Financial Guidance and Claims Bill [Lords]

Rachel Maclean Excerpts

2nd reading: House of Commons
Monday 22nd January 2018 Commons Chamber

[Rachel Maclean (Redditch) (Con)]

It is a great pleasure to follow the hon. Member for North Ayrshire and Arran (Patricia Gibson).

I rise to support the Bill. It is a key part of our Conservative philosophy to back responsible financial management, and the Bill contains measures to help individuals manage their finances responsibly, which is something we all support. It is important to acknowledge the great strides this Government have already made. As a small employer in my previous life, I saw the impact of auto-enrolment. The Government were very successful in encouraging people—particularly younger people, who often fail to save for their pension and their retirement—to take part in an auto-enrolment scheme. The statistics are positive. We now see 16.2 million people saving for their pension in that way, up from 10.7 million in 2010.

I have a few remarks and a couple of suggestions for the Minister, and I seek a few assurances. I promise that my speech will be short.

First, I have touched on my experience as an employer. Will the Minister consider the impact on small businesses? The hon. Member for Oldham East and Saddleworth (Debbie Abrahams) mentioned the self-employed. Small businesses and small employers have to think about the right auto-enrolment system for their staff and for themselves. Will the single financial guidance body have the remit to cover that issue for employers and employees?

Secondly, how will the new body seek to target advice at young people specifically? Young people are often at risk of poor financial planning and of falling prey to some of the worst debt issues. They are most likely to be at risk of being influenced by social media and of inadvertently falling into debt, sometimes because they are not engaged with the financial system.

We have heard much in this Chamber about students and student loans. When students consider their future, it is important that they get accurate advice on student loans. Unfortunately there are many myths out there in the public domain, and it is important that that misinformation is addressed so that students have accurate advice, outside the heat and light of the political spectrum, when undertaking that significant step to secure their future.

Will the body cover credit unions? I have a pertinent issue right now with a credit union in my constituency. Concerns are being raised about people who are dealing with credit unions and about how those people will seek advice.

Many people have mentioned cold calling, and I wish to add my voice. I am the daughter of an over-80-year-old dementia sufferer, and I have seen at first hand how many calls she receives. These companies are completely flouting the Telephone Preference Service regulations. There is no recourse for people in that situation to take action, and why should they have to? It is completely unfair that companies are preying on them.

[Patricia Gibson]

The hon. Lady correctly says that there is no recourse for people who are plagued by cold calls. Does she agree that cutting the problem off at source by having director-level responsibility would be a very effective way forward?

[Rachel Maclean]

I thank the hon. Lady for her intervention. She made some excellent points in her speech, and I hope the Minister will consider them. Getting this right so that we treat the most vulnerable in our society well is at the heart of what this Government are doing, and we need to go further in this Bill, as well as through other measures.

I urge the Minister to work closely with the Secretary of State for Education. We have seen the introduction of financial education in our schools, and the previous lack of financial education is part of the root cause of some of the issues we seek to address. We are seeing people getting into debt, sometimes through no fault of their own, simply because of their lack of financial education and their lack of capacity to manage their finances at an early age.

People are now so influenced by the world of social media, and it is all too easy for them to think that many of the positive things they see on social media could be within their grasp, if only they took out a loan or got into debt to afford holidays, clothes, cars or whatever it is—it can seem very easy to people. I call on the Minister to work with colleagues in the Department for Education to introduce education on financial responsibility at an early age so that people get into good habits early.

I finish by welcoming the measures in the Bill. At our surgeries we have all seen the suffering that getting into debt and a lack of advice can bring. I am glad that there will be advice and support for the people who need it most.

Private Sector Pensions

Rachel Maclean Excerpts

Monday 22nd January 2018 Commons Chamber

[Ms McVey]

The Pension Protection Fund is there to do just that: to support pensioners. It does step in and support them where necessary. The hon. Gentleman is quite right: where businesses have not worked responsibly, we should be getting involved, and we did that when we saw the conditions with British Home Stores. What happened there is that anti-avoidance enforcement did take place, and £363 million was got back, so we did not have to use the PPF. Also, a prosecution did take place. All these instances have been different, but the hon. Gentleman is quite right: where there has been an abuse of the system, we will carry out an investigation and bring people to account.

[Rachel Maclean (Redditch) (Con)]

What action is my right hon. Friend taking in working with the Secretary of State for Business, Energy and Industrial Strategy to look at the conduct of the directors of Carillion in this regard? Specifically, following on from the point raised by my hon. Friend the Member for Harwich and North Essex (Mr Jenkin), what can be done now to recover any of this money for the people affected?

[Ms McVey]

I thank my hon. Friend. An investigation is going on. Not only is there one that has been initiated by the Business Minister, but the Insolvency Service will also be investigating what went on. If there is any evidence that untoward things have been done, a prosecution will follow. That is what we are about: we want businesses to act responsibly. They employ the majority of people in this country, so it is only right that we support them when they need our support and bring them to account when they are doing things wrong.

Disability Confident Scheme

Rachel Maclean Excerpts

Wednesday 10th January 2018 Westminster Hall

[Rachel Maclean (Redditch) (Con)]

It is a pleasure to follow my hon. Friend the Member for North Swindon (Justin Tomlinson), who has given such a passionate account of his own personal experience. I have taken a lot from that and have been inspired to consider doing something similar in my constituency in Redditch. We have heard excellent contributions from all parties. The debate is very important and I am pleased we are having it today.

My personal experience as an employer before I entered the House taught me how valuable it is to build diverse teams, not for any altruistic reason but because it makes such a difference to the performance of the business. Like the hon. Member for East Kilbride, Strathaven and Lesmahagow (Dr Cameron), I have a background in psychology and I studied workplace psychology. Diverse teams—diversity of ability as well as all the other things that we think about—have been shown time and again to perform better. They make better decisions and achieve better results, so it makes an enormous amount of sense for us all to promote the Disability Confident scheme for employers.

