Universal Credit

John Bercow Excerpts

Wednesday 9th July 2014 Commons Chamber

[Chris Bryant]

That was a spectacular instance, as Sir Bob Kerslake might put it, of “beating about the bush”. It is a very simple question, to which the answer can only be yes or no: has the Department for Work and Pensions business case for the implementation of universal credit been approved by the Chancellor of the Exchequer? It is depressing that this Tory Minister and the Tory Prime Minister cannot tell the difference between an annual budget and a business case. It is pretty straightforward.

On 30 June, the employment Minister—who is disgracefully not answering for herself today—answered that question by saying:

“The Chief Secretary to the Treasury has approved the UC Strategic Outline Business Case plans for the remainder of this Parliament (2014-15) as per the ministerial announcement”.—[Official Report, 30 June 2014; Vol. 583, c. 434W.]

She was referring to the ministerial statement of 5 December, which explicitly runs up to 2017. On Monday, however, she had the carpet pulled from under her feet, as Sir Bob Kerslake answered exactly the same question with gratifying honesty, saying that

“it has not been signed off.”

It got worse yesterday when the Financial Secretary, answering the same question, said that all the Treasury has done is approve funding for the programme for another eight months, while a DWP spokesperson said that the Treasury has

“approved all funding to date”,

as if that was some grand vindication.

The same simple question has now been answered in eight contradictory ways. Not everybody can be telling the truth. There has been so much beating about the bush that it feels as if this House has been misled by a Government engaged in a deliberate act of deception. [Interruption.] The truth is that the Department is relying month by month on handouts from the national food bank. How ironic!

On 5 December 2013, the Secretary of State told the House that universal credit would bring

“a £38 billion economic benefit to society”.—[Official Report, 5 December 2013; Vol. 571, c. 65WS.]

I notice that he has just amended that figure to £35 billion. That figure is part of the business case. Has it been signed off by the Treasury, or is he just making things up?

The Secretary of State has told this House on 28 occasions that universal credit has always been on time and on budget; yet Sir Jeremy Heywood said on Monday that the Treasury and the Major Projects Authority had to tell the Secretary of State that his own project was “way off track”. When was he told that? Why did the Secretary of State not tell this House?

I will be honest: we would love to help the Secretary of State implement universal credit, but confession comes before redemption, and as long as he remains in denial he remains beyond help. I ask him once again to be straight with the House: has the business case—the business case, not the budget—for universal credit, which he says will come to fruition in 2017, been signed off—yes or no? [Interruption.]

[Mr Speaker]

Order. Just before the Secretary of State replies, I listened very carefully to what the hon. Gentleman said. He made no personal attack on any one individual. [Interruption.] Order. I will deal with this—the hon. Gentleman will have to accept my ruling, whether he likes it or not. The hon. Gentleman made no personal attack on any individual Minister, but my judgment, having heard him out, was that he went beyond the line in making an accusation of deliberate deception against a group of Ministers. [Interruption.] Order. I know what I am doing and I certainly do not require any help from the Education Secretary—that would be completely unimaginable. I ask Members to have regard to the way in which they express themselves. The point has been made, the situation is clear and the Secretary of State can now reply.

[Mr Duncan Smith]

The hon. Member for Rhondda (Chris Bryant) made the most pompous, ludicrous statement I have ever heard. I know what he did: he wrote it down before he heard the answer. I have made it quite clear and I stand by what I said: the strategic outline business case plans for this Parliament have been approved. The Minister of State, Department for Work and Pensions, my right hon. Friend the Member for Wirral West (Esther McVey) made that clear the other day, and that is the statement that we stand by.

The next phase, as I said in my statement—the hon. Gentleman might like to listen to them in future—is approved. On the strategic outline business case for the overall lifetime of the programme, that is being discussed right now and we expect approval of that plan shortly. I have said categorically that all the expenditures and the work in this Parliament are approved. The reality is that it is approved. The point he needs to get round his head is that, on the figures he gave earlier—the billions—the National Audit Office, the Public Accounts Committee and the Work and Pensions Committee agree that we need careful controls in place. It is therefore natural that we have sought that approval at each stage. My right hon. Friend the Chief Secretary has approved all of those elements.

