Housing Benefit (Under-occupancy Penalty)
John Bercow Excerpts(11 years, 9 months ago)
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Mr Speaker
Whether putting the record straight is in order or not, the hon. Gentleman has just done it.
Dr Whiteford
Hon. Members can unite on the fundamental opposition to the bedroom tax. I urge hon. Members on both sides of the House to work to address the problems.
We can and should do a number of things to mitigate the impact of the bedroom tax. For example, the Scottish Government have moved to strengthen protections for tenants in Scotland against eviction for rent arrears. The new pre-action measures that came into force in August last year will ensure that eviction is an absolute last resort, and that tenants have access to advice and every opportunity to agree a repayment plan that is affordable for them and reasonable for the landlord.
Mr Speaker
These are matters of judgment for right hon. and hon. Members. Certainly, discretion in the use of such devices is to be encouraged, but I can say only that I had not noticed the matter. Therefore, so far as I was concerned, there was nothing outré about the behaviour of the Secretary of State. However, I note the point. Probably, the Secretary of State has noted it too, and we will leave it there.
Dr Whiteford
The 660,000 people affected by this measure will note exactly what the Secretary of State is doing during this debate. I urge him at this late stage to turn back and scrap the policy, or, at the very least, offer the mitigation measures that would make such a difference to disabled people’s lives.
In Scotland, we have a choice ahead of us. With the power to make our own democratic decisions, we could, should and must do things differently. We would never make disabled people the fall guys for Government failure. In the meantime, I hope Members across the House who care about this issue will support our motion today. I call time on this unfair and unworkable bedroom tax.
Mr Speaker
Order. In order to accommodate the five remaining hon. Members who are seeking to catch my eye before the start of the Front-Bench winding-up speeches at 6.40 pm, I am obliged now to reduce the time limit on Back-Bench speeches, with immediate effect, I am afraid, to seven minutes.
The Parliamentary Under-Secretary of State for Work and Pensions (Esther McVey)
I thank Members on both sides of the House for their valuable contributions to this important debate. It is good to have an opportunity to respond to a number of the points that were raised, and also to correct some inaccuracies.
Having listened to the whole debate, I know that there are some issues on which we all agree. Consensus is an important point at which to start, because we are all looking for a solution to a problem that the coalition Government have been handed, so I will begin by listing the facts on which we are agreed.
There is a considerable lack of social homes, because very few have been built in recent years. The Secretary of State has referred to a complete collapse in the building of social housing under the last Government. Housing benefit has doubled in the last 10 years. We all agree that we will have to manage the bill for that, but how are we going to deal with it? How are we going to find a solution to such a large problem? We all probably agree, too, that fairness must be at the heart of that solution: fairness to those who are in overcrowded homes, fairness to those who are under-occupying, and fairness to the taxpayer.
Let me begin, however, with the removal of discrepancies in the rented sector between those who are privately renting and those who are socially renting. An arrangement whereby people living next door to each other are renting under different systems is innately unfair, and must be addressed. I think all Members will be pleased to hear that I shall be taking Labour’s lead in this instance. Labour introduced the local housing allowance for private sector tenants who did not receive housing benefit for a spare bedroom, which seems a good point at which to start. We are doing the same, in that we are introducing equality in the system for everyone who is renting.
The second issue that we must tackle is the problem of people who are living in overcrowded accommodation. As my hon. Friend the Minister of State said, a quarter of a million people are in that position. My hon. Friend the Member for North East Somerset (Jacob Rees-Mogg), my right hon. Friend the Member for Wokingham (Mr Redwood) and my hon. Friend the Member for Battersea (Jane Ellison) also mentioned those people, but Opposition Members refused to discuss them.
We also all agree that we are talking about family homes. They are not just houses; people have lived in them. That is why we have exempted those who are above the state pension credit age. We recognise that pensioners would be particularly affected by these changes. My hon. Friend the Member for City of Chester (Stephen Mosley) reminded Labour Members what they had repeated time and again. They must get a grip of the housing benefit bill. They never managed to do that in government, but they must do it if they are to be even a credible Opposition.
