Pension Equality for Women
Roberta Blackman-Woods Excerpts(6 years, 6 months ago)
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Grahame Morris
Absolutely. This huge injustice affects all nations and regions of the United Kingdom. These are hard-working, decent women who have contributed through the national insurance fund and expected to receive their state pension.
Dr Roberta Blackman-Woods (City of Durham) (Lab)
I pay tribute to my hon. Friend for securing the debate, and for all the work that he does in support of the WASPI campaign and others. Does he agree that many of these women are being dealt with very inappropriately by both jobcentres and the benefits system?
A lady who came to my surgery last week had just been made redundant from the Walkers crisps factory. She has a full employment and contribution record, but she is really fearful about what will happen to her over the next few years. Will she be forced into inappropriate work? She does not know what benefits she will get. She is really stressed. Given her full contribution record, should she not benefit from proper transitional arrangements? Women should not be treated in this way.
Grahame Morris
That case is doubly relevant to me. The Walkers crisps factory in my constituency is closing this week—just before Christmas—and 400 people will lose their jobs. Many of them are long-serving employees who have worked hard. Some are in their late 50s and early 60s, and had expected to receive their state pensions.
State Pension Age: Women
Roberta Blackman-Woods Excerpts(6 years, 7 months ago)
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Stephen Lloyd (Eastbourne) (LD)
I am grateful to the SNP for securing this important Opposition day debate, and appreciate the opportunity to speak in it. Like every other Member, I have been contacted by numerous WASPI women in my constituency. We all know how much of an impact this has had, and we all know just how upset, frustrated and deeply angry many WASPI women feel.
Before I go on to ask the Government for transition payments, let me point out that we are all culpable. One of the things that I have found so interesting while sitting here listening to all the different arguments is the element of amnesia. Every political party that is represented in the Chamber now is culpable because of the WASPI issues: the Conservatives, the Labour party and possibly, it appears, even the SNP. I do not know that for sure, because I am not a Scottish MP or a Scottish constituent, but I do know that, during the passage of what became the 1995 Pensions Act, the Tories did not tell people what was happening right at the beginning. In 1999 and then in 2001, 2002 and 2003, Labour did not engage in the mass communication that would have warned the women of what was coming—and I hold my hands up as a member of the coalition Government. I do not think that we gave enough information in 2011, when we changed the retirement ages. So the first thing I want to say, despite all the Sturm und Drang in the Chamber, is that I think we have let WASPI women down. End of.
Secondly, I feel that the Government should give serious consideration to finding some transitional money. As a number of Members have pointed out, many of these women, particularly those who are in menial and artisan jobs, will not be in the same physical shape in their early sixties as someone who has not done a backbreaking job for 40 or 45 years. I do believe that the Minister and the Government understand the strength of feeling, the passion, the anger and the exceptional frustration that so many WASPI women feel.
Dr Roberta Blackman-Woods (City of Durham) (Lab)
Does the hon. Gentleman agree that it is totally unfair that these women are not paid their pension when they have a full contribution record, and that instead they are being made to work beyond a time when they are able or are forced to rely on insecure benefits that are too low?
Stephen Lloyd
That is an important point about the many years of contributions and of back-breaking jobs.
I return to the fact that we are all culpable; we know that in this Chamber— Conservative, Labour, coalition and, according to the Conservatives and Labour, the SNP as well. I do not say—because I would be lying to my constituents—that we are going to cancel the new retirement age and take it back to 60; anyone who says that knows they are telling whoppers, and that that is not going to happen.
Supported Housing
Roberta Blackman-Woods Excerpts(6 years, 8 months ago)
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Dr Roberta Blackman-Woods (City of Durham) (Lab)
Once again, we see Labour pushing the Government into a more sensible and reasonable course of action, and we await the details of the proposals next week. It is about time, too. The Minister said nothing to enlighten us about why the Government prevaricated over this decision for so long. Their consultation exercise ended in February this year, and we have waited for six months since the publication of the joint Select Committee report, which produced a huge amount of evidence to show that the local housing allowance rate was a totally
“inappropriate starting point for a new funding mechanism for supported housing”.
That view has been reiterated by organisations and charities throughout the housing sector. What they have said demonstrates that the proposals for an LHA cap in the supported housing sector made no sense and that the cap would have been hugely damaging to the lives of hundreds of vulnerable people in our communities.
