Oral Answers to Questions

Debate between Shabana Mahmood and Chris Philp

Tuesday 16th March 2021 Commons Chamber

[Shabana Mahmood (Birmingham, Ladywood) (Lab)]

What assessment he has made of the effectiveness of court fine deductions in reclaiming fines for people in receipt of universal credit.

[The Parliamentary Under-Secretary of State for Justice (Chris Philp)]

Deductions from benefit orders are made by the court, and when the court makes them, the judge will take into account the affordability and the means of the person who is having the deduction order made. Someone can, of course, make an application later to remit part or all of the deduction, if their personal circumstances have changed.

[Shabana Mahmood [V]]

I am grateful to the Minister for that answer, but he will know that the Government have ordered jobcentre staff to apply the maximum 30% deduction from universal credit for claimants who have to pay a court fine, regardless of their circumstances. This approach is failing on two fronts. It pushes vulnerable claimants further into poverty and recoups less money. The Ministry’s own data shows that the amount of money recouped in respect of court fines fell by over 13% between June and August last year, when the arbitrary 30% deduction was applied to all claimants. Does the Minister accept that this is the worst of all worlds, and will he begin urgent discussions with his counterparts in the Department for Work and Pensions to follow the data and allow local decision makers a greater degree of discretion as to how much is deducted from each individual claimant to pay a court fine?

[Chris Philp]

I ask the House to be aware that these deductions pay not only for fines, but for compensation to victims, and we should be mindful of that. These orders are ultimately made by a judge, who, in making the order, has discretion and will take someone’s circumstances into account. I repeat the point that I made previously: if someone is experiencing difficulty, it is always open to them to go back to the court to have the order remitted, either in part or in whole.

Universal Credit

Debate between Shabana Mahmood and Chris Philp

Wednesday 17th October 2018 Commons Chamber

[Shabana Mahmood (Birmingham, Ladywood) (Lab)]

I should not really be shocked. I have been an MP for long enough and I have heard the rhetoric from the Government for long enough not to be shocked. I have to say, however, that listening to the Secretary of State today, and the tenor of the interventions and comments we have heard from some Government Members, beggars belief. Their approach is utterly divorced from reality. This programme was supposed to be about so-called compassionate conservatism. If the Government really believed the rhetoric behind the programme when they set it up—that it was about making work pay and all those high ideals—they, and the Secretary of State in particular, would show some humility in their approach to the debate.

Clearly, the Secretary of State has made the political decision to front this out while our constituents are being forced to live in misery and face destitution. That is not compassionate, that is not humane and that is not moral. I urge the Secretary of State to reflect on the attitude she is displaying to the House, our constituents and the country in the way that she is approaching this debate, because it is not acceptable. It flies in the face of the rhetoric the Government themselves use. What they are doing today is unbelievable.

[Chris Philp]

Will the hon. Lady give way?

[Shabana Mahmood]

I will not.

It is not unusual for Government programmes to run into trouble. I am a member of the Public Accounts Committee and it is our bread-and-butter work every week to look at Government programmes that run into difficulties. A Government who cared about a programme —one that is not a vehicle for cuts and is not designed to force people to have less money than the system it is replacing—would actually engage properly and genuinely to learn lessons and make the programme better. Instead, the Government said that talk of cuts was somehow fake news. The Secretary of State then had to admit that people are going to be worse off. We have heard the figures of £200 a month and £2,400 a year being mooted. That is a staggering sum of money to lose every year for the working poor and the vulnerable in our community. We know that the self-employed will potentially be up to £2,500 a year worse off compared with those who are not self-employed under the new system. These are the realities that the Government cannot deny. That is not fake news; that is just the truth.

The Government and the DWP said to the National Audit Office—this was recorded in its most recent report—that the organisations at the coalface of helping our constituents to deal with the troubles they face because of universal credit, whether the Trussell Trust, other people who run food banks or local government, which is now facing much higher levels of rent arrears than previously, are motivated by a desire to lobby for changes rather than accurately reflect what is happening on the ground. That is a disgraceful attitude for the Department to take towards organisations that, yes, may well have a different vision for how they think the social security system should work, but are absolutely telling the truth about the destitution and difficulties our constituents are facing.

I invite the Secretary of State and any of her Ministers to come and spend a day in my constituency office and to see the explosion in our case load that has been created by the roll-out of universal credit. My staff spend most of their time every single day on the phone trying to sort out difficulties arising from universal credit. I shall highlight just two cases we have had recently, the first regarding delayed payments. The Government say they are taking action on that, but I have a constituent who has not received any money since 12 July. He has no money for food, fuel or anything. I invite the Secretary of State to intervene and tell me what I should tell him about where he should get some money to try to survive while his universal credit is being sorted out.

Tax Credits (Working Families)

Debate between Shabana Mahmood and Chris Philp

Tuesday 7th July 2015 Commons Chamber

[Shabana Mahmood]

My right hon. Friend is absolutely right, and this is where I disagree with the tenor of the comments from Government Members in the debates on the economy thus far in this Parliament. For them, a job is a job is a job, whereas we have a better, bolder vision for people moving into work, not just for their first job, which could be any job, but for progressing. We do not do that by punishing people and taking away the support they rely on when stuck in low-paid work. We have to chart a course towards a higher skilled, higher wage economy, but that is not going to happen before tomorrow’s Budget. The support for those on tax credits should not be removed before we have that high-wage economy.

[Chris Philp (Croydon South) (Con)]

Will the hon. Lady join me in welcoming the fact that the personal allowance rose to £10,600 in the last Parliament, putting £800 a year directly back into the pockets of the people on the lowest pay?

[Shabana Mahmood]

I gently say to the hon. Gentleman that 60% of those in receipt of tax credits do not pay income tax anyway. If someone is working 30 hours a week on the national minimum wage, they are below the £10,600 personal allowance threshold.

--- Later in debate ---

[Chris Philp]

rose—

[Shabana Mahmood]

I will give way to the hon. Member for Bedford (Richard Fuller), but then I must make some progress.