My hon. Friend the Member for Battersea made a very important point. When Opposition Members said that they would vote against the measure because they disagreed with it, she challenged them by asking whether they would reverse it and put that in their manifesto. Silence came from the Opposition Benches.
On discretionary housing payments, many Members raised specific issues and complex cases. Specific groups were identified, such as foster carers and people who live in houses with major disability adaptations. Rather than central Government defining exactly what should happen in every case, we have allocated the money we think is needed and given it to local authorities so they can respond on a case-by-case basis. Such local discretion is right. We might think that many different individuals should be exempt, but it would be impossible to write that into regulations and statutory instruments. That is why we have allocated discretionary housing payments of £60 million this year and £155 million next year to local authorities.
In the past, discretionary payments have been seen as a temporary fix for a short-term problem. However, under the new system these new payments can be for the long term, because some situations will not change, and if someone lives in a house that has been substantially adapted, they will need to keep it.
We have debated this subject for over six hours and many inaccurate things were said and many questions were raised and remained unanswered, so I will canter through quite a few of them. The hon. Member for Dundee East (Stewart Hosie) asked about children at university. Children absent at college are covered by the normal rates of absences and will not be affected if they are returning for holidays. My hon. Friend the Member for Leeds North West (Greg Mulholland) asked whether people can apply ahead of their need arising. They can: they can apply for these payments now, although, obviously, they will not be paid until the payment is needed.
The hon. Members for Dundee East and for Strangford (Jim Shannon) asked about people with a disability who need an overnight carer. Obviously, they are exempt, regardless of whether they need an overnight carer all the time or just occasionally. Again, Opposition Members got their facts wrong.
The hon. Member for Dumfries and Galloway (Mr Brown) questioned the number of spare bedrooms. There are 1 million spare bedrooms in properties occupied by working-age people alone, so that does not include pensioners. The hon. Member for Glasgow North (Ann McKechin) asked why Lord Freud could not attend a meeting. He could not do so because he was involved in a debate in the other place. However, I am happy to confirm that he will make that visit very soon. That is being arranged with the Secretary of State.
The hon. Member for Westminster North (Ms Buck) said that if people are moving around, this policy will not save any money. That is incorrect. She is not taking account of the previous circumstances of the people who will be moving into the vacated properties. [Interruption.] They may have been in more expensive private or temporary accommodation, so this dynamic benefit will save money. [Interruption.] Opposition Members are perpetuating inaccurate myths. [Interruption.]
Mr Speaker
Order. The hon. Member for Denton and Reddish (Andrew Gwynne) is shouting more loudly at the Minister than I shouted for Arsenal at the Emirates last Saturday. It really will not do.
Esther McVey
The hon. Member for Swansea West (Geraint Davies) talked about under-occupancy among homeowners and asked what we are doing about that. The Government support homeowners taking in a lodger if they wish, just as we do for people in social housing. There will be a £4,250 income tax exemption should somebody want to take in a lodger.
The hon. Member for Brighton, Pavilion (Caroline Lucas) talked about borrowing more money. We cannot keep on borrowing. That is what got us into this situation. We need to stop borrowing and start living within our means.
Let me finish dealing with the questions that were raised. Many hon. Members asked about the cost of moving—
Pensions and Social Security
John Bercow Excerpts(11 years, 9 months ago)
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Mr Speaker
We come now to motion 6 on pensions, with which we will debate motion 7 on social security.
The Minister of State, Department for Work and Pensions (Steve Webb)
I beg to move,
That the draft Guaranteed Minimum Pensions Increase Order 2013, which was laid before this House on 28 January, be approved.
Mr Speaker
With this we shall consider the following motion, on social security benefits uprating:
That the draft Social Security Benefits Up-rating Order 2013, which was laid before this House on 28 January, be approved.
Steve Webb
The guaranteed minimum pensions order is a routine and technical order which provides for contracted-out defined benefits schemes to increase their members’ GMPs that accrued between 1988 and 1997 by 2.2%, in line with inflation. I assume that this will be uncontentious. The order paired with this is the Social Security Benefits Up-rating Order 2013.
