Pensions Bill

Sarah Newton Excerpts

Monday 17th March 2014 Commons Chamber

[Steve Webb]

I am grateful to the hon. Lady who, as she says, has shown an interest in this issue. There will be an issue of proportionality in any change. We estimate that perhaps 50,000 people might at any given point be doing multiple small jobs that together take them over the floor, but do not on their own. If, for most of those people, this happened for a few years and did not happen again, and it was relevant to the state pension for only a handful of people, should we legislate for that handful? It could happen and it probably does happen to some people, but to make well-informed policy the Government ought at least to assess the scale of the problem.

In particular, we should not rush into specific solutions. The amendment advocates a specific model, but I believe that we must begin by identifying not just the number but the types of people who are doing multiple part-time jobs of this kind. For instance, are they people with children? Is that why they are doing such jobs? If they have children under 12, they will receive credits under the general system.

We must match our data on multiple small jobs with data from other sources. We must look at longitudinal as well as cross-sectional data in order to gain a sense of the scale of the problem and the types of people affected, rather than legislating for a single solution. We believe that the amendment is technically flawed for a number of reasons, but we certainly think that rushing to amend the Bill in order to give ourselves power to do something that we might or might not want to do because it is one possible solution to a problem whose scale we do not know would be premature.

[Sarah Newton (Truro and Falmouth) (Con)]

Is it not especially important to enable women to juggle caring for young children with part-time employment? Will the Minister reassure me that the great improvements that we have made in relation to credits will continue, so that women will retain the flexibility that so many of us really appreciate when our children are young?

[Steve Webb]

My hon. Friend is right. It is important to attribute value to the time that people—both men and women—spend at home bringing up young children, and I can reassure her that years spent doing that will count in full as qualifying years towards a single-tier pension. For the first time, more or less, since the introduction of the system—at least, since earnings-related pensions were introduced— those years will count just as much as years spent running a FTSE 100 company. A year is a year, and a qualifying year is a qualifying year.

The provision will apply to anyone who is looking after a child under 12 and entitled to child benefit—well, it is slightly more complicated, but that is the basic idea—and to anyone who is caring for an elderly relative and receiving carers allowance, or, in certain cases, caring for more than 20 hours a week. There is, rightly, a network of credits which bring people into the system. Those will remain, and, in many respects, will become more valuable in the single-tier context.

Oral Answers to Questions

Sarah Newton Excerpts

Thursday 30th January 2014 Commons Chamber

The Secretary of State for Culture, Media and Sport was asked—

[Sarah Newton (Truro and Falmouth) (Con)]

1. What funding her Department is making available to ensure the final 10% of premises get access to superfast broadband.

[Andrew Bingham (High Peak) (Con)]

5. What funding her Department is making available to ensure the final 10% of premises get access to superfast broadband.

[The Secretary of State for Culture, Media and Sport (Maria Miller)]

The Government have committed a further £250 million to extend superfast broadband to 95% of UK premises by 2017. In addition, we are investing £10 million to find ways to provide superfast broadband to the hardest-to-reach and remotest premises.

[Sarah Newton]

I welcome my right hon. Friend’s answer. Many homes and businesses are indeed benefiting from superfast broadband, but important local employers are not, such as the Nare hotel on the beautiful but remote Roseland peninsula. What further assurances can she give such businesses on how they can expect to receive superfast broadband?

[Maria Miller]

I know that my hon. Friend takes a great interest in this. I think she will be pleased that the existing £132 million Superfast Cornwall project is already delivering superfast broadband to 82% of homes in her area, and there will be further opportunities to extend coverage with the additional £250 million that we have announced. Projects in her area will clearly be eligible to bid for such funding.

Oral Answers to Questions

Sarah Newton Excerpts

Monday 13th January 2014 Commons Chamber

[Mike Penning]

I am sure that the hon. Gentleman said that all the way through to his own Government when they brought in Atos. What the Opposition put in place when they were in government was a complete mess. We are determined to get it right. We are listening to why the tribunal judges make their decisions so that we get the decisions right earlier on.

