wishaw the statistics, a child living in a household where every adult is working is around five times less likely to be in relative poverty than a child in a household where nobody works, and children growing up in workless families are almost twice as likely as children in working families to fail at all stages of their education. It is important to note that 44,000 fewer children are in workless households in Scotland compared with 2010, and that child poverty in Scotland remained the same or decreased across all four main measures in the three years to 2017-18, compared with the three years to 2009-10.
It is important to stress that the Government believe that tackling poverty requires an approach that goes beyond providing a financial safety net through the Department for Work and Pensions. That requires a collective approach that addresses the root causes of poverty and disadvantage to improve long-term outcomes for children and families, which is why we have taken wider cross-Government action to support and to make a lasting difference to the lives of the most vulnerable, who often face complex employment barriers. That is people whose ability to work is, for example, frustrated by issues such as a disrupted education, a history of offending, mental health issues, or drug and alcohol abuse. That is why our jobcentre work coaches work with external partners to offer individualised, specialist support to help some of the most vulnerable people in our society to turn their lives around.
Dr Whitford
I do not think anyone would argue with the Government’s going beyond mere income, but the problem is that income is still part of poverty, and therefore taking other action instead of dealing with a lack of income simply does not solve the problem.
Will Quince
It is not the case that we have just pushed people into low-paid and insecure, part-time work—I do not know whether that is the point the hon. Lady is making. However, it is important to stress that around three quarters of the growth in employment since 2010 has been in full-time work. We know, because I shared the statistics, that being in full-time work substantially reduces the risk of being in poverty. There is only around a 7% chance of a child being in relative poverty if both parents work full time, compared with 66% for two-parent families with only part-time work.
Several hon. Members raised universal credit, which I do not think I have time to touch on in the detail I would like. However, universal credit supports full-time work through smooth incentives to increase hours, a general expectation that lone parents and partners should work—unless caring for young children or a disabled person—and generous childcare subsidies. It is important to note that we have also gone much further to support working families than previous Governments.
Department for Work and Pensions
Philippa Whitford Excerpts(5 years, 5 months ago)
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Will Quince
My right hon. Friend is right. By removing the cliff edges, universal credit ensures that work always pays. That was not the case under the previous legacy system.
DWP Ministers always listen and act on feedback. That is why we recently announced that we will end three-year sanctions, initiate programmes to investigate how we can help those in work to progress, work with the Social Metrics Commission on a measurement of poverty, and no longer regularly review those on PIP who have reached state pension age. In addition, I continue to work closely with charities, stakeholders and Members on both sides of the House, using real-life experiences to shape improvements in the Department’s work.
We have worked with the real experts, the stakeholders, including Refuge and Women’s Aid, which have backed training for our work coaches to help victims of domestic abuse so they can better identify, refer and support those in need.
Will Quince
With respect, I will not give way to Members who have not been present for any of the contributions to the debate.
In terms of supporting victims of domestic abuse, we want staff to be able to better identify, refer and support those in need.
We worked with the Ministry of Housing, Communities and Local Government on the commitment to end rough sleeping through the homelessness and rough sleeping strategy and the Ministry of Justice to ensure prison leavers have access to welfare support from day one. Only last week the Secretary of State announced an extension to the UC pilot in HMP Perth and HMP Cornton Vale.
Inequality and Social Mobility
Philippa Whitford Excerpts(5 years, 6 months ago)
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Margaret Greenwood
My hon. Friend makes an absolutely crucial point and it is important that young people in Barnsley get the support that they need.
Dr Philippa Whitford (Central Ayrshire) (SNP)
The most shocking statistic that I have heard since I have been in this House was when we did an inquiry with the UK Faculty of Public Health, which said that 1,400 children a year under the age of 15 die as a direct result of poverty. If it was the roof of a high school, we would be doing something about it.
Margaret Greenwood
The hon. Lady is absolutely right; she raises a shocking example and highlights the importance of this issue. We know that 4.1 million children growing up in poverty is leading to such disadvantage and we have talked about the mental ill health and the effects on children’s educational attainment.
Universal Credit and Debt
Philippa Whitford Excerpts(5 years, 6 months ago)
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Neil Gray (Airdrie and Shotts) (SNP)
Thank you, Sir Henry. It is a pleasure to serve under your astute chairmanship, which has allowed a bit of latitude in the debate and for so many voices to be heard. I am very grateful to the hon. Member for High Peak (Ruth George) for securing the debate. She covered a lot of ground in her speech and I will try my best to sum up her contribution and the other important contributions that have been made.
The hon. Lady spoke about deductions being taken, apparently at random. I totally agree. She also mentioned carer’s allowance. She may not be aware that in Scotland we have looked to do something different on carer’s allowance. We are uprating carer’s allowance to better acknowledge, in some small way, the great work that carers do in our society. I encourage her to look at that.