I know what this is all about. The truth is that this is about Labour’s failure to come to terms with welfare reform. We had a debate a week ago in which Labour crashed and burned, and we have an urgent question today. Labour Members want to avoid the reality that the Government’s welfare reforms are working and getting more people back to work. We have capped benefits so that no household can receive more than people who are in work. There are more people in work than ever before. Under Labour, youth unemployment increased by nearly a half; under this Government, the youth claimant count has fallen for the past 30 months. The rate of workless households is at its lowest since records began.

I say to the hon. Gentleman and the Labour party that this is the best instance of a man in an ill-fitting anorak dancing on the head of a pin. It is quite pathetic. He needs to think again about welfare reform.

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[Mr Duncan Smith]

My hon. Friend always tries to tempt me, but I will resist that temptation and say that he needs to raise that matter with other Ministers who will no doubt come to the Dispatch Box.

[Mr Speaker]

Plenty of people raise it with me, including people who live in Swanbourne.

Oral Answers to Questions

John Bercow Excerpts

Monday 23rd June 2014 Commons Chamber

[Several hon. Members]

rose—

[Mr Speaker]

Order. I am sorry, but as usual demand exceeds supply and we must move on.

Points of Order

John Bercow Excerpts

Monday 23rd June 2014 Commons Chamber

[The Minister of State, Department for Work and Pensions (Esther McVey)]

rose—

[Mr Speaker]

The Minister is welcome to respond if she so wishes.

[Esther McVey]

Further to that point of order, Mr Speaker. I gave the official statistics, and I was correct.

[Mr Speaker]

Well, we will leave it there for today, but knowing the hon. Lady—

[Mr Barry Sheerman (Huddersfield) (Lab/Co-op)]

rose—

[Mr Speaker]

Order. Patience, Mr Sheerman. A man of your seniority should have acquired gravitas and stoicism. We are coming to you, man. Be calm, be happy—it is Wimbledon. Relax.

[Mr Sheerman]

rose—

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[Mr Speaker]

I cannot wait any longer. We have got to hear you, Mr Sheerman; the nation must hear you.

[Mr Sheerman]

On a day like today when such serious issues are being debated in Question Time, when so few Conservative Back Benchers are here, and when time for the business runs out and there are a number of pent-up questions from Labour Members about serious issues such as the fact that the students’ disability allowance is being taken away, what can we do to add to the length of the session so that Members in all parts of the House get a fair crack of the whip?

[Mr Speaker]

My appetite for hearing hon. and right hon. Members ask questions is insatiable. I would happily run the session on for longer, but I am afraid that it is not within my power. Not only is the hon. Gentleman here every day during working hours, but I sometimes fondly imagine that he probably sleeps here as well; I do not know. He knows that his request is unfortunately beyond my powers, but he has made his point with his usual alacrity, and it is on the record.

[Sheila Gilmore (Edinburgh East) (Lab)]

On a point of order, Mr Speaker. During Question Time, the disability Minister, the Minister of State, Department for Work and Pensions, the right hon. Member for Hemel Hempstead (Mike Penning), stated that he had inherited the current backlog in ESA claims from the previous Government. How can we put on record the fact that his predecessor told the Work and Pensions Committee that a small backlog in 2011 was going to be eliminated by the summer of 2011? The two statements clearly cannot be consistent.

[Mr Speaker]

The evidence is that the hon. Lady has found her own salvation. She asked how it could be done and at the same time she did it. It is on the record, and we will leave it there.

Jobs and Work

John Bercow Excerpts

Wednesday 11th June 2014 Commons Chamber

[Mr Speaker]

I inform the House that I have selected amendment (b) in the name of the Leader of the Opposition.