[Sarah Newton (Truro and Falmouth) (Con)]

Will my hon. Friend confirm that that the Department has service level agreements with Atos and Capita that include claimant satisfaction and timeliness?

[Mike Penning]

Yes, we do. There is a financial penalty regime that I have every intention of implementing.

Food Banks

Sarah Newton Excerpts

Wednesday 18th December 2013 Commons Chamber

[Neil Carmichael]

The Government are ensuring that more people are in work and we have discovered today just how that policy is working. The opportunity we must give all people, including young people, is the ability to engage in a working life.

[Sarah Newton (Truro and Falmouth) (Con)]

My hon. Friend is very generous in giving way. Is there not quite a lot that we can do as MPs? My volunteer team works alongside the food bank volunteer team to ensure that food bank clients get all the help that is available to get them and their families out of poverty and to improve their lives.

[Neil Carmichael]

My hon. Friend makes an excellent point. It is about a holistic approach to helping people. I recognise that certain individuals get into situations in which they need emergency help, and I am grateful to Stroud’s food bank for providing it, but I also think that it is important to ensure that they are pointed in the right direction so that they make decisions that benefit them and their families overall, because that is what matters to them. That is the key issue.

I will finish with this observation: it is critical that we recognise the economic value of supporting people into work.

Welfare Benefits Up-rating Bill

Sarah Newton Excerpts

Monday 21st January 2013 Commons Chamber

[Stephen Timms]

Absolutely. That is what they have done in previous Budgets and autumn statements; in this one there was silence. I agree with my hon. Friend that the Government should absolutely return to the practice they adopted after the election.

Like the Minister in the 1980s, anybody who cares about poverty and who is looking at what is set to happen to the most vulnerable in the next few years, will be appalled. Child poverty will be growing remorselessly once again—back to the policies of the 1980s and back to their consequences, too. There is enormous public concern about the effects of clause 1 and the Bill as a whole. My hon. Friend the Member for Ayr, Carrick and Cumnock (Sandra Osborne) referred to the coalition of organisations in Scotland who have written about their concern. The Child Poverty Action Group has said:

“The Bill is a cause of great concern.”

Barnardo’s has stated:

“This policy will punish children the most by trapping them in poverty and impacting on their lives, leading to poor health, poor qualifications and unemployment.”

Citizens Advice said:

“It is imperative, particularly whilst increases to earnings from work are restricted, that support for low earners received through the welfare system is not disconnected from inflationary measures to the cost of living.”

The Children’s Society said:

“Groups which are meant to be protected (such as households with somebody with a disability) are more likely to be affected than households without protection.”

In an open letter this morning, the chief executives of Catholic charities in Liverpool, Manchester and London warned of the threat the Bill

“poses to the fundamental well-being of disabled, unemployed and low paid people, as well as their families who are already buckling under the weight of recent changes to the welfare system.”

[Sarah Newton (Truro and Falmouth) (Con)]

I ask the right hon. Gentleman to look at the facts, rather than scaremongering. The fact is that the child element of tax credit has gone up by 16% under this Government—£470. He really should look at the facts.

[Stephen Timms]

I simply ask the hon. Lady to look at all the other things the Government have done and at the Institute for Fiscal Studies assessment of the consequences for child poverty. As I have said, its assessment is that the number of children living below the poverty line will increase by 400,000 by 2015 and by 800,000 by 2020 and that there will be an additional rise of 200,000 as a direct result of the Bill.

The general secretary of USDAW, the shop workers’ union, has spoken of

“a kick in the teeth for working people that will fill many households with despair.”

Disability Rights UK has said:

“We are fearful that the Welfare Benefits UP-rating Bill will… impoverish thousands more disabled people.”

Homeless Link has said that

“the proposals contained in the Bill are grossly unfair, hitting the poorest in society the hardest.”

