(5 years, 10 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
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I will make some progress, if that is okay.
As I said earlier, I met the Employment Minister and talked about this issue, and he assured me that one can request a split payment. He even boasted that the system is designed so that a person will not be informed that their partner has made a request for a split payment, but I imagine most people will notice if an amount of money is missing from their bank account when the payment comes in. That just shows that the policy has not been designed with any thought to those in abusive relationships, and that the Government do not understand what life may be like for someone in such a relationship.
The Women’s Aid survey showed that 85% of abuse survivors would not dare apply. That is why having it as the default is so important. Long before women reach the point of leaving a home, they have no money in their purse to go for coffee with friends or to go out with family, and they become isolated. Nobody is around them to offer a bed or advice. That is the start of it.
I thank the hon. Lady for her comment. Absolutely—there is a whole host of reasons a woman might not be able to request it, and the Government seem unable to grasp that.
Under the system, survivors of domestic abuse are required to request split payments—a process that might put them at greater risk of further abuse, which is clearly preventing requests. Women, often accompanied to appointments by abusive partners, will fear repercussions when the abuser notices a change in the payment amount. The Department has said to the Select Committee that it recognises the risk that requesting split payments poses to those experiencing domestic abuse, but it has made no significant moves to rectify the problem.
I was not present when that evidence was given, just when the Committee was considering it, but I will cover many of those points as I proceed.
With respect to domestic abuse, we are covering physical, sexual, psychological, emotional and financial abuse, and controlling and coercive behaviour. We are particularly looking at economic abuse. We all agree that the solution to domestic violence is complex and should ultimately be delivered through the judicial system, but the Department has an incredibly important role, not just through UC but through the wider work of the Government. The Government are fully committed to taking the issue very seriously, and I expect that to have full cross-party support. The Department will continue to feed into progress towards the domestic violence and abuse Bill. I represent the Department on the inter-ministerial group on violence against women and girls, and we regularly work with key stakeholders such as Women’s Aid, Refuge and the ManKind Initiative—I shall give more details on that work as I proceed.
I was particularly touched by the case that the hon. Member for Midlothian raised. Today I met representatives of Women’s Aid and Refuge to talk specifically about the journey in the jobcentre process. It is now mandatory for all work coaches to have training to recognise and identify victims of domestic abuse and those at risk, and to offer support, which can include signposting to national partnership organisations such as Refuge and Women’s Aid, but also to local organisations—every town is different. That approach relies on people being willing to be referred, but they are offered that menu of signposting options.
In her case study, the hon. Lady mentioned financial barriers to people leaving their household. The hon. Member for Sheffield, Heeley (Louise Haigh) said in an intervention that it would be totally unacceptable for the Government to put up a barrier. That is a really key point, so we ensure that people who wish to leave their household can be put immediately on the universal credit single payment in their own right. If they are already on a legacy housing benefit, they will get two weeks of additional housing benefit money up front, to give them immediate cash. While they are there, they will also have 100% access to the advance payment on day one, as well as the signposting.
We do not encourage people to stay in such a household, so we put a big emphasis on partnership working and on talking to those with expertise in the area. However, those who do wish to stay, for whatever reason, can request split payments. The hon. Member for Midlothian cited a figure of 15 households, but the figure is actually 20. At the moment, the majority of people going through UC are single claimants, so it is not an exact science, but we will continue to look at the statistics. I take the point that the data is limited; it tells us whether people are now successfully receiving split payments, but I would like more—that is a given. As a Minister, I will push for more data because we will need it to target support. UC design is not a simple process.
As the Minister knows, I introduced a ten-minute rule Bill on the issue: the Universal Credit (Application, Advice and Assistance) Bill. In my work as a breast cancer surgeon I have seen the effects of current policy in action. Does he recognise that collecting data on women who have applied would just lead to more complacency? We know from the survey that 85% of women would not dare to apply.
The data is not the solution, just a part of it. I am just being supportive on one of the recommendations. I absolutely accept the hon. Lady’s point.
On financial support, if someone has financial housing commitments such as rent or a mortgage for their existing household, we can, in effect, make double payments of housing benefit for up to 26 weeks automatically, or up to 52 weeks at discretion. Again, we are doing everything we can to remove the financial barrier to people moving away from their household.
We will be looking at that. I understand the hon. Lady’s point. I want to engage with the experts—the ManKind Initiative, Women’s Aid and Refuge—to look at it and identify the problems. I am not in charge of UC; I am in charge of trying to make it better for those with complex needs, including victims of domestic abuse. That is a real priority for me.
I welcome the work of the Work and Pensions Committee and the fact that its report states:
“Since 2010, the Government has begun to make great strides in tackling domestic abuse… It has also demonstrated a clear commitment to being more supportive of survivors of domestic abuse.”
Although we are not everything, we play an important role, and I take that seriously.
I am conscious of time, so let me address the specific point about split payments. I welcome the fact that Scotland wishes to try them. As it stands, anybody who is a victim of domestic abuse can be given a split payment. I accept the point that there are then challenges—not unreasonably, the hon. Member for Midlothian said that the current recipient would notice that it was potentially half of the income. We need to look at Scotland because we have to learn from the test and look at the unintended consequences.
Those groups that campaigned for a split payment do not agree on how to split it. It is not the case that everybody would simply do it 50:50. If the state arbitrarily says that somebody should have 70% and somebody else should have 30%, that could have unintended consequences. That may not mean that it is not the right way to do it, but it is why we have committed to give support to the Scottish Parliament to do its pilot. The pilot will cover a sufficiently large area for us to draw good information from it and decide whether split payments are the way to go or whether—because of unintended consequences, and despite the good intentions—they are not.
The answer to the specific question of whether the Scottish Government have introduced suggestions on how to do split payments or a plan for legislation is, “Absolutely not.” I suspect, in their defence, that that is because the issue of how the payments are split is so complex. However, they will get our full support to make whatever they do work. Just to be clear, the principle of having household income is not new to UC; it has been the case for legacy benefits since the dawn of time. That does not mean that it is right, but we will look closely at the Scottish Government.
No, because I have only one minute left.
It is a shame that this debate was not a longer one in which hon. Members could have expanded on the points they made today in interventions. However, there is a real commitment from me as the Minister that we will work with the experts and the Scottish Government to see whether lessons can be learned from their pilot. In the immediate future, we are looking at what will happen and what we can do to identify and support those who are in danger of domestic abuse or are current victims of it, so that we can do our bit. It is an issue that the Government take very seriously and will continue to push, not just in this area but through the forthcoming domestic abuse Bill. I pay tribute to the hon. Member for Midlothian, who has been a dedicated worker in this area.
Question put and agreed to.
(6 years, 1 month ago)
Commons ChamberMy hon. Friend raises an important point. The Government are investing hundreds of millions into research and development to make sure that we fully understand the potential of autonomous vehicles and make sure that they really do benefit disabled people.
In the light of all the controversy around the quality of PIP assessments, would it not save time to get people’s medical records automatically, thereby reducing face-to-face assessments, appeals and the hardship for beneficiaries?
The hon. Lady raises an important point. As part of our continuous improvement of PIP, we work closely with healthcare professionals so that we can speed up the process and make sure that we get all the right information to make the best possible decision the first time around.
(6 years, 2 months ago)
Commons ChamberUrgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
Each Urgent Question requires a Government Minister to give a response on the debate topic.
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Thank you, Mr Speaker. As has been mentioned, it is six months since the Government agreed to change the position of people suffering from mental health issues not being awarded mobility support. I too have several veterans suffering from PTSD, including one particularly tragic case of a young man who was involved in two explosions on his patrol, where he was covered in blood, diesel and body parts. He has had to sell his car, but he cannot face getting on a bus because the stench of diesel brings on flashbacks. His application for mobility support was turned down. When will the Government bring in the changes and the new guidance so that people can get a fair assessment?
I appreciate the personal story that the hon. Lady has just told me. We are gradually getting in touch with all the people who might have been affected by the fact that I decided not to appeal so that the claimants could be supported, and her constituent will be contacted in due course. We have been working through the guidance, and the first set of people will be getting paid by late summer. To follow up on the point that Mr Speaker raised, I took legal advice before I came into the Chamber today about what I could say about an ongoing legal position. The advice was that I should not be talking about an ongoing legal case, but obviously when we get that decision through, I will either be back here with a statement or making a written statement to explain what is going on.
(6 years, 3 months ago)
Commons ChamberSome 3.1 million PIP decisions have been made, and 9% of them have been appealed and 4% of those have been overturned. I am absolutely determined to make sure that we make the right decision every time; we should get it right the first time, and we have put in place a whole series of actions to make sure that that is the case.
The Secretary of State accepted that there was a failure of assessment of people with mental health conditions and said that this would be remedied, but we have been told by our job centre that guidance has not changed, and a young man who is suffering from appalling post-traumatic stress disorder in my constituency is still being treated as if he does not qualify. When will guidance actually change? We are still producing more injustices.
As I said in answer to an earlier question, we insist and make sure that the healthcare professionals undertaking the assessments are appropriately trained and have the right expertise, and the guidance is kept under constant review to make sure we get it right first time.
(6 years, 3 months ago)
Commons ChamberMy hon. Friend mentioned working with groups such as the Motor Neurone Disease Association. As many Members know, my experience has been walking that journey with women with breast cancer. I always used to say to them, “Make sure that you put every day in your back pocket when you go to bed, and say, ‘That was a good day.’” In Scotland we are trying to extend the period so that we recognise people as terminally ill for a much longer period so they will receive their benefits. To waste the months that someone might have left by haggling about money while the days are ticking away is just cruel and uncivilised.
My hon. Friend has identified the nub of the issue. People literally do not have time for this.