I shall begin with the basic state pension. Despite the tough fiscal context, the 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 the highest of earnings, prices or 2.5%. This year the third element of our triple lock comes into play for the first time—our 2.5% minimum commitment. That means that we shall be increasing the basic state pension by more than inflation for millions of pensioners.
Oral Answers to Questions
John Bercow Excerpts(11 years, 10 months ago)
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Gregg McClymont (Cumbernauld, Kilsyth and Kirkintilloch East) (Lab)
It has been a busy few weeks in pensions world. The Minister will be aware that the Office of Fair Trading has recently announced that it is to undertake an inquiry into the private pensions market. This follows a Labour campaign for just such an inquiry. The Minister’s response to our campaign was to accuse the Labour party of scaremongering on pension charges. Now that the OFT has decided to undertake this inquiry, may I encourage the Minister to heed another Labour campaign call and lift the restrictions on NEST as soon as possible so that it can provide low-cost, high-quality pensions to everyone who wishes to save with it?
Steve Webb
Thank you Mr Speaker. It will be a house- hold name soon, I hope.
We worked very closely with the OFT in the run-up to its inquiry, which will look at whether there are problems in this area. It is very welcome, and we will be working very closely with the OFT as it carries it out. As the hon. Gentleman knows, Labour introduced constraints on NEST—the National Employment Savings Trust—and we are consulting on whether to lift them.
Stephen Timms (East Ham) (Lab)
Ministers often say that they have stopped people on Government schemes appearing in the labour market statistics as “in employment”. But recent analysis shows that of the claimed 500,000 increase in employment over the past 12 months, 214,000 people are in fact on Government schemes and mostly still claiming JSA. What is going on?
Mr Speaker
The question is exclusively on Easington, but the right hon. Gentleman has made his own point with delphic confidence.
Mr Hoban
What is happening—and it happened under the previous Government—is that these figures are drawn up in line with international rules. I agree with him that it is inappropriate, and that is why I wrote several months ago to the Office for National Statistics to ask it to change that. Only one in 20 of the additional jobs created since the general election are down to Government schemes, and the right hon. Gentleman should be commending the number of private sector jobs being created that have helped people get back into work. That is why we have record numbers of people in work.
Atos Work Capability Assessments
John Bercow Excerpts(11 years, 10 months ago)
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Mr Speaker
Order. The Minister is most courteously attending to the issues, and he refers to three or four minutes. I know that he will be leaving at least two, if not three, minutes for the right hon. Member for Oldham West and Royton (Mr Meacher) to wind up at the end. I think that we are clear on that.
Remploy Marine Fife
John Bercow Excerpts(11 years, 10 months ago)
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State Pension Reform
John Bercow Excerpts(11 years, 10 months ago)
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Steve Webb
My hon. Friend has raised a crucial question. There is some anger and some suspicion that somehow we are throwing money at future pensioners and ignoring today’s, but I can give a categorical assurance that that is not what we are doing. The budget for the new system is the same as the current budget. It is important to note that we are not simply taking the basic pension of £107, sticking 30-odd quid on it, and ignoring all today’s pensioners. We are combining the basic pension, the state second pension and the savings credit into a single flat payment. It is not comparing like with like just to compare the current basic pension with the £144 pension; it is a much more complex process.
Mr Speaker
Order. I always listen intently to what the Minister says, but in a bid to make face-to-face contact with his hon. Friend the Member for Stourbridge (Margot James), he is standing sideways. Facing the Chair is always to be preferred.
Charlie Elphicke (Dover) (Con)
Does the Minister agree that pensions means-testing seriously undermined a culture of savings built up over many decades? Will he assure us that, following this reform, people will not be punished for making proper provision for their old age, as they were under the last Government?
Welfare Benefits Up-rating Bill
John Bercow Excerpts(11 years, 10 months ago)
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Mr Speaker
Order. In a bid to accommodate more colleagues, I am afraid that I am reducing the time limit for Back-Bench speeches from five to four minutes each, with immediate effect.