Atos Work Capability Assessments

Sarah Newton Excerpts

Thursday 17th January 2013 Commons Chamber

[Dan Rogerson (North Cornwall) (LD)]

I pay tribute to the right hon. Member for Oldham West and Royton (Mr Meacher) for leading the effort to secure this debate. I was happy to accompany him and the hon. Member for Harlow (Robert Halfon) when they appeared before the Backbench Business Committee, and I am grateful to the Committee for having found time, in what is a busy schedule, for a debate on this issue. It is of great concern to many Members and, more importantly, to those who have been assessed under the WCA system and those who work to support them and are inundating us with case studies.

We have heard a lot about the history of this issue, so I will not rehearse what has been said on that. I am pleased that an annual review of the system is in place and that it is highlighting the concerns, which we are then able to address in this House. The coalition Government have moved to tackle some of the concerns, but they need to do more, such as by addressing the issues raised by Professor Harrington.

I remember a case that arose during the last Parliament—when this system was introduced—involving a constituent of mine from one of the north-coast villages. He was told he had to attend an assessment, and printed information on how to travel to the assessment venue by public transport was sent to him. The suggested journey involved an overnight stay on a railway platform. It was hardly helpful to send such a suggestion to someone who was travelling to attend a WCA.

We have moved on a little since then. As we have heard, however, people attending WCAs are often nervous and fail to get across all the points they want to make, and they frequently feel that, as a result of the process, they are railroaded into responding in a certain way. As we heard from the hon. Member for Bridgend (Mrs Moon), the people who accompany them are sometimes shut out of the process, too, even though they can perform the valuable role of giving their companion the confidence to represent themselves thoroughly.

The hon. Member for Airdrie and Shotts (Pamela Nash) raised the important point that the process is recorded. As we all know, telephone calls to many organisations are routinely recorded and people, including those undergoing WCAs, should realise that the recording of proceedings is for their benefit as well as that of the organisation concerned. Those undergoing WCAs can get a copy of that recording, too. That point was raised with me by a woman whose son had to wait for seven months to get his assessment, which serves to highlight that we must also speed up the process. Work needs to be done to help Atos understand the problems that might be leading to those delays.

[Sarah Newton (Truro and Falmouth) (Con)]

Does my hon. Friend agree that we must make Atos understand that in remote rural constituencies such as those we both represent some people have to travel long distances? That problem is leading to a lot of no-shows at the Truro Atos centre, which in turn is leading to lots of delays in assessments, thereby causing a great deal of anxiety.

[Dan Rogerson]

That is also a common problem in respect of visiting district general hospitals. I have repeatedly asked hospitals to make sure that people travelling long distances are seen in the middle of the day, rather than early in the morning. Sensible decisions like that would help.

A constituent who would rather I did not reveal her name also raised the issues of delays and recordings, and others have mentioned the lack of expertise. If Atos has practitioners with different areas of expertise—some in physical disability, others in mental health issues, for instance—it should arrange assessments in such a way as to utilise that.

The language that is used and how people are treated are also important issues—some Members of this House could probably moderate the language they use in discussing this subject.

State Pension Reform

Sarah Newton Excerpts

Monday 14th January 2013 Commons Chamber

[Sarah Newton (Truro and Falmouth) (Con)]

Along with tens of thousands of other women in their 50s who took a career break to raise their children, I very much welcome these measures, but can the Minister explain to me and other women returning to work how they will interact with the auto-enrolment pension scheme?

[Steve Webb]

Where a mother spends time out of the labour market and then returns to work, her pension rights at the £144 rate will be fully protected. If those women are not in an auto-enrolment scheme, they are not contributing, the employer is not contributing and they are not building up rights under that scheme, but we are ensuring that there is a firmer foundation. If those women carry on receiving, for example, maternity pay during maternity leave, then pension contributions can be taken from maternity pay, which can keep their pension contributions going.