I recently set up an all-party parliamentary group on these issues, which is supported by many of the organisations that I have mentioned, but the issues are still ignored. This evening, as I relay to the House the specific impact that universal credit is having on people with terminal illness, I ask the Minister not to follow the same path, but to listen carefully to the very real experiences of the families who face the prospect of losing loved ones, yet have to watch them fight for financial support.
Before the introduction of universal credit, terminally ill people with six months or less to live were able to fast-track their benefit claims to ensure that they could spend at least their last weeks and months with the support to which they were entitled. That has not been the experience of those who are unfortunate enough to be terminally ill in an area where universal credit has been rolled out. It is the worst kind of postcode lottery, and it will reach many more places if the Government proceed with the roll-out in its current form.
The first issue that I want to discuss is the Government’s legal definition of terminal illness. The Motor Neurone Disease Association and Marie Curie, among others, tell us that it seriously restricts access to benefits for those living with a terminal illness who do not fall into the “last six months of life” category specified in the Welfare Reform Act 2012. People with conditions such as terminal heart failure, chronic obstructive pulmonary disease, MND and other terminal conditions who may live longer than 10 months, but equally may die in a shorter period, must apply for social security in the usual way, and will be subject to all the normal assessments, which—unbelievably—can include work assessments.
People living with such conditions, and their families, face a significant financial burden as a result. Some 82% of people with MND describe the financial impact of the disease as “very negative” or “moderately negative”. People of working age and people with children living at home are particularly vulnerable to negative financial consequences. I note that people with MND will once again be protesting outside the House on 16 May, and I look forward to supporting them there until there is movement on this issue.
The financial effect of MND on those living with the condition becomes more difficult to manage as the disease progresses and a person’s care, support and equipment needs increase. On average, the cost of living with MND is an extra £12,000 a year, not including loss of income. So why should an arbitrary time limit of six months be attached to the status of the terminally ill? It is a timescale that means nothing to people with degenerative conditions with no cure, who have no hope of improvement. There is no evidence-based reason why the Minister cannot choose a different path, as the Scottish Government have done with their new limited powers relating to disability benefits. They see support for people who are terminally ill as a complex, sensitive and difficult issue, but they have put dignity and respect at the heart of their Social Security (Scotland) Bill. Jeane Freeman, the Minister for Social Security, has said:
“We are very aware that behind the decisions that we make, are thousands of people who we put front and centre of our actions. The central principle is that terminally ill individuals should be provided with the support they need, quickly. ”
That is all that we ask of this Government. We ask them to see those people as people, and not as the number that they represent on a spreadsheet.
The Scottish Government’s amendment to the Bill was framed carefully to ensure that the sensitive and difficult conversations between an individual and their clinician, which are required in these difficult circumstances, are held when they are medically necessary to allow for optimal patient care. Providing for maximum clinical judgment is the best way to achieve that.
The Scottish Government have opted to set no arbitrary timeframe to the definition of terminal illness; instead they allow the chief medical officer, in consultation with the registered medical practitioners, to set a framework in guidance. It is this guidance that will decide when an individual has a progressive disease that can reasonably be expected to cause that individual’s death. Both the chief medical officer and the chief nursing officer, and national experts, have reviewed and fully support the Scottish Government’s proposals as the best way to achieve timely support for those with terminal illness.
Also embedded in Scotland’s Social Security (Scotland) Bill—and therefore enshrined in legislation—are clear “special rules” for terminal illness cases. These guarantee terminally ill people quick access to disability assistance, ensuring that an individual does not have to satisfy a qualifying period in relation to their diagnosis and that they will not have to undergo further assessments to prove that they have a terminal illness. The awards will be calculated at the latest from the date of application and they will automatically get the highest rate of financial support to which they are entitled. That is in line with the Scottish Government’s commitment to the principle of providing support when it is needed. It maintains fast-tracking for the people with terminal illness to remove barriers to their receiving care as soon as possible.
Marie Curie has echoed its support of the Scottish Government and would like to see the UK Government follow their lead in setting a fairer definition of terminal illness. It asks that decisions around a terminal illness diagnosis be clinically made and supported through the issue of a DS1500 to a patient by their health professional. Ahead of this debate, Marie Curie told me:
“With the Scottish Government defining terminal illness on clinical judgement and Universal Credit remaining the purview of Westminster, we are concerned that differences between the two systems will create administrative problems. If Westminster were to follow suit and amend its definition of terminal illness to a clinical judgement, we could avoid a potentially harmful situation when Universal Credit is almost fully rolled out.”
Marie Curie is joined by 58 clinicians who signed a letter in support of changes to the Social Security (Scotland) Bill.
Similarly, MND told me:
“The UK Government should adopt the definition of terminal illness set out in the Social Security (Scotland) Bill 2018”,
and that
“The DWP should update its guidance to assessors and claim managers, to emphasise that the validity of a DS1500 signed by a health professional should not be challenged.”
I therefore have some asks for the Minister. I ask her to listen—to really listen—to what she is hearing from people suffering from these terminal conditions and really listen to the professionals and clinicians. I also ask her to scrap the arbitrary six-month definition. It means nothing to 90% of people with a condition medically classed as, or linked to, a terminal illness.
Even those who have been identified as terminally ill, as defined by this Government, with less than six months to live do not escape the nightmare of universal credit. That includes 65,900 people across all the nations of the UK. They continue to experience delays upon delays. I join MND and Marie Curie in their calls for cuts to those unreasonable delays.
Therefore, I have another ask for the Minister. The benefits for those with a terminal illness under universal credit should be fast-tracked, ideally paid in advance and within a calendar week of when the application has been made, and a DS1500 given to the DWP. The current wait of five weeks for “fast-track” support is simply unacceptable.
There are also those on universal credit who have lost the right not to know they are dying. Instead, they are forced to complete the forms, which force them to answer the question, effectively saying, “Yes, I am dying.” Before the introduction of universal credit, advocacy could do this for them. What possible reason could there be to remove this right? A completed DS1500 form should be considered sufficient evidence by the DWP that a person is terminally ill and will not get better, and that their condition will deteriorate from that point until their death. A DS1500 should be allowed to be issued on behalf of a person and accepted by the DWP in the same way as if submitted by the applicant themselves.
So I have another ask for the Minister: the DWP should immediately establish a process to ensure that DS1500s can be submitted by a third party without the explicit consent of the claimant.
Then there are those people left with a devastating cut to their income due to the removal of the severe disability premium. Without any change in their diagnosis, such people are left around £2,000 a year worse off, and the sad reality is that they will not even live a year as this Government’s definition of terminally ill means a predicted life expectancy of less than six months. I have another ask: the DWP should urgently review its policy on the inclusion of severe and enhanced disability premiums within universal credit to ensure that disabled adults do not experience a reduction in vital support. Perhaps one of the most shocking issues is that people with less than six months to live have been asked to meet a job coach to justify their unemployment because the guidelines around forms are unclear. Someone with a terminal illness, as evidenced by a DS1500, should not be required to undergo any face-to-face assessment for support under universal credit or undergo any further assessment or reassessment. I ask the Minister urgently to set out clear guidelines on that because the guidelines are not working.
These are just some of the issues that people with a terminal illness face because of this Government’s failure to put dignity and respect at the heart of their welfare policies. I ask the Minister to imagine what it must be like to face all this stress in the last months of life—a time when the person and their family should be cherishing every precious remaining moment together. People should not have to jump through welfare hoops and spend their final weeks and months dealing with a broken system. Getting financial support is not an option for them; it is a necessity to keep a roof over their head.
I fully expect the Minister to tell me that I am wrong and that all is well with the system, because that is all that I have heard whenever I have raised such issues. Perhaps we will even hear that, despite the evidence and the testimony of all the groups involved, that this is simply scaremongering, and I have heard that response on the many times I have raised this issue. I have raised it at Prime Minister’s questions three times in a row. I have raised it many more times in debates, and I have heard the claim that terminally ill people are being served well. Terminally ill people and their families watching this debate are seeking an answer.
The reality is that, because of this Government’s failing welfare system, people are spending their last days fighting a cruel and broken system. The Minister has the power to change that. She can do as the Scottish Government have done and think about the people concerned, about their debilitating illnesses, about their families and their children and about their final days. I believe that the Minister wants to do that, and this is her opportunity to prove it. She can make a start by making the changes that I have outlined.
The hon. Gentleman has asked me to respond to a lot of questions, which I really want to do, and we have very little time left this evening, so let me say from the outset that I am happy to meet him face to face to go through anything that I have not covered to his satisfaction this evening. It is great that he has set up an all-party parliamentary group. I have worked directly with those stakeholders and charities myself, and I would be happy to meet him in his role as the chairman of the APPG to go through some of the issues. Inevitably, in the time left tonight, I am not going to be able to cover everything that I would like to cover.
I want to emphasise that, once we understand that someone has a terminal illness, we do not want them to have to fill in lots of different forms. We want them to be able to concentrate on what really matters to them in the time that they have left. I know from this debate and others that the hon. Gentleman has raised concerns about the DS1500, so it is important that I explain a little about the process to the House. Claimants and healthcare professionals use the form—it is not a claim form; it is a form—to tell us about a terminal condition. It is not mandatory for claimants to complete the form. It is an opportunity for them to tell us about their condition, and it helps us to ensure, as soon as we know that they are terminally ill, that we can waive all the requirements that are usually associated with universal credit relating to conversations with work coaches about employment. All that is waived. Right from that moment, there is a fast-track system. Once we receive the DS1500, people are immediately entitled to those benefits.
The hon. Gentleman mentioned a lack of clarity in the DWP’s handling of these issues. He has raised this matter before, and we took it really seriously. We updated the guidance—a copy was put in the Library in February—to ensure that all the medical professionals and people in the DWP understand the processes, so that people can be fast-tracked.
