(10 years, 2 months ago)
Commons ChamberT7. In a few weeks, I will hold my eighth Reading jobs fair. At the previous seven, 20,000 jobseekers and 300 local businesses have already been welcomed. Will my right hon. Friend the Secretary of State join me in thanking all the businesses and partner organisations that have made that possible, and in welcoming the impact that it has had on reducing unemployment in the Reading area?
I congratulate my hon. Friend on working closely with businesses to get people back to work. Will he also pass on our congratulations to the businesses, small and large, that have done their level best to help deliver 1.7 million new jobs since the Government came to power and to turn the economy around so that it is the best performing economy in the whole of Europe?
(11 years, 5 months ago)
Commons ChamberThe hon. Gentleman is right. That was one of the lessons from Inspired Neighbourhoods, which sat down with people and said, “This is the amount of money you need to make from your business to ensure you become free from benefits and help your family to look after themselves.”
21. I am sure my hon. Friend will join me in welcoming last week’s employment figures, which show that the number of people claiming jobseeker’s allowance in Reading East is now at its second lowest level since February 2009. Given Labour’s poor track record of securing sustainable employment, does he agree that the Opposition’s proposed job guarantee would fail to provide as many positive outcomes as the new enterprise allowance?
My hon. Friend is absolutely right to highlight the fact that the number of people claiming JSA fell by 7,000 last month, which also saw the 11th consecutive monthly fall in the number of young people claiming jobseeker’s allowance. The measures we are taking demonstrate the effectiveness of our programmes, particularly the new enterprise allowance.
(11 years, 8 months ago)
Commons ChamberI am aware of it and I intend to turn later to the specifics of the situation for social landlords and for Scotland.
Not just now, but I will in a moment.
Last week the chief executives of seven charities—Carers UK, Disability Rights UK, Contact a Family, the Carers Trust, the Multiple Sclerosis Society, Mencap and Macmillan Cancer Support—wrote to the Chancellor to ask him to exempt carers and disabled people from the bedroom tax in recognition of the contribution that carers already make and in order to protect them from further financial hardship. In response, the Work and Pensions Secretary said that he would look again at the impact of the policy on disabled people, but having considered the wholly disproportionate impact on disabled people and their families, he is ploughing on regardless. It is callous and reckless and will cause untold distress and hardship. The Government really need to think again.
I thank the hon. Lady for giving way; she is being very generous. I have been listening carefully to her comments on those in social housing, but what does she have to say to the 2,000 people on waiting lists in Reading who hope to get into social housing?
I say to the hon. Gentleman that perhaps those people in Reading would like to look north of the border, where building social housing has been the long-term solution to tackling the lack of affordable housing. This problem will not be solved by taking housing away from one needy group and giving it to another. As I have said, there will be a disproportionate impact on disabled people and most of the people affected by this policy are already among the most disadvantaged in our communities.
Hon. Members can unite on the fundamental opposition to the bedroom tax. I urge hon. Members on both sides of the House to work to address the problems.
We can and should do a number of things to mitigate the impact of the bedroom tax. For example, the Scottish Government have moved to strengthen protections for tenants in Scotland against eviction for rent arrears. The new pre-action measures that came into force in August last year will ensure that eviction is an absolute last resort, and that tenants have access to advice and every opportunity to agree a repayment plan that is affordable for them and reasonable for the landlord.
I will not give way.
We should also look carefully at the loopholes in the bedroom tax regulations. Apparently, the meaning of “bedroom” is not clearly defined in the legislation. I heard yesterday that one large housing association in England—the Knowsley Housing Trust—has reclassified 600 properties to protect tenants. That obviously comes at a cost to the housing association, but it is nevertheless a brave and socially responsible move. I am sure that social landlords are also seriously considering bricking up windows or taking down walls.
Other housing associations in England—the hon. Member for Aberdeen South (Dame Anne Begg) referred to this—have called for two-bedroom properties to be exempted from the rules. They argue that it makes no sense for them to build inflexible one-bedroom homes, because they want to encourage long-term tenants who are integrated in the community, not transient short-term tenancies.
Another potential mitigation measure that might help in urban areas is for housing associations to co-ordinate most effectively their waiting and transfer lists, as we have seen on Merseyside. Obviously, that will not work so well in more rural and dispersed areas, but it might help in cities. There is a range of options, and it is important that we look closely at all of them.
To return to a question posed earlier, social landlords need to be consistent in how they deal with arrears. I am not sure we can draw a distinction between someone who falls into arrears because of the bedroom tax and someone who is not under-occupying but falls into arrears because their employment and support allowance has been cut, because their tax credits have been reduced, because they lose their job or because they have fallen sick. The danger is that if some people have their arrears written off and others do not, that will quickly cause resentment between tenants, all of whom are likely to be living on tight budgets and in danger of experiencing significant increases in rent across the board if housing associations budgets come under strain.
