(5 years, 6 months ago)
Commons ChamberUrgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
Each Urgent Question requires a Government Minister to give a response on the debate topic.
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I know that my hon. Friend works extremely hard in this area; I have made several visits to his constituency, where I have seen him championing local organisations that make a difference to disabled people in his community. Universal credit targets support at those who most need it, which is why, on average, more than a million disabled households will be £100 a month better off.
The severe disability premium does what it says on the tin: it goes to those with the most severe disabilities. Why, then, is the Minister claiming that people who most need support are gaining, when more than 10,000 people entitled to the severe disability premium are now waiting for back payments—like my constituent who is owed nearly £1,000 by the DWP? People are building up rent arrears and are in danger of eviction. Why are the Government not treating them properly by bringing forward this legislation and paying them what they are due?
We are all keen to bring forward those regulations, but I remind the hon. Lady that where under the legacy benefit an ESA claimant would expect £167.05, the equivalent under universal credit will be more than twice that: £336.20 a month.
(5 years, 6 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
That is a very important point. I will come on to staff and training.
The burden on the staff is a significant point as well. Bayard Tarpley told me:
“We were trained to never help callers on the phone unless it was going to lead to a manager call or complaint. If you did make the change, there was a risk of failing a ‘CEF’ check, in which a manager would listen to the call and rate it based on several elements of the call, with ‘following the deflection script’ being part of that criteria”.
Staff are being marked against deflecting people online. Some of that may now have changed, likely because of media coverage and pressure, but given the Government’s absolute lack of transparency on this issue, it is unclear what has changed, how much has changed and when changes have happened or are likely to happen, so I hope that the Minister will be clear today about those changes.
It is astounding that the Government thought that this was an appropriate strategy in the first place, and it raises very serious questions about how little consideration is given to the people’s experiences. I imagine that, in his response, the Minister might point to some of the different training that call handlers receive to assess and deal with vulnerable callers, but I have been told first hand that although call handlers are trained to do certain things, that does not necessarily happen in practice. How much of the training is actually being implemented by managers, or are managers being told to do things differently? Are they being monitored?
When hearing about these strategies, it is no surprise that in many cases people have not received the support that they need from the helpline. That jeopardises and delays people’s payments and financial stability, at times with significant implications for their mental and physical health. That is something that I see and that other hon. Members here today will often see with constituents in their offices.
Earlier this year, I spoke to Sky News about the deflection scripts that were shown to me by whistleblowers, and it covered the issue. Sky News also highlighted the case of Brian. He was put on universal credit at the beginning of 2018. In July, he died by suicide. He was 59. His daughter Leann spoke to Sky News and said:
“He couldn’t understand the system from the very start. He was told to go online and access his journal but he didn’t have a clue about the internet. He was constantly ringing up and asking for advice but was told to go online. It really got him down.”
When she saw the deflection script, she could not believe that that was happening, but it rang true given the experience that her father had had.
A constituent of mine used the helpline after questions in his journal went unanswered; the online system had seemed to fail him. He was asking, for example, why the money that he was entitled to was not coming through. On the multiple times that he called, he was told that his inquiry would be passed on and he would be phoned back. That did not happen. When contacting the UC helpline, the shortest hold time that he experienced was 20 minutes and the longest 42 minutes. That has been backed up by Citizens Advice, which has found that at points the helpline has had an average waiting time of 39 minutes. My office has had to intervene for that constituent on three occasions, as well as for many others. My constituent believes that the problems would not have been resolved through his own efforts without such intervention. It cannot be right that people are only treated with the respect that they deserve and given what they are entitled to when an MP’s office or another agency intervenes. What happens to people who cannot get to an MP’s office or access that extra help? Bear in mind that these are some of the most vulnerable people in our society.
The ability to challenge decisions made on UC claims is particularly important. Recent research by the Child Poverty Action Group showed that one in five cases in a UC monitoring project involved administrative errors by the Department for Work and Pensions, resulting, for example, in a claimant being paid the wrong amount. The significant stress people face in not being able to manage the UC process has huge implications for family life.
Exactly three months ago today, the Secretary of State for Work and Pensions essentially admitted to Sky News that deflection had been a strategy used by the universal credit helpline. She said:
“We’re going to make sure it’s absolutely clear in the future, there shouldn’t be a deflection script strategy and I have taken control to make sure that’s the case.”
Although I welcome that change, I have not heard anything since about changes that will be made. It seems that the issue has been swept under the carpet, so it is important that we get the answers today.
I have pursued the issue of deflection for months, primarily because of the significant implications for people’s lives of not being able to get help over the phone. Macmillan Cancer Support welfare rights advisers have reported that people with cancer are often being redirected online. They have also said that there is inadequate training for helpline staff to cope with the specific concerns of cancer patients. One cancer patient claimant said:
“When I phone the numbers that they give me, they say they can’t deal with it. I’ve phoned them three times. This is causing me more stress than the cancer.”
We cannot have a situation where trying to get the help that the Government should be providing is causing people more stress.
The Government have been evasive with me throughout the discussion on the use of deflection. They have fobbed off my freedom of information request and denied that deflection exists, even in the face of clear evidence. They have ensured that they have not admitted in the House that deflection is taking place. I am still waiting for a reply to my letter on this subject to the Secretary of State dated 5 February. We have had to rely on leaks and whistleblowers to find out that these tactics have been used and their effect on people’s lives. That lack of transparency seems to run throughout the system. The Child Poverty Action Group’s report concluded:
“The combination of poor decision making and a system that is not transparent about how decisions have been made is causing significant hardship in people’s lives.”
I want to make it clear before I finish that none of the criticisms of universal credit, the way it is handled or the helpline are aimed at staff. Frontline DWP staff have some of the toughest jobs. They are under intense pressure. I believe they have a genuine desire to help people. However, they are working in a broken system, which must be criticised, condemned and changed. Families are turning to food banks. Working people are struggling to pay the bills. People with severe disabilities are being left without vital support.
The general secretary of the Public and Commercial Services Union, which represents call centre workers, said:
“Our members would prefer to be given the resources and time to give a first class service to help claimants. However they are instructed to use this deflection script as a means to get people off the phones.