I am not going to give way, because I only have a couple of minutes left and every moment I give way means that I cannot answer the questions that I have been asked. However, I sincerely want to carry on this conversation. I will answer as many questions as I can tonight, but I know that Madam Deputy Speaker will ask me to sit down shortly. We can carry on the conversation, however.
There was a conversation this evening about the definition of terminal illness. Our definition of someone who is terminally ill is that they have a progressive disease and a life expectancy of six months or less. We understand that this is not an exact science, and there is much debate among medical professionals about this. We do not ask claimants to give us evidence of their life expectancy, so terminally ill claimants may well remain on benefits for longer than six months. For example, with personal independence payments, around 40% of terminally ill claimants remain on benefits for longer than a year. We take a pragmatic, person-centred approach to these decisions. These rules were first introduced in 1990. We have regular conversations with the medical profession, and we want to ensure that people are given an absolute guarantee of the financial support that they and their families need and that their claims are handled swiftly to reduce the burden on individuals.
Having listened to the medical profession, we understand that six months strikes about the right balance between providing the support that people need and confidence in the prognosis, because the longer the prognosis, the less likely it is to be accurate. Making the period longer than six months would therefore make the diagnosis, and potentially the conversation between doctor and patient, that much more difficult. The Department works very closely with doctors and clinicians, and we are always looking for ways to improve the experience for any of our claimants and for any of our benefits.
We know that people need support with the DS1500 form. Our staff can offer support and we have consent arrangements in place so that third parties—excellent organisations such as Macmillan—can work directly with us. We have visiting services so that someone can go to a patient’s home to go through this, and the Department has well-established appointeeship arrangements for people who are unable to manage their own affairs.
With regard to how universal credit works in this situation, as soon as we know that someone is terminally ill, they will receive an additional £318.76 a month in their universal credit entitlement, paid from day one, and there are no work-related requirements at all.
I am out of time and have not been able to address all the work that we have been doing, listening carefully to our partners and making sure that the interface between universal credit and the legacy benefits of employment and support allowance and personal independence payment runs as smoothly as possible. It is incredibly important that we listen and learn and make improvements, so that this tragic situation that people find themselves in is dealt with as sensitively and swiftly as possible. I am absolutely determined to do that and will be very pleased to meet the hon. Gentleman and the all-party parliamentary group to go through their questions in more detail and provide further information and assurances.
Question put and agreed to.
(6 years, 5 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
I beg to move,
That this House has considered the effect of the Welfare Reform and Work Act 2016.
It is an honour to serve under your chairmanship, Mr Gapes. This debate marks two years since the passage of the Welfare Reform and Work Act, which received Royal Assent on 16 March 2016. It brought in several key changes: the four-year benefit freeze, a further reduction in the benefit cap, a cut to the family element of tax credits and the introduction of the two-child limit, and removal of the work-related activity group component from employment and support allowance. It also saw changes in the work allowance within universal credit, leading to a 63% taper, and further housing benefit cuts. Those cuts had hit people in the private rented sector previously, but were now brought in to hit the social rented sector.
The problem is that we cannot look at the 2016 Act in isolation, because it comes on top of the cuts in the Welfare Reform Act 2012 and, in fact, Budget changes going right back to 2010. We have seen eight years of relentless attacks on the most vulnerable in our society. Two groups particularly hit were the disabled and children. In 2008 incapacity benefit was changed to employment and support allowance; and, as the National Audit Office has highlighted today, 70,000 people were underpaid because their right to income-related employment and support allowance was not recognised. The Government are undertaking to pay back all that money by next year, but people have spent nine years without money that they were owed. Interestingly, the Government will pay back only to October 2014 and not any earlier arrears. That is a bit funny, because when we have to pay the Government, somehow there is never a statute of limitations.
In 2013 there was the move from disability living allowance to personal independent payments. Those are meant to cover the additional costs relating specifically to disability; they are not meant to be work related. They are also meant to allow someone with a disability to study or work and achieve the best that they can.
Both employment and support allowance and personal independence payment require a fair assessment of someone’s disability, or indeed ability. Instead, people got work capability assessments. Those are really the key problem for people who are disabled. The process was outsourced initially to Atos and is now outsourced also to Capita. The Government aspire to depend predominantly on face-to-face assessments. A key issue is the gradual reduction in sourcing other evidence, despite the claimant assuming that the Department for Work and Pensions will source other evidence regarding their underlying condition.
I can accept that we would want to look at someone’s capability and not pigeonhole them, but knowing what underlying condition they have can tell us whether that is something that will change, improve or never improve. There have been repeated assessments of people with chronic conditions and deteriorating conditions, congenital abnormalities and permanent injuries, such as amputations or spinal injuries. People with terminal diseases have been recalled for repeated assessments.
There is a particular problem regarding the assessment of people with mental illness or learning disability. I am sure that every MP will have had cases in which there has been poor recognition of how a mental illness affects someone’s abilities. I had to raise in this place the case of a constituent who had complex post-traumatic stress disorder after serving in the Gulf war—to the point where he struggled ever to leave the house. He was on DLA at the highest rate. He was moved over to PIP at the highest rate and then called for reassessment, at which point he was moved to the lower rate. He appealed, which of course many people do because of the high rate of change of assessment when people appeal. That shows how poor the original assessments were.
However, following my constituent’s appeal, all his points were taken away, and what my caseworker heard back when inquiring was, “PIP is really for people who can’t carry out the basic tasks of daily life. People with mental illness can of course wash themselves, cook, clean and shop.” Well, that is said by someone who has never seen profound depression, which looks like the batteries have simply been taken out of someone. That issue appears again and again in all our casework inboxes. The other conditions we are talking about are those that wax and wane. Someone may attend for assessment on a good day and they are often bullied into saying what they can achieve on their best day. That is not a realistic assessment of what their life is like.
As Scotland takes over some of the benefits, we are aiming to treat people with greater dignity. We will ensure that we have sourced the medical information and try to ensure that the assessor is equipped with the clinical skills to assess the person they are viewing, because that process has become really traumatic for people who are suffering from disability.
Under PIP, more than half of people have lost some or all of their benefits, particularly the mobility element. Many of us have been involved in trying to hold on to mobility cars for some of our constituents. We have seen the distance that people need to be able to walk reduced to 20 metres. Frankly, that is the distance from the car park into the supermarket; it is not a distance that would allow someone to walk to their nearest bus stop, or to walk from the bus stop at the other end to wherever they are trying to go. Then people’s unpaid carers lose carer’s allowance. That means that the impact on a disabled family can be huge.
Is my hon. Friend aware of a recent report commissioned by the Equality and Human Rights Commission called “The cumulative impact of tax and welfare reforms”? It showed that, overall, the changes to taxes, benefits, tax credits and universal credit meant that households with at least one disabled adult and one disabled child would lose more than £6,500 a year, which is more than 13% of their annual income.
I am, and I thank my hon. Friend for that intervention. The problem with all the changes, going right back to 2010, is that there never was a proper cumulative impact assessment to look at what changes on top of changes have done and what happens to people who are in more than one group. We know that lone parents are impacted by changes, but what if a lone parent is also disabled?
Does the hon. Lady agree that all the changes in the welfare legislation should be seen in the broader context of other policies, such as the rise in the national living wage, which is lifting some of the lowest paid people in this country out of poverty?
I will come to that point later in my speech, if the hon. Lady is happy to wait.
In addition, carers are now subject to conditionality and treated as jobseekers, regardless of what their caring commitments are. That means that they may be open to sanctions. In 2013 we had the infamous bedroom tax, which thankfully in Scotland we have been mitigating, but which has impacted on people with disability, who will lose 14% of their housing benefit if they are deemed to have a spare room. Many disabled people require additional space, whether that is for complex equipment or because they need to sleep separately from their partner, or because they routinely or occasionally require someone to stay over when they are not well.
With the Welfare Reform and Work Act we also saw the removal of the work-related activity group component from employment and support allowance. We spoke out against that repeatedly. Taking £30 a week away from someone who has been defined by DWP assessors as not fit to work will most certainly not get them back into work. That impacts particularly on people recovering from major illness. As a cancer surgeon, I have seen for myself the impact on people who have gone through a year of intense surgery, radiotherapy and chemotherapy and the time it takes to get back to work. We are talking about extra heating, because they are at home. In England, we are talking about prescription charges and car parking charges at hospitals, both of which, thankfully, patients in Scotland do not have to pay. Is it any wonder that this Government have been criticised by the United Nations for breaking the convention on the rights of persons with disabilities? It has been a relentless attack.
The stress has increased the mental health issues suffered by people with disability. A survey has shown that over 40% have at some time considered suicide. What kind of society are we, if we are not willing to look after those who are vulnerable? We can judge a society by how it looks after its most vulnerable. As these disability benefits come to Scotland, it is our aim to use a human rights approach and ensure that dignity is at the centre of how we treat people.
Carers should also be supported and valued. They save the state millions of pounds by providing virtually free care. In Scotland, one of the first Acts that will come in next year will increase the carer’s allowance to at least the level of jobseeker’s allowance. It is little enough, but it is at least a declaration of intent. It is envisaged that employment support allowance is to support those who, due to their disability, are simply unable to work. PIP is meant to allow those with disability to reach their full potential. We should not be sticking people in their houses, because we take away their mobility, and then saying, “We are trying to get them into work.” People with disability who are working have extra costs, and that is the whole point of PIP, so the Government should put their money where their mouth is.
We also know that child poverty is rising and is expected to rise further. We have seen it climb by about 5%. The poorest areas in the UK now have child poverty rates of around 50%. How can that be right, when we know the impact that will have on children? But while we talk often about child poverty, we should recognise that it is actually family poverty, and that children cannot be separated from the experience of their family. Their income has been hollowed out since 2010. We saw the benefit cap in 2013 set for families at £26,000 a year. That affected about 20,000 families. The Welfare Reform and Work Act 2016 cut that to £23,000 in London and to £20,000 elsewhere in the UK. That affected 88,000 families, who lost either £3,000 or £6,000 from their income.