It is clear from the briefing that we received from the Riverside Group that a number of national studies have shown that supported housing provides excellent value for money, as well as having very good outcomes in reducing health problems and care and criminal justice costs. They also keep many people out of full-time residential social care, which has a considerable bearing on the previous debate. The Government should therefore be thinking about how to support the supported housing sector. What we heard earlier today was welcome, but I do not think they fully understand the impact of their delay and indecision. We know that 2,000 planned supported housing developments have been postponed and more than 800 cancelled, and that 22 existing schemes face closure—and that is quite apart from the impact on individuals who have been extremely anxious.
Let me give an example from my constituency. The one-bedroom local housing allowance cap in Durham is £74.79. The cost of the average supported housing scheme for people with learning difficulties and mental health needs is £164.73, nearly three times the LHA cap. No wonder people have been so concerned about the issue.
My constituency also has a specific problem caused by a hospital closure programme. A specialist supported housing scheme is keeping people out of hospital and is costing £379 per week because they are extremely vulnerable. We need to hear from the Government whether their proposals will cover such schemes, as well as kick-starting development in the sector for people with multiple needs. We also need to hear whether the needs of young people will be addressed. We were given a very good briefing by the YMCA about the shortfall in its funding, and I hope that the Minister will tell us how she will ensure that young people’s needs are met.
State Pension Age: Women
Roberta Blackman-Woods Excerpts(7 years, 7 months ago)
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Dr Roberta Blackman-Woods (City of Durham) (Lab)
I thank SNP Members for bringing forward this debate, and I pay tribute to the WASPI women and their supporters up and down the country for their tireless campaigning on this important issue in the face of an obstinate Government who refuse to listen to their very rational arguments about the need for better transitional protection and arrangements for this group of women.
Most of all, I want to pay tribute to the WASPI group in Durham, which was formed after a visit to Parliament in June. I attended a meeting it held in my constituency on 10 November. I wish that the Secretary of State, who is no longer in his place, the Under-Secretary of State for Pensions, the hon. Member for Watford (Richard Harrington) and indeed the hon. Member for North West Cambridgeshire (Mr Vara) had been there to listen to what the women had to say. Most of them had until recently been simply unaware of the changes to their retirement ages, and most of them will now have to wait years to receive their pension. Most of them had already had two significant changes made to their pension age. These women described in great detail the strain that their current situation was putting on them and their families. Many of them had planned to retire in order to care for family members, and were now having to balance social care needs with full-time work often across a range of different jobs. All were job-seeking.
One point that the Secretary of State did not acknowledge earlier was that for an older woman, trying to get a job in a depressed labour market is extremely difficult. Nor did he recognise that it does not matter how many older champions women have. If no jobs are available in their local labour market, women of any age will be unable to find employment, but it will have a negative impact on older women in particular.
Furthermore, the Secretary of State did not acknowledge two important factors: the regional disparities in the ages at which women will remain fit and active enough for work—especially if they have been involved in more strenuous occupations—and the differing ages of mortality across regions and, indeed, within specific areas. None of that has been factored into the Government’s thinking, and that, in my view, is also pretty atrocious.
One of the things that I was asked to do by the women whom I met on 10 November was to write to the Secretary of State, and I did so on their behalf. I must say that I was pretty appalled by the response that I received. It answered the case relating to the equalisation of the pension age, which was not the issue that had been raised.
Tom Elliott (Fermanagh and South Tyrone) (UUP)
The hon. Lady was right to say that equalisation was not the issue. The issue is the fairness, or rather the unfairness, of the transitional arrangements. We have heard that there are transitional arrangements, but they are unfair.
Dr Blackman-Woods
Absolutely, and that was the point that was being raised. It concerned the way in which the changes were being implemented and the lack of proper transitional arrangements, rather than the equalisation issue itself.
I am pleased that Labour Front Benchers have come forward with an answer, or a partial answer, to the problems highlighted by the WASPI campaign. I am pleased that they have announced that we will not abandon those women to live in poverty, and that under the Labour plan, pension credit will be extended to those who were due to retire before the chaotic pension age increase introduced by the Conservative-led coalition Government and supported by the previous Conservative Government. Labour’s proposal is to return eligibility for pension credit to the state pension age timetable of the 1995 Act. With the qualifying age continuing to increase to 66 by 2022, that policy would cost the Government only £860 million rather than the ridiculous £30 billion figure to which they have referred; they say that they cannot do anything because of that huge figure. The Landman Economics report, which has already been mentioned today, outlines some other policies that they could adopt.
It is simply not acceptable for the Government to say that they are not going to do anything. The message that they need to hear from us this afternoon is that we will continue to support the WASPI women and their campaign—we will continue to raise questions and initiate debates in the House to support them throughout the country—until they do the right thing by those women, and introduce proper transitional arrangements that will protect them from the hardship that they are currently experiencing.