Oral Answers to Questions

John Bercow Excerpts

Monday 31st March 2014 Commons Chamber

[Mr Duncan Smith]

I know the hon. Gentleman likes to get up and speak, but sometimes he needs to be aware of the facts that have been given to him. I have just given those facts, but because he was not listening I will give them again. Of the team of 50 working on the digital system, 25 are digital specialists—there will be more as we develop it and report back. May I simply say that instead of moaning about this system, Opposition Members might like to visit it, as many other MPs have done, because they will see how successful its rolling out has been? Some 90% of the claims for JSA as a result of universal credit are now made online, and 78% are monthly payments—these are people confident to receive those payments. [Interruption.] The reality is that the systems the Labour Government implemented were failures, whereas this will succeed and change many people’s lives.

[Mr Speaker]

Order. Mr McCann, I say to you in all courtesy and in all charity that the role of the Parliamentary Private Secretary—you are sitting in the PPS slot—is to nod and shake the head in the appropriate places, and to fetch and carry notes, not to shriek from a sedentary position or gesticulate in an unseemly manner.

[Andrew Bridgen (North West Leicestershire) (Con)]

Will my right hon. Friend confirm, and remind the House, that universal credit is set to deliver £35 billion of benefit to our economy?

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[The Secretary of State for Work and Pensions (Mr Iain Duncan Smith)]

We were pleased this week to find elements of—that new families formed were no longer breaking up. These figures came out last week to ensure that we are making our programmes work for very good reasons. Families are now staying together. Stable families in households being able to—[Interruption.]

[Mr Speaker]

Order. May I gently interrupt the Secretary of State? I thought that he was going to give a brief rundown of his departmental responsibilities in answer to the first topical question.

[Mr Duncan Smith]

I was talking about the figures that came out last week on new families forming and staying together.

[Mr Speaker]

That is what the right hon. Gentleman was seeking to do?

[Mr Duncan Smith]

indicated assent.

[Mr Speaker]

We are grateful. We will leave it there for now.

[Mary Macleod]

May I thank my right hon. Friend for the work that he and his Department are doing in transforming lives and getting people back into work? In preparation for my jobs and apprenticeships fair on Friday, will he confirm the job vacancy figures for both London and Brentford and Isleworth?

--- Later in debate ---

[Mike Penning]

I find it very hard to listen to that from a former Minister in the Government who signed the original contracts with Atos, and who seemed very happy with it at the time. We have removed Atos from that work. I will look into the particular situation the right hon. Lady refers to, but I find it very difficult when Opposition Members hark on about what to do about Atos when it was they who employed it in the first place.

[Mr Speaker]

I cannot identify the individual involved—I would not be in a position to do so—so I will simply tell the House collectively that blowing one’s nose underneath a microphone is a distinctly risky enterprise.

amendment of the law

John Bercow Excerpts

Tuesday 25th March 2014 Commons Chamber

[Mr Duncan Smith]

I have given already way to the hon. Gentleman, and I just want to make another point about something that is typical of what has been going on.

On Wednesday, in his Budget response, the Leader of the Opposition did not mention pension reforms at all. Come to think of it, he did not mention any single measure in the Budget. On Thursday, the shadow Chancellor would say only of the measure that Labour would somehow look at the proposals. On Friday, in a panic, I think, the hon. Member for Leeds West (Rachel Reeves) said on “Any Questions” that she supported the reforms. On Sunday, when asked whether he supported the measure, the shadow Business Secretary began to backtrack and said:

“I’m not going to sign a blank piece of paper on your show”.

Later the same day, the hon. Member for Leeds West began to backtrack, saying that Labour supported the reforms but that they did not go far enough. Labour’s position on this policy is a complete shambles. It has struggled to reach a position and say that it may support the measures not because it believes in it but because it realises that it is popular. The reason Labour does something is all about popularity and nothing to do with values—that is the truth of it.