In 2011 we saw the local housing allowance brought in to cut what was paid for those living in the private sector. It reduced housing allowance from the median in their area to 30%. But in 2016 that was frozen and in a third of areas it does not even come close to 30%. In London, housing benefit for those in the private rental sector will cover only 16% of their housing costs, meaning that they fall about £1,000 a month short. That is significant for anybody’s wallet, but for those at the lower end of income earnings it is a severe hit. That has led to over 4.5 million people in the private rented sector struggling as rents have soared.
In 2016 the Government cut the family premium that was allowed with a new claim or a new birth, leading to a loss of £907. The bedroom tax also affects families, particularly in situations of separation or divorce, because the parent with minor caring responsibilities is not recognised. For example, a man—most likely—now living on his own in a small flat is not allowed a bedroom that would enable his children to stay over when he has them for the weekend. What does it say about us that we are not trying to strengthen families, but actually trying to undermine them?
Tax credits, which had such a big impact on child poverty, have faced attrition since 2011, when the first thing to go was the baby element, removing over £500. The 2012 changes saw families over £700 worse off. We all remember the haggling in the Chamber about changes to tax credits and the Chancellor stepped back from doing it after the Lords objected, but that was because he knew that those tax credit changes were simply hidden within universal credit and that, therefore, eventually they would hit everyone. The Government have removed the family element for the first child, again over £500, and now tax credits are claimable for only the first two children. The third child in a family loses out £2,780 a year. That has a huge impact on such families.
Universal credit has also reduced the work allowance. That means that it will often not be worth the while of the partner in a family—the second earner—going out to work, because they would lose so much and, particularly when childcare is taken into account, could end up worse off than if they did not take the extra work. The Government always talk about making work pay, but they do not always follow through.
The policy from the 2016 Act that has had the biggest and widest net, dragging more people into poverty, is the benefit freeze. Again, that comes on top of a 1% cap that was in place from 2013. The holding down of all working-age benefits has been in place for a number of years.
Will the Scottish National party and the Scottish Parliament use the powers they have to raise taxes in order to end the freeze on benefits in Scotland?
We are already looking to raise more money to mitigate some of the cuts from here but, frankly, with our budget dropping over 8% between 2010 and 2020, it is simply not possible for a Government to mitigate everything that comes from here. This place has to take responsibility. We are already spending £450 million on mitigating changes that came from here. So all the hon. Gentleman is asking is that the Scottish Government should keep sending their budget back to Westminster.
If the benefits freeze was to be unfrozen in Scotland, people in Scotland would be receiving additional benefits that people in the rest of Britain would not receive. Consequently, it would seem fair if that came out of Scottish tax take. The Scottish Parliament has the ability to raise taxes, but the hon. Lady is declining to do so. Why is that?
That is what I am saying; we are already mitigating £450 million in benefit cuts from this place. We are not here to talk only about Scotland; we are actually talking about the suffering right across the UK. Some hon. Members in this place like to imply that Scottish National party MPs do not care about people in the rest of the UK, but I have friends and family here, as many of us do. The source of the benefit freeze is the Department for Work and Pensions—this place—and it has to be fixed at source.
I commend my hon. Friend for her meticulous and erudite speech. Does she agree that the benefit freeze, even by its own measure, is going beyond what was predicted? That is suggested by the DWP’s own figures and the figures that the SNP has obtained from the House of Commons Library, which suggest that the increase in inflation means that £3 billion extra will be saved by the DWP from the benefit freeze.
Yes. That is exactly what I will move on to. Obviously, the former Chancellor, George Osborne, justified the benefit freeze because at the time inflation was 0.3%, but inflation now, due to Brexit and the fall in the value of the pound, is officially 3%, as measured last September. By 2020, low-income families will be over £830 worse off, just due to the benefit freeze. If we look at the cumulative cuts, an average family will be £1,300 worse off. But if we drill down into families that have three or more children, that builds up and becomes eye-watering.
The hon. Lady is being extremely generous in giving way. I want to ask about the principle behind what she is saying. I was not an MP when the benefit freeze was introduced, but I believe the logic was that at that point benefit spending was rising much faster than average earning. Does she think it is right that spending on benefits should go up faster than the average earnings of people in the country? Does she think that should be the case, and is she advocating for that to continue now?
I am advocating that inflation is now ten times what it was when the policy was brought in, and that therefore this policy should be re-thought. It was never imagined to have such a punitive impact. As my hon. Friend the Member for Airdrie and Shotts (Neil Gray) said, the return to the Treasury has been much greater than planned, so the Government could easily afford to unfreeze benefits. That measure is having a particular impact on the poorest.
Like the point raised by the hon. Member for Redditch (Rachel Maclean), the Government and the Conservative party claim all the time that they are helping the poorest through other actions. The number one thing that is always quoted is the national living wage: not the real living wage, which is 95p an hour higher, but the pretendy living wage. The Office for Budget Responsibility, however, points out that this does not offset the benefit cuts. The increased earnings owing to the national living wage will be £4 billion a year by 2020. The benefit cuts are three times that: they will be between £12 billion and £13 billion a year. I am sorry, but the Government and the Conservative party cannot hide behind that claim. They are still taking £8 billion from the poorest families.
The other thing that is always quoted is the raising of the personal tax allowance. That obviously has a bigger impact if someone pays tax, but only £1 out of £6 spent by the Treasury on raising the personal tax allowance will end up being for people in the lower half of the income distribution curve. Unfreezing benefits would be much more targeted—even excluding child benefit from that and focusing on all the other benefits would have the biggest impact on helping poor families.
Other benefit cuts have specifically impacted on children and families with children. The health in pregnancy and Sure Start maternity grants were both cut, even though we know the importance of the first 1,001 days after conception. That is about the health and nutrition of the mother and the early years of the child. We know that the impact of poverty affects children life-long; it reduces their educational attainment and tends to limit their job prospects. They are much more likely to end up on benefits in the future. It also affects their health. They have higher rates of physical and mental health issues than those in affluent families. They are at greater risk of addiction, of ending up in the criminal justice system, of committing suicide and of being in a road traffic accident or a house fire.
All that costs money. Mitigating in later life the issues that come from child poverty is estimated to cost the Treasury almost £6.5 billion a year. If there is no change in direction from the Government, we expect 200,000 more children to be growing up in poverty by 2020. I suggest to the Minister and the Government that they do not spend £6.5 billion mitigating suffering in later life, but invest in early years now.
Does the hon. Lady recognise that more than 60% of people who require support are working, but are stuck in low-income jobs? Surveys show that very few of them are out of working poverty 10 years later.
I do not agree with that, because the evidence does not bear it out. Universal credit is an agile system that is designed not only to get people who are out of work into work, but to support them as they look for better-paying jobs. I will come to that in my speech.
I accept that reforming welfare is difficult, as the hon. Lady said. There can be no MP in this House who has not come across heart-breaking cases where the system has failed. Those are wrong, and we all stand up for our constituents, but they are not evidence of a failing system—rather, they are the inevitable consequences of a large and challenging public sector reform process. Since I have been in this House, I have seen Ministers listen to problems and make changes to fix the system. Recently, we have seen adjustments reflecting concerns raised on both sides of the House, which are welcome. We hear much criticism from the Opposition, both the SNP and the Labour party, on this. It is extremely easy to criticise from the Opposition Benches, but no real constructive alternative is offered.
I have made it my priority to visit the jobcentre and speak to local people on the ground in Redditch. These are just a few of the experiences that I have heard. My local jobcentre manager has worked there for 30 years. She described the system as “working very well” for her clients. She said that it is “the best system” she has seen in her 30 years as a jobcentre manager and that it helps people “who really need help”.
The first example is a customer who was seen by a work coach when universal credit first went live. The customer had a very difficult personal background. She was totally disengaged when she saw the work coach and she was quite difficult to work with. The work coach encouraged the customer to gain upskilling in maths and English. With the work coach’s help, she found work. The customer is now working in a role where she wants to help others to find work. She even shares knowledge of vacancies with her former work coach to encourage other people to find work.
Another example is a customer who had been on and off benefits since 2012 and was working with a work coach. This customer struggles to make eye contact and lacks confidence. Over time, the work coach established a rapport and helped him to gain confidence. They referred him to work experience with a local retail outlet. When he attended, the work coach asked if there had been any changes. The customer looked them in the eye and said, with a smile on his face, “Would that include the fact that I’ve got a job?” The coach said that they are “delighted” and “so glad” that they referred him to the retailer in the first place, and:
“Seeing the customer smiling about his success really made my day.”
As well as being a constituency MP who does surgeries, I spend two hours every week door-knocking in my constituency. I do not regularly find people opening their door and saying to me, “This welfare system is absolutely fandabbydozy.”
This week marks two years since the Welfare Reform and Work Act 2016 implemented some of the most punitive cuts from this Government. Some of those were a fresh round of cuts, and some built on the cuts made in the Welfare Reform Act 2012. This debate allows us the opportunity to shine a bright light on the damage caused by those punitive welfare reforms, which have had a direct impact on some of the most vulnerable people in my constituency. I will address two policy areas in my remarks: first, the punitive benefit freeze, which leaves people out in the cold, quite literally, while the cost of living soars, and secondly, the medieval two-child policy and abhorrent rape clause.
Figures commissioned by the SNP and put together by the Library show that, based on the spring statement 2018, between 2018-19 and 2020-21, the benefit freeze will save an additional £3 billion compared with what was forecast for those years in the summer Budget 2015. In November 2017, the Joseph Rowntree Foundation said that the benefit freeze means that between 2010 and 2020, a couple with two kids will be £832 a year worse off. It has also said:
“The freeze is the single biggest policy driver behind rising poverty by the end of the Parliament.”