I agree that work is not just an economic proposition. It is about achieving human potential. It is about individuals and whatever ability they have been born with being able to achieve their potential, contribute and make a difference in their lives. It is so inspiring to hear some of the stories that we have heard today.

I am a relatively new Member. I am pleased that 23 employers in Redditch have signed up to the Disability Confident scheme. I want that number to grow and I shall take practical tips from Members to try to push that number up. I have already visited six of those employers, so I have seen what a difference the scheme makes and how transformational it is for individuals’ lives when they contribute and have a purpose. It is not just about a manufactured scheme. It is about a real contribution on the same basis as any other employee. They are valued for the contribution that they make to the business or organisation. That is what is important. People who are disabled, like people who are not disabled, deserve to be valued for what they put into the workplace and into the organisation. Like my hon. Friend the Member for Ochil and South Perthshire (Luke Graham), I have signed up to the scheme.

I was interested to watch the programme on TV, “Employable Me”, a few months ago, which I thought was a fantastic example of what a difference employment makes. It was inspiring and heart-warming to hear from people who had faced challenges to get into the workplace. Very often simple and practical changes can be made in a workplace. I agree with the hon. Member for Strangford (Jim Shannon), who has left, that sometimes employers can be put off. I recognise that. Working in a small business and starting up a small business without a dedicated HR function can mean that there is a fear—people visualise a lot of different equipment or modifications being needed, when sometimes that is not the case. It is very much about educating colleagues in the workplace to understand and appreciate how they can make small changes to enable people to fulfil their potential. I have personal experience of working with disabled individuals in many different walks of life. It has always been overwhelmingly positive and has made such a difference when one takes the time to understand what the challenges can be.

I welcome and commend the Government’s ambitious scheme. Like colleagues, I have a couple of suggestions for the Minister. The Shaw Trust has just won the contract in Redditch to deliver the programme there. I recommend the Minister looks at the recommendation that the trust has put forward. There is a one-stop shop, a portal, for employers to go to, where they can receive all the information and resources that are there for them to improve Access to Work. A former Minister for Disabled People referred to the Access to Work programme as one of the Government’s best-kept secrets. We should not let that be a secret. It should be a primetime headline, because it is excellent news.

The Minister might like to consider whether we should publish more figures. Should we require large companies to publish figures of their success on employing disabled people? We have seen what is happening in the gender pay gap, where there is definitely a lot more to do, but we are starting to achieve positive change. Perhaps we could do that with disability as well.

[Several hon. Members rose—]

Youth Employment

Rachel Maclean Excerpts

Wednesday 6th December 2017 Westminster Hall

[Mhairi Black (Paisley and Renfrewshire South) (SNP)]

I congratulate the hon. Member for Chichester (Gillian Keegan) on securing this debate on an often neglected but none the less important issue. I also congratulate her on being, I believe, the first female MP to represent her area—well done on that.

When doing research ahead of this debate, I was disheartened, although not surprised, to learn that people aged 16 to 24 are more likely than any other age group to be employed on zero-hours contracts, be in temporary employment, be stuck in part-time employment or be in unskilled work.

[Rachel Maclean (Redditch) (Con)]

The hon. Lady is absolutely right to highlight that issue, but does she recognise that the research briefing shows that, although zero-hours contracts do not suit everybody, they do suit a number of people? Some people study at the same time and welcome the flexibility that zero-hours contracts give them. My son is on a zero-hours contract and it suits him down to the ground. He is 18 and is getting experience he would not otherwise get.

[Mhairi Black]

I genuinely appreciate the hon. Lady’s point, but if she is suggesting that all young people benefit from zero-hours contracts, she is on a different planet. If that is not what she is saying, that is fine. That kind of overly positive attitude towards zero-hours contracts is something that we would read in a Tory party briefing, rather than any other briefing.

I suspect that the Government’s response to any criticism during this debate will be to say that the number of young people not in education, employment or training has been slowly falling—magic! We could say, “Well done,” welcome the fall and simply leave it at that, but like all things in life the situation is more complicated than that. That kind of argument completely ignores the quality of the work. Patting ourselves on the back about the falling numbers is all well and good, but if they are falling because people are working in insecure jobs that do not last long, is it really worth celebrating? If the Government have lowered those figures by pushing people into destitution and poverty—that is my experience since I was elected—is that really something to celebrate? That is not to mention the pitiful minimum wage, which my hon. Friend the Member for Glasgow East (David Linden) talked about, which starts at £4.05 for those under the age of 18. I do not see how anyone can afford to run a household on £4.05 an hour, especially if we consider the fact that the Government have seen fit to take away housing benefit from 18 to 21-year-olds.

Organisations such as the Resolution Foundation are reporting that the Government’s tax and social security policies will drive the biggest increase in inequality since Thatcher. I know that the Government greatly admire that woman, but perhaps they will look past their ideological nostalgia and look again at how they achieved those falling numbers.

The Government could consider following the lead of the Scottish Government, who achieved their target of reducing youth unemployment by 40% four years ahead of schedule. Going further, the Scottish Government will introduce a jobs grant to help even more 16 to 24-year-olds into work. Funnily enough, I highly recommend the Scottish Government’s work, given that Scotland has the lowest youth unemployment in the UK and one of the best youth employment rates in the whole of Europe.

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[Rachel Maclean (Redditch) (Con)]

I congratulate my hon. Friend the Member for Chichester (Gillian Keegan) on calling this critical debate on an issue that affects all Members of Parliament. I have certainly been inspired by her story. She is a fantastic example of the power of opportunity. When it is presented to a young person, it can enable them to reach their potential. I share the wishes of all Members of this House: all young people in all of our constituencies should be able to access those types of opportunities. I hope this debate will influence the Government’s thinking on the issue.