The hon. Lady was right to say that universal credit has improved. There have been some improvements of late, and I am sure she would agree that the changes appear to acknowledge some of the problems that we have all been campaigning on, but do not go the full distance in terms of resolving the problems that are clearly still there—for instance, the two-child policy, the benefit freeze and the five-week wait. I will come back to some of those. She was also right to highlight the so-called major budget interventions that were made by the Government on universal credit. They do not come close to making up for the cuts that were made to it in the 2015 Budget, which made it almost unrecognisable from what was originally envisaged. I commend the hon. Lady on her speech.
The hon. Members for Waveney (Peter Aldous) and for Midlothian (Danielle Rowley) touched on the issue of separate payments. The Scottish Government and the previous Administration in Northern Ireland have looked to try to resolve that, and I would encourage the UK Government to look at that again and to stop insisting on charging for that.
The hon. Member for Oldham East and Saddleworth (Debbie Abrahams) is an authoritative voice on the subject, and it was good to see her here. She was right to draw on the evidence put forward by Philip Alston, the UN special rapporteur on extreme poverty. The UK Government have chosen to attack him personally, rather than to address the issues that he has quite legitimately raised.
My hon. Friend the Member for Inverness, Nairn, Badenoch and Strathspey (Drew Hendry) has possibly the greatest experience of us all on the impact of universal credit. He was right to raise the issue of the £2.5 million debt that Highland Council now finds itself in, and the £600,000 in administration costs that the UK Government should be paying up for. Of course, it is a triple whammy: UK Government austerity on public finances, UK Government austerity on personal finances and now the local authorities have that added burden on their services.
As the hon. Member for Strangford (Jim Shannon) did, I commend DWP staff, who try to resolve the issues we raise with them. They do their best to deal with those issues within the stringent policies implemented by UK Ministers.
The hon. Member for Great Grimsby (Melanie Onn) was absolutely right about advanced childcare costs—I have had many similar cases. I find it incredible that universal credit is paid in arrears, yet the bills that people have to pay on childcare must largely be paid in advance.
The hon. Member for Gloucester (Richard Graham) looked to paint a particular picture on universal credit. I encourage him to look at the Citizens Advice Scotland report and briefing that was available ahead of the debate. I think it would contradict and enlighten him greatly.
My hon. Friend the Member for North Ayrshire and Arran (Patricia Gibson) pre-empted much of what I have to say on the five-week wait. I appreciate her intervention. My hon. Friend the Member for Glasgow South West (Chris Stephens) dissected the DWP’s propaganda regarding universal credit that has been out of late.
I also commend the hon. Members for Easington (Grahame Morris), Bristol South (Karin Smyth), Makerfield (Yvonne Fovargue), Leigh (Jo Platt) and Merthyr Tydfil and Rhymney (Gerald Jones). This has been a very broad debate, with many good contributions.
As has already been highlighted, there are a number of issues at play on universal credit and debt. I am grateful to Scope, Shelter, the Child Poverty Action Group, StepChange and Citizens Advice Scotland for their briefings.
The first issue is the five-week wait. I appreciate that the Government have at least partially acknowledged that there is a problem, by looking to extend certain legacy benefits and to expand advance payments. However, much of the run-on for legacy benefits will not happen until next year, and no run-on help is available for those who are in touch with universal credit for the first time. Those fixes are not in themselves going to solve the problem, as the evidence from CPAG and Citizens Advice Scotland confirms. That is why I have asked Ministers to look at making what is now the assessment for an advance the first UC assessment, and making the advance essentially the first payment. If the recipient is shown to need the money at that point, why would the Government deny them that as part of universal credit, rather than financially penalising them for months after? I do not think there would be a major cost implication, other than to shift payments to the front end of the claim instead of further down the line.
Payment of housing costs to landlords is a major issue for both tenants and landlords. My local authority, North Lanarkshire Council, is having serious problems with the inflexibility of the current system on when rent payments are made. That means that I have received loads of cases where council tenants are getting chased for rent arrears, when the delay is in fact caused by the DWP. The DWP has acknowledged that issue, but there is no date for when it will move from a four-weekly to a monthly payment system. I encourage the DWP to work with local authorities and other housing providers to establish a more flexible system that enables them to know for certain when rent is to be paid.
The benefit freeze has already been raised. It is having a major impact on indebtedness as part of universal credit. While most working-age benefits have been frozen for four years, living costs have risen sharply with higher than anticipated levels of inflation. There is not an expectation that the freeze will continue beyond this financial year, but the Treasury is going to more than recoup its estimated savings from the policy this year. Quite frankly, low-income families have paid more than their fair share towards this Government’s policies and the benefit freeze should have ended this year. What estimate have the Government made of the impact that their benefit freeze has had on low-income families and poverty levels? What other detrimental impacts has it had?