The impact of the poverty premium means that people on low incomes face higher costs as a proportion of their income than those on higher incomes, due to the nature of products and services. People on low incomes often cannot pay for goods or services by fixed direct debit, but for many things, such as mobile phone bills, energy bills and bank cards, companies only offer discounts based on people signing up for a direct debit.
Economic shocks such as the breakdown of a car or a washing machine are far more significant for people on a low income. I know that from direct experience, having spent two years working at Glasgow Credit Union. One of the most heart-breaking things about being in that job was people coming to me for loans to pay for a washing machine that had broken down or for school uniforms.
Sadly, that is the reality we are now in. I am disappointed that that lived experience did not come into the previous speech. We see it week in, week out when we do our constituency surgeries. With all those factors, the benefit freeze is an additional financial burden on disadvantaged people. The Government must urgently restore the real value of benefits by scrapping the freeze.
The second issue I will raise is the Government’s medieval two-child policy that would frankly make China blush. The idea that in 2018, we are saying to families, “Two children in your family—that’s it. The state won’t pay for any more than that,” sends a strong signal from this place. [Interruption.] If the Minister is unhappy with that, I am more than happy to take an intervention—absolutely not.
Does my hon. Friend accept the basic premise that we have an ageing population and we need people to have children so we can balance that? Instead, we are relentlessly punishing people who have children.
I think the word “punish” is entirely wrong in this context. I think we have to say that if people are aware of the consequences of their actions—that there are benefits available for certain decisions they make but not for others—they can make their own decisions. It is up to the state to decide where the balance of benefit lies.
Order. I am conscious of time. At least two other Members wish to speak. They will not be able to speak if there are any more interventions and if the hon. Gentleman does not conclude his remarks soon. I intend to start calling the Front-Bench spokespeople at 10.30 am.
Thank you, Mr Gapes. I intervened merely to point out that people’s circumstances change, so if they end up redundant, ill, or whatever, and then apply for benefits and have three or more children from better times, they will not receive that support.
No, but they will have additional support to get back into work and they will have the benefit of universal credit to progress in work when they do.
I will go back very quickly to the Scottish perspective, because something that is obviously completely unacceptable in the position of the Scottish National party is that they want to fix the problem but they do not want to do it themselves. I find that very peculiar from a party that seeks independence, because of course if Scotland was independent the only way that it could get rid of the freeze would be by paying for it out of Scottish coffers, which would require an increase in tax, and that is something they have declined to do.
I was very surprised when I questioned Jeane Freeman, the Scottish Minister for Social Security, about this issue in a Select Committee. She failed to answer the challenge, just as SNP Members have done today. The SNP can raise taxes now to pay for this, but it chooses not to. It has therefore decided not to prioritise this policy.
Obviously there are always steps we can take to improve the welfare system. Universal credit, which is coming online, will help people to overcome major barriers to employment. It will help people overcome addiction or mental health problems and move back into work. On disability, we have an admirable aim to halve the disability employment gap, and I believe that assistive technology will help us do that. I would like to see us increase work incentives by adjusting the taper as and when the budget allows.
We did not defend the old system. If work is to pay, the Government should look at children in working households in poverty.
Motion lapsed (Standing Order No. 10(6)).
(6 years, 5 months ago)
Commons ChamberUniversal credit is far more generous, as my hon. Friend points out. Up to 85% of childcare costs will be given to people who need it.
Under the childcare voucher scheme, the estimated cost to the Exchequer of forgone employers’ national insurance contributions is £220 million per year. This is paid to employers and voucher providers to administer the schemes, so it is not surprising that voucher providers are lobbying hard to keep the scheme open. However, we are focused on delivering a better childcare offer for working families. Tax-free childcare is simpler to administer for childcare providers, who will not have to deal with multiple voucher providers. These regulations will bring the national insurance contributions relief in line with the income tax treatment. They are an essential step in reforming Government childcare support to provide a fair and well-targeted system. Closing the childcare voucher scheme to new entrants will ensure that more Government support goes directly to parents and helps working families to reduce their childcare costs.
With the consultation that the Government are carrying out on abuse of women, does the Secretary of State recognise the threat of financial control and abuse posed to women by the single payment? Would she be willing to consider making individual payments of child tax credits to the mother, and so on, the norm? Charities have demonstrated that women who are being abused will not apply for exception because they feel they will come under physical abuse.
The hon. Lady makes a good point, and that is why it is possible to split payments according to need. The devolved Administration in Scotland have the right to alter these rules and provide extra support, should they wish to, but it is safe to say that payments can now be split, and we have listened to those concerns.
We are also listening to colleagues in Northern Ireland, who have raised specific circumstances relating to certain public sector service employers, and have committed to ongoing engagement with them to look at these issues, as tax-free childcare continues to roll out to replace employer-supported childcare. We have seen the success of 30 hours’ free childcare for three and four-year-olds in England, so we are committed to working with the Northern Ireland parties to administer childcare support of that kind in Northern Ireland, in the absence of an Executive.
For the reasons I have set out, annulling these regulations would deprive families and their children of the important and positive support that this Government are determined to offer and would have a range of very negative effects, so I call upon the House to oppose the motions.
I agree with the hon. Lady, which is why we are looking to introduce some flexibilities in Scotland, where we have the minimal powers to do so.
The Government must open their eyes to the crisis that they have created for workers, people who are sick or disabled, landlords and tenants, and employers, and urgently halt and fix universal credit before any more of our constituents have to suffer. In Scotland, the Scottish Government are using some of their minimal new powers in this area to give people in Scotland more choice over the universal credit payments and enable them to manage their household budgets better. We of course want to do more, and we wish that the whole of universal credit had been devolved to allow us to do so.
Does my hon. Friend agree that the Secretary of State’s suggestion that women can apply for the exceptional alternative payment scheme is not enough? The evidence shows that this needs to be the norm.
I fully agree with my hon. Friend. Again, I hope that the Government are looking at her private Member’s Bill, which is due to be given a Second Reading on Friday, and that they will do what is right and is needed so that all areas of these isles can bring about the changes that are required.
Turning now to early-day motion 1004 on the changes to national insurance contributions that come into force on 6 April, much of the comment in this area has been not about the regulations themselves, but about a policy underpinning one of the changes. That policy is the UK Government’s decision to introduce a new scheme to support parents’ childcare costs—tax-free childcare—and to close employer-supported childcare schemes to new applicants from April 2018. Parents will not be able to receive support simultaneously from both the current scheme and the new tax-free childcare scheme, but parents who wish to remain in the old childcare vouchers scheme will be able to do so while the current employer continues to offer such a scheme. There is no obligation to switch to the new scheme, but existing voucher schemes will be closed to new applicants from next month.
The delivery of affordable childcare is crucial for the development of children as well as for providing for families. Fundamental to that is that parents on low incomes need to be protected from the impact of enormous childcare costs. That is one of the major barriers to resolving the gender pay gap and the gender employment gap. Childcare continues to be expensive and inflexible.
We are deeply concerned about the UK Government’s plans to close the childcare voucher scheme to new entrants from April this year. The SNP wishes to support policies that deliver for parents, ensuring that they have the resources and flexibility they need to give their children the best start in life. The UK Government must support working parents by keeping the scheme going, alongside the tax-free childcare scheme, so that parents can choose what is most suitable for their needs and offers the most support for their family. We must also consider in more detail the impact that the introduction of tax-free childcare will have across all different family types.
One of the key problems is that this is an extremely complex area, and the interaction of two schemes with the benefits system is an additional layer of complicated bureaucracy for parents. For example, the Low Incomes Tax Reform Group highlighted in February that universal credit and tax credit claimants must seek advice before applying for tax-free childcare:
“If an existing tax credit claimant makes a claim for TFC, even if they do not claim any help with childcare costs through tax credits, their whole tax credit claim will be automatically terminated. If they live in an area where universal credit full service has rolled out they may find that they are not able to claim tax credits again and this is very confusing.”
That is a significant issue with the new scheme, so how are the Government making people aware of it? We know that the DWP is notoriously bad at awareness campaigns, as we have seen with the WASPI women—Women Against State Pension Inequality Campaign—or the massively under-marketed Access to Work programme. We also know that the UK Government’s benefit changes are already creating confusion for people. Figures from the Government Digital Service have revealed that claimants appear to be encountering significant problems with the Government’s Verify system for universal credit, with 48 out of 91 needing help at a jobcentre to set up an account.
In Scotland, the SNP Government have committed to almost doubling the funded early learning and childcare entitlement by 2020, from 600 to 1,140 hours, in a bid to transform the life chances of children in Scotland. Our universal childcare offer is unmatched in the rest of the UK. In Scotland, all three and four-year-olds, and eligible two-year-olds, will benefit from 1,140 hours. The full entitlement is estimated to save families over £350 per child per month, or £4,500 a year.
Before I conclude, I would like to touch briefly on the other two motions, which relate to devolved matters. On the free school lunches and milk motion, every child at a local council school in Scotland can get free school lunches in primary 1, 2 and 3, regardless of financial circumstances. Some children in funded childcare before starting school can also get free meals. That is a year more than is currently provided in England. The UK Government’s universal credit system requires arbitrary thresholds, which create a cliff edge for parents, as has been discussed. We continue to call on the UK Government to devolve powers and funding so that we can take control of universal credit in its entirety in Scotland and deliver it in the best way possible for the people of Scotland.
Finally, on the free childcare motion, we have committed to fully funding our transformative expansion of early learning and childcare entitlement to 1,140 hours by 2020, and we have a track record of delivering on the previous expansion from 475 hours to 600 hours.
In conclusion, in all these areas what is clear is that when issues are devolved we see better policy and better outcomes for the people of Scotland.