It is another example of a government who has failed to invest in staff and support claimants.”
My hon. Friend is making an excellent case. The universal credit helpline is even more important because it is being used as back-up for journal entries, which are supposed to be the way that claimants are able to get questions answered during their claim. However, because it is the third trigger of the amount of work that staff have to do—after priorities zero, one and two—the helpline is picking up all these cases that should be answered by the journal, but there are just not enough staff to do that.
My hon. Friend and other hon. Members—I am sad to see no Back-Bench Conservatives here—will be familiar with the experience of the journal letting people down, just like the helpline.
I have some questions for the Minister, which I hope he will answer. Will he take the opportunity to be clear about what happened in the Department leading to the development and implementation of a deflection script on the helpline? Will he apologise to claimants who have not received the support they deserve, often in times of great need, and to the whistleblowers on whom we have had to rely to expose these damaging practices?
Have any changes been made to the helpline since the Secretary of State said that there should not be a deflection-script strategy and that she had taken control to ensure that that was the case? If so, what changes have been made and what evaluation was carried out to inform those changes? When were those changes made, or when will they be made? What checks have been put in place to ensure that people receive the support that they need on the helpline and they are not deflected online? Does the Minister really believe that the helpline is sufficiently resourced and run, with the best interests of claimants in mind and staff being fully supported?
I gently say to the hon. Lady that I visit jobcentres, as do my ministerial colleagues, and that is not the feedback that we receive from people on the frontline. In terms of pausing universal credit, we have been rolling it out across the country since December, and we have been clear that it will be the main welfare provision for the country in future.
To return to the universal credit helpline, when someone calls it they are presented with a series of options to select from. They are then put through to the agent best placed to answer their inquiry. All further triage is done through conversations to establish the claimant’s needs. There are 26 service centres across the country that aim to support people with their universal credit claim.
We have between 5,000 and 7,500 staff answering calls in our service centres to support our customers. An important point in terms of the statistics—I would not want any hon. Member to be in any doubt that we are making a big effort when it comes to supporting people over the phone—is that, in March, we answered about 1.3 million calls to the universal credit full service helpline.
The hon. Member for Midlothian talked about waiting times. In March, the average waiting time for a call to be answered was two minutes and 43 seconds. In February, the average duration of a call to the UC helpline was just over six minutes. I hope she will appreciate that it is not about rushing people off the lines but about providing support to them.
As I said earlier, the hon. Lady raised this issue in parliamentary questions on 11 February. I reiterate what I said to her then, which is that she has already been sent a copy of the universal credit digital channel document. She talked about FOI requests, but she already has that document, which is what DWP staff use as a guide when taking calls from claimants. She will be aware that the document says clearly that staff must use a common-sense and sensitive approach in resolving queries ahead of any digital discussion. Again, I want to be absolutely clear that there is no intention to deflect and there are no targets for getting claimants to use a digital channel.
The hon. Lady made several other points, including about supporting people who struggle with English or Welsh. We have an interpreting service available for those with language barriers. The hon. Member for Strangford (Jim Shannon) raised the issue of people being held on the phone and not being given an answer. We regularly review service levels on the UC helpline to improve our offer. If we cannot answer a question, we will call the claimant back.
The Minister says that the universal credit helpline is there and that staff are not necessarily trying to direct people on to digital platforms, but the complaints procedure for universal credit cannot be undertaken by phone—people are simply directed to make a complaint online. Those who struggle with online access are unable to do the very basic thing of making a complaint when they have a problem with the online service or the helpline. How does that square with his commitment that people are not being directed online? Will he make sure that people can make a complaint over the phone?
When a conversation takes place between a DWP staff member and a complainant, of course there is the opportunity for the staff member to answer the question. There are standard procedures when people want to make complaints. The hon. Lady takes a deep interest in such matters, and she knows that if any of her constituents ever have such an issue, she can write to me. I understand that, and it is incumbent on us, as Ministers, to make sure that we provide a response. In terms of the statistics that I have put out there, however, I hope she will appreciate that DWP staff make a huge effort to answer phone calls and deal with them sensitively. She also made a point about journal entries. The journal is available 24/7 for claimants to communicate with their work coach. That was not available under the legacy system.
DWP colleagues are fully committed to supporting claimants through a range of channels, and we are clearly making progress in the support we provide. In our latest claimant survey, which was published in January, four out of five people were satisfied with the support they had received when claiming universal credit, which is broadly consistent with satisfaction levels in legacy benefits. Satisfaction levels are high, and the vast majority of claimants who use the telephony system found staff to be helpful and polite. Of course, I acknowledge that we want and need to continue to make progress and improve further so that everyone claiming universal credit gets the support they rightly deserve.
In conclusion, if hon. Members raise individual cases with me, I hope, again, that they will find that the Department and I are open and that we acknowledge when we have made mistakes.
Question put and agreed to.
(5 years, 7 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
I beg to move,
That this House has considered pension credit changes.
It is a pleasure to see you in the Chair, Mr Davies.
14 January was a pivotal day: not only was there a meaningful vote on Brexit but on that day the Government announced in a written statement that from 15 May 2019 both partners in a couple need to reach state pension age to claim pension credit or pension age housing benefit. That change has been on the statute book since 2012, but the announcement was made quietly through a written ministerial statement on one of the busiest days in Parliament, only four months before it was due to come into effect. Full details of the impact have not yet been published, nor do we have detailed information on how the proposal will operate in a wide range of possible circumstances.
My first question for the Minister is: why was the proposed change made in a written statement and not by a vote of the House? That sets a dangerous precedent—a change put on the statute book two Governments ago, two Parliaments ago, in 2012 is being made now via a written statement instead of another vote in the House.
The Government say that 115,000 mixed-age couples receive pension credit and/or housing benefit. Couples who claim after 14 May could be up to £7,000 worse off compared with a couple claiming now. I will come back to those figures and give some examples. The Department for Work and Pensions estimates that in 2019-20, 15,000 mixed-age couples will be affected by the change. That rises to 30,000 in 2020-21 and 40,000 in 2021-22. In theory, the change applies only to future claimants, but it will also hit any pensioner in a mixed-age couple in receipt of pension credit whose claim is interrupted. As Age Scotland and Age UK point out, couples claiming in the future could be nearly £140 a week worse off than before the change—as I said, an incredible £7,000-per-year cut for some pensioners.