Direct deduction rates must be looked at again. The hon. Member for High Peak was right to focus on that issue. If only DWP policy were to match that of the Cabinet Office, as my hon. Friend the Member for Glasgow South West said, which advocates fairness in debt collection and an understanding of the impact that debt collection processes have on people. As the hon. Member for High Peak said, that could start with the DWP understanding what debt repayments are actually for, so as to better understand the circumstances that the DWP Ministers should have a duty of care to support.
Dr Philippa Whitford (Central Ayrshire) (SNP)
Does my hon. Friend not think it absolutely shocking that if a terminal patient accrues debt, that passes on to their family? People should be defined by their medical definition and not the arbitrary six months that exists at the moment.
Neil Gray
My hon. Friend is absolutely right. Of course, she will know that a different system is being created for that in Scotland. I ask the Minister to look at the definition of terminal illness that has been adopted by the Scottish social security agency, which I think would help to deal with some of these problems.
Currently, deductions for indebtedness can be up to 40% of the standard allowance, and the Government are looking to reduce that to 30%. If we accept that the standard allowance is barely enough for anyone to live on in the first place—figures from the Joseph Rowntree Foundation show that adults without children on UC receive only 40% of the minimum income standard, while adults with children get just 60%—reducing that by a third is just going to exacerbate indebtedness. Most people would struggle if their income was reduced by a third without warning or negotiation, but I also acknowledge that there is a debt, so some effort must be made to repay it. There should be an affordability test and discussions in advance of a deduction being applied, and the recipient should be afforded expert advice and advocacy during that process. That surely has to happen if the DWP is going to give people help and breathing space for indebtedness.
As part of the summer pilot, the Government should consult extensively with key stakeholders, the devolved Governments and the expert charities, and those in receipt of universal credit themselves, particularly disabled people, to make sure that the system is got right and that no one is further impoverished as a result of universal credit.
Speakers from across the House have demonstrated in this debate, once again, that universal credit is still not working. It is time for the Government to listen, to restore and expand the funding available to universal credit and to fix the inbuilt technical issues and flaws that have been raised today and previously, which are contributing to a rise in food bank use and the impoverishment of those both in and out of work.
Employment and Support Allowance: Underpayments
Philippa Whitford Excerpts(5 years, 9 months ago)
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Sarah Newton
As I have said, we have repeatedly come to the House and discussed with hon. Members what is happening. It is really important, as I have said, that we do the right thing as urgently as possible.
I will answer directly the question about additional estimates. Because we want to be so thorough in making sure that we are not leaving anybody out of this exercise, we did some additional sampling. We were not satisfied that people had always been given the right benefits since 2015, even though new measures were brought into the Department, and that is why there are some additional numbers. I would have thought that Members on all Benches would welcome the fact that we are being so thorough as to make sure that everybody who can benefit will do so.
Dr Philippa Whitford (Central Ayrshire) (SNP)
ESA passports people to other benefits, so when they get the backdated ESA payments will they be reimbursed for the other benefits they have missed out on?
Sarah Newton
If people were eligible for additional disability premium, then absolutely they would be backdated and going forward they would have those. Other Government Departments have other schemes which can benefit people who claim ESA, but they are the responsibility of those Departments.
Universal Credit
Philippa Whitford Excerpts(5 years, 11 months ago)
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Alok Sharma
When I met parliamentary colleagues to discuss the two-child policy, the meeting was chaired by the Bishop of Durham. We have made changes to the policy but, overall, this is about being fair to the taxpayer while being sustainable at the same time.
Dr Philippa Whitford (Central Ayrshire) (SNP)
Some EU citizens are now being refused universal credit as they cannot produce proof of their residency rights. This particularly affects women in caring roles who have worked less and paid less tax. I welcome the Secretary of State’s wish to reduce universal credit’s impact on women, so will the Department review this scandal before it becomes a new shame on universal credit?
Alok Sharma
A clear set of criteria determines whether someone can claim universal credit. If the hon. Lady has a specific case or specific sets of cases, she should come to discuss those with me.
Oral Answers to Questions
Philippa Whitford Excerpts(5 years, 11 months ago)
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Justin Tomlinson
I am very sorry to hear about that case. The hon. Lady’s constituent should have had access to an advance payment, and if she was down to her last £10, it should have been made on that day. If the hon. Lady will write to me with all the details, we will look at that specific case to see what went wrong.
Dr Philippa Whitford (Central Ayrshire) (SNP)
I welcome the Secretary of State’s announcement about examining the impact of universal credit on women, which, through women, often affects children. Will she look again at the single household payment, and consider separate payments to protect women from financial coercion, control and abuse?
Justin Tomlinson
This matter relates mostly to domestic abuse. I have been doing a huge amount of work with Women’s Aid, Refuge and ManKind to increase awareness that split payments are available in those circumstances, and to ensure that more work is done to identify, refer and support such claimants.