The hon. Gentleman makes a good point—some housing associations already contend with that problem. If they are to continue to invest in their existing properties and continue to build the new smaller properties that we need to meet our changing demographics, they need to be able to borrow, and to do so cheaply. Any increase to the costs of borrowing will have only an inflationary pressure on rents and service charges. That pressure falls back on the low-income households in the social rented sector, who can ill afford it. There is no doubt in my mind that the problems for social landlords, caused by the shortfalls in housing benefit for people affected by the under-occupancy penalty, will be further compounded by the end of direct payments under universal credit.
I will not give way to the hon. Gentleman.
The bedroom tax is a nasty, vindictive and unnecessary measure. The under-occupancy penalty is manifestly unfair. It puts disabled people on low incomes right at the front of the austerity agenda, and asks people on the lowest incomes to pay the price for the structural problems affecting the supply of affordable housing. However, the bedroom tax is also unworkable: instead of addressing the underlying problems, it undermines the ability of social landlords to invest in the kind of affordable housing that is so badly needed, and it fails to tackle the excessive private sector rents in London and surrounding areas that have fuelled inflation in the housing benefit bill.
The Secretary of State needs to get a grip. The bedroom tax will not save any money, but it will cause chaos for tenants and social landlords alike. It will cause untold distress for those forced to leave their homes and communities, or for those who find themselves grappling with spiralling debt. It is not too late for the Government to think again. I urge Ministers to reconsider: scrap this crazy measure, or at the very least look again at exempting households affected by disability; look again at the budget for discretionary housing payments; offer local authorities support commensurate with the identified needs of disabled people and foster carers; and look again at whether it is reasonable to consider two-bedroom homes as under-occupied at all. I would have more respect for the Government if the Secretary of State postponed this measure and listened.
My right hon. Friend has some credibility on the issue of welfare reform, because he has been prepared to vote for difficult decisions on public spending. Neither the Labour party nor the nationalist parties have taken any difficult decisions on anything—they simply oppose everything—whereas he has, quite fairly, been willing to take some difficult decisions and support them and, again quite properly, raise concerns about the detail of policy. He is entirely right. The principle of the policy must be seen in the context of deficit reduction. Given that we have to reduce the deficit, we want to do so in a way that potentially has upsides as well as downsides, such as by making better use of the social housing stock, but it has always been our intention to protect the most vulnerable. The additional £30 million on top of the core £20 million for discretionary housing payments is the key way we want to do that, and I will say more later about how we want to ensure that that system works.
Does my hon. Friend agree that the question that the mover of this motion—she would not allow me to ask it—and the Labour party must answer is: do they support any restrictions on the size of accommodation for social tenants or on the amount of housing benefit?
We know that the housing benefit bill doubled in a decade—up 50% in real terms—and that Labour did nothing to tackle it. With the collapse in house building under the last Government, it is not surprising that private rents, and as a result housing benefit bills, soared.
(11 years, 9 months ago)
Commons Chamber8. What steps he is taking to control welfare spending.
17. What steps he is taking to control welfare spending.
18. What steps he is taking to control welfare spending.
My hon. Friend is right about the situation that we were left. We are already bearing down on the problem. The figures show that we are making inroads into welfare fraud. Universal credit will have a much better record in this area, because we will be able to use real-time information to check up on who is in work and what they are earning on a monthly basis, rather than having to wait until the end of somebody’s time on tax credits at the end of a year and reconcile the figures over a long period. Under the current tax credits system, £5 billion has been written off as a result of fraud and error, and it looks like another £5 billion will also be written off.[Official Report, 1 February 2013, Vol. 557, c. 8MC.]
As the Secretary of State has said, the previous Government increased welfare spending by 60%. There was not, however, a 60% increase in people getting jobs, or a 60% reduction in child poverty. Does the Secretary of State agree that we should not measure the success of our welfare system by how much we are spending on it?
I agree with my hon. Friend: we should measure our welfare system by how soon it provides support to those who need it and how it supports those who can be moved into a more productive form of life. The previous system trapped people into dependency on welfare with rising bills and, ultimately, a very poor record on child poverty.
(12 years, 1 month ago)
Commons ChamberThe right hon. Gentleman should remember that this is a two-year programme. Payments are made after six months of sustained work activity based on work outcomes. We need to build up the evidence to see how effective the Work programme is. I am confident that the statistics to be published later this year will demonstrate its effectiveness. It is a vital part of the work that we need to do make sure that we get more people into employment.
13. What recent progress he has made on the mandatory work activity scheme.
Between May 2011 and February 2012 there were nearly 50,000 referrals to mandatory work activity and 16,790 starts. The scheme was expanded in June 2012, meaning that there are approximately 28,000 places available in 2012-13.
The mandatory work activity scheme is important in sending out a signal that sitting around on benefits is not an option under this Government. May I therefore congratulate my hon. Friend on securing its extension, with another 70,000 people a year doing placements in return for receiving benefits? Is he as ambitious as my constituents to see it extended to all able-bodied people on benefits?