That figure is noteworthy when taken in the context of another one: 40% of people entitled to pension credit do not claim it, whether through lack of knowledge or because of accessibility issues. What are the Government doing to assist such people to take up pension credit, given that alarming figure of 40%?
Age Scotland and Age UK provided me with a figure for an average Glasgow South West constituent in two scenarios, both taking into account state pension, pension credit, housing benefit, council tax reductions, health vouchers and the cold weather payment, and both for a mixed-age couple renting a one-bedroom, council tax band C property, paying rent of £510 a month and receiving state pension of £160 a week.
In the first scenario, the couple would receive total benefits of £395.46 a week, £1,581.84 a month or £19,097.08 a year; the total annual state pension income would be £8,320, so the income lost if no benefits were received and they relied only on some state pension would be £10,777.08. Secondly, the charities investigated how the same couple would fare if they were claiming universal credit, which is already a decisively less generous benefit and has well documented difficulties in claiming and sustaining payments. Even so, they would face a total annual loss of £6,751.24.
Under the universal credit rules, rather than the existing state pension credit situation, older people face a particularly substantial loss of income—a devastating loss, especially for those on low incomes. It is therefore vital that in the first instance we encourage everyone eligible for pension credit to claim it. It is scandalous to think that people would be financially better off if they lived apart than if they lived together.
I congratulate the hon. Gentleman on securing the debate. He is making a powerful speech. A lot of people who reach pension age are struggling to be able to work, although they may not be able to access disability or sickness benefits because of their condition. Does he agree that this change will affect such couples in particular, many of whom include a WASPI—Women Against State Pension Inequality Campaign—woman unable to claim the state pension or, as part of a couple, pension credit? Those women will be doubly dissatisfied.
The hon. Lady is absolutely correct. I will come on to the 1950s-born women and the double whammy affecting them. She makes an excellent point about those on benefits and low income and, as she will be aware because we have just come from the Select Committee on Work and Pensions where we were discussing “No DSS” adverts in the private rented sector, the change could have devastating implications for those people too.
Will the Minister therefore accept the calculations from Age UK and Age Scotland? Will he advise us whether there has been a recent equality impact assessment since January’s announcement? I understand that there was an impact assessment back in 2012, but will he tell us whether there has been an updated equality impact assessment on the pension credit change?
In 2010, a woman aged 60 and her partner aged 65 would both have been entitled to their state pension and both been considered pensioners for pension credit. From 15 May 2019, they will have to wait an extra six years to be in that position. In essence, the change will impose a financial penalty on pensioners who have a younger partner. That is why some WASPI women in Glasgow refer to the change as the “toy boy tax”, as well as the “age gap tax”.
According to the Joseph Rowntree Foundation, one in six pensioners in the UK already live in poverty. This Government policy will mean that many pensioners might find themselves in the position of being financially better off if they split up with or lived apart from their partner. Pensioners should not be put in a position where it would be better living alone.
As the hon. Member for High Peak (Ruth George) outlined, the policy change will adversely affect women born during the 1950s—precisely the group impacted by other Government decisions to raise the state pension age. Anyone hit by that double whammy will be entitled to feel especially aggrieved, and I can tell the hon. Lady and the Minister that certainly in my constituency the campaigners for the 1950s-born women do feel especially aggrieved by the change and regard it as a double whammy.
The public will be left with little faith in the Government and their ability to deliver pension justice for women born in the 1950s. The Women’s Budget Group states that
“pension credit is the single most important poverty alleviation mechanism for older people that we have in this country”.
The Government should make time for a new debate and a vote on the change, given that the decision was made seven years ago—two Parliaments ago. Rather than just enforcing the change, it is time to have another debate and vote.
According to OECD figures, the UK has the lowest state pension in the developed world; the change will only increase discrepancies. The Joseph Rowntree Foundation’s “UK Poverty 2018” report highlighted the fact that previous falls in pensioner poverty were in part due to the introduction of pension credit. Universal credit will not adequately meet the needs of a household of retirement age because of the strict requirements for seeking work, such as signing on at the jobcentre, qualifying as an unpaid carer or proving inability to work. Changes should be immediately introduced to ensure that older people do not suffer as a result. The policy change will be seen as a stealth tax on ageing couples on low incomes.
The Department for Work and Pensions has confirmed that it expects to save almost £1.1 billion over the next five years due to the changes. Tom McPhail, head of policy at Hargreaves Lansdown, commented that
“the impact on individuals and their household spending will amount to hundreds or even thousands of pounds per year and for some it could present real problems”.
The meagre savings that the Government will make from the policy change will not match the disastrous consequences that will ensue. If the change is not abandoned, it is anticipated that there will be a consequential increase in demand for support from the Scottish welfare fund, which provides crisis grants to families and people in Scotland on low incomes.
Pensioners could face a heavy financial penalty for having a younger partner. That could affect the health and well-being of those affected and is likely to increase the number of older people living in poverty. Pensioners should not be put in a situation where they could be better off living alone and claiming pension credit than living as part of a couple and receiving universal credit. The change could put pressure on existing relationships. Although the intention is to protect those receiving pensioner benefits before 15 May, they could lose their entitlement if their circumstances change, even if only for one day.
Does the hon. Gentleman share my concern that thousands of pensioner couples are affected but unaware? I highlighted to the Minister before the recess my concern that the gov.uk calculator incorrectly shows people that they cannot claim pension credit when, in fact, they are entitled to it.
The hon. Lady makes an excellent point; the lack of information has been a real issue, particularly for women born in the 1950s, many of whom did not receive letters about the pension changes. I have previously joked that I would be more likely to find a golden ticket in a Wonka bar than find a woman who received a letter about the pension changes.
The universal credit system was designed for people of working age, not pensioners. For example, it includes no additional support for a couple where one member is not expected to work because they are over state pension age.