Oral Answers to Questions

Sarah Newton Excerpts

Monday 10th December 2012 Commons Chamber

[Mr Duncan Smith]

The hon. Gentleman is right to raise that issue. We are currently engaging in discussions with local authorities with the aim of ensuring that people receive a proper and comprehensive service, and I assure the hon. Gentleman that that is exactly what they will receive as and when the time comes to roll out universal credit. The point of universal credit is that all the other benefits, including housing benefit, will be combined in a single payment, which will simplify matters enormously for claimants and recipients; and councils will, through council tax benefit, have the opportunity to provide the best possible service for their tenants.

[Sarah Newton (Truro and Falmouth) (Con)]

12. What assessment he has made of Professor Harrington's third review of the work capability assessment.

[The Minister of State, Department for Work and Pensions (Mr Mark Hoban)]

We welcome Professor Harrington’s invaluable contribution to our efforts continually to improve the fairness and effectiveness of the work capability assessment. We published our response on the day of the publication of his third review. We accepted five recommendations outright, and the sixth in principle.

[Sarah Newton]

I greatly appreciate the Government’s continuous efforts to get this process right—it is a very difficult process to get right—and it is great news that all Professor Harrington’s recommendations have been adopted. May I ask the Minister to join me in urging Opposition Members to stop scaremongering and frightening disabled people in my constituency who are being deterred from coming forward to claim the benefits to which they are entitled?

[Mr Hoban]

My hon. Friend has made an important point. There has been a great deal of scaremongering about the work capability assessment, and a great deal of criticism, most of it unfounded. Let me inform the House of two facts. First, decisions about eligibility are made not by Atos but by the Department’s decision makers, and, secondly, we have established that in only 0.4% of cases in which tribunals have overturned DWP decisions has Atos been the cause.

Pensions and Social Security

Sarah Newton Excerpts

Thursday 23rd February 2012 Commons Chamber

[Stephen Timms]

The point I am making is that if the RPI method were in place for the coming year, the increase would be larger than the one in the order before us today.

[Sarah Newton (Truro and Falmouth) (Con)]

I acknowledge the right hon. Gentleman’s deep knowledge of this subject, but he is not giving the House an entirely accurate picture. For the longest period, the state pension was linked to average earnings, but it suits his argument today to make a comparison with RPI. The huge benefit of the triple lock is that it provides a choice. Average earnings could be taken into account, for example, and if they grew between 6% and 7%, so would pensions. Also, there is always the floor of 2.5%, which would prevent a repeat of the disgrace of giving pensioners 75p, as happened under the last Government.

[Stephen Timms]

I thank the hon. Lady for her generous remark. There is some merit in having an earnings underpin to the system, but I say again that, for the year ahead, RPI would give a higher increase than the triple lock has delivered. That was the case last year as well, which is why the Government set the triple lock aside in the first year it was supposed to be in place. This year, the difference is much smaller, at 0.4%, and the Government must be hoping that people will not notice that the triple lock is delivering less than an RPI uprating would have done. However, in principle, having an earnings underpin as well is entirely helpful.

[Sarah Newton]

But does the right hon. Gentleman not see the benefit for pensioners and the wider economy of the certainty provided by the triple lock? People can now plan for their retirement, and the Exchequer can plan for the economy.

[Stephen Timms]

It is not clear what the degree of certainty is. As I have said, the triple lock was overridden last year because it would have given such a low rate of uprating. This year, it has been applied because there is not much difference between RPI and the triple lock. So no, I do not think that any kind of rock-solid certainty has been introduced; the triple lock was waived the first time it was supposed to be put in place.

--- Later in debate ---

[Sarah Newton (Truro and Falmouth) (Con)]

It is a great pleasure to be able to speak in the debate, and it saddens me that I to have to begin my speech with the comments that I am about to make.

During yesterday’s debate—I sat through most of it, and have read the Hansard report—we were subjected to hours and hours of party political point scoring, with barely a mention of patients. Today, too, we have heard very partisan comments. Rather than constructive opposition or suggestions of what the Opposition might do to help the Government tackle the difficult issues that we face, we have simply heard opposition for opposition’s sake. A great many criticisms and partisan points have been made, but we have been given no real indication of what the Opposition would do.

