Coronavirus Outbreak: DWP Response

Ruth Cadbury Excerpts

Thursday 26th November 2020 Commons Chamber

[Ruth Cadbury (Brentford and Isleworth) (Lab)]

I, too, welcome the report, and the speech made today by my right hon. Friend the Member for East Ham (Stephen Timms).

The impact of the covid pandemic has exposed so many of our constituents, who never thought that they would need to apply for benefits, to the Department for Work and Pensions. They have experienced what many have had to put up with for years—politically driven viciousness towards those who, through no fault of their own, need help from the state to keep a roof over their head and food on the table. I do not blame DWP staff, who work hard to support increasing numbers of people in distress, but those staff are having to implement these terrible policies.

There are about 13,000 households on universal credit in my constituency as of last month. That is 50% more compared with the same month a year ago. There are also almost 5,500 households on legacy benefits and tax credits. That is an estimate. I am particularly concerned about people who have no recourse to public funds. We have no local data, but I know there will be many hundreds of such adults and children, given that the national estimate is 1.4 million adults and 175,000 children impacted. With no right to state help, apart from discretionary funds from already overstretched local authorities, there are real concerns about those people.

There is a particular impact on lone-parent families, especially with black, Asian and ethnic minority backgrounds. The Local Government Association has called for NRPF to be suspended, because these are people who, in the main, were working. They had a right to work and a right to live here, but their jobs have gone, particularly in my area, where so many jobs depend on Heathrow. That industry has been hit particularly hard. The Unity Project, which works with NRPF families, reports that 54% of its families assisted had no work during lockdown.

I want to cover a couple of cases and the experience of my case workers. People are using universal credit for the first time and having real trouble navigating what is a complex system, even for those with a high level of IT and literacy skills. The Work and Pensions Committee report mentions the difficulty facing self-employed workers owing to their specific needs. The minimum income floor has been suspended and they are worried that it might be brought back. Many self-employed workers who were excluded, particularly in the creative and arts sectors, have also been denied access to universal credit owing to the savings threshold. Savings are not some sort of indulgence; for many, they are the fund being built up for a deposit, so that they can get on the housing ladder, now that 100% mortgages are something of the deep past.

I want to discuss a case in respect of the benefit cap, which affects so many in my constituency, where rents are between £1,500 and £1,800 a month for a modest flat. Rents are high because we are in west London. The £27,000 benefit cap does not leave much change after the rent is paid, so let me illustrate that by way of the example of a lone parent, recently separated, with three children, one of whom is a tiny baby. Her rent is £1,300 a month. Her partner left her while pregnant and she claimed universal credit. She was awarded £1,731 a month, which meant that, after she had paid the £1,300 in rent, she was left with £431 a month, or £99 a week plus child benefit, for everything for her and her children, including a baby, which of course means additional costs. The two-child limit meant that she was not entitled to any more benefit once her third child arrived. She was left with the same amount to live on.

I am particularly concerned about those subject to sanctions and the reintroduction of the requirement for claimants to phone their DWP advisers or risk sanctions. That particularly impacts on those with learning disabilities or mental health issues. We know that mental health problems have escalated this year. Many need access to IT, but they have been dependent on face-to-face support to help them with their benefit claims and their journal. That support was often given in places such as libraries and other public spaces, but those have been closed for much of the year because of lockdown rules.

In conclusion, I support the Committee’s recommendations. I also oppose any attempt to cut the £20 a week increase for universal credit. I want to see an increase in legacy benefits in line with the £20 uplift to ensure that those on older legacy benefits, such as jobseeker’s allowance, are not missing out. I would have scrapped the benefits cap that penalises private renters, particularly in high-cost areas such as London, and suspended the savings cap. All that would mean money in the pockets of low-income families. That would not only help them: as we know, low-income families are far more likely to spend any additional pound in the local economy and that supports others. It is a win-win.