Work is important because it is not just an economic proposition. It is about more than just earning money; it is also about achieving our human potential and cementing our identities in the world. Who could have imagined that a young girl who grew up in Liverpool and started work at 16 could become a Member of Parliament? There are many more such stories that show the impact that work has on young people’s mental and physical health, and on their capacity to make a difference in the world. It is so inspiring to hear that.

Since I became an MP, I have focused on youth unemployment and worked with businesses and young people in Redditch. I started a Redditch mentors programme, and I am encouraging businesses to work with schools and colleges in my constituency to ensure that young people see what is available for them in the area. That is why I am backing the campaign for an institute of technology in Redditch, which would be a fantastic step forward for our town. Before I came to this House, I set up an education and skills charity, and I worked in Birmingham introducing employers to schools, because at that time we were suffering from the devastating impact of the financial crash, under the Labour Government, which caused record rates of unemployment in that area.

I want to make two major observations. The Labour Government did some very good things for our country—I congratulate them on their focus on higher education—but they neglected to think about the technical, practical and IT skills that our young people need. They missed a massive opportunity. The Government are now rightly focusing on those skills and are putting a lot more effort into careers education, T-levels and institutes of technology up and down the country. That is the right thing to do.

[Leo Docherty]

My hon. Friend is making an eloquent point about her constituency of Redditch. I am very pleased that my constituency of Aldershot has experienced a remarkable decrease in youth unemployment: it was 450 back in 2010, and it is now 110. Is there a similar picture in Redditch? I would be very interested to learn whether there has been a similarly remarkable decrease in youth unemployment in recent years.

[Rachel Maclean]

I thank my hon. Friend for bringing me on to the next point in my speech. I am delighted to hear that youth unemployment in Aldershot has gone down, and I am pleased to say that it is a similar picture in Redditch. In 2010, 620 young people were unemployed and the figure now is 185. That is a significant drop, with 435 fewer unemployed young people.

I want to return briefly to the point made by the hon. Member for Paisley and Renfrewshire South (Mhairi Black) about zero-hours contracts and flexibility. I accept that they should not be forced on people—I want to put that statement on the record—but they offer flexibility for young people. Apprenticeships give people the flexibility to earn while they learn. The workplace today is changing massively, as are jobs and work. We need to make sure that employers get behind that in a positive way so that it is an opportunity for young people.

[Mhairi Black]

I accept what the hon. Lady said for the record, but does she also accept that zero-hours contracts—certainly in the experience of my constituents and even people I know—are forced on people? Not only are they expected to function with a household and often with a livelihood and children; they also live with uncertainty about how much money will be coming in. That, unfortunately, is a reality for far too many people.

[Rachel Maclean]

I completely accept the hon. Lady’s point. We have a picture of much lower employment across the country, including in her constituency. The Select Committee on Business, Energy and Industrial Strategy is specifically considering cases of exploitation.

[Stephen Kerr]

Is my hon. Friend looking forward to the Government’s formal response to the Matthew Taylor report, which we hope will go some way towards ironing out some of the inequities that might exist in the issues raised by the hon. Member for Paisley and Renfrewshire South (Mhairi Black)?

[Rachel Maclean]

Yes, and I thank my hon. Friend for reminding me about the absolutely brilliant work that is being done. This Government banned exploitative zero-hours contracts that prevent people from taking on other work, so now such contracts can be a solution, although I still recognise that they should not be forced on people or be the only option. We want more opportunities across the board for people of all ages.

I will finish by bringing to the House’s attention another positive story that I heard from my Jobcentre Plus office in Redditch. My constituent, who was under the local authority care system, attended her universal credit appointment and was asked by the work coach why she was making a claim. She said that she desperately needed to get a job; she was not happy in her care home and she needed to earn to move on. The work coach explained that she would not be entitled to universal credit because the local authority was responsible for her until her 18th birthday, but that the jobcentre would help by looking over her CV and advising her about job search sites. At the time there was a provider in the office with whom the work coach worked closely. They discussed what the provider could offer and how people could be helped into work.

Redditch Jobcentre Plus has a very high success rate for customers getting training through the provider, the Training Academy. The work coach took my constituent there to introduce her personally and to explain that she was only 16. The contact at the provider asked if he could help my constituent in any way and invited her to enrol at the academy the following day. That day, the work coach received an email to say that the provider had secured an interview on the same day for my constituent, closely followed by an email with a photograph of her holding up a plaque stating, “I got the job”. What a fantastic result for her: she went from being told that she would not be entitled to any universal credit, to securing full-time employment within two days. I have many more stories, but that is a fantastic example of how universal credit is helping young people into employment when provided with a package of full support, as is the case in Redditch.

Universal Credit Project Assessment Reviews

Rachel Maclean Excerpts

Tuesday 5th December 2017 Commons Chamber

[Mr Gauke]

The hon. Gentleman raises an important point about broadband roll-out, which obviously, as he knows, is not my responsibility. I understand that there are significant concerns about how that is progressing. It is the case that jobcentres provide the ability for people to complete forms, and they can also provide information about the availability of wi-fi.

[Rachel Maclean (Redditch) (Con)]

My right hon. Friend touched on the measures announced in the Budget. Does he agree that this £1.5 billion has been found to prioritise help where it is most needed in our society? Given the pressures on the public finances, that demonstrates that this Government really care about getting this right for the people who really need it.

[Mr Gauke]

My hon. Friend puts it very well. We are determined to deliver this policy successfully and to ensure that it helps more people to have better opportunities. That is what universal credit is about. That is why we have allocated £8 million over four years to conduct a number of tests and trials to support the development of evidence about what works to help people progress in work—this is about not just getting into work, but progressing in work.

This comprehensive package responds to concerns raised inside and outside the House. Our clear objective is to ensure that as many people as possible get the opportunity to work and to maximise their potential to better their circumstances. This is Labour Members’ last Opposition day of the year, and what have they achieved?