(6 years, 8 months ago)
Commons ChamberOn Monday last week, I spoke in the Chamber to propose a ten-minute rule Bill to try to tackle some of the organisational and administrative issues that have made universal credit worse. The most important thing that has been discussed in all these universal credit debates is obviously the waiting time and, like others, I welcome the Chancellor’s reducing it to five weeks. However, contrary to what was claimed by the hon. Member for Moray (Douglas Ross), 25% of universal credit claimants are waiting longer than six weeks now. That is a DWP figure, so it is simply not the case that no one is waiting longer than five weeks. I also welcome the increase in the advance loans to 100% and the stretching of the payback to a year, but those changes do not come in until next year. People in my constituency, which was hit on Budget day, will face exactly the same set-up that has been discussed repeatedly today.
Last Monday, I proposed some of the flexible options put forward by the Scottish Government, such as fortnightly payments and direct payments to landlords, and I call in particular for separate payments. While the hon. Member for Ochil and South Perthshire (Luke Graham) said that they are not any use, separate payments are being promoted by women’s charities as a way of avoiding financial control and manipulation. However, a ten-minute rule Bill can only discuss the things around the edges, and universal credit has major underlying problems. It is often described as simple, but rolling so many different types of people on to one benefit has proven difficult. The majority of people on universal credit includes working people who will be receiving child tax credits and working tax credits through universal credit. As has been said, the benefit will eventually be collected by 11 million people, so it is important to get things right before it reaches that scale.
One of the main issues is the benefit freeze until 2020. Inflation is already over 3% and is expected to climb due to Brexit. The average loss of earnings for unemployed people will be £500 a year, but the figure for employed households is £1,200 a year. Of that loss, 57% is due to the change in the work allowance. If the Government want to make work pay, they should return to what was proposed in 2013 and fix the work allowance. The grotesque rape clause has been well aired by my hon. Friend the Member for Glasgow Central (Alison Thewliss), but it is simply an exemption to another big issue: the two-child limit on tax credits. Three-quarters of a million families with three children or more will lose more than £2,500 a year, and that includes a quarter of a million one-earner families who will lose more than £3,800 a year. With the kind of income that such families have, that loss is enormous. We have already seen the number of children living in poverty increase by 400,000, and any medic or social scientist will talk about the impact that the change will have on children’s lives and how it will cost more in the long term.
The Women’s Budget Group has shown that 86% of all the cuts made over the past seven years have been felt by women, who tend to be at the lower end of the income scale, and by black, Asian and minority ethnic women in particular, which may be aggravated by cultural factors because they may have three or more children. The hon. Member for Crewe and Nantwich (Laura Smith) talked about family planning, and no one can predict the moment at which life can change. People cannot suddenly put their child in a bin because their circumstances have changed or they have been made redundant—that is ridiculous.
My Bill called on the Government to carry out cumulative impact assessments that consider gender and race. We have been calling for the roll-out to be paused and fixed, and we have heard in the past week that it will be paused, but it will be paused between February and April. Good luck to those whose constituencies will not be hit, as mine is, going into the Christmas and new year period, but why is the roll-out not being paused now so that, as we go through the hardest bit of winter, the reforms agreed by the Chancellor can be enacted? The roll-out needs to be changed, and the pause should be now, not next February.
Conservative Members will not acknowledge that power dynamics sometimes prevent the truth from being heard.
Is the issue not partly the fact that we hear Members talking about meeting DWP staff, but they then say that they do not have the full roll-out? They should come back to talk in the Chamber when they do.
(6 years, 8 months ago)
Commons ChamberI apologise to my hon. Friend, but I have to move on because of the time.
The failure to communicate was highlighted by a 2004 DWP report called “Public awareness of State Pension age equalisation”, which stated that only 43%—less than half—of all women affected by the increase in state pensionable age were aware of the impact on them. If the Government accept that women were not informed in a timely manner and therefore did not have time to react, why do they not accept their responsibilities? I am watching the Minister and he is looking away. He is not interested because he simply does not want to hear the facts. When will he accept his responsibility for the WASPI women and engage in a constructive manner?
The Government sent out 17.8 million letters on automatic state pension forecasts to men and women between May 2003 and November 2006 but—wait for it—the letters did not contain any information about state pension age. You simply could not make this up. What they did say was:
“If you want to know more about the changes to State Pension age, please see Pensions for women—Your guide… See page 10 for details about how you can get a copy of this guide.”
That, Minister, was no way to convey information. What should have been communicated was accurate, clear and transparent information. It was yet another failure to do that by the Minister’s Department—another massive failure to communicate from Government. What is he going to do about it? Nothing.
On 23 November 2016, in answer to a written question I submitted, the previous Pensions Minister, the Under-Secretary of State for Business, Energy and Industrial Strategy, the hon. Member for Watford (Richard Harrington), stated:
“The Government has committed not to change the legislation relating to State Pension age for those people who are within 10 years of reaching it. This provides these individuals with the certainty they need to plan for the future…We recognise the importance of ensuring people are aware of any changes to their State Pension age”.
I welcomed that statement, but that recognition of the need to ensure that people are aware of changes was not afforded to 1950s women. If that statement from the previous Minister in 2016 is to have any credibility, the current Minister has to accept that the women affected were not given that courtesy and the Government need to correct that today.
I shall set the socioeconomic scene in which female pensioners find themselves under this Tory Government. Only 52% of women are adequately saving for retirement, compared with 60% of men. Female pensioners have a net weekly income that is approximately 85% of that of their male counterparts. More than two thirds of pensioners who are living in poverty are women. In August, the Institute for Fiscal Studies revealed that the increase in state pension age has left 1.1 million women £50 a week worse off. The IFS looked into the Government’s reform of the state pension, which was needed to account for a longer-living population, and found that the move to increase the eligibility age for women from 60 to 63 meant that income poverty rates were “pushed up substantially” from 15% to 20%. That is just as a result of the increase in the pension age from 60 to 63. Is the Minister going to defend that? Are the Tory MPs from Scotland, bearing in mind their constituents, going to defend that? There has been an 8.7% rise in the chance of a woman aged 60 to 63 being in absolute poverty.
In my constituency of Ross, Skye and Lochaber, there are 5,400 women who were born in the 1950s and are affected by the changes to the state pension age in 1995, 2007 and 2011. Throughout Scotland, the figure is a staggering 347,000. New freedom-of-information figures have revealed that although almost 4,600 maladministration complaints relating to WASPI women have been received by officials at the DWP, only six investigations have been concluded. The process of dealing with the complaints has taken so long partly because the DWP has only three staff members dealing with the complaints. Three staff members dealing with 4,600 complaints—that is how seriously the Government are taking this issue. The delays have been so long that the pensions ombudsman has now forced the independent case examiner to streamline the process. What a farce! That is an indication that the Government simply do not take their responsibilities to the WASPI women seriously—another let down from this Government for 1950s WASPI women. The Government have a commitment to the WASPI women and should stop playing fast and loose with their rights.
In a Westminster Hall debate on 5 July, the Minister talked about employment or retraining opportunities for 1950s women, stating—wait for it—that the Government had “extended apprenticeship opportunities”. There we have it: women who in some cases have worked for more than 40 years can go on apprenticeship schemes. Later in his speech, the Minister claimed:
“I realise it is not going down well”.—[Official Report, 5 July 2017; Vol. 626, c. 143WH.]
It is little wonder, because 1950s women do not want apprenticeship schemes; they want their pensions.
Women born in the 1950s do not want to be pushed on to benefits, but that is what is happening. Between August 2013 and August 2017, the number of people claiming jobseeker’s allowance or universal credit across all ages fell by 42%. We welcome that, but the number of 60s-plus women claiming a benefit rose by 9,500—a 115% increase—while the number of women aged over 60 claiming employment and support allowance increased by 121,000. That is a massive increase of 413%—that is the reality of the sharp increase in the state pension age for women. The reality is that women are being denied their pension and this Government are forcing them on to benefits. The Minister has been ridiculed by, among others, the Financial Times, in which he was described as one in
“a line of pensions ministers with no interest in pensions”.
He certainly has no interest in women’s pensions. Today, the Minister must start to take an interest and do the right thing by putting mitigation in place.
It is nothing short of a disgrace that the Government found no remedy for the WASPI women in last week’s Budget. The Chancellor stood at the Dispatch Box and extolled the virtues of spending billions on Brexit, but he failed to address the injustice faced by female pensioners. Transitional measures to mitigate the issue would cost significantly less than the UK Government’s £30 billion figure. Last year, independent research commissioned by the SNP showed that the cost would be £8 billion. We can find billions for Brexit and billions for Trident, but not one penny for our pensioners, who are treated with contempt by the Government. It is bitterly disappointing that the Chancellor did not use the Budget to support the WASPI women. Once again, it falls to the SNP, by securing this debate, to be a voice for this campaign in the House and to press the UK Government to do the decent thing. They have got it wrong—admit it and fix it now.
I am nearly finished. Before I conclude, I would like to ask the Minister what the Department is doing in relation to the legal challenge from the WASPI campaigners, which was mentioned by my hon. Friend the Member for Easington (Grahame Morris). Has the Minister made contingencies for the day when the courts rule against the Government, as they may well do, and order that ’50s-born women be compensated? What is happening in relation to that?
Although we support the motion, I think that the House needs to be able to vote on a motion that will be binding on the Government.
Obviously, this is a UK-wide issue, not one that applies only to women in Scotland. The women I have spoken to are not looking for the kind of crisis grants that the Scottish Government can deliver. They do not want to go begging. They actually want what they are due.
I do not want to get involved in the argument about what the Scottish Government can and cannot do, but I agree that this matter affects all women, regardless of their nationality.
Many in this House stand by these women. I call on the Government to make a commitment to look again at this gross injustice, to discuss a productive and constructive way forward for the women affected, and to listen to what we are saying.