That is not just saddening for me, but very annoying and upsetting for the hundreds of thousands of people who sent us here, and sent us here at a time when our great nation is in great peril. We have inherited a dreadful economic legacy, and we are facing huge changes in the way the world is operating. All that requires a Government with terrific purpose, who are able to govern for the common good and deliver the huge changes that we need now and in the future.

The fact that our two parties have come together in a coalition has prompted many sneers and giggles from the very few Opposition Members who are present to take part in this important debate; but we have come together, and we are facing up to those challenges. It is true that we must make some very difficult decisions, but I believe that those decisions are underpinned by exactly the right principles of fairness. We as a Government are trying to live within our means, and not to spend more public money than we take in taxes. It is necessary for us to make decisions about who is to receive the money that we have, and we are clear about the fact that we want the most vulnerable people in our society—those who need it most—to receive that money.

Like every other Member in the Chamber, I know that many hard-working families in both the public and the private sector are suffering a terrific squeeze in their incomes. There are people who have experienced pay freezes, if not pay cuts, and people who are losing benefits. I know that the difficult decisions that we have had to make will affect a large number of those hard-working families, but I also know that they have elderly relatives and neighbours and want to see a Government who will do the right thing for the elderly people in our society. Tough choices are having to be made—awful decisions about child benefit, child tax credit and working tax credit—but I believe that those families will be pleased that we are standing up for our principles, and ensuring that people living with disabilities and that elderly relatives are given a decent rise in their pensions.

I agree with some of the comments that have been made. I am not doing cartwheels. People living on a state pension, even those receiving pension tax credits, are not living in the lap of luxury; that is a modest income for many people. However, I am proud to be part of a Government who are increasing benefits in a way that will enable people to enjoy a decent standard of living.

We have discussed changes relating to the cost of heating homes. I have a great deal of sympathy with the Members representing parts of Northern Ireland who have spoken today. Like Cornwall and other rural parts of the United Kingdom, Northern Ireland contains a huge number of people who are off grid. Nevertheless, there is a constant and very upsetting misrepresentation of the Government’s policies on dealing with the important issue of fuel poverty and the excess winter deaths that go with it. With your indulgence, Madam Deputy Speaker, I will tackle that, because such comments—which have been made persistently today—engender a huge amount of fear among the many pensioners and their families who listen to our debates.

It is true that there have been changes in the winter fuel allowance, but there is also the warm home bonus of £120. The Government have made money available for innovative projects, and I want to spend a bit of time telling the House about a project in Cornwall, the healthy living programme, for which the Department of Health has provided money this winter. Members of housing authorities, Cornwall council and social services departments, GPs, Age UK and a range of other charities are working in partnership, targeting the families—many of them elderly—who are at the greatest risk of suffering badly as a result of the cold weather this winter, and making sure that all available help is provided.

As we all know from our constituency work, hundreds of millions of pounds of benefits are out there for the most vulnerable people, but those are often the people who are least likely to avail themselves of benefits, whether they take the form of actual cash benefits from the Department for Work and Pensions, free insulation, or advice and information. The members of that group in Cornwall are doing highly effective work to ensure that now, this winter, the help that is available is reaching those who need it. I am very pleased that Ministers from the Department are coming down to Cornwall to meet them, and to observe at first hand the way in which, with the assistance of relatively modest sums—our grant was £140,000—team work, thinking outside the box and doing things differently is saving people’s lives and contributing to the quality of life this winter.

[Dr Whiteford]

Obviously I cannot speak for the Northern Ireland Member who raised the issue pertaining to his constituents, but as I represent a rural constituency in which people pay excess prices for their fuel and often have no access to social tariffs, I am very concerned about that as well.

The underlying issue, which I raised with the Minister, is that older people and people with disabilities who spend a lot of time in their houses are increasingly more affected by inflation than those of us who spend most of our day outside our homes. Both the Office for National Statistics and the Institute for Fiscal Studies have pointed out that older people experience inflation at a higher rate than the rest of us, as do people on low incomes. The evidence is there. What concerns me is that CPI does not measure accurately the actual experience of people’s costs, which are higher than either CPI or RPI—

[Madam Deputy Speaker (Dawn Primarolo)]

Order. I remind the hon. Lady that she is making an intervention, not a speech—yet.