Work, Health and Disability

Rachel Maclean Excerpts

Thursday 30th November 2017 Commons Chamber

[Mr Gauke]

The hon. Gentleman raises an important point, and I know that the Minister for Disabled People, Health and Work is particularly keen to meet him in his capacity as chair of the all-party group to discuss the issue further.

[Rachel Maclean (Redditch) (Con)]

I wonder whether the Minister or other Members watched the programme “Employable Me” on BBC2 the other night. When I watched it, I was struck by the courage of the disabled people who were very keen to get back into work but faced insuperable challenges, and by the enlightened employers who gave them a chance. It demonstrated the life-enhancing power of work for people who make a positive choice to work and who are supported. Will the Minister think about how difficult it is for small businesses and charities, which featured in the programme, to give the right support? Will he tell us how this welcome statement will make that go further?

[Mr Gauke]

I confess that I have not had the opportunity to see the programme that my hon. Friend mentioned, but she is not the first person to recommend it strongly to me. I will perhaps endeavour to watch it over the weekend. She raises an important point about small businesses. We need to help small businesses to find the best way of providing support to disabled people. That will give small businesses access to people who, as I understand the programme demonstrates, have significant ability, are very talented and could bring a lot to the labour market, but who have not had the opportunities that they should have had, partly because of attitudes, culture and so on.

State Pension Age: Women

Rachel Maclean Excerpts

Wednesday 29th November 2017 Commons Chamber

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

When people ask me what it is like at Westminster, I often observe that I live in a parallel universe from the Tory party—I am sure its Members feel the same about me. We all inhabit a political bubble, but let me recall some of the concerns I have heard from Tories recently: whether Big Ben is going to bong, whether Clerks in the House are allowed to wear wigs, whether it is credible for MPs to ask questions in the Chamber without wearing a tie—these are some of the things that have concerned Tories recently. I have also heard them say that when they visit jobcentres people tell them, “It’s great being on universal credit. When I’m on universal credit, I find work”. They do not see the irony that they are meeting these people in the jobcentre. The Under-Secretary of State for Work and Pensions, the hon. Member for Hexham (Guy Opperman), said that WASPI women should be able to get apprenticeships, and the Chancellor recently said that there were no unemployed people. They have also said that the majority of people knew about the changes to the pension age. They live in a different world from me.

[Rachel Maclean (Redditch) (Con)]

What exactly is wrong with a 65-year-old woman taking up an apprenticeship? I am not talking about all women, but why would the hon. Gentleman deny any woman the chance to work at 65?

[Alan Brown]

That is a nonsense argument. I would hope that that woman would not get paid the apprenticeship levy. The Government have a shocking minimum wage for apprenticeships. The hon. Member for Taunton Deane (Rebecca Pow) stood up during the Budget debate and said that the people of Taunton Deane had thousands of pounds more in their pockets. It really is a different world.

People on universal credit struggle as their debts increase. Food bank usage is up. Only this month, a British Medical Journal study estimated that up to 120,000 deaths in England and Wales could be attributed to the Tory austerity policy since 2010, and people over 60 are most at risk. This only touches on the world that some of the WASPI women inhabit: having to sell homes and downsize to survive; mental health problems associated with the stress; the humiliation of seeking jobs; marital pressure and break-ups; just living with the daily anger and disappointment at being let down by the state and a Government who refuse to listen.

In a previous SNP Opposition day debate, the then Secretary of State challenged our £8 billion costed proposal to reverse the Pensions Act 2011. He said that we need to look at the longer-term horizon and that it would cost £30 billion to 2025. Well, just a few months later, the Tories trooped through the Lobby following the Budget and voted for £30 billion of tax cuts, including £23.5 billion in corporation tax giveaways. So even if it would cost £30 billion, it could have been found, and it was there in the last Budget. The Budget, which has just been passed, contained a £3.2 billion stamp duty tax giveaway that will only increase house prices, £3.7 billion for Brexit preparations and an additional £7 billion for a national productivity fund. I welcome that money, but it shows that the magic money tree exists and that money can be found whenever the Tories want it.

We have heard the argument that the state pension age equalisation is all because of the bad EU—it is EU rules that have forced it upon us—yet I have not heard one of the mad Brexiteers in the Government come to the Chamber and say, “One of the benefits of leaving the EU is that we can reverse the 2011 Act”. They have never said, “Let’s stick it to the EU, take it on and give these women what they deserve”. It is high time they gave them what they deserve, and it is high time the Government started listening.

--- Later in debate ---

[Rachel Maclean (Redditch) (Con)]

It is a pleasure to speak in this debate. As time is short, I will focus on a few key issues. I cannot support the motion for a few crucial reasons, the first of which is that the SNP has not clarified its own domestic position adequately to the House. We have heard that there have been many debates on the issue, and the Minister has clarified that there are powers available in the Scotland Act 2016, passed by this House, so I ask SNP Members to consider why the SNP has not addressed this itself in Scotland. Is it simply because it faces declining popularity in Scotland, as reflected in our having more Scottish Conservative MPs?

We all have met WASPI women in our constituencies, and I have spoken to women who have been affected. I am very much aware that these women have been working hard since they were 14 or 15 and have often borne the brunt of caring responsibilities. They have brought up families, and they definitely feel a sense of injustice.

[Mike Amesbury (Weaver Vale) (Lab)]

Surely this is about justice, about doing the right thing for WASPI women and about Conservatives joining Opposition Members on the issue. The 31 Conservatives who claim to be supporting the WASPI women—and rightfully so—should join us in the Lobby. Let us have some justice and some proper transitional arrangements.