I thank hon. Members for attending the debate. The pension change is a toy boy tax for many; it is certainly an age gap tax. I look forward to the Minister’s response. I hope he will tell me that the changes will be paused so that we can vote in the House on whether they should take place.
It is a pleasure to serve under your chairmanship, Mr Davies. I congratulate the hon. Member for Glasgow South West (Chris Stephens) on securing a debate on this important issue.
The Government believe that work is the best route out of poverty. Our reforms of the welfare system are designed to help people into work, make work pay and provide support for those in need. Those are the principles that underpin universal credit—the most significant change to the welfare system for decades—and are the context for the changes we are talking about today.
Single people can claim pension-age benefits only when they have reached state pension age. However, a person under state pension age who has a partner over that age can currently receive benefits intended to support economically inactive pensioner households, without having to meet any work-related conditions. That runs counter to our aim of encouraging people of working age to remain in the labour market and continue saving for their retirement.
As part of the reforms introduced by the coalition Government in 2012, the Welfare Reform Act 2012 set out that a couple will be able to access pensioner levels of means-tested support only when both partners have reached state pension age. In response to one of the hon. Gentleman’s first points, we have been clear that the change will not be introduced until the roll-out of new claims to universal credit is complete. That roll-out was completed earlier this year; consequently, on 14 January we announced that we will implement the mixed-age-couples change with effect from 15 May.
I will try to address all the hon. Gentleman’s points. Regarding the change being made by a written statement at a particular time, the changes to pension credit that commenced following the order made on 14 January were fully debated on three occasions during the passage of the Welfare Reform Act, and were voted on in Committee. The powers under which the order was made do not require the order to be subject to any further parliamentary scrutiny, since it brings into force primary legislation that Parliament already agreed should be implemented by a commencement order.
When the changes were debated back in 2012 as part of the Welfare Reform Act, universal credit was still a similar level of benefit to tax credits. Since then, following the 2015 budgetary changes, universal credit has been worth significantly less, and increased numbers of people on universal credit are in poverty. Does the Minister not agree that that should be a reason for Parliament to debate again the changes that will affect hundreds of thousands more, often vulnerable, households, in the light of the changed circumstances?
Will the Minister address the point about carers in households that have had a letter about their pension credit? What will be done for them?
I will write to the hon. Lady on that point. I will ensure that she has an answer within seven days. I accept that we did not get a letter to—
It is the people affected I am worried about, rather than the response to me.
Well, I will write to the hon. Lady on that point, because I want to address the point made by the hon. Member for Glasgow South West, whose debate this is, about pensioner poverty. He criticised the Government in that respect, but I would push back on that.
We are forecast to spend £120 billion on benefits for pensioners in 2019-20, including £99 billion on the state pension. He will be aware that, by reason of the triple lock, from April 2019 the yearly amount of the basic state pension will be around £675 higher than if it had just been uprated by earnings since April 2010, and that the value of the full state pension as a proportion of average earnings is at one of its highest points since the late 1980s.
I could go on about the number of people in employment, which has risen dramatically, the increases in state pension and the successes of automatic enrolment in the employed sphere, but I thank the hon. Gentleman for the opportunity to address this matter. If I have missed anything, I will of course write to him.
Question put and agreed to.
(5 years, 8 months ago)
Commons ChamberI thank my hon. Friend for raising this issue. Of course, supported housing is essential for vulnerable groups, including those fleeing domestic abuse, which is why we announced in August last year that we will maintain funding for all supported housing and housing benefit. I am going to work closely with the Secretary of State for Housing, Communities and Local Government, the Chancellor and local authorities to ensure that quality and value for money are always available in supported housing provision for domestic abuse victims.
Making sure that the system prevents domestic abuse, including financial abuse, is as important as supporting those, rightly, who are affected by it. The Secretary of State made a statement a few months ago regarding single payment of universal credit. What progress has she made on that to make sure that women and the children they support as main carer can directly receive the support that they so rightly need?
I thank the hon. Lady for raising this issue. She is right and I announced recently that I want to make sure that it is the main carer who receives the benefit. I am working with jobcentres to ensure that we have a new approach so that there is effectively an early question in their process where they find out who the main carer is, who is usually a woman, so that we can ensure that potential victims of domestic abuse are more likely to have access to the overall funds.
(5 years, 8 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
Yes, it can be quite a long time. We have heard that people can wait for three or four months. That uncertainty means that it is very difficult for a person to plan, as they do not know how much support they will receive.
The hon. Lady is making an excellent speech and is putting into words what a lot of us experience in our constituencies. In my area, it takes 48 weeks for an appeal to be heard, and people usually have to sign on for universal credit, rather than ESA. They have to undergo conditionality, even though in 71% or 72% of cases in my area, at the end of the process it is found that they are not able to work. They are being pushed into that by a system that does not take into account their disability. Does the hon. Lady agree that that desperately needs looking at? People have to wait a year or more to get assessed properly.
Yes, I do, but we need to solve the root cause of the problem, so that we do not have these high tribunal rates. If we do not have them, we will not have the waiting times. That is the best way to ensure that the system has a low failure rate.
I echo much of what has been said across the House. I am glad that Members on the Government side are taking an interest. I would love for some of them to take up the vacancies on the Work and Pensions Committee, where we look in detail at these issues.
I have met and heard from many constituents, particularly those with mental health problems, who suffer from the whole round of assessments. They are often on both ESA and PIP, so they have assessments roughly every year. Once they get a letter about an assessment, they have to fill in a form and seek medical letters to substantiate their claim. Many medical professionals are refusing to write those letters, because the DWP ask for such detailed information and they cannot possibly give the time to provide that. If they do, they charge for the letters—often £25 or £30.
As Members across the House have said, there is great reluctance to perform home visits—particularly in my very rural area where they can take longer, but also where it takes much longer for constituents to travel to appointments. Often, they simply cannot. One constituent told me about dragging her disabled daughter, who was ill and in pain, out of bed to go to her assessment because she was told she had to. Another’s GP refused to give evidence for any more assessments about home visits.