Not all women are fit enough to work. Some women who are expected to jump through hoops before they can receive unemployment benefit do so risking their own physical and mental health.
(6 years, 9 months ago)
Commons ChamberIt is perhaps not surprising that while Brexit dominates most political debate, issues of huge importance sometimes slip through the scrutiny of this place, and I believe that the Child Maintenance Service falls into that category. After several months of working through the formalities of this House, I am delighted finally to have the opportunity to raise my concerns and highlight in the Chamber the real struggles faced by my constituents.
My constituency office has dealt with a huge variety of problems with the Child Maintenance Service, including the tax on survivors of domestic violence—the Minister may be aware of that issue since I have been campaigning on it for some time. I would also like to raise further constituency cases beyond that campaign, and I hope that the Minister will respond to my remarks.
The Child Maintenance Service was established in 2012 to replace the Child Support Agency—an organisation that was arguably worse. The new system was built on the ethos that children fare better when their parents have a positive relationship. However, that is not the case for all former partners, and some of the ill-judged changes made in the transition to the CMS included glaring oversights in the administration of the system. The stubborn refusal of the Government to acknowledge their mistakes has meant that the current system is not always fit for purpose.
The essence of child support is simple. When both parents are not in a relationship, or if they break up, the child should not suffer financially. For some children, the CMS is their means of avoiding poverty. As a result, that organisation forms one of the most important roles of government—the protection of children. It is therefore vital that such a service should be treated with no less complacency than any other Department.
To allow the CMS to fulfil its important duty, some changes should be made. It currently operates three different payment systems, two of which—the family-based scheme, and the direct pay scheme—operate without charge. The collect and pay scheme, however, has a number of charges. The family-based scheme essentially runs without the involvement of the CMS. Parents can sort out financial arrangements without the bureaucracy of Government interference. It is designed for former partners who can maintain an amicable relationship, and it is the most advantageous scheme for all those involved. It is cost-neutral to the Government, beneficial to the child, and ideally involves no ill-feeling between the parents.
The direct pay scheme is where child maintenance is directed to the receiving parent without using the CMS. That happens after a maintenance calculation has been made by the Department. Parents essentially agree between themselves how and when maintenance will be paid, and the onus is on both parents to monitor the payment and highlight any discrepancies within the agreement. The direct pay scheme does not check whether maintenance has been paid, and neither does it offer any enforcement for either parent. Instead, if the scheme does not work, the CMS offers a move to a managed service—the collect and pay service. That scheme is available to those who have failed to receive payment, and if there is a reason why someone may not wish to interact with their ex-partner, or if the parent requests to use that scheme, in many cases the CMS can collect child maintenance payments and pass them on to the parent with day-to-day care of the children.
Paying parents must pay a 20% collection fee on top of their usual child maintenance balance, and receiving parents must pay a 4% per cent collection fee that is deducted from their usual child maintenance amount. There is a £20 application charge for the collect and pay scheme, which is waived should the receiving parent be a survivor of domestic abuse. This scheme is the safest of all. Even in this instance, however, the system can be open to exploitation and abuse. The protections include wage deductions and the removal of any possible contact with an abusive partner. As the Minister will know, one of the biggest barriers to independence for survivors of domestic abuse is financial control, which is why it is welcome that the £20 application fee for the collect and pay scheme is waived for survivors of domestic abuse.
I welcome the waiver, but it leads to the question that if the collect and pay scheme is the most secure mechanism for survivors of domestic abuse to exercise their right to child maintenance, and is free to apply, why is there an ongoing monthly charge for the survivors’ continued safety? The 4% collection charge is removed from the child’s entitlement. This is support that the Government have already determined through their calculations that a child is due, yet they see fit to remove it, taking vital financial support from families and penalising children.
In previous correspondence with the Minister’s Department, I was informed that the charges were to cover administering the cost of the service and to incentivise the use of other schemes within the CMS. Logically, however, that runs counter to the Government’s removal of the £20 charge. The Minister is essentially saying that the initial charges are intended to incentivise the use of other schemes, but the ongoing monthly, and more costly, charges are there to penalise those where this is not possible. I am sure that that is not the intention, but the Government are using the charges to encourage some of the most vulnerable individuals in the country to engage with their abusive ex-partners and to rely on Government bureaucracy or worse. That is unacceptable and it must stop.
The 4% tax on survivors of domestic abuse has rightly caused major concern with support groups and charities, including Women’s Aid, the White Ribbon Campaign, Gingerbread, Engender and One Parent Families Scotland. Those organisations all signed a letter in March this year, alongside Members from every party in this House with the exception of Government Members, calling for the abolition of the tax. Since then, the Government have lost their majority and this could carry the majority of the House. I therefore implore the Minister to do the right thing by vulnerable parents and send a message that the Child Maintenance Service should be a place of safety and security where individuals can exercise their right to child maintenance without fear of recurring abuse. I have been campaigning for this change for some time and have heard many weak excuses from the Department for its inaction. If the Minister in his reply plans to give me some of the same lines I have heard in the past, let me assure him that I have heard them all before. Let me try to counter them in advance and save him some time.
The Government have consistently advised me that the direct pay scheme is a safe scheme and that the collect and pay scheme is the best way to ensure that both parties are protected. The Prime Minister has told me that users can utilise anonymous sort codes and therefore hide their location and that, if a payment is not made, the domestic abuse survivor can move on to the collect and pay service. Let me tell the Minister why that answer is at best careless and at worst negligent. Giving abusers access to communication with their former partners through bank transfers, and the ability to leave messages while doing so, continues the cycle of abuse. Allowing abusers to pay late without fear of enforcement also continues the cycle of abuse. The system is open to exploitation and abuse, and I hope the Minister will take that into consideration.
Finally, while the collect and pay service offers the protection required, the charges come into play if a domestic abuse survivor is moved on to it. I am sure that that is not the intention. There is no way, even by the Government’s logic, that a survivor of domestic abuse can escape the tax applied by the Government without subjecting themselves to the possibility of continued abuse. Surely the Minister would agree that that is a flaw in the system? It must be reviewed and addressed accordingly.
Another argument proposed by the Conservative party is that the tax is so small that it does not matter. I would question whether it is the place of the Government to define what matters and what constitutes small or large. Is it the place of the Government to define what is materially impactful when vulnerable families rely on the service? In response to a letter, the former Minister highlighted the fact that the 4% charge was “minuscule” and, in her interpretation, was not materially impactful. That is not a position I would expect of a Minister. I would expect the Minister to listen and adopt the views of Opposition Members as well as Government Members.
I believe that the Minister’s response is contemptible at best, and I seek a better response from the Department. I want to raise two points. First, if it is not materially impactful, why apply it at all? Secondly, it might not have a huge effect on the Government’s budget, but for families living on the breadline, every penny counts. In advance of next week’s Budget, I ask the Government to consider who needs the 4% of child maintenance more—a family who will feel its material impact or the Treasury, which will not? I hope he will feed that back to the Chancellor along with my determination that the tax be scrapped.
The Government consider it a success that more people are using the systems outside the intervention of the CMS, but with one third of those applying for children maintenance citing domestic abuse as the reason, I wonder how many individuals are being put at risk to avoid these punitive charges. The CMS should be protecting, not punishing, those who have fled domestic abuse. It is time that the tax was scrapped. I have spoken at length about the domestic abuse survivors tax—an issue I have campaigned on and which needs attention—but it is just one aspect of the service that is not working, yet, as much of my constituency casework shows, it could very easily be addressed.
I wish to highlight a few further issues with the CMS, and I hope that the Minister will be able to respond. Several issues with its administration have clearly had an impact on my constituents. One of them had been in an abusive relationship but managed to cut off all contact while receiving maintenance for their child. However, the Department sent her a letter meant for her ex-partner, which caused her great concern, as she was worried that he would get mail meant for her and find out her new location. It is unacceptable that a simple administrative error could strike such fear and alarm into an individual and that any Department, no matter how easily administrative errors might occur, could allow someone to feel endangered in that way.
I rise to mention the case of lady in my constituency who approached the CSA back in 2005 and was assessed as only getting £18 a week. Eventually in 2013, after multiple letters and failures, it recognised that it should have been £68 a week. By that time, though, there were nearly £20,000 of arrears. That woman has been left in debt, and until recently we were told that the arrears would be cleared over the coming 15 years. By then, she would have been left servicing debt for 27 years. We have managed to get it sorted, but the idea that someone could write back to a woman who has raised children for 12 years on her own and say, “Don’t worry. In 15 years, it’ll be cleared,” shows a lack of comprehension of the real world.
I wholeheartedly agree with my hon. Friend that such errors, so glaring and so obvious, should be addressed by the Government.
The service levels offered to my constituents are often inconsistent, and CMS rules are often not followed by departmental staff. For example, requests to use the collect and pay service are often discouraged by advisers. I have previously raised the case of a constituent whose ex-partner was falling behind on payments and had requested to be put on the collect and pay scheme. She was told by a CMS adviser that this was not possible because the shortfall in payments was less than 10%. My constituent had not heard of this rule and, on asking where this was written in the legislation, was told to look it up herself.
I could not find it written down anywhere either, and on questioning the Department, I was informed that it was not policy. Will the Minister tell me if there are targets for staff to keep people off collect and pay? I sincerely hope that there are not. If not, why are excuses being made not to use the scheme? In calculating the amount owed by the paying parent, income details are taken from HMRC, but they are not always taken from the most recent tax year. In fact, HMRC can use historic income data from any year in the past six for which it considers it has complete details.
While this might work for most people, as was outlined in correspondence with the Department, it fails those who are self-employed or who tend to work on a contractual basis. For those people, income figures can vary dramatically year on year, so the calculation often does not reflect real incomes. The CMS system of annual reviews does not work for contractors, particularly when the annual review takes place before the end of the tax year. That simply causes more issues, with CMS payments being calculated on the basis of inaccurate income figures. There is currently no facility for a mid-year adjustment, and I ask for that aspect of the policy to be reviewed.