[Rachel Maclean]

I thank the hon. Gentleman for his intervention, but the basis of the claim in the motion is that nothing has been done, and that is simply not the case. This Government have already allocated more than £1 billion to help women. We have heard this morning from the First Secretary of State that the pension age will be equalised by next year. Although I accept that there are women who feel a sense of injustice, this motion is not the way to deal with it. Let us instead look at what the Government have done to improve the lives of older people up and down this country, including in Scotland.

The investment in the NHS has meant that we have seen people receiving better healthcare, enabling them to live fuller active lives, which means participating in the workforce for longer. I was surprised to hear that it might be an insult for a woman aged 65 to be offered an apprenticeship. I know women of 65 who find that a great opportunity—why write off women just because they are 65? The idea does not apply to all women—no one is saying it does—but research shows that when women take up such opportunities at the age of 65, they report increased satisfaction. We all know that participating in the workforce is one of the best ways to improve mental health and a whole range of other outcomes. I reject the suggestion that it is insulting. Government Members like to think about how we can create more opportunities for our people to participate and live fuller lives, at all stages of their lives. It is incumbent on Members from all parties to recognise that and support it.

We need to look into some of the statistics that Opposition Members have made claims about. Having read some briefings, I do not recognise some of the statistics on maladministration, an issue that the Minister addressed. We need to be honest about the communication programme and the fact that women have been able to plan for their retirement. The crux of my argument is that there is no suggestion that the SNP proposal is costed, and I dispute the figure put forward by its Members.

[Ian Blackford]

Will the hon. Lady give way?

[Rachel Maclean]

I am sorry but no, I will not. I need to finish.

[Ian Blackford]

On a point of order, Madam Deputy Speaker. This is important. I pointed out earlier in the debate that the SNP published the Landman report last year and it was fully costed. The hon. Member for Redditch (Rachel Maclean) has made an error by saying that our proposal has not been costed. It has been costed precisely and she should recognise that.

[Madam Deputy Speaker (Dame Rosie Winterton)]

That is not a point of order, it is a point of debate, and it has simply reduced the time available for other people to speak.

[Rachel Maclean]

Research has suggested that it might cost £36 billion to implement the proposals. When I speak to WASPI women in Redditch, how am I supposed to say to them, “Let’s not spend money helping your children and grandchildren”—

[Madam Deputy Speaker]

Order.

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[Caroline Dinenage]

I am not going to give way to the right hon. Gentleman. He made criticisms in relation to the Budget and the Chancellor, but he went on to speak for a considerable time today, taking more than 40 minutes for himself and depriving Back Benchers of the chance to have their say. I will make some progress—[Interruption.] I want to address some of the issues that have been raised by SNP Members, so if the right hon. Gentleman would like to listen, I will do so.

As has previously been stated—my hon. Friend the Member for Aberdeen South (Ross Thomson) pointed this out—if the Scottish National party disagrees with any of the UK Government’s welfare reforms, it has the power to do something about it in Scotland.

The right hon. Member for Ross, Skye and Lochaber (Ian Blackford) has mentioned on several occasions that the Scottish National party’s Westminster parliamentary group published a report by Landman Economics, which modelled—[Interruption.] I thought he would be keen to listen to this. The report modelled the impact of a number of options for compensating women affected by the 2011 Act. Of these, the Scottish National party’s preferred option was to abandon that Act entirely, returning us to the timetable under the Pensions Act 1995.

The SNP-commissioned report put the cost of this option at £7.9 billion for the period between 2016-17 to 2020-21. As it stands, that is simply unaffordable, but it has the double misfortune of also being wrong. The Landman report significantly underestimates the full costs of returning to the 1995 Act’s timetable. The Government estimate that the cost over that period would be about £14 billion—nearly double—and that figure includes the impact of lost revenue from tax and national insurance, which the Landman report does not fully take into account.

What is worse is that the SNP’s position applies the costs only to the five-year window between 2016-17 and 2020-21. The costs beyond this horizon are simply not included in the option put forward. If the changes we are implementing did not happen, the actual costs to working-age people would be more than £30 billion over an extended period, which is equivalent to over £1,100 per household. I am sure the right hon. Gentleman would like to justify that to his constituents.

The Scottish National party has also suggested using the national insurance fund to pay for the cost of scrapping the Pensions Act 2011. However, that is not the intended use of the fund, and it is worth reiterating that today’s national insurance contributions fund today’s pensions, with an excess of only two months’ outgoing payments at any given time.

The new state pension is actually much more generous for many women, who were historically worse off under the old system. By 2030, over 3 million women stand to gain an average of £550 extra per year as a result of these changes. The acceleration of the increase in the state pension age for both women and men is necessary to ensure the state pension system’s sustainability in the light of increasing life expectancy and more pressure on public resources. In fact, by 2035, there will be more than twice as many people aged 100 and over as there are now.

Failure to act in the light of such compelling evidence would be reckless. Given the increasing financial pressure that I have described, we cannot and should not unpick a policy that has been in place for 22 years. It is simply not affordable, especially when we take into account the fact that the average woman reaching state pension age will get a higher state pension income over her lifetime than an average woman reaching state pension age at any earlier point.

It is important to appreciate the modern lived experience of later life in the 21st century, which has altered significantly since the inception of the state pension in the 1940s. Longer life, better health and continued activity in later decades are reshaping the profile and participation of older people in our society. This includes sustaining work and other economic activity as those over 60 continue to learn, earn, contribute and participate.

[Rachel Maclean]

Contrary to the assertion by SNP Members that it is an insult to offer an apprenticeship, does my hon. Friend agree that saying that is actually an insult to women who would like to take up—

Universal Credit Roll-out

Rachel Maclean Excerpts

Thursday 16th November 2017 Commons Chamber

[Michael Tomlinson]

Forgive me; I will speak up. If the hon. Gentleman stops talking, however, he might be able to hear a little more easily. He is more than welcome to come along to the meetings of the all-party group. We met yesterday, which was the date on which the latest Office for National Statistics employment figures came out. We track those figures each month. It was pleasing to see that there are still record numbers for youth employment and record lows of young people who are out of work. The youth unemployment rate of 11.9% is in touching distance of the lowest ever figure on comparable records, and it is almost half the youth unemployment rate of over 22% in 2011, which followed the disastrous Labour Government.