Yes, people get their taxi fare paid for them, but they have to pay up front. That often costs £100, which some people simply cannot afford. The Minister promised the Work and Pensions Committee that work capability assessments would be video-recorded, but now people are being asked to provide their own recording equipment. Again, that is an issue of affordability.
As the hon. Member for East Renfrewshire (Paul Masterton) said, the process has an impact on claimants’ mental health. They go to an assessment; they wait for the result; they put in for a mandatory reconsideration, which often is turned down point-blank, and they then have to wait for an appeal. That is an incredibly stressful process, during which the claimant has to sign on for universal credit and go through the process of being assessed for work and claimant conditionality, under threat of sanctions.
I spoke to the Minister last week about a constituent of mine who died on his first day back at work. I spoke to his wife, who was absolutely clear that her husband had been forced into returning to work by DWP’s refusal to take doctors’ evidence. It said it knew best because he had passed a work capability assessment. That should no longer happen. Doctors should not receive letters saying they must not give people fit notes because they have passed a work capability assessment. That sends people further into mental health despair and, in some cases, towards suicide. I really hope the Minister looks at this issue.
It is an honour to serve under your chairmanship, Sir Christopher. I congratulate the hon. Member for Chichester (Gillian Keegan) on bringing forward this debate. She made some really valid points. She is absolutely right that it is up to the Government to remove of some of the barriers that disabled people face to ensure that they can live independently and participate fully in society. I welcome the move to stop assessments for personal independence payment for pensioners, but we need to go further to ensure that those who do not need reassessment do not have to continue to go through the arduous assessment process.
We heard from Members across the Chamber about the fundamental flaws in the assessment framework for disabled people. We heard about the time that many ill and disabled people have to wait for an assessment. Indeed, my hon. Friend the Member for High Peak (Ruth George) highlighted that in her area people have to wait up to 48 weeks before they get to an appeal. We heard countless accounts of what happens at assessments and of poor decision making. My hon. Friend the Member for Ellesmere Port and Neston (Justin Madders) shared his constituent’s experience of being given two days’ notice but still being recorded as a no-show, yet assessment providers can cancel at the last minute. We need to eliminate such double standards. The hon. Member for St Ives (Derek Thomas) pointed out some of the poor decision making that happens after assessments and highlighted the rubber stamping of decisions at mandatory reconsideration stage. That step was put in place to ensure that we got decisions right earlier, so it is really important that that issue is picked up.
Since 2013, more than 700,000 ill and disabled people have been forced to challenge decisions at appeal following poor decision making after their assessment. Last week, the Secretary of State for Work and Pensions admitted that disabled people feel “put on trial” by these assessments. By her own admission, we need not just small-scale improvements of the assessment framework, but a wholesale overhaul of the system, which has created a hostile environment for disabled people.
Every week, I hear from constituents and from disabled people across the country who have been pushed to despair as a result of the failing assessment framework. I was contacted by a lady called Susan, who has Crohn’s disease. She is on DLA and has a Motability vehicle. Following her assessment, in which she did not score any points for her mobility, she lost her car, which she described as her one bit of independence. I share her experience with the House because it is not isolated; I hear these heart-wrenching accounts all the time.
Some 72% of PIP decisions are overturned at appeal, and more than 100,000 disabled people have been wrongly deprived of PIP. We heard that more than 4,500 disabled people were wrongly denied PIP when they transferred from DLA. Most shockingly, 17,000 people died before their PIP decision was reached. In the last three months, nearly three quarters of people who appealed their work capability assessment decision were successful.
We know the system is flawed and is not working. That is why it is worrying that we are looking at combining all these assessments. We cannot combine them when we know there is bad decision making and the assessment framework is flawed, so I ask the Minister: why not listen to people like Susan, and look at conducting a wholesale review and overhaul of the system?
I will not; I do not have time, frankly.
The Government announced last week that they would extend the contract of the Centre for Health and Disability Assessments, better known as Maximus, to carry out work capability assessments. Nothing could be worse for any disabled person to hear. Since 2014, an estimated £595 million has been paid to Maximus to carry out assessments and in total £1 billion has been paid out to private contractors. These companies have repeatedly failed the DWP’s standards, so does the Minister agree that rather than extending the contract, it is time to bring these assessments back in-house? Will she confirm that the details of the new contract will be made available to Members?
It appears that I have only 20 seconds left, which is shocking, so let me be clear: we need a radical overhaul of the assessment framework before any moves are taken to combine the assessments. We need an assessment framework that will take into account disabled people’s lived experiences and treat all disabled people with the dignity and respect they deserve.
(5 years, 8 months ago)
Commons ChamberI point out gently to the hon. Lady that 8% of people who apply for ESA go to appeal, and 4% are overturned. I do not want that to be 2%, 1% or 0.1%; I want us to get the decision right the first time, but we must use the information accurately. It is important that we are evidence-based policy makers. When it comes to who will carry out the assessments from 2021, the healthcare professionals doing so have always been clear that by creating this transformed service and our own digital platform, many more people will be able to come forward to say that they can undertake the services, and I would be particularly happy if NHS trusts said that they would do so.
I welcome the fact that Ministers are seeking to improve the accuracy of PIP and ESA assessments and to reduce the number of appeals, but it still takes 48 weeks for an appeal to be heard in my constituency. May I ask the Minister to look urgently at how people are treated while they are awaiting an appeal? My constituent had a serious heart condition, and his doctor said he was not fit to go back to work. The DWP said that that was its decision, not the doctor’s decision. My constituent died on his first full day back at work, which he was forced into. He was awaiting his appeal. It is too late for him, but his wife has asked me to take it up with Ministers to seek a better solution for people who are awaiting appeals, many of whom are rightly and justly appealing.
I pass on my sincere condolences to the hon. Lady’s constituent. Of course I will sit down with her to review the case in great detail, because it is a very, very sad to hear what happened to her constituent. Her Majesty’s Courts and Tribunals Service has employed hundreds more people so that cases can be heard sooner. I am particularly pleased that we have introduced an online resolution service so that, once people’s information is uploaded on to the system, DWP decision makers can look at that information. If we can make a decision earlier that could prevent people from having to go to a tribunal, we will do so. I am very hopeful that we will start to see waiting times reduce significantly.