Several hon. Members rose—
Welfare Reform and Work Bill
Roberta Blackman-Woods Excerpts(8 years, 4 months ago)
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Priti Patel
What I would say to the right hon. Gentleman is that we have been working with organisations and disability groups, and we have actually been listening to them. [Interruption.] Rather than making generalised comments from a sedentary position, Labour Members should realise that we are working with those organisations as we move forward with our White Paper—
Priti Patel
No, I will not.
The ESA system was set up by Labour in 2008 to support people with health conditions and disabilities into work. Despite being set up with the best of intentions, it has failed the very people it was designed to help. The original estimates were that far more claimants would move into work. A White Paper was published in 2008, setting out that the then Labour Government aimed to reduce the number of people on incapacity benefits by 1 million by 2015.
We have spent £2.7 billion this year on the ESA work-related activity group, but as I mentioned earlier, only around 1% of people in this group actually move off the benefit every month. I think it is fair to say that this benefit is not working as anyone intended it to work and, most importantly, it is failing claimants badly. The Government are committed to spending taxpayers’ money responsibly in a way that improves individuals’ life chances, and helps to move people off benefits and into work.
Those in the work-related activity group are given additional cash payments, but very little employment support. As the Prime Minister has recently stated, this fixation on welfare treats the symptoms, not the causes of poverty, and over time, it traps people into dependency. That is why we propose to recycle some of the money currently spent on cash payments, which are not actually achieving the desired effect of helping people move closer to the labour market, and put it into practical support that will make a genuine difference to people in these groups.
In addition to the practical support, which is part of a real-terms increase that was announced in the autumn statement, we need to reflect on how spending the £60 million to £100 million of support originally set out in the Budget will be influenced not only by Whitehall, but by a taskforce of representatives from disability charities, disabled people’s user-group organisations, employers, think-tanks, provider representatives and local authorities. So far, we have worked with charities including Scope, Leonard Cheshire Disability, the Royal National Institute of Blind People, the National Autistic Society and the Disability Action Alliance.
During the passage of the Bill, Members of this House and the other place raised concerns that we are expecting claimants who have been found “not fit for work” to be able to work. That is not the case. Claimants in the work-related activity group have been found to have “limited capability for work” and that is very different from being unfit for any work. Of course there may be limitations on the type and amount of work people in the work-related activity group can do, and they may also need workplace adjustments, but employment is not ruled out. That is the reason for the ESA permitted work rules. The distinction is important, because the misconception helps to drive people further away from the labour market, perpetuates the benefit trap, and undermines the life chances of claimants.
Debbie Abrahams
My hon. Friend makes some very valid points and I am going to come on to some of them in a moment.
The implication of these measures in terms of the future health and wellbeing of children is stark. There is overwhelming evidence that child poverty has a direct causal impact on worsening children’s social, emotional and cognitive outcomes. One witness to the all-party inquiry said:
“As children’s lives unfold, the poor health associated with poverty limits their potential and development across a whole range of areas, leading to poor health and life chances in adulthood, which then has knock-on effects on future generations.”
There was unanimous agreement from those who provided evidence to the all-party inquiry that although there is a positive correlation between worklessness and educational attainment and poverty, they are not indicators or measures of poverty. Let me reiterate that two thirds of children in poverty are from working families.
Dr Blackman-Woods
My hon. Friend is making an excellent case. Does she agree with the Institute for Fiscal Studies and others who have said that the prognosis for child poverty over this decade under this Government is bleak, and that what we are seeing in amendment 1 is the Government trying to hide information about what is happening to child poverty, rather than trying to tackle the underlying causes that lead to it, and that that is disgraceful?
Debbie Abrahams
My hon. Friend makes a key point, and I will come on to some of the specifics shortly.
Dr Blackman-Woods
Does my right hon. Friend accept that all Lords amendment 1 does is to require that income-based measures of poverty be reported alongside and on a level footing with other life chances indicators? They would not be reported instead of, but in addition to, those other indicators.
Frank Field
The report that I issued made that very point. It said that we should continue to publish the poverty data and that, alongside them, we should have the life chances data.
Of course, there is much more to this debate than what is on the record. Historically, there has been a big divide between those who see money as the only agent to counter poverty—it clearly makes it easier for people if they have more money—and those who ask whether money actually transforms life chances in the way we wish. That is the question that I posed. Specifically, we wanted to know, while taking account of the importance of income and class in determining life chances, whether there were drivers of poverty more powerful even than income and class. The report lists the most powerful factors when income and class are held constant—those factors that enable us to make progress even if we are not making the progress that we would like to see on a fairer distribution of income.