Before the hon. Member for Truro and Falmouth (Sarah Newton) resumes her own speech, may I point out to her that we are discussing uprating orders, not projects in Cornwall, however fantastic they are. She must make her speech relevant to the uprating orders, not to future grant applications for very worthy projects in her constituency.

[Sarah Newton]

I entirely take those points on board, Madam Deputy Speaker. I hope that the House will forgive my enthusiasm for the excellent work that is being done in my constituency. I will now confine my comments to the subject of the debate, but I beg your indulgence, Madam Deputy Speaker: I should like to respond to the comments made by the hon. Member for Banff and Buchan (Dr Whiteford) by touching slightly on the issue of the costs of heating a home. They are part of the cost of inflation, which obviously has something to do with the pension upratings.

As the Minister has acknowledged, it is difficult to come up with a measure that truly reflects the costs of individual households. People with disabilities and pensioners will often be at home for many more hours in the day than other people, and will also need to keep their homes warmer, because as people age their bodies are less able to regulate temperature. That is a well-known fact. However, I feel that the efforts that the Government are making, and especially the move towards flat-rate pensions of £140 a week, will start to provide people with a reliable amount of income with which they will be able to afford to heat their homes.

A huge problem at present is that people do not claim benefits that could make a real difference to them. Pensioners are the people who most need the benefits, but they are also least likely to claim them. That applies particularly to the group to whom the hon. Member for Banff and Buchan referred—people in their eighties. Theirs is a proud generation, a generation that has fought and lived through the war and we owe them a great deal. They are very stoic and very proud, and they find it difficult to apply for the benefits to which they are entitled. I think we all have an important job to do in speaking with one voice and saying to people of that generation that they have earned the right to claim those benefits. There should be no stigma, and we must make it as easy as possible for them to claim. I urge anybody who knows an older person whom they feel may be struggling to make sure they are claiming the benefits to which they are entitled. The Government have been doing a lot to simplify the application process and to make information more widely available, and there are also wonderful charities and organisations, including the National Association of Citizens Advice Bureaux, that are doing just that.

I am very proud to support the Government on these measures. There has long been great uncertainty about what will happen to the state pension. With the upratings and the triple lock, there is now certainty. There is a commitment to making the state pension the cornerstone of planning for retirement. As the Minister said, we cannot right the wrongs of the last decade in one fell swoop, especially as we are facing the most difficult financial situation in a generation, but the message that today’s measures and commitment send out is that people can plan for the future as they can have confidence in respect of their pension. That is very important.

The right hon. Member for East Ham (Stephen Timms) rightly said that we should consider the upratings in a broader context. I had the great privilege of serving on the Welfare Reform Bill Committee, and I think his description of the broader context of how we are supporting pensioners was not sufficiently generous. What is of most importance for pensioners and their families is both having enough income to live on and the safe knowledge that there will be an NHS for them when they need it. Elderly people are far and away the largest users of the NHS, and it is hugely helpful to them that this Government committed not to cut NHS expenditure—whereas the Labour party said it would do that, and would have done so in this Parliament. The fact that we are finally linking social care and the whole range of other services that elderly people and their families need to be able to have the quality of life and independence they want—

[Madam Deputy Speaker (Dawn Primarolo)]

Order. We are talking about pensions and benefits uprating. We are not having a wider debate on all the Government’s policies. The hon. Lady must refer specifically to the measures discussed by the Minister when introducing this debate.

[Sarah Newton]

The shadow Minister, the right hon. Member for East Ham, referred to the wider context of these measures, and I was merely responding to his comments. I shall, however, now desist from referring to the range of policies that the Government are putting in place to support elderly people and their families.