An additional failure in the system of calculation is that, should a contractor submit payslips to try to prove current income, the amount shown on them is extrapolated to produce an estimated annual income. The contracts are often, by nature, short-term, and a few months of high income may be followed by months of no work. This is what happened to my constituent George Gillan, from Carluke. As the Minister knows, I have written to one of his colleagues about it.
George worked offshore on a contractual basis, with a high income during the months when he was working, which were followed by periods when he could live on those earnings when out of work. At present, the CMS is calculating his payments on the basis of income from the tax year ending April 2015. George tried to submit evidence of a change in his circumstances by sending 12 weeks of payslips, but that was extrapolated across the whole year. The total estimated income did not breach the 25% threshold for a new calculation, so it could not be changed.
That left my constituent owing payments that he simply could not afford to make. His annual review takes place in February, and because a mid-year adjustment could not be offered, he cannot afford to take short-term contracts, as he will be expected to make payments based on his higher income from 2015. He has not worked since December 2016, because he is fearful that he will be penalised on that contractual basis. If mid-year adjustments were possible—I hope the Minister will consider them—things would be much easier for those who are self-employed or work on a contractual basis. I hope the Minister will agree that that would be an easy accommodation to make. There is a fundamental flaw in the current procedure for identifying accurate income details, especially those of contractual workers.
I am sure that I have given the Minister more than enough material to respond to, but Members and the public will know there are many issues I have not been able to cover today. Let me recap. I am asking the Minister to make the system fairer for survivors of domestic abuse by scrapping the 4% tax for those who use the collect and pay service. I am asking him to address the administrative problems that plague the CMS. I am asking him to ensure that its service is managed to a high standard and that policies are clear and correctly interpreted by staff. I am asking him to ensure that the CMS works for contractual workers by allowing accurate income details to be taken and allowing for mid-year adjustments. I realise that it is difficult for policy changes to be made, but I hope that the Minister will give serious consideration to some of the injustices that my constituents and people across the country have experienced in their dealings with the CMS.
I am grateful for the opportunity to speak. It took me rather a long time to secure the debate. I urge the Minister to take my pleas on board and to seek to improve the system to protect and support families, which is what the Child Maintenance Service should be doing.
I congratulate the hon. Member for Lanark and Hamilton East (Angela Crawley) on securing the debate. There was a debate on the subject in April, but this is the first debate that the hon. Lady has been able to secure. I thank the hon. Member for Central Ayrshire (Dr Whitford) for her contribution. Let me deal with that at the outset. The Minister with responsibility for the policy would very much like to know about any specifics of what is clearly a very regrettable story of illness.
I had a meeting with the appropriate Minister earlier this week, and it has been found that the person who should pay has money to pay, but if that had not been the case, the response would have been “another 15 years”, which seems inhuman to me.
I am very pleased that my colleague the Under-Secretary of State for Work and Pensions, my hon. Friend the Member for Gosport (Caroline Dinenage), has met the hon. Lady and has the matter in hand. I am sure that she will be addressing both the individual case and the long-term issue of assessments made on that basis. I should pass on her apologies. I am not the responsible policy Minister, but my hon. Friend has been answering a three-hour debate in Westminster Hall this afternoon on the support that the Department for Work and Pensions offers care leavers, so asked me to step in on her behalf.
I also apologise if the letter in relation to the constituent identified with the self-employed issue had not reached the hon. Lady. My understanding is that it was sent on Tuesday. I was able to hand-deliver it today, but I offer my apologies if it had not made it into the hon. Lady’s hands prior to that. Clearly, there are answers to some of the points in relation to the self-employed in the letter, but if, upon sober and long-term perusal of that letter, the hon. Lady wishes to respond, I am sure that the correspondence can be continued.
I will briefly set out the Government’s approach to the Child Maintenance Service. The Department has since 2012 been delivering a comprehensive package of reforms of the child maintenance system, which is intended to support parents to take responsibility for paying for their children’s upbringing. For many years, the old system, under the Child Support Agency, did not provide the right support to parents. That is why the Government are closing cases under the Child Support Agency and giving parents the opportunity to apply to the Child Maintenance Service.
The new system run by the Child Maintenance Service is designed to encourage collaboration between parents, which we know has a direct positive impact on child outcomes, including health, emotional wellbeing and academic attainment. Parents can obtain free advice and support from the Child Maintenance Options service on making an arrangement that is right for them, whether that is a family-based arrangement or a statutory one.
More than a quarter of those who have contacted Child Maintenance Options have a family-based arrangement, and 82% of these arrangements are effective. The charges introduced in 2014 provide a further incentive for parents to consider making a family-based arrangement. The total income from fees and charges is less than 10% of the costs of providing the service, which remains heavily subsidised by the taxpayer. The statutory scheme is available for those who are unable to set up a family-based arrangement. These parents are therefore most likely to have conflict and difficulties meeting their child maintenance responsibilities.
There is a range of strong enforcement powers, and the Government are ramping up the usage of them. We aim to take immediate action to re-establish compliance wherever a parent fails to pay what they owe. In June 2017 the Government instigated 550 more enforcement actions than in June 2016, and the intake of cases to civil enforcement increased by 670 on the previous year.
Last month, we announced plans for new legislation to allow deductions to be made from jointly held bank accounts, closing a loophole that allowed a small minority of parents to cheat their way out of paying towards their children. Our efforts on compliance and debt recovery are firmly focused on helping today’s children. We have continued to uphold this principle since it was set out in the arrears and compliance strategy in January 2013.
We have also been frank about the shortcomings of the previous Child Support Agency schemes, which included the build-up of debt through unpaid maintenance payments, and the Department is currently working on a new strategy that will maintain the principle of focusing our efforts on collecting money for today’s children while looking at creative and innovative ways to maximise compliance in the system.
This new system introduced simplified calculations and increased automation, allowing cases to be processed with a higher level of accuracy than under previous schemes. Additionally, survey data published in December 2016 showed that 91% of parents receiving payments through a direct pay arrangement were receiving all or most of the maintenance due to them. The most recent statistics show that 85% of new applications were cleared within 12 weeks and 81% of change of circumstances actions on live cases were cleared within 28 days, and the level of complaints received remains extremely low, at less than 0.1 % of the case load. No one is complacent, but in the grand scheme of things, 0.1% is relatively low. The caseload on the Child Maintenance Service is still growing, however, and we are taking every opportunity to maintain compliance and deal with non-compliance before enforcement action is needed. We are continuing to increase the operational resources allocated to enforcement, with 290 full-time enforcement case managers in place as of September 2017.
Turning to fees and charges, the one-off £20 application fee for the Child Maintenance Service is intended to prompt parents to consider whether they can make a family-based arrangement. We want to help parents to reduce levels of conflict after a separation and work together more effectively, as we know that this is in the best interests of their children. The application fee is waived in three cases: for the most vulnerable clients; for applicants who are under 19 years of age; and for those who have been victims of domestic abuse. For parents who need to use the statutory scheme, there are no further charges for using the direct pay service, where parents manage payments between themselves. I will go into the direct pay service in a bit more detail later.
Collection charges apply only to the collect and pay service and are intended to encourage both parents to collaborate. The 4% charge for receiving parents ensures that both parents have an incentive to work together and to try direct pay. The collection charge for the receiving parent is deducted only when maintenance is paid, so they do not owe money to the Child Maintenance Service if maintenance is not paid. In addition, charges make a modest contribution to the cost of running an expensive service, which remains heavily subsidised by the taxpayer.
In relation to domestic abuse cases, the Department is committed to ensuring that victims of domestic abuse get the support they need to use the Child Maintenance Service. I have explained about the waiver of the £20 application fee, and the fact that the more expensive enforcement charges are levied on the paying parent. Where a direct pay arrangement is in place, no fees are required. Research from the 30-month review published in December 2016 showed that receiving parents who had experienced domestic abuse were just as likely to have an effective direct pay arrangement as other receiving parents. We are supporting those parents to use the direct pay service safely without having contact with an ex-partner by: facilitating the exchange of bank details; ensuring that personal information is not shared; and providing information about setting up bank accounts with a centralised—rather than personalised—sort code which does not allow parents to be traced. I have very much taken on board the hon. Lady’s suggestion about bank transfer messages, and I will ensure that the Minister looks into that and gets back to her, in respect of that matter and any others that I have not addressed in the limited time available today.
In addition, we have worked with stakeholders to develop a new training package to ensure that all caseworkers are able to understand and recognise domestic abuse and respond appropriately to clients who are victims of abuse. This training has been piloted and is being rolled out nationally from September 2017. The Government are genuinely committed to continued evaluation of the effects of the child maintenance reforms, including the impact of charging. We will continue to consider our current position in the light of any further evidence that our evaluations produce.
I want to touch briefly on the 30-month review, which included the report on the impact of charging that was published in August 2017. The review consists of a series of independently conducted and internal research reports, official statistics and administrative data. The survey data showed that most direct pay arrangements were in force 13 months after the original direct pay calculation, and that 91% of parents who were receiving payments through a direct pay arrangement were receiving all or most of the maintenance due to them. I accept the need for continued evaluation of the impact of charging as we complete the Child Support Agency case closure process.
If there are any specifics that I have not addressed, I will ensure that the Minister who holds the portfolio responds to them. I want to make it clear that there are no targets to keep people from moving from collect and pay. I reassure the hon. Lady that the Government are absolutely committed to promoting parental responsibility and collaboration and to providing an efficient, effective statutory scheme to be used as a last resort. Our priorities remain ensuring that as many families as possible have effective arrangements in place that are appropriate for their circumstances and taking action to maintain compliance in the statutory scheme, so that today’s children can benefit from maintenance payments.
Question put and agreed to.