[Rachel Maclean (Redditch) (Con)]

Recent forecasts show that universal credit will create 400 jobs in every constituency across the country. Does my hon. Friend welcome that, as I do, given the great work that he is doing?

[Michael Tomlinson]

I warmly welcome it. I look forward to the time when we look back and say that universal credit has been a success. Now, do not get me wrong. We are not trying to pretend that all is rosy and that there are no errors—quite the opposite. Government Members, as much as Opposition Members—well, certainly Government Members—want to ensure that universal credit works. I encourage the Minister, who will listen as I am sure he always does, to ensure that he is testing and learning, and that we are constantly improving the system.

I support any principle that encourages more people into work. In response to the intervention made by the hon. Member for Hove (Peter Kyle), I threatened to speak about the Labour party’s record. The hon. Gentleman is just about to leave the Chamber, but it does not matter, as he can read this in Hansard tomorrow—[Interruption.] Ah, he has sat down. When the Labour party was in power, a member of my community told me that he had chosen not to take a job because it would not have been worth his while, due to the risk to his benefits and, therefore, to him. I do not blame him. He made a perfectly calculated, sensible and rational decision, but he chose not to take a job because of the Labour Government’s policy.

--- Later in debate ---

[Rachel Maclean (Redditch) (Con)]

It is a pleasure to follow many colleagues, including my hon. Friend the Member for Banff and Buchan (David Duguid).

[Michael Tomlinson]

My hon. Friend has said that it is a pleasure to follow so many speeches, but does she agree that the speech she is following got it completely wrong, in tone and manner? There are hon. Members on both sides who want to make this work.

[Rachel Maclean]

I thank my hon. Friend for his intervention. I know the hon. Member for Inverness, Nairn, Badenoch and Strathspey (Drew Hendry), and I can assure him that nobody on the Government Benches was laughing at his comment yesterday. Unfortunately, I could not take up his kind offer to go to Inverness—I am sure it is a wonderful place—because I was busy in Redditch doing exactly what he said: meeting the housing providers and agencies there to make sure that the roll-out was going well.

Universal credit is designed to be an agile system. I used to work in software development, so I understand what that means in terms of designing a very complicated system that deals with individuals and their unique and different circumstances. Opposition Members have called on the Government to pause the roll-out, but that would not fix the problems they have rightly identified. The Minister has recognised the problems in the system, and we all want to work together to fix them, but the nature of an agile system is that it changes all the time in response to people using it. That is how we learn and improve the system.

We have already seen evidence of that. The Prime Minister highlighted an example yesterday when she said that the number of people in arrears on universal credit had gone down significantly—by a third, I think—in the past four months. That is evidence that the system is improving as it is being rolled out. It is a very slow-roll-out—it is taking nine years altogether—but I think that, just as we recognise the seriousness of issues that have been rightly highlighted in the Chamber in, I hope, a serious fashion, we should also recognise the real work that the Government have already done and the real progress that they have already made in addressing some of those serious issues. I hope that that work and progress will continue.

Some Members have used an extremely critical tone, and I think that that is wrong. This is a serious debate, and we are here because we care about our constituents. I am a very privileged person, and I am the first to say so. I have never had to rely on benefits, and I am sure that some Opposition Members have not had to do so either. That, however, does not preclude any us from feeling compassion for and empathising with people who are in that position. That is why I have visited my local jobcentre and spent a long time discussing the issue with social landlords, people who work in debt counselling, and the jobcentre staff themselves.

I do not recognise the stories that I have heard about jobcentres. I heard at first hand from the jobcentre staff about how hard they were working to support the most vulnerable customers through their journeys, and they are proud to do that. Their policy is to make advance payments by default, rather than forcing people to ask for them. They are working hard on an individual basis, providing a tailored package of support for every single claimant in the constituency.

[Alex Sobel (Leeds North West) (Lab/Co-op)]

I have been on jobseeker’s allowance and I know what it is like, but the hon. Lady’s account of DWP workers is not true. A universal credit manager, quoted in the New Statesman, said:

“I see masses of suffering on a daily basis. Case managers…are well-trained to deal with any claimants… we know that children will suffer and go hungry for weeks.”

That is the testimony that we hear from people in jobcentres.

[Rachel Maclean]

No doubt the Minister will comment on that, but it is not the testimony that I heard at first hand from workers in my local jobcentre in Redditch. They told me that they care about their customers and want them to get the help they need, and they are proud to provide that help.

We have heard about landlords who are sending letters to tenants who will potentially be receiving universal credit. I think that that is unacceptable behaviour on the part of private landlords, and I think it very irresponsible of the right hon. Member for Islington North (Jeremy Corbyn) to raise this issue constantly from his privileged position without condemning the behaviour that he should be condemning. Rent payments can now be made directly to social landlords, and work is being done to provide the same support for tenants in the private rented sector.

[Jamie Stone]

The hon. Lady has made a valid point. I shall be meeting a social landlord tomorrow, along with one of my hon. Friends. I think that Ministers, both at Holyrood level and here, should look into this matter in due course, because the current modus operandi does not seem right to me.

[Rachel Maclean]

I thank the hon. Gentleman for his intervention.

Let me end by saying that I think it important for us all to work together proactively across the entire system. Landlords have a stake in this. Bromford Housing Association in Redditch told me that although people are in arrears when they go into its housing, there is not a single case of an eviction. Rather than evicting vulnerable tenants, they are providing support for those people. Surely that should be our approach.