Over and above the radical changes to pensions savings, the Budget announced four further important measures to make saving pay, including abolishing the 10p rate for savers altogether, for the first £5,000 of savings. As my right hon. Friend the Chancellor said, when we abolish a 10p rate, we take it to zero; when the previous Government abolished the 10p rate, they took it to 20p. Those measures also included merging cash and stocks to create a single, simple new ISA, with an increased annual limit of £15,000; launching a new pensioner bond, paying market-leading rates; and introducing something that we have worked on in the Department with the Treasury and my right hon. Friend, the excellent Chief Secretary: a class 3A national insurance contribution, so that anyone who has reached state pension age before the single tier is introduced can top up their state pension.

The Opposition’s response is becoming chaotic. I want to press the hon. Member for Leeds West: normally by this point in the Budget debate, I understand, the Opposition make it very clear what resolutions they will vote against, but we have heard nothing from them at all. It seems that there is a row and chaos, so I will give way to the hon. Lady if she would like to tell us which ones.

I particularly want to ask her about resolution 43, which, I understand, is about the treatment of salaried members within limited liability partnerships. I wonder if she can tell us whether the Opposition will vote against that, given the fact that their economic policy is now fundamentally limited, that their leadership is a liability, and, after all their rows, that they are clearly not in a partnership? I will give way to her if she would like to tell us which resolutions she is going to vote against. Will she confirm or deny that she is voting against anything? I will give way to her if she wants. Well, they clearly do not know, Mr Speaker, so we will look forward to this evening with some relish.

It now pays to save. That is what is going on—I am glad that you enjoyed that joke, Mr Speaker; you are always a good test on these things—and so under the Government it pays to work, breaking dependency and getting people back into jobs.

[Mr Speaker]

For the avoidance of doubt, I should just say that I was happy to see the Secretary of State looking happy.

[Sheila Gilmore (Edinburgh East) (Lab)]

The Secretary of State will be aware that, for very many people, the average level of savings is in the hundreds, not the thousands. Do the Government regret abolishing the savings gateway as one of the first measures they took on coming into government?

--- Later in debate ---

[Several hon. Members]

rose—

[Mr Speaker]

Order. I should say to the House that in the light of the very large number of Members who wish to contribute, there will be a time limit on Back-Bench speeches of seven minutes. It is conceivable that that limit could even go down, although it might rise over the course of the debate. That may not be conclusive, but it is a guide, at any rate.

--- Later in debate ---

[Several hon. Members]

rose—

[Mr Speaker]

Order. I remind the House of the seven-minute limit on Back-Bench speeches.

Inherited Social Housing Tenancies

John Bercow Excerpts

Monday 24th March 2014 Commons Chamber

[Mr Speaker]

Before I call the hon. Member for Rhondda (Chris Bryant), to ask his urgent question I would emphasise to the House that its terms are narrow. It relates specifically to the question of inherited tenancies and the treatment thereof. I am sure the House had not been planning on a Second Reading-style debate on the merits or otherwise of the spare room subsidy/bedroom tax, but that is not the subject matter. It is a narrow matter and will be treated accordingly, and we are, of course, time-constrained.

--- Later in debate ---

[Nicola Blackwood (Oxford West and Abingdon) (Con)]

I was surprised to read today in my local paper, The Oxford Times, that Oxford city council has spent only two thirds of its discretionary housing funds for 2013-14, leaving £200,000 meant for the most vulnerable unspent. May I therefore ask for the Minister’s guidance on how this fund can be better applied to inherited social housing tenancies and others?

[Mr Speaker]

An exceptionally interesting question, but its relationship with the urgent question tabled is, to put it kindly, tangential. However, let us hear the Minister as the product of her grey cells may prove me wrong.

[Esther McVey]

My hon. Friend is right that there are quite a few local authorities that have not spent the full amount, and it is that money that can be utilised here for those who have inherited a house or a property in that way. This is what the money is there for.

Pensions Bill

John Bercow Excerpts

Monday 17th March 2014 Commons Chamber

Consideration of Lords amendments

[Mr Speaker]

I must draw the House’s attention to the fact that financial privilege is involved in Lords amendments 1, 3, 9 to 13, 15 to 23, 27, 29 and 32 to 38. If the House agrees to them, an appropriate entry will be made in the Journal.