Again, I make a plea to the House. Although we ought to debate the adequacy of the minimum levels of income, Opposition Members and the many Government Members who are disturbed by the growing and gross inequalities in our society must not think that we will deal with those through benefit changes, important though they are. Throughout the western world, there are clearly great engine drivers of inequality that serve up to the rich—particularly to the very, very rich—rewards that are grotesque when compared with the average, let alone with those who earn the least in our communities. There is no debate about that. The debate is about where, at any given point in time, we should put taxpayers’ money. Up to now, everybody has been talking about this as though the Government have money. Governments have to tax our constituents to get money to redistribute it, and we must win people’s support for that.
The House is beginning slowly to accept that it is dangerous to have a welfare system that is more generous to those out of work than to those in work, which is why I particularly welcome the Chancellor’s strategy of moving towards a living wage and implementing that over the life of the Parliament. It is only a beginning, but it is very important. If we are successful in moving to that living wage without big unemployment consequences—I believe that we will be—that will give us more freedom to manoeuvre on where benefit levels should be set.
My plea is that we should not think that this is either one thing or the other. The Government will publish the data, and I am sure that if we had a chat to them they could do so alongside the life chances data. That is not really what the debate is about; the debate is about those who believe that the only agent of change is on the income front, and I do not wish to concede ground to anyone in emphasising the importance of income, especially for those at the bottom of the pile who are working or who are not working. We have the report on the foundation years, and if we are serious about trying to prevent poor children from becoming poor adults, we need a different strategy from the one we adopted until that point. It was all about cash transfers—important as they are—and I thought it was inadequate.
Reception teachers said that by the time children come to school they already know who is going to succeed and who will not. I also started asking other people such as health visitors whether they could tell us which children entering toddlerhood would be successful in later life. Midwives have clear views when mothers turn up for their first scan about who has drawn the short straw and who has not. If we are serious about this strategy—I make this plea to the Government because we will need powers to add these measurements once we have agreed on them—we must measure whether we are increasing life chances by having more parents who are ready for the birth of their child, whether the interventions that we make after that will be successful and see more children successfully enter toddlerhood, and above all whether more children are entering school ready to benefit from the powers of education.
Jeremy Lefroy
It is like that, and I would have preferred to see an assessment such as I proposed in the amendment that I tabled on Report. I hoped that perhaps the Lords would take that up, because it is important. To some extent, it is an act of faith in the Government and in the White Paper, and that is why I am setting out these points now. As my hon. Friend the Member for South Cambridgeshire (Heidi Allen) said, we hope to see action on them.
I have already talked about accessibility, which is extremely important. When somebody is assessed for a group, they should be asked about accessibility instead of being referred to somewhere they might find difficult or somewhere they do not even know. That should be part of the assessment process and run by the Department for Work and Pensions, not other Departments
When the White Paper is published, which I hope will be as soon as possible, I will be looking for it to address all those points. If it does, the system may well work better for people on ESA who can move back into work. Let us remember that this is about people who have limited capacity for work, not people who cannot work, who must continue to be in the support group and receive the support supplement.
The risks of a scheme that does not meet those criteria are considerable, first and foremost for the people involved, who may end up in limbo, neither helped into work nor able to meet even their basic living costs. They may end up in the support group long term, which is not in their interest or the public interest.
This will cost more than £100 million per annum, which is what has been allocated—probably considerably more. But if the Government are serious about supporting people back into work, as I know they are, a good scheme that is initially more expensive will both be better for those who need support and probably cost the taxpayer less in the long run. I therefore urge the Chancellor to back such a scheme with the funding it needs, and the Minister and the Secretary of State to push for it. The status quo, as embodied in the Lords amendments, is not satisfactory, but its replacement must be an improvement for those in the WRAG—we cannot afford to go backwards.
Dr Blackman-Woods
I want to speak to Lords amendments 1, 8 and 9. When I came into the Chamber this afternoon, I did not intend to say much about Lords amendment 1, but I was so incensed by the way in which the Minister dealt with the issue earlier, and by her total lack of compassion for anyone who might be affected by the measures in the Bill, that I thought I must say something. I must point out to the House the contrast between her approach and that taken by the Bishop of Durham when he moved amendment 1 in the other place, because his approach was measured, based on evidence and full of compassion and care for the people affected. He pointed out what I think is self-evident to most of us in this Chamber, which is that
“low income is an important influence on children’s outcomes and life chances”.