I support the Government’s measures. They constitute a huge step in the right direction and I am very proud that my Government are honouring their commitment and delivering a decent level of income for pensioners and people living with disabilities in retirement. I urge Opposition Members to desist from misrepresenting what the Government are doing, especially for people with disabilities and pensions, as that is creating fear and anxiety. That is why there are 100,000 signatories to the petition. If the people who signed it knew the truth, they would not have done so. It makes me very angry that people are contacting me because they have been needlessly frightened by Opposition scaremongering that, somehow, the Government are going to take away the benefits for disabled people and slash the benefits for pensioners. As the Minister has made clear today, nothing is further from the truth.

Let us have a constructive Opposition. The people of this country want a constructive Opposition who join the Government in tackling the difficult decisions of the day. They want the Opposition to stop this dangerous party political point scoring.

--- Later in debate ---

[Sarah Newton]

indicated dissent.

[Katy Clark]

The hon. Lady may shake her head, and she has spoken about many aspects of Government policy, but she must be aware that the cumulative effect of the policies that her Government are pursuing is to take money out of the pockets of some of the poorest and the most vulnerable in this country, and out of some of the most deprived communities. That is the wrong economic policy, it will not lead to growth and it clearly is not the policy we need for social justice. It is one reason why the gap between rich and poor is increasing so greatly at the moment.

The hon. Lady spoke about Labour manifesto policies, but the Conservative party gave assurances before the election that it had no plans to change the current index-linking of pensions. The Liberal Democrats also said that they regarded index-linking rights as protected. No doubt they will say, “We opened the books and everything was very different”, but the point I am making is that these measures will have long-term cumulative impacts that will hurt the poorest and most vulnerable in society.

[Sarah Newton]

I completely disagree with the suggestion that we are targeting the most vulnerable people, but my question to you is: can you remind the House what happened to the gap between the richest and poorest people in this society under Labour?

[Madam Deputy Speaker (Dawn Primarolo)]

Order. I would love to answer that question, but I am prevented from doing so. The hon. Lady knows that she is not supposed to address the Chair in that way. In responding to her point, I hope that the hon. Member for North Ayrshire and Arran (Katy Clark) will come back to discussion of the uprating order.

Welfare Reform Bill

Sarah Newton Excerpts

Wednesday 1st February 2012 Commons Chamber

[Ian Lavery]

As I was saying, one in three of us—[Hon. Members: “Shame!”] I will start again. One in three of us, sadly, comes into contact with cancer during our lifetime. It is a very difficult situation. I lost both my parents, and my wife lost both of hers, so I understand how sufferers and their relatives and friends are affected. It is not just the disease that has an effect—there is also the mental and physical stress and traumatisation for people who suffer from diseases such as cancer and stroke.

Some of the people who suffer from cancer might not see two years—they might not have a vision of the next two years on this earth—but the Government propose to cut benefits from those people at that time in their lives. It is absolutely dreadful that in 2012 we have a Government who are even considering such heinous acts against the most vulnerable. When the Secretary of State, who has left the Chamber, discusses these issues on television and in the media he seems to relish the fact that benefits will be cut. He seems to have a sense of contentment or self-satisfaction—almost an arrogance beyond belief—when he states clearly that benefits will be cut. To say the very least, it is gut-wrenching.

We as politicians across the board should be looking to defend people whose voices are mostly unheard. They elected us into our positions, and they depend on us. The Government must consider an extension to ESA for two years, and we must exempt those receiving cancer treatments from any time limit whatever. It is breathtaking and incomprehensible that benefits are being cut from people at that critical point in their lives, when some see the possibility that they will not live much longer.

There are regional differences as well, regarding the availability of cancer treatments, for example. The north-east fares very poorly in that. We also have the highest incidence of newly diagnosed cancers, and I am certainly not happy with the cutting of benefits in any way, shape or form to people suffering from cancers, strokes and all those debilitating diseases.

In conclusion, we need to give such people a break—give them a chance and some understanding. You can nod your head all you wish.