(5 years, 8 months ago)
Commons ChamberThere are two elements to that. First, it depends on individual circumstances and the impact of factors such as different arrangements in whether people are working, their caring responsibilities, and their health conditions. Secondly, it is about the principle of fairness, in that those of working age should not be accessing pension-related benefits. We should not be taking people of working age out of the workplace. Pensioner poverty continues to stand at one of the lowest rates since comparable records began, and we intend to keep it that way.
I will come back to the hon. Lady.
Turning to universal credit, in the 2018 autumn Budget statement the Chancellor announced additional assistance for those on universal credit. As such, the universal credit work allowance will increase by £1,000 after they have been increased by prices, helping 2.4 million working families. This measure raises the amount someone can earn before their universal credit payment is reduced and directs additional support to some of the most vulnerable low-paid working families.
Finally, let me turn to disability benefits. This year the Government will continue to make sure that carers and people who face additional costs as a result of their disability will get the additional support they need.
With this uprating order, I am bringing forward plans to increase support for some of the most vulnerable people in society to the tune of £3.5 billion, with £3 billion alone to help those with disabilities and long-term health conditions, and pensioners—key people who the Government, as we share the proceeds of growth, will continue to target support towards. That is why the incomes of the lowest-paid have risen by over £400 in real terms since 2010 while the wealthiest fifth of society have seen their income fall by £800. We recognise the right places to target support through additional measures, including the introduction of the national living wage, worth £2,000 a year, and the increase to the income tax threshold of £1,200.
I will make some more progress.
These increases will cover disability living allowance, attendance allowance, carer’s allowance, incapacity benefit and personal independence payment. They will all rise by 2.4%, in line with prices, from April 2019.
But we know from announcements in the last two Budgets that spending on working-age benefits will be £2 billion higher than it would have been under the legacy benefits. That is why we now see 300,000 fewer children in absolute poverty, as we continue to target support at the most vulnerable in society.
I am going to make some progress.
In addition, the carer and disability premiums paid with pension credit and working-age benefits, the employment and support allowance support component and the limited capability for work and work-related activity elements of universal credit will increase by 2.4%. Those increases will ensure that our welfare system continues to provide the most support for the people who need it.
In conclusion, in this order the Government propose to spend an extra £3.7 billion in 2019-20 on increasing benefit and pension rates. With this spending, we are upholding our commitment to the country’s pensioners by maintaining the triple lock, helping the poorest pensioners who count on pension credit, ensuring that working people can earn more before their universal credit payment is reduced and providing essential support to disabled people and carers. I commend this order to the House.
This uprating order increases a range of social security entitlements. However, it does not uprate those included in the Government’s freeze to working-age benefits enacted in the Welfare Reform and Work Act 2016—a freeze that is causing real hardship to some of the poorest people in our country. The Minister set out the range of benefits to be uprated in line with the consumer prices index. The order also increases the state pension in line with the triple lock—a measure that the Opposition fully support—and increases universal credit work allowances by £1,000, in line with the announcement in the last autumn Budget.
While we welcome measures to increase those payments, we are deeply concerned that most working-age benefits remain frozen. The fact is that austerity continues under this Government, and it is pushing individuals, families and children into poverty. This order fails to uprate a long list of social security benefits: child benefit, jobseeker’s allowance, employment and support allowance, income support, housing benefit, local housing allowance rates, child tax credit, working tax credit and the equivalent elements in universal credit. None of those are uprated by this order.
Let us think for a moment about who that failure affects. It is the person who has just lost their job after working for 20 years in the same firm. It is the parents struggling to feed their children. It is the sick or disabled person who is looking for work. These are vital social security payments that should lift people out of poverty and ensure that they do not become destitute.
I thank my hon. Friend for being prepared to give way to me, which the Minister was not. Does she agree that the freeze on housing benefit and local housing allowance is driving not only people of working age but more pensioners into poverty? Contrary to what the Government claim, pensioner poverty has risen by 0.3 million, and we are seeing more and more elderly people who have to rent houses suffering because of it.
My hon. Friend makes an absolutely pertinent point, and she does so with her usual alacrity and attention to detail.
These vital social security payments should lift people out of poverty and ensure that they do not become destitute, but under this Government that aim is not being met. Last year, research by the Joseph Rowntree Foundation found that more than 1.5 million have experienced destitution in the UK, and the social security freeze is a key reason for that. To put this in perspective, destitution in this context—[Interruption.] Yes, destitution. I do not know why the Whip on the Government Front Bench finds destitution such a matter for mirth.
The benefits freeze affects 10.7 million of the lowest-paid and most vulnerable people in our society. It comes on top of not just two years of a benefit cap, but a three-year freeze on tax credits from 2011 that saw them lose over £1,000 in value for ordinary, low-paid families. That came on top of VAT rising to 20%, the end of the education maintenance allowance and health in pregnancy grants, changes to the statutory maternity allowance and the £500 grant, and the bedroom tax. Families have lost a further £900 a year under the benefit freeze since 2016. It is therefore unsurprising that child poverty has risen since 2011-12, as the Joseph Rowntree Foundation set out. We have seen the number of children living in poverty increase by half a million, almost all of them in working families supported by working-age benefits. Nearly half of children in lone parent families are in poverty. That number will sharply rise when maintenance is included in universal credit, and the up-front costs of childcare mean that lone parents struggle to escape poverty.
Work is no longer a route out of poverty. Four million working people, a record number, are still living in poverty—half a million higher than five years ago. This benefits freeze will cost families another £210 a year. When this Prime Minister took office, she promised to support people who are just about managing. What are these 10.7 million people on working-age benefits if not just about managing?
Instead, we see that six in 10—over half—of the poorest fifth of the population are now in problem debt, which is contributing to the huge rise in mental health difficulties and emotional anxiety. The biggest problem, as I said earlier, is housing costs. Since 2010, housing costs have fallen for the richest three fifths of the country, but they have risen for the poorest two fifths. Of those on full housing benefit, 43% of single parents and 37% of couples still have to top up their rent from already inadequate other benefits. It is no wonder that people are having to make a choice between heating and eating.