In fact, we have had an often bizarre discussion today in which there is the suggestion that, somehow, child poverty is about a whole collection of measures, and nothing to do with income, which is clearly ludicrous. The Bishop of Durham said that
“the Government’s concern about the current child poverty measures is that they have encouraged an overdependence on income transfers, diverting attention from policies that tackle the root causes of poverty.”
He said that, as I pointed out earlier, Lords amendment 1
“does not seek to reassert the primacy of the existing child poverty measures: it simply requires that income-based measures of poverty be reported on alongside, and on a level footing with, other life chance indicators, such as worklessness and educational attainment, in order to acknowledge the significance of family income for children’s well-being and future prospects.”—[Official Report, House of Lords, 25 January 2016; Vol. 768, c. 1047.]
That is particularly important, because we have an assessment from the Institute for Fiscal Studies showing that the Government’s desire to close the fiscal deficit chiefly through spending cuts means that the prognosis for child poverty over this decade is bleak. We do not want a range of Government measures that make it more difficult for us to assess the impact of cuts on child poverty and the direct relationship between child poverty and low income. I have heard nothing from the Minister today to persuade me that she is following the right approach.
Mr David Burrowes (Enfield, Southgate) (Con)
I hear what the hon. Lady is saying, but is she not advocating a return to the past? Does she not recognise that it is not an either/or situation, but a both situation? Reintroducing child poverty measures is, at the very least, arbitrary and could have unintended consequences.
Mr Speaker
Order. May I just point out that if Members continue in this way, and it is perfectly in order for them to do so, there will be some who will not get in? It is as simple as that. If everyone speaks for five minutes or more and takes interventions, a number of people will not get called to speak. It will be no good blaming the Chair; you will have to blame each other.
Dr Blackman-Woods
There is no way at all that we can say that the relationship between a person’s income and poverty is an arbitrary measure. I say to the hon. Member for Enfield, Southgate (Mr Burrowes) that I have made it very clear, for the third time now, that Lords amendment 1 is about requiring an income-based measure alongside—not instead of—other measures.
We have heard many attacks on Labour’s record this afternoon. Labour reduced child poverty by almost 1 million. The independent assessment by the Institute for Fiscal Studies and others was that it was a remarkable achievement, certainly without historical precedent in the UK, and impressive compared with other countries too. Rather than deriding our record, perhaps the Conservative party should see what it can do to build on it.
I turn briefly to Lords amendments 8 and 9. I am sure that many Members have heard from a number of their constituents about them, and I wish to talk about someone who wrote to me yesterday. She sufferers from multiple sclerosis. She wrote:
“I’m writing to ask you to support the amended Bill and ensure Clauses 13 and 14 remain out of the Bill when it is debated in the House of Commons. If this benefit were reduced, it could have significant implications for people who have MS and other people living with a long-term condition, in some cases making their health worse and pushing them even further from employment. Having a long-term condition such as MS is expensive. It adds extra costs to finding employment or training that people who receive jobseeker’s allowance don’t experience. These costs include things like paying for taxis to get to and from interviews.
Lord Low’s review of the proposed reductions in ESA also found no evidence to support the Government’s argument that £30 was a disincentive to work, which has been given as a rationale for these Clauses. The report also highlighted the negative impact that this reduction would have for people with disabilities like MS . Keeping clauses 13 and 14 in the Bill doesn’t make sense.”
I could not put it any better. We have received a great deal of testimony from our constituents, along with the excellent review by Lord Low and Baronesses Grey-Thompson and Meacher, which the Government have simply ignored. I ask the Minister to think again and listen to the people who know something about the possible impact of this policy.
Jobs and Work
Roberta Blackman-Woods Excerpts(10 years ago)
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Roberta Blackman-Woods (City of Durham) (Lab)
My hon. Friend is making a really strong point about the need to get additional help to the regions. Does he agree that it is unacceptable that start-up businesses in Durham have reduced by 14% over the last year? It is clear that the Government’s policies are not addressing the issues facing the north-east.
Mr Umunna
This is an important issue. Since the recovery kicked in, we have seen around 54% of GDP growth coming in London and the south-east, and around 75% of new jobs created in the same region. It is essential that we see more of that happening in my hon. Friend’s constituency and others around the country.
Let us be honest about it, the Government’s flagship scheme that was supposed to address this problem—the regional growth fund—has become a bit of a joke. More than a third of winning bidders under that scheme’s first round have now withdrawn entirely, while others have been left waiting almost two years to receive their money. Hundreds of millions of pounds of growth fund moneys across the regions are gathering dust in Government coffers and have not yet reached the winning bidders.