(12 years, 8 months ago)
Commons ChamberI am pleased to give the hon. Lady that assurance. She will, I am sure, have read the consultation document we produced before Christmas, which confirms that this is about spending the support we give to people who have been bereaved in a better way, not about reducing the spend.
T1. If he will make a statement on his departmental responsibilities.
The Welfare Reform Bill is expected to receive Royal Assent later this week and will mark an important moment, cementing a new contract with the country that states that we will protect the most vulnerable and provide a system that is fair to the taxpayer by making sure through universal credit that work will pay. I believe that those changes are long overdue and I am grateful to all in this House who have helped to get them on the statute book.
The shadow Chancellor claims today that families are better off on benefits, where so many were trapped during 13 years of complex Labour reforms. Will my right hon. Friend reassure the House that he will change all that with the universal benefit and make it his mission to ensure that no family is better off on benefits?
I can confirm to my hon. Friend that the whole purpose of the Welfare Reform Bill, including the universal credit, which is at the heart of it, is that people will be better off in work than on benefits. I am always astounded by the fact that although many Opposition Members quite legitimately say that they support the universal credit, during its passage through this House and the other place they have never actually voted for it.
(12 years, 9 months ago)
Commons ChamberOf course, we will debate this again tonight, but as I keep saying to the House, we will sort out the problems in our public finances to deliver stability in our economy. We will deliver the best possible support to business through the various measures that we have introduced, including enterprise zones and changes to the tax system. Through the Work programme, our work experience scheme, and the youth contract, we will deliver the best possible support to get the unemployed back into the workplace.
T9. My constituent, Dr Christine Davies, has contacted me with examples exposing the unfairness of Child Support Agency arrangements, which often fail to take into account the living costs of the non-resident parent. These are parents who are trying to engage with their children and do the right thing, but who are left to live on as little as £30 a week. What are Ministers doing to deal with this unfairness?
I thank my hon. Friend for his question, and I assure him that we are working very hard on reform of the maintenance system, which still fails to support around half of all children in separated families. He talked about cases in which both parents want to stay involved in their children’s upbringing; he and I share that objective, and I hope that he will continue to support the reforms that we are taking forward, which will provide far more family support to enable that to happen.
(12 years, 11 months ago)
Commons ChamberThe children of today are also, more than likely, the children of the future, so we do not want to split hairs about this. Children are children, and as they become adults we do not want them to have to pick up the debt and the deficit that we leave behind. It is all about taking difficult decisions, being honest about what those decisions are, and recognising that if we do not take them now, we will have them forced on us by other people.
May I remind my right hon. Friend of the record of the previous Government, which included imposing a 100% rise in council tax on my constituents, upping the pension rate by a pathetic 75p for our old-age pensioners, and ratcheting up fuel prices? How did that help children and families across our country?
I wish that we saw a little more realism from Labour Members in accepting that they were, in many senses, partly the architects of the difficulty that we are in.
(13 years, 3 months ago)
Commons ChamberThe whole purpose is to ensure that lone parents have an opportunity to get back to work and to support themselves through work. The hon. Gentleman referred to the work of the Joseph Rowntree Foundation. We do not always accept everything that comes forward; there are often analyses that we do not accept. He will understand that from his time in government. As far as we are concerned, reducing to five the age of a lone parent’s child at which the lone parent goes back to work—following the Labour party’s age reduction to seven—is the right thing to do. Getting lone parents to take control of their lives through work has to be good for them.
T5. In April I held a successful jobs fair in Reading, with nearly 2,000 people in attendance and 40 companies offering 1,500 jobs. I will be repeating it in September. What specific improvements in the service offered to them will my unemployed constituents get from the Work programme?
I congratulate my hon. Friend on being another author of a successful jobs fair project. The Work programme will offer the long-term unemployed in his constituency, including those from the most challenged backgrounds, much more tailored and specialised support, as well as infill training and other support, which will enable them to get into work on a scale and of a quality not seen before. Not only that, but they will be supported to stay in work too.
(13 years, 11 months ago)
Commons ChamberAs the hon. Gentleman knows, I have been over there and discussed these matters with my opposite number. I want the reforms to apply to Northern Ireland, and they will. The area has particular problems, as he knows, and we need other devices to overcome those. However, people are unemployed and without work for much the same reason as over here, and I therefore look forward to being able to implement these reforms in Northern Ireland.
I welcome my right hon. Friend’s statement this afternoon. It will do an enormous amount to help people to get back into work. Does he agree that it is important that we have a well-informed debate about this and will he join me in rejecting the ill-informed comments by the Archbishop of Canterbury? Perhaps my right hon. Friend could invite the Archbishop on one of his frequent visits to an area where he could see first hand some of the problems that these communities face, so that he may be better informed in future.