(8 years, 5 months ago)
Commons ChamberWe have been very clear that universal credit is there to secure employment opportunities and in-work progression for everyone who is on it. I come back to the wider support universal credit provides for families, which has been touched on. Parents on universal credit can claim back 85% of their childcare costs when they move into work, compared with 70% under legacy benefits. This is a significant change and means that a working family with two children can now receive up to £13,000 a year in childcare support under universal credit.
Interestingly enough, prior to the recent elections in Scotland, I met the Scottish Minister responsible for childcare to consider the development and uptake of the childcare policy in Scotland, which mirrors many of the programmes that we have in England. Affordable childcare is crucial for working families and I look forward to working with the new Government in Scotland to ensure that we can provide all possible relevant support.
Support for disabled children was also mentioned. We should all be clear—I recall debating these points in the Welfare Reform and Work Bill Committee—that there is clear recognition of the extra costs associated with disabilities. Universal credit will provide support for families with disabled children. Of course, the point about the disabled child addition is that it provides extra support for low-income families with a disabled child. We know that caring responsibilities are enormous for parents with disabled children, and we also know that those parents are less able to take up work. They therefore need greater support, and that is obviously what we are focused on.
The Minister refers again to additions and to giving extra support to children with disabilities. Of course, it is not extra or additional to what they would receive now; it is actually a reduction. Will she properly address the terms of the motion and not the fantasy world that she is trying to serve up?
(8 years, 9 months ago)
Commons ChamberMy hon. Friend raises an important point: jobcentres have a significant role to play in providing support to young people. That is why we have just started a pilot that takes Jobcentre Plus, with employers, into school to act as a gateway to provide new employment, work experience and work placement opportunities. He has also made the point that the new youth obligation focuses on ensuring that young people are either earning or learning, and do not end up trapped in the benefits system, which is exactly what happened under the previous Labour Government.
We have already heard that the Department has changes afoot in relation to benefits for people with disabilities, not least with the narrowing of the personal independence payment. Are Ministers hoping to extend that to Northern Ireland as well, using the direct rule powers that exist until the end of this calendar year?
(9 years, 4 months ago)
Commons ChamberThe Minister says that the Government do not want to place unnecessary restrictions on the Scottish Parliament. Which of the amendments that hon. Members have spoken to would do that?
I am talking about the definition of a disability benefit, which we want to ensure provides ample flexibility for the Scottish Parliament to legislate for a range of outcomes for people who would not otherwise meet the requirements.
Amendment 48 relates to carers’ benefits. As with disability benefits, our approach has been to describe the key features of the existing carer’s allowance, but clause 19 will not restrict the Scottish Parliament to following all the detailed features of that allowance. For example, it will not be restricted to making a benefit payment to only one carer in respect of each disabled person. Taken together with existing devolved powers in areas such as social care, the clause will ensure that the Scottish Parliament has powers to set out how support for carers is provided, including the rate at which it is paid and whether it is paid as a benefit or provided in some other way.
There is also a broad definition of a disabled person in respect of whom a carer’s benefit can be paid. Amendment 48 would extend the Scottish Parliament’s legislative competence still further, allowing it to provide a carer’s benefit to children under 16, people in full-time education or those who are gainfully employed. I will take each category in turn and explain why we do not consider that there is a case for that expansion of competence.
It is a long-standing principle of the social security system that those under 16 are normally supported not by the benefits system but by guardians, local authorities or parents. With regard to those not gainfully employed, carer’s allowance is designed to recognise those whose opportunities to work are limited because of the time that they dedicate to caring duties. There needs to be a threshold so that we can judge whether a claimant is in employment. The reference to gainful employment provides that threshold.
Those in full-time education are normally supported not by the benefits system but by the education maintenance system of loans and grants. Clause 19 will allow the Scottish Parliament to decide on the details of who carers’ benefits are paid to, how much is paid and what the eligibility criteria should be. The parameters of the definition of “relevant carer” are appropriate and reflect long-standing principles about the purpose of carers’ benefits.
(9 years, 11 months ago)
Commons ChamberThere is support that remains focused on those on lower incomes. As I said at length in Committee, the Government’s overall child care system is very much focused on those on lower incomes, and it is wrong to suggest that that is not the case. Families in receipt of tax credits receive more generous support with child care costs. We have already discussed universal credit, which is being extended to cover up to 85% of the costs of child care. All the analysis shows that the benefits of the scheme are focused on households on lower incomes. The new scheme ensures that for the first time parents can be certain that support will be available for them; yes, obviously, at the lower end, but importantly, as they move into work and increase their incomes too. The scheme is much more fairly targeted than the existing scheme of employer-supported child care. It supports working families, getting households and families back into work. It was debated at length in Committee, and I reassure the hon. Gentleman that that is the case.
Today’s debate has shown that the Government are taking a broad range of actions to support families with the costs of child care, not just through this scheme, but through improvements in the welfare scheme—
In considering how the Government can best take this forward, will the Minister take account of the fact that whenever the Northern Ireland Assembly debated the legislative consent motion, there was much confusion, even on the part of the junior Minister, about its impact on child care in Northern Ireland? Child care provision in Northern Ireland has a different profile from here, and it seems that the Government’s scheme will lead to degrees of confusion and uncertainty, particularly for existing schemes that are well favoured.
I take this opportunity to re-emphasise that the scheme in no way creates confusion. In Committee we touched briefly on the situation in Northern Ireland and provided information and guidance in that regard. This is about working with all the players—parents, employers, and other stakeholders. It is about making the system abundantly clear and simple, not about complexity. Guidance has been drafted. We are working with third parties. We are designing a calculator tool, as we have discussed before. This is all about giving guidance and providing clarity.
I shall briefly cover amendments 3 to 11 on families in receipt of tax credits. The child care element of tax credits is just one component of the package of support designed to help lower-income households. I emphasise that there is support for those on low incomes, in particular. We should reflect on the fact that under the new scheme more working families than ever before will be eligible for support with child care costs. The scheme will be an important component of the overall offer to working families. It will sit alongside existing schemes to ensure that support is available to those increasing their incomes as they move off benefits.