Of course, having scrapped our regional development agencies, which I am sure the Business Secretary privately feels was a big mistake, the Government replaced them with local enterprise partnerships, which have simply not been given appropriate budgets or powers to do what was asked of them. In fact, the vast majority of bids made by LEPs to the regional growth fund have been rejected in some regions. Many colleagues across the House—my hon. Friend the Member for Telford (David Wright) has spoken of his area’s desire for a city deal—will tell us, as my hon. Friend the Member for City of Durham (Roberta Blackman-Woods) has just done, that a lot more needs to be done to rebalance our economy geographically.
On sectors, the Business Secretary’s predecessor, the noble Lord Mandelson, started pursuing a course of industrial activism, which, in the main, the Business Secretary has continued in his overall approach. There is a degree of consensus on the principles—that is a good thing—and industrial strategy is part of agenda 2030, our plan for better balanced sustainable growth, which is winning support from businesses across the country. But unless we get the overall environment right—on skills and finance, as I have discussed—across the whole country, delivery on these sectoral strategies will be compromised.
Let me finish by saying a few words about our export position. The Government promised an export-led recovery in their plan for growth. That has simply not materialised, and the measures that the Business Secretary and the Chancellor have introduced to date seem to have made no impact on that. In fact, the Office for Budget Responsibility said that the Budget would have no impact on our net trade position.
The promise to increase exports to £1 trillion by 2020 is disappearing out of reach. It has been reported that civil servants have privately conceded that the Government’s promise to get 100,000 new companies exporting by the end of the decade is “not going to happen”. This is hardly surprising when the Government have not done enough to ensure that small firms are made aware of the support that is out there. Half the members of the Federation of Small Businesses do not even know that UK Trade & Investment exists. They need to be given much more information and to be made more aware of what help is available. But then the performance of some of these schemes has been totally lamentable. The £5 billion export refinancing scheme, which was launched in July 2012 as part of the Government’s UK Guarantees scheme, and the £1.5 billion direct lending scheme, launched to great fanfare several months ago, have not helped a single firm. We need to see much more competent delivery of these schemes.
It is clear that our country has huge potential, and there is a huge amount of talent waiting to be unlocked, but people need a Government to empower them to realise their dreams and aspirations. That is not happening under this Government. [Interruption.] The hon. Member for Worcester (Mr Walker) talks about the long-term economic plan. The fact is that for many people—including people in my constituency, where, on average, people are earning £2,300 a year less than they were when the Government came to office—this “long-term economic plan” is a long-term economic sham. That is why we aim to ensure that we can allow and empower people to meet their aspirations by making certain that, this time next year, we are sitting on the other side of the House.
Roberta Blackman-Woods (City of Durham) (Lab)
I am pleased to have an opportunity to participate in the debate. I hope to demonstrate that many of the measures in the Gracious Speech fail to address the real issues facing my constituency.
The north-east demonstrates many aspects of a successful knowledge-based economy, with a highly skilled and motivated work force. Our manufacturing industry alone is worth £7.5 billion to the economy, and we have a strong and successful advanced engineering sector, as well as leading the way in low-carbon technology and sustainable energy solutions.
The north-east has some key competitive advantages to enable further rebalancing and job creation to happen, if only opportunities can be unlocked. Labour recognised that when in government, and our regional development agency, One North East, was working very successfully to build on this unique skills base. Regrettably, this approach was lost when the Government abolished the regional development agencies without giving thought to the consequences of losing their skills in job creation and attracting jobs to the area.
Lord Adonis’s “North East Independent Economic Review” report recently made proposals to boost exports and supply chains and co-ordinate inward investment activities. In many ways, it sought to put back together some of the functions once carried out by the regional development agency, but with a fresh purpose and momentum. Unfortunately, there is no sign whatever that the Government will act on this report. Indeed, they have no proposals at all to intervene in an economy that needs to deliver more jobs—something that Labour did very successfully. It worked very hard to attract Hitachi to the region, and it looks as though we will gain more than 5,000 jobs in the next few years. Labour also supported Nissan through the recession, so that more jobs and skills could be developed, and we also developed the supply chain. My point to the Government is that that simply could not have happened without intervention—something that we do not have from them at the moment.
There is a real contrast between all that under Labour and having a local enterprise partnership in the area that is barely functional—it does not have a chief executive or even a deputy chief executive at the moment—and a regional growth fund that operates a scattergun approach. Most of the money allocated to the region is not drawn down in any case. According to a recent report by the National Audit Office, most of the funds remain unspent, while the cost of creating jobs has increased considerably, but Ministers are taking no action to tackle this set of concerns.