Clause 2

Entitlement to state pension at full or reduced rate

Oral Answers to Questions

John Bercow Excerpts

Thursday 13th March 2014 Commons Chamber

[Mr Speaker]

The Minister may not have long to wait for the question that he anticipates.

[Mr John Leech (Manchester, Withington) (LD)]

11. Does the Minister agree that any change to licence fee enforcement would go against the coalition agreement of 2010, which committed to a full financial settlement for the BBC up to the end of 2016-17, given that it has been estimated that the amendment, if passed, could cost the BBC £200 million a year in revenue?

--- Later in debate ---

[Mr Vaizey]

I will strain every sinew to ensure that the programme remains on track. That is my pledge to the hon. Lady and I am pleased to say that our programme is now ahead of schedule, that BT has completed its £2.5 billion commercial roll-out and that we have the best broadband of the big five in Europe.

[Mr Speaker]

The Minister’s endeavours will be a challenge to the most vivid of imaginations.

Pensions and Benefits Uprating

John Bercow Excerpts

Tuesday 25th February 2014 Commons Chamber

[Mr Speaker]

With the permission of the House, the motions on the draft Guaranteed Minimum Pensions Increase Order 2014 and on the draft Social Security Benefits Up-rating Order 2014 will be debated together.

[The Minister of State, Department for Work and Pensions (Steve Webb)]

I beg to move,

That the draft Guaranteed Minimum Pensions Increase Order 2014, which was laid before this House on 27 January, be approved.

[Mr Speaker]

With this we shall discuss the following motion, on the draft Social Security Benefits Up-rating Order 2014:

That draft Social Security Benefits Up-rating Order 2014, which was laid before this House on 27 January, be approved.

[Steve Webb]

Let me deal first with what is an entirely technical matter that we attend to each year, and not one that I imagine we shall need to dwell on today. The Guaranteed Minimum Pensions Increase Order 2014 provides for contracted-out defined benefit schemes to increase their members’ guaranteed minimum pensions that accrued between 1988 and 1997 by 2.7%, in line with the increase in the consumer prices index to the previous September.

I should like to turn now to the Social Security Benefits Up-rating Order 2014. As part of his autumn statement, my right hon. Friend the Chancellor of the Exchequer announced the rates of tax credits for 2014-15, and today we are debating the order that will uprate those social security pensions and benefits for which my Department is responsible. As the House will be aware, we are not here to discuss the Welfare Benefits Up-rating 2014 Order, which was made on 24 January. Those rates increased by 1% under that order, and were debated in Parliament during the passage of the Welfare Benefits Up-rating Act 2013.

Turning to the benefits and pensions in the Social Security Benefits Up-rating Order 2014, I shall deal first with the basic state pension. Despite the current tough fiscal context, this Government remain committed to protecting those who have worked hard all their lives, which is why we have stood by our triple-lock commitment to uprate the basic state pension by whichever is the highest of earnings, prices or 2.5%. This year, as prices were greater than average earnings and greater than 2.5%, the basic state pension will increase by CPI at 2.7%. The new rate of basic state pension will therefore be £113.10 a week for a single person, an increase of £2.95 from last year. That means that the basic state pension is forecast to be around 18% of average earnings from April 2014, a higher share of average earnings than at any time since 1992. Our triple-lock commitment means that someone on a full basic state pension can expect to receive £440 a year more than if it had been uprated by earnings since the start of this Parliament.

On pension credit, we have continued to take steps to ensure that the poorest pensioners will benefit in full from the effect of our triple lock. Each year, the standard minimum guarantee must, by law, be increased at least in line with earnings. That means that the minimum increase this year would be 1.2%. However, to ensure that the poorest pensioners benefit from the full cash value of the increase in the basic state pension, we decided again to increase the value of the standard minimum guarantee credit, in this case by 2%, so that single people will receive an increase of £2.95 a week and couples will receive an increase of £4.45 a week. Again, consistent with our approach last year, the resources needed to pay this above-earnings increase to the standard minimum guarantee have been found by increasing the savings credit threshold, which means those with higher levels of income will see less of an increase.