--- Later in debate ---

[Laura Pidcock (North West Durham) (Lab)]

First, I will not take lessons from the other side about how angry we should be on this issue. We are experiencing the suffering in our communities. This debate and all the expressions of concern about this shambolic system lead me to one question: what would it actually take for the Government to pause this roll-out? All the advice services, experts in the field, local authorities, housing associations, landlord associations and private landlords are saying that the system is too riddled with problems to continue safely, yet the Government still choose to ignore their pleas. What does this say about the people in charge?

Let me be really clear about this. Universal credit is an in-work benefit as much as it is an out-of-work benefit. It is so predictable that the Conservatives would use divide and conquer tactics, creating the “strivers versus shirkers” rhetoric and the dangerous myth that this is about those who cannot be bothered to work versus those who can. Universal credit is as much about those in work as those who are not. If this Government last—at the moment, that appears to be a big “if”—7.2 million people will be on universal credit by 2022. Half those people will be in work and subsidising their low pay. I repeat that this is about those who are in work. The system is a scandal.

There are simply too many issues to raise now, but I want to highlight some of the most important. The first is the wait. People should not have to wait six weeks for a payment. The system embeds financial crisis from day one. If a reduction in waiting time by one or even two weeks is announced in the Budget, we should not be surprised if there are no cheers or celebrations from the organisations that are supporting people, because they know that it will only be a tactic on the part of the Government to release political pressure on themselves.

Let me move on to the other problems. Advance payments are not a solution. They are not automatically granted; they are calculated as 50% of the claimant’s entitlement; and they have to be repaid in six months. They exacerbate debt.

[Rachel Maclean]

Will the hon. Lady give way?

[Laura Pidcock]

Absolutely not. We have heard enough from that side.

Removing the severe disability premium and the enhanced disability premium is callous and part of a wider agenda of reducing the welfare budget. It will lead to disabled people—I repeat, disabled people—being worse off. Also, direct payments to claimants are creating rent arrears. As of yesterday, according to Karbon Homes in my constituency, 75% of people already on universal credit are in rent arrears averaging £810. Yes, that is because of the wait period, but it is also because of the financial demands on my constituents. How can the Government square the fact that rent has to be paid in advance, while universal credit is paid in arrears? Not to mention the DS1500 forms and the fact that those who are terminally ill have to go to the jobcentre themselves because the form cannot be submitted by someone else without explicit consent.

I am deeply concerned that the Government are rolling this system out in my constituency on 13 December. The first payments are expected on 28 January. Who set this roll-out date? Why on earth did this get signed off? These points are just the headlines; I could go on and on about the serious flaws of universal credit. The Government have had all the warning they need; they are now choosing to inflict this Frankenstein’s monster of a system with little or no regard for the wellbeing of people up and down the country. I do not know how the people rolling this out can sleep at night.

Supported Housing

Rachel Maclean Excerpts

Wednesday 25th October 2017 Commons Chamber

[Jess Phillips]

And we would need an additional 300 to get anywhere close to dealing with the problem.

[Rachel Maclean]

I have worked in Birmingham for over 25 years and can confirm that the problem to which the hon. Lady refers has existed for a very long time.

[Jess Phillips]

I have lived there all my life and have worked in homelessness services for most of my adult life, and I can absolutely guarantee that right now it is worse than I have ever known it. For me to say otherwise and be positive about the situation would be to tell a lie, and I am not willing to do that.

Given my own experiences, it will be no surprise that I am going to stick up for refuge accommodation. I take issue with the Minister’s assertions that no one is turned away, because currently in this country one in four women are turned away; that is 78 women every day and 78 children every single day who find that there is nowhere for them to live. That is what is happening now. So the future assertions about refuge are very welcome, but, as was stressed in the brilliant report by Members, which has been mentioned already and is worthy of praise, women’s refuge needs a specific and different model taken off-stream, and it needs sustainability. I want to talk a little bit about why sustainability matters.

After the most recent general election—there have been more than there should have been in the time I have been here—I recall the Prime Minister commiserating with her colleagues who had lost their seats. How difficult that must have been for her, having caused the demise of their jobs. However, where I worked, I had to put every single member of staff on notice every January. Everyone was given a notice warning that their job might not be there in March because we lived hand to mouth on year-on-year funding. That is not the way I would operate my household income, and it is not the way to operate an organisation. It is not what the Government should want for the most vulnerable people in society, but that is what is happening in every supported housing charity in the country at the moment. Every single year, we had to put people on notice, and sometimes we would find out only on 30 March what funding we were going to have for the next year. There needs to be a sustainable funding pot.

I want to pick up on another thing the Minister said in his opening speech. He said he knew that demand was going to get higher. It is utterly shameful for him to stand at the Dispatch Box in this building and say, “We know it’s going to get worse. We know that more people are going to need supported accommodation.” There is one reason why the Government will need more supported accommodation for the people I have been dealing with: universal credit.

At the moment, if a woman is receiving benefits through tax credits, the money goes to her. There are lots of women across the country saving up money and putting it away, so that they can escape and will not need a refuge bed. However, under the new universal credit system, every single penny going into that household will be paid to one person. It does not take a genius to work out who usually gets the money in a household, so that money will now be going to the man. The woman, whose financial constraints are already so severe, will be limited even further by the Government’s proposals, which will not allow women to break free when they need to.

I have asked the Department for Work and Pensions whether it is monitoring who is getting the money in split payments, why people are asking for split payments and whether anyone has even asked for split payments. I have asked what data it is collecting about split payments and, funnily enough, the answer is always, “I’m sorry, we don’t collect that data.” The Government are not collecting data, and they are turning a blind eye to a group of people who are so vulnerable that they will be turning up on our doorsteps, at our surgeries and at our refuges, where they will be turned away because there is nowhere for them to go. On Tuesday, I want to see a sustainable plan that lasts for a term that is longer than five years. We have just been given another five-year term here, so how about we give that to them? We need a specific funding model for refuge services because, without it, people die.