This is not only about the number of jobs created; it is about the quality of jobs on offer, too. Work must pay. The northern TUC has raised the important issue of the nature of the jobs being created in the region: many are precarious and based on zero-hours contracts, and we risk losing valuable, high-quality public sector jobs in the region, with poor private sector replacements. A good example is the Government’s proposals to privatise the Land Registry. Those jobs are currently good-quality public sector jobs, but we risk their being downgraded through privatisation. Under the present Government, about eight out of 10 new private sector jobs have been created in the south of England. It is also worrying that the number of business start-ups in Durham has fallen by 14%, compared with a national fall of 1% in the first quarter of the year.
This is not only about finding work; it is about what happens to those who are receiving low pay. My constituency is among the 10 areas that are suffering the most from the bedroom tax, which is causing households to lose about £482 a year, resulting in a reduction in local spending power. Wages in the north-east are about £50 a week lower than the UK average and about £200 a week less than wages in London. Therefore, in the retail sector, people in the north-east are spending 10% less than people elsewhere in the country. The Government must do more to rebalance the economy, and take account of issues relating specifically to regions such as the north-east.
Oral Answers to Questions
Roberta Blackman-Woods Excerpts(10 years, 4 months ago)
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Mike Penning
I completely agree with my hon. Friend. Interestingly, about 70% of people on the previous benefit, the disability living allowance, were put on it for life. They were, in effect, written off, and this Government will not do that.
Roberta Blackman-Woods (City of Durham) (Lab)
A constituent of mine, aged 52, had worked all her life despite having congenital bone disease, until her condition worsened last year. She has to go into hospital next week to have both hips replaced, just at the time that Jobcentre Plus has declared her fit for work and stopped her benefit. When will the Minister ensure that people with disabilities get adequate support and are not treated in this completely harsh and cruel way?
Mike Penning
Assessments were brought in by the previous Administration—admittedly, in relation to the work capability assessment. So assessments are nothing new for this Administration, because the previous Administration introduced them. They did not do that very well, but we agree with assessments. Of course if someone is unfit for work, they can have a sick note put in while they are waiting for an appeal to go through—should that happen—and they will be entitled to jobseeker’s allowance. I completely agree that anyone who has gone into hospital cannot be fit for work at that time, but let us hope that the hon. Lady’s constituent is fit and well soon, and can return to work.
Welfare Reform Bill
Roberta Blackman-Woods Excerpts(12 years, 5 months ago)
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Maria Miller
I thank the hon. Gentleman for those kind words. It is important that we have a solution that we feel everybody can work with as we move forward.
Maria Miller
May I address the amendment directly? The Government accept that Lord Mackay had the very best of intentions in tabling amendment 73 in the Lords. However, his approach means that the Government, before deciding who would pay a charge, would have to consider whether parents had tried to be collaborative. In considering that amendment, hon. Members should ask themselves whether it is the Government’s place to monitor and judge parents’ efforts to work collaboratively after their separation.
Maria Miller
I thank my hon. Friend for that intervention, because she brings with her a wealth of experience of the practical problems that families face in these very difficult times. An additional effect of the amendment would be to put almost 100% of the ongoing charges on the non-resident parent. We agree that non-resident parents should have a clear incentive to pay a greater contribution to the ongoing costs, but I fear that simply loading all those costs on the non-resident parent could drive some perverse incentives and not provide the ability for parents to work in the collaborative way that I have set out.
Roberta Blackman-Woods
We would acknowledge that reducing the amount of money that must be paid up front by the applicant is a step in the right direction, but I am still not clear about the rationale behind the non-resident carer being more likely to pay up because the applicant must pay a charge. I am concerned about conceding the principle of paying up front, because what will stop the Government coming back in a year’s time and hiking up the £20 fee to £100 or £150? Will the Minister explain how the uprating of that amount will be carried out?
Maria Miller
I thank the hon. Lady for her helpful support. It is really important that the up-front charge does not become a deterrent, which is why we will look at how charging is working 30 months after implementation. I remind her that the parent with care receives, in return for her up-front fee, a clear and detailed calculation of how much money would be payable to her through maintenance, and for the first time the calculation will use HMRC data, which will ensure that she has all the information needed to decide whether it is appropriate to go into either maintenance direct, where there will be no ongoing charges, or the statutory system.
Jeremy Lefroy
I thank the Minister for that reassurance. On my second point, as hon. and right hon. Members know, many homes have had thousands of pounds spent on adaptations, and rightly so, for disabled people. It would not make a great deal of sense to ask people to move from a home that had had such adaptations into another home, where making such adaptations would cost plenty of money. Also, in the first home, the adaptations might have to be removed. Again, I ask for reassurance that common sense will prevail.