Let me now deal with additional state pensions. This year, the state earnings-related pension scheme—SERPS—and the other second pensions will rise by 2.7%, which means that the total state pension increase for someone with a full basic state pension and average additional pension will be about £3.75 a week, or just under £200 a year. Unlike under the Labour party, which froze SERPS in 2010, this will be the fourth year in a row that the coalition has uprated SERPS by the full value of CPI.

In these debates, we discuss the most appropriate measure of inflation by which to uprate benefits. I have had the pleasure of such exchanges with the right hon. Member for East Ham (Stephen Timms) several times, and I want to refer him back to something he said three years ago in the corresponding debate. We were using CPI rather than RPI—the retail prices index—and it is CPI which underlies these motions. He described the move to CPI as “ideological”; that is an interesting description of a choice of price index, but he regarded it as an ideological shift. He went further in expressing his distaste for this measure, saying:

“As for the view of my party, I simply refer the Secretary of State to what the leader of my party has said, which is that the suggestion that the change should be made for a period—perhaps up to three years—would be something that we could consider. If that proposition were on the table, we would be happy to consider it.”—[Official Report, 17 February 2011; Vol. 523, c. 1187.]

So his position three years ago was that, perhaps for three years, we might use CPI because it saves a bit of dosh but that the Labour party was committed to RPI.

I therefore hope that when the right hon. Gentleman responds and gives his party’s position on these motions he will clarify whether that is still his position. He will realise, first, that RPI has now been dropped by the Office for National Statistics as an official statistic because of methodological concerns. So I would be surprised if he remained committed to going back to RPI. Perhaps he thinks we should use CPIH, as he complained that we did not have owner-occupier housing costs in the measure that we are using. If that is his position, he would obviously be arguing for a lower increase in benefits this year, because at the moment the level of CPI is above that of CPIH. Given that he was opposed to a permanent switch to CPI, given that RPI has been dropped as an official statistic and given that some of the other measures are lower than the one we are using, I am slightly puzzled by his position—I am sure that by the time we have heard his speech we will no longer be puzzled.

On disability benefits, this year the coalition will ensure that those who face additional costs because of their disability, and who perhaps have less opportunity to increase their income through paid employment, will see their benefits increase by the full value of CPI. So disability living allowance, attendance allowance, carer’s allowance, incapacity benefit and personal independence payment will all rise by the statutory minimum of 2.7% from April 2014. In addition, those disability-related and carer premiums paid with pension credit and working-age benefits will also increase by 2.7%, as will the employment and support allowance support group, and the limited capability for work and work-related activity element of universal credit. Pensioner premiums paid with working-age benefits will increase in line with pension credit.

At a time when the nation’s finances remain under real pressure, this Government will be spending an extra £3.3 billion under these orders, and related orders, in 2014-15. We will thus continue to help support those who are not currently in work, first, by increasing the main rates of working-age benefits by 1%, and by ensuring that pensions, and benefits that are designed to help with the additional costs of disability, are protected against the cost of living. Of that, we will be spending about £2.7 billion extra on state pensions, including an above-inflation increase, and more than £600 million on people of working age. Nearly £600 million will be going to disabled people and their carers. Our decisive action to limit to 1% the increases in the main rates of most working-age benefits is part of our overall economic strategy, which has substantially brought down the deficit.

In this order, we continue: first, to maintain our commitment to the triple lock, meaning that the basic state pension will reach its highest level as a percentage of average earnings for two decades; secondly, to protect our poorest pensioners with an over-indexation of the standard minimum guarantee, so they too will feel the benefit of our triple lock; and, thirdly, to protect the benefits that reflect the additional costs that disabled people face as a result of their disability, through increases to disability living allowance and attendance allowance, carer’s allowance and the main rate of other disability benefits in line with CPI. I have set out our ongoing commitment to ensure that no one is left behind, and I commend these orders to the House.