Oral Answers to Questions
John Bercow Excerpts(11 years, 11 months ago)
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Esther McVey
I know that this issue is of great interest to the hon. Lady, sitting as she does on the Children, Schools and Families Select Committee, so I listened with great interest—[Interruption.] Apologies, but I am correct in saying that you have a great interest in this subject. I do not know the specific issues relating to the case that you mention. We will obviously look into it, but I have to say that this constituent of yours would have been assessed under the DLA arrangements—it is for that very reason that we are bringing in the new personal independence payment assessment and criteria.
Mr Speaker
Let me remind the Minister that her answers should be addressed through the Chair. She has just referred to my constituent. I would have been delighted to have had my constituent addressed, but it would not have been appropriate here and now. We will move on.
Nick de Bois (Enfield North) (Con)
11. What evaluation of the implementation of universal credit he plans to undertake.
Esther McVey
I will reiterate what a household is: a household is a basic family unit, and for the purposes of paying out-of-work benefits that will be a single adult or a couple and children, so once another adult is in the house, that is a separate household. [Interruption.] That has been the definition for a very long time. However, in the instances the hon. Lady mentions, discretionary payments are available and will come to fruition. [Interruption.] There is no point in Opposition Members huffing and puffing. That is the situation, and an extra £30 million has been put in place for this. [Interruption.]
Mr Speaker
Order. I have no idea what the hon. Member for Glasgow North West (John Robertson) had for breakfast this morning. All I can say is that he is a bear growling exceptionally, and some would say excessively, loudly this afternoon.
Damian Hinds (East Hampshire) (Con)
17. What assessment he has made of the potential utility of jamjar budgeting accounts in (a) smoothing the transition to universal credit and (b) increasing financial inclusion.
Mr Speaker
Order. I am sorry to have to move on, but demand, as usual, exceeds supply.
Remploy
John Bercow Excerpts(11 years, 11 months ago)
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The Parliamentary Under-Secretary of State for Work and Pensions (Esther McVey)
I am grateful for the opportunity to provide the House with an update on Remploy. On Thursday, I laid a written statement in the House about stage 2 of Remploy factories—a continuation of a process announced by my predecessor, now Secretary of State for Culture, Media and Sport, on 7 March. She then gave a further statement to the House on 10 July. In it, the Remploy board announced the outcome of its analysis of the remaining stage 2 businesses. Remploy will now start a commercial process to mitigate potential job losses. At this stage, no final decisions have been made about factory closures or redundancies. Our priority throughout the process is to safeguard jobs, which is why we are offering a wage subsidy of £6,400 for each disabled employee to encourage interested parties to come forward.
We want substantially to improve employment opportunities for all disabled people. We engaged with disability experts and organisations to undertake a review of our specialist disability employment support. The Sayce review findings and the responses we received to the public consultation strongly supported the idea of moving away from the Remploy model for disabled people.
The first point that I want to make is that a sixth of the money for the sustained employment of disabled people is currently spent on supporting the Remploy factories, which means that a sixth of the budget went to 2,200 out of 6.9 million disabled people of working age. I remind the House that, before the last Government closed 29 factories, the right hon. Member for Neath (Mr Hain) said:
“The reality is that without modernisation Remploy deficits would obliterate our other programmes to help disabled people into mainstream work.”—[Official Report, 29 November 2007; Vol. 468, c. 448.]
The current Government are committed to protecting the budget of £320 million for specialist disability employment support, but we know that we must use that money much more effectively to help far more disabled people to fulfil their ambitions and move into mainstream work. In these economically difficult times, it is more important than ever for the Government’s disability employment programmes to represent value for money and to deliver the most effective possible support to help disabled people to find and keep employment.
Remploy has faced an uncertain future for many years, and in 2008, under the last Government, 29 factories closed. A modernisation plan failed, having set excessively ambitious targets which were never achieved. The right hon. Member for Birmingham, Hodge Hill (Mr