Roberta Blackman-Woods
If ever a piece of legislation was to demonise and penalise people who live in the social rented sector, this Bill is it, and I have listened to the debate today. My local authority in Durham has written to me to say that many thousands of families will be affected by the under-occupancy provisions, and both the local authority and the housing associations have written to say that they simply do not have enough alternative suitable housing and that it will take many years to re-house people. That means that tenants, who are already on low incomes, will have no alternative but to pay an additional sum of money—up to £50 a month—that they simply cannot afford or move into smaller, private rented accommodation if it is available, and in places like Durham it is not available.
The point that the Government must take on board is that if those people go into smaller and more expensive accommodation, that will have to be paid for from housing benefit in any case, so the whole policy is an absolute—
Housing Benefit
Roberta Blackman-Woods Excerpts(13 years, 7 months ago)
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Roberta Blackman-Woods (City of Durham) (Lab)
Let me begin by commenting on how the coalition parties seek to frame this debate, which was exemplified in the speech by the hon. Member for Cannock Chase (Mr Burley). They are trying to suggest that housing benefit claimants are workless, wasteful and feckless. They are using the most extreme examples of housing benefit claims to try to suggest to the public at large that that is the norm. They are trying to dress up cuts to benefits for some of the most disadvantaged people in this country as fair. If the hon. Member for Hastings and Rye (Amber Rudd) were still in the Chamber, I would say to her that the only sensationalising of this issue that is going on is in the right-wing press. The press is trying to lead the whole country to believe that everybody on housing benefit is getting £26,000 a year. That is absolutely scandalous and outrageous. I cannot believe that the Secretary of State, who has a social policy background, is presiding over such changes. Shelter suggests that the change to the JSA will mean that many claimant households will be shifted from around or below the 60% median income, which is the poverty line, into severe poverty. That will force an additional 84,000 households to live on less than £100 a week. Those are the sums that will apply to most people on housing benefit, which includes 54,000 children. We need to have a more balanced debate on the issue and to have some of the real facts talked about in this Chamber.
The hon. Member for Colchester (Bob Russell) made an interesting contribution. I accept that when we were in government, we did not build enough social houses. In my constituency, the Liberal Democrat council never implemented a housing policy that ensured that all developments contained 30% social housing. Such a measure was not implemented year on year, which is why we have such a shortfall in social housing. Tory and Liberal Democrat councils all over the country stopped, through the planning process, delivering houses. I am talking about not just social houses, but houses right across the whole spectrum. That is why we have a real problem with supply, and those councils should take responsibility for the situation.
Let me go on to explode some of the myths that have been put around about housing benefit claimants. Let us take the first myth that all claimants are workshy. Only one in eight of all housing benefit claimants is unemployed. Taking just those in receipt of local housing allowances across the country, 26% are in employment and only 19% claim jobseeker’s allowance. The rest include pensioners, carers, disabled people and others unable to work. In the north-east, 18% of people in receipt of local housing allowance are in employment, and that includes a number of people in my constituency.
A lot of people in receipt of housing benefit have very complex needs. I have an example from my local housing authority. A 21-year-old woman secured a tenancy through working with a family intervention worker, who helped her to move on from an overcrowded and difficult family situation. She has multiple social issues, so subsequently, in addition to her weekly rent, she had a tenancy sustainment officer working with her. Also due to her circumstances, she had no furniture and had to access a furnished tenancy. With the changes to long-term jobseeker’s allowance after 12 months, she will lose 10% of her housing benefit entitlement. With the additional services, that means £10.75 a week. Her JSA is only £51.85, which means that her income will drop by 20%, leaving her with just £21 to buy food and clothes, to pay for transport, and to get to job interviews and so on. That is the sort of change we are talking about, and that is the type of person who will affected.
I want to address issues applying specifically to my constituency. The risk analysis by the Department for Work and Pensions states that 99% of LHA claimants will, on average, lose £12 a week. With regional variations in the economy, some areas will bear disproportionate impacts, and Durham has been identified as one of those areas. It will take a bigger hit than many other authorities, which is made much worse by the fact that constituencies such as mine have artificially inflated private sector rents because of students. With the reduction in the amount a person can claim from the median to the 30th percentile, most people will be priced out of private renting in Durham. There are always a lot of students willing to come in and take their place, so this will not lead to a reduction in rent levels. Poorer families will be pushed out of areas such as my city centre and will have to move to outer areas, where they will find it much more difficult to access work opportunities. I ask the Minister therefore to think again about the proposals, and certainly to stop trying to suggest that this is part of the fairness agenda. It can be described only as an unfairness agenda.