[Sarah Newton (Truro and Falmouth) (Con)]

Obviously, the hon. Gentleman is not concerned with the facts at all. Cancer does not respect political boundaries. Do you not think that colleagues on this side of the House have suffered in the same way that you have? Such a person as you have described would clearly be in the support group.

[Mr Liam Byrne (Birmingham, Hodge Hill) (Lab)]

Follow the debate; you should know what you are voting for!

--- Later in debate ---

[Sheila Gilmore]

What we have heard today is that there is a big divide between the parties on our views of what the welfare state is for. The Minister opened the debate by saying that the welfare state is a safety net, by which he meant a safety net only on financial grounds; those who are very poor get help, but those who are not do not. That is not how I see it. The welfare state was set up to help us through the times when we are in difficulties, including illness and poor health. It is the social security that gives us the confidence that we will be provided for when we need it. This distinction clearly illustrates the divide between the parties.

It was very odd to hear the hon. Member for Cardiff Central (Jenny Willott) argue that this matter was somehow not as important as the Opposition think it is because people will end up in the support group. That goes against everything that many disability organisations are saying, which is that people who have an illness or a disability do want to get back to work. Perhaps they are not quite ready to go back to work within a year, but they do want to work. Parking people in the support group is a very odd solution indeed, because we will end up going back to the situation that the Government have so heavily criticised. Where people have saved, they should have that opportunity. If someone falls ill at that age, they will already have incurred considerable financial losses and no doubt bitten into their savings. We are talking not about welfare, but about people who will start to lose benefits when they have savings of over £6,000 a year.

[Sarah Newton]

The hon. Lady is absolutely right that people’s circumstances change, but does she not agree that they can go for a reassessment?

[Sheila Gilmore]

One of the things that it would be interesting to discuss if we had more time, and it is dreadful that so little time has been given for considering these important matters, is whether someone who has been in the work-related activity group—

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[Maria Miller]

The hon. Gentleman and I know that self-employed people, although a small number of individuals, are disproportionately represented in the problem cases that hon. Members have. He will also know that self-employed people still have to do tax returns, so rather than ex-partners having to pursue individuals who might be self-employed and have no office at which we can get hold of them, we will be able to use the HMRC link, which I think is an important improvement.

With regard to the enforcement that we will be taking to ensure that things really stick, first and foremost it is about ensuring that there is an understanding in the House about the charges that we will put in place for that enforcement action. Implementing a deduction of earnings order does not currently cost the person defaulting on their maintenance a bean. We are talking about making sure that those charges are passed on, which I think taxpayers would expect us to do. We will also consider implementing some of the other enforcement measures that Labour Members put in place through the Child Maintenance and Other Payments Act 2008.

[Sarah Newton]

My hon. Friend is generous in taking so many interventions. My understanding is that each CSA case costs the taxpayer about £25,000 in administration charges, and that can even go up to £40,000 if enforcement action is taken, so what estimate has she made of the savings to the taxpayer that will result from the new proposals?

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[Andrew Percy]

I will not give way; I want to finish in a moment.

When I was a councillor, a lady came to see me. She had inherited a house from her parents. It was her home; she had lived in it with her parents all her life. She would now be considered to be under-occupying that home. I am sure that the Ministers understand this, but I plead with them to take account of the fact that houses are not only public assets; they are also people’s homes, and people have an attachment to them. This is not a simple matter to resolve, even though we should encourage an end to under-occupancy.

[Sarah Newton]

My hon. Friend is right to say that houses are also people’s homes. Does he acknowledge, however, that the tenants of housing associations and local authorities are able to rent out their rooms?

[Andrew Percy]

I am not sure that that is really the strongest argument to plead in aid of change.

These are people’s homes, but we must do something about under-occupancy. My local authority attempted to put a scheme in place to deal with the problem. We moved my grandma out of a bigger house into a small housing association home because it suited her, and it was done at the right time for her. Speaking from my experience as a local authority councillor in an area where under-occupancy is a problem, however, I can tell the House that this is not going to be an easy one to solve.