[Rachel Maclean (Redditch) (Con)]

It is a pleasure to follow the contribution from the hon. Member for Birmingham, Yardley (Jess Phillips), and I thank her for taking my intervention. Members on both sides have made some excellent points today and I really hope that the Ministers are listening; I am confident that they are. It was also a great pleasure to listen to the Minister’s opening remarks, in which he outlined the extensive investment and support that has gone into this sector over the course of this Parliament and the last one. This demonstrates the seriousness with which the Government are treating this critical issue for our communities and our society. Let us not forget that this has been achieved against a challenging and difficult financial backdrop. When we talk about what we are hoping to hear, let us look also at the record of investment that we have already delivered, as my hon. Friend the Member for Walsall North (Eddie Hughes) suggested.

I saw this provision for myself when I visited Dorothy Terry House in Redditch on one of my first constituency visits. It provides incredible enriching care for elderly and complex-needs patients, including people with dementia and a number of other needs. It has 42 highly specified one and two-bedroom apartments and communal areas designed to ensure that residents can lead an enriching life and have access to all the local amenities of Redditch on their doorstep. It has welcomed the announcement that the Prime Minister made at the Dispatch Box today. During my short time in Parliament, I have engaged extensively with representatives of the housing sector, including the National Housing Federation, which I am glad to see has welcomed this announcement. I am glad that the Government are listening, and I have seen Ministers taking extensive notes about the points made today, so I look forward to hearing about what they will bring forward on Tuesday.

I know that Government will be doing this, but I call on them to consider the recommendations of the report by the Communities and Local Government Committee and the Work and Pensions Committee, to which many Members have referred and which contains some excellent points. It is important to have a separate funding model for refuges and hostels, because they play an important role for women and children who are the victims of domestic violence, as we have heard already. We take that seriously, and we want those important services that play a vital role in our communities to be protected. Our Prime Minister also takes it seriously, and when she was Home Secretary I went with her to a supported facility that puts on treatment and programmes for women in Birmingham. I saw how she listened to the families and women and how much she took from that meeting.

As a new Member, I am glad of the opportunity to take part in Opposition day debates, and I think I have taken part in every single one. I do not always agree with the Opposition motion, which is why I choose to exercise my right to vote or not to vote, as the case may be—[Interruption.] I think that is democracy. I am here to decide after taking part and sitting and listening to the debate and the arguments.

The Opposition Front-Bench spokesman came up with four tests for the Government’s consultation that he expects to see next week, but I want to ask him about one thing. He will obviously be critical of what comes forward, but I would like him to take the proposal seriously and to engage in a serious discussion about the necessary funding and about how he and his party would fund the need in this area without racking up more debt or increasing taxes.

[Several hon. Members rose—]

Universal Credit Roll-out

Rachel Maclean Excerpts

Tuesday 24th October 2017 Commons Chamber

[Drew Hendry]

I thank the hon. Gentleman for his contribution, and I completely agree. I have experience of exactly the same—

[Rachel Maclean (Redditch) (Con)]

Will the hon. Gentleman give way?

[Drew Hendry]

I am going to answer the—

[Rachel Maclean]

Will the hon. Gentleman give way?

[Mr Speaker]

Order. I have said this before, but I will gently say it again for the benefit of new Members: a Member cannot be expected to give way to a second Member while responding to an intervention from the first. It is just a matter of timing. That is all. I understand the hon. Lady’s commitment, but we have to do these things in an orderly way.

--- Later in debate ---

[Drew Hendry]

I am grateful to my hon. Friend. It beggars belief that jobcentres will be closed during this process. Moving on—

[Rachel Maclean]

Will the hon. Gentleman give way?

[Drew Hendry]

I am going to make a little progress.

I want to discuss some of the effects that have occurred in my constituency since 2013. This is not new to us; we have experienced things on a daily basis. Over 60% of my casework—this is coming to everybody—is made up of universal credit issues. This is an incredible drain on the resources of my staff. The jobcentre staff are working as hard as they possibly can, as are staff at the citizens advice bureau and all the other agencies, including food banks, which are having to deal with the collateral damage. The use of food banks is being driven up by universal credit. If anyone on the Government Benches cares to listen to the people at the sharp end, they will understand that that is a fact of life. By the way, if someone is going to donate to food banks, please take UHT milk and tinned meat, because those are the kinds of things that they desperately need. The chair of the Scottish Welfare Fund told me in the past week that people are now going to food banks for food that does not need to be cooked so that they can save money on electricity and avoid running up bills. How damning is that?

I agree with you, Mr Speaker, that the Minister for Employment is a gracious gentleman. I have spoken to him across the Chamber about this issue on many occasions, but now is the time to listen to the experts and to those who are actually experiencing the effects of this. Now is the time to pause this shambolic, chaotic roll-out, and to take the trouble to fix it. Now is the time to listen to the people who are struggling through against the increasing poverty to which they are being subjected. Please, come to my summit in Inverness, listen to the agencies, hear what these people have to say, and get them involved in the process of sorting this out so that people can live in dignity.

--- Later in debate ---

[Chris Green]

I will not give way; time is tight.

The Government are delivering for the poorest. Periods of Labour government have always resulted in an increase in unemployment. From 1997 to 2010, unemployment went from 2.1 million to 2.5 million. Unemployment has dropped to below 1.5 million under this Government.

[Rachel Maclean]

As well as the employment figures rising, we have seen more disabled people get back to work. Does my hon. Friend agree that that is a chance for them to fulfil their potential in the workplace and in life?

[Chris Green]

My hon. Friend highlights an important point. Many fully able people have got into work, and we need to ensure that the whole of society—all our communities—can get into work.

The number of children in workless households has fallen to a record low in every region since 2010, and the figure has fallen by 90,000 in the past year. The Resolution Foundation reported that the number of low-paid people—those on less than two thirds of the median wage—is at the lowest level since the 1980s.