We are seeing the number of pensioners in poverty rising: 330,000 more pensioners are now in poverty than five years ago, and most of them are in rented property, according to the annual poverty report from the Joseph Rowntree Foundation, which is not disputed by any other organisation.
The costs for people on the lowest incomes rise even more than CPI inflation: food, heating, energy, public transport, council tax rises of 5% this year—4% in my area of Derbyshire—and rising care costs. Yes, charities can step in, and we are seeing some fantastic work by communities across the country, but this Government must not go back to a Victorian age in which struggling people are forced to rely on charity. With the best will in the world, charities cannot be expected to cover the whole country, especially in sparse rural areas like mine.
We also see people who are too proud to want to approach charities—people like Chris, whom I met on Saturday. Chris is living on the streets of my hometown of Buxton and unable to access support, and not wanting to because of the conditions placed upon it. It is not right that we have people living on our streets in this day and age, in the fifth richest country in the world.
This is a political choice that this Government have made at a time when corporation tax is due to fall again, the highest rate of income tax is also falling and the main rate of corporation tax for companies with profits of more than £1.5 million a year has almost halved, and will have halved over the next 10 years. That is where this Government’s choices are being made: not for the people who are visiting food banks, not for the people who are living on our streets but for the people who have the most.
What we know is that every region of the UK is seeing more people working. Youth unemployment increased by 45% under the last Labour Government, but it has almost halved under this Conservative Government, and that will continue.
I assume that in claiming that I am attacking policies aimed at job creation, the Minister is referring to the huge cuts in mainstream corporation tax, which I analysed at the Union of Shop, Distributive and Allied Workers when working on some of the major supermarkets. They actually took their corporation tax reduction and refused to even put that amount into wage growth, let alone into jobs. This is not a job creation scheme; it has made profits for shareholders, not for workers.
It is delivering record employment in every single region. Increased corporation tax receipts are the folly of the hard-left failed economic policies that deliver higher unemployment every single time, which is why voters repeatedly reject failing Labour Governments.
(5 years, 9 months ago)
Commons ChamberI am pleased to be bringing this debate today, and I thank colleagues from across the House who have supported it and who are here to speak. The spending of the Department for Work and Pensions is the highest of any Department and represents almost a quarter of all Government spending. It is therefore important to scrutinise that spending, especially as the 10.7 million people who rely on our welfare state are those who usually have no other place to turn.
The welfare state in Britain was set up by the 1945 Government in order to defeat the giant of want and to create a country fit for heroes, but 70 years later, across Britain we are seeing an increase in situations that we think of as part of the bygone era of the 1930s. Even around our Parliament today, we are seeing people sleeping rough on our streets, dying in the freezing cold. Across the country, we are seeing families queueing up for food banks, and disabled people left isolated without the care that they need.
Poverty rates are rising, especially among children and people in work. The Joseph Rowntree Foundation’s annual analysis of poverty tells us that 14.3 million people—more than one in five of our population—now live in poverty. That includes 4.1 million children, a rise of 500,000 over the last five years. It also includes 4.6 million people living in persistent poverty—the poverty trap that lone parents especially are unable to escape. And shamefully, 1.5 million people, including 365,000 children, now live in destitution, unable to afford even the basic necessities. In the fifth richest country in the world, those bare facts should shame us all.
The Government rightly tell us—as I am sure the Minister will do today—that the Department’s spending is rising. It has risen by £31 billion, or 20%, since 2010. But alongside real wages falling for a decade, housing costs rising much faster than inflation, especially in areas of very high housing shortage, and cuts to so many of the local services that people rely on, our welfare safety net is in danger of not working. That is why I am particularly pleased that we are having this debate to look into the reasons for the seeming anomaly of rising spending and rising poverty, and so that we have the opportunity to suggest some answers for the Department to consider.
We know that £27 billion of that £31 billion increase in the Department’s spending relates to the state pension, with the triple lock and the single-tier pension delivering increased prosperity for most pensioners. That is good to see, but, as with many aspects of DWP spending, it does not tell the full story. While the state pension has increased, pensioner poverty has also increased. The rate of pensioners in poverty halved in the decade to 2013, but since then it has risen by 330,000 to 16% of pensioners. That change was partly due to reductions in pension credit, which now supports a million fewer pensioners, but also due to housing costs, which is a serious problem for the Department across the full range of benefit claimants.
The situation is worse for those who are not pensioners. The Institute for Fiscal Studies stated after the Budget that we will still see cuts of £4 billion a year to welfare spending on in-work age groups in the years to come. It is the particular and persistent focus on reducing spending that has played a major role in the increase in poverty, and destitution in particular. The emphasis on making welfare spending fairer to working people ignores the fact that the majority of claimants of state support are already in work. In the 2015 Budget the then Chancellor claimed that benefits should be frozen for four years because average wages had risen by only 11% while benefits had increased by 21% since 2008 due to high levels of inflation. The argument that real-term falls in wages should equate to even larger falls in the benefits on which so many in-work families rely fails to recognise the realities of life on low pay.
I thank my hon. Friend for giving way. We have seen changes over the past few years, including increases in some pensioner benefits and in the national living wage, but the group of people who stand out more than any other are those on benefits. It is utterly unacceptable that we can even consider maintaining the benefits freeze for one final year. It has to go.
I thank my hon. Friend for that intervention and pay tribute to her campaigning for people on benefits. I agree with the sentiment of her intervention, because over 10 million people are affected by the reality of the four-year freeze. When it was announced in 2015, inflation was just 0.4%, but it has been 2.3% and 2.6% in the past two years. Since the freeze’s introduction, the cost of living for people on low incomes has risen by £900 a year. In real terms, the income received by a single person on jobseeker’s allowance or income support of just £77 a week will fall by over £5 a week by 2020—a drop of £267 a year. When people on such benefits have less than £10 a week to spend on food, the loss of £5 makes a huge difference. Someone can just about eke out £10 a week for food, but eating for £5 a week is impossible. It is no wonder we are seeing such growth in the use of food banks.
For families, the freeze bites even harder. If it continues, low-income families are likely to lose out on an extra £210 a year due to inflation. If we see inflation rise because of disruption to trade or food tariffs or shortages, inflation for people on low incomes will be far higher. If the benefits freeze ended a year early, that would provide an essential income boost to over 10 million people struggling on low incomes and reduce poverty for 200,000 people, so I strongly urge the Government to look at doing so as soon as possible.
Of course, welfare is in the process of being reformed, especially through universal credit. I worked for USDAW—the Union of Shop, Distributive and Allied Workers—for almost two decades, so I know just how vital in-work benefits are to millions of families who struggle to get by on low pay and often low hours. I know that UC was designed to fix such problems to ensure that work always pays, and I applaud that aim, but the stark reality is that universal credit has led to a 30% increase in referrals to food banks where it has been rolled out. I see families in my surgeries facing eviction, and I give credit to the thousands of people who are organising food banks across the country to help people who cannot afford enough to eat, but that is not good enough. Food banks cannot cover the whole country—I know that from my rural area—and they should not have to, either.
I pay tribute to fellow members of the Select Committee, which has made recommendations to the Government on universal credit, and to members of the all-party parliamentary group on universal credit which, with me as chair, is producing a report on a whole range of universal credit issues—I am pleased that the Secretary of State has already committed to meeting us about it.
I thank the Government for the improvements they have already made to universal credit, and I welcome those changes, but we are still seeing problems. Some 5.1 million people in working families will see their income reduced, on average, by £2,300 a year, and 1.3 million people in out-of-work families, with even lower outcomes, will see those outcomes drop by £1,400 a year. At a time when persistent poverty and destitution are rising, the Government’s flagship policy should not be looking to take over 10% of our population even deeper into poverty.
Will my hon. Friend give way?
I was asked to take 10 minutes, so I will have to wrap up soon. I am sure my hon. Friend will get a chance to speak.
I ask the Government to look urgently at three issues with universal credit. First, the five-week wait for payment puts people into debt right at the start of their claim, and the levels of universal credit are simply not enough to enable them to escape that debt. Secondly, the multiple deductions: people receive an advance, and they might have debts on top of that from tax credits, housing arrears or utility bills, and they end up with an income that they simply cannot live on. Thirdly, the support for children and adults with disabilities. This Government are proud of saying that they like to support the most vulnerable people but, as one of my constituents says, “If a six-year-old boy who is bedbound is not one of the most vulnerable and does not deserve support, who does?”
We need a system that treats people like human beings. Yes, it is down to money and, yes, it is down to support, and I welcome the Secretary of State’s commitment to personalised support, but that support needs people to implement it, not computers that simply say no and not processes like the one I raised in a Westminster Hall debate on carer’s allowance where carers are being taken to court under the Proceeds of Crime Act 2002 and are being forced to sell their homes because they have made an error.
We want to see investment in jobcentres and DWP staff so that they can deliver the personal support that they want to deliver, that this Government want to deliver and that we all want to see. This Department covers a huge range of people and complex issues. We all need to have trust that our welfare safety net is still there. It is the hallmark of a civilised society, and I look forward to this debate helping us to bring it in together.
I thank the Minister, the shadow Minister and all those who have made powerful speeches. Members across the House raised the issue of PIP appeals and the impact of some terrible cases. My right hon. Friend the Member for East Ham (Stephen Timms) talked about the five-week wait. The Chair of the Work and Pensions Committee, my right hon. Friend the Member for Birkenhead (Frank Field), raised the benefits freeze, which came on top of a three-year freeze to tax credits and the three-year 1% cap introduced under the Welfare Benefits Up-rating Act 2013. That must be a priority.
I was pleased to hear from the Minister that the Government are looking to do more. My colleagues on the Select Committee are working on two reports on natural migration to universal credit and the welfare safety net. I hope the Government will read and respond to those, as well as the report being compiled by the all-party group on the many issues that remain with universal credit, many of which do not require additional funding but, if solved, will help people to be supported by a personalised system.
Question deferred (Standing Order No. 54).
(5 years, 10 months ago)
Commons ChamberUrgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
Each Urgent Question requires a Government Minister to give a response on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
The policies we have put in place since 2010 are working; we can see that in the jobs figures. When we came to power in 2010, some 1.4 million people in the country had been on out-of-work benefits for at least nine of the previous 10 years; that is not a legacy that the Opposition should be proud of.
Yes, universal credit does help Jobcentre Plus workers who are trying to persuade people to go into short-hour jobs and zero-hours contracts where their hours of work fluctuate. We welcome the very small changes to this that will help a few thousand people, but what will the Government be doing to help the thousands on universal credit who were paid a few days early over the Christmas period, then received absolutely nothing for their December-January payment of universal credit and are now suffering arrears of rent and childcare payments because of that which the High Court has just ruled against?
We will of course respond on the High Court ruling. I am pleased the hon. Lady raised the point about what sort of jobs have been created: just to put it on the record—these are not Government figures; they are from the Office for National Statistics—since 2010 some 75% of all the jobs created are full time, are in high-level occupations and are permanent. That is something I wish Opposition colleagues would acknowledge.
(5 years, 10 months ago)
Commons ChamberUrgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
Each Urgent Question requires a Government Minister to give a response on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
My hon. Friend raises an important point. We talk about stakeholders. We held an event for 70 stakeholders in October. We are working on work streams with stakeholders looking at how to create a successful claimant experience, what the role of delivery partners and external organisations might be in migration, how we communicate and engage with claimants, and how we identity and support our most vulnerable claimants. That work is going on right now. We will continue to do that to get this right.
The Minister says he wants to make sure universal credit works for absolutely everyone, but there are still 2.4 million households that will be more than £2,000 a year worse off under universal credit, of which 1.6 million will be moving on to universal credit in the next 12 months, under natural migration. What will the Government do to support those people and make sure it works for them?
As the hon. Lady will know, once universal credit is rolled out, there will be £2 billion more in the system than under the legacy welfare system. I know she cares deeply about these matters, but if she wants to support her constituents, she should have voted to support the measures we introduced to help people—I have talked about the extra money. Unfortunately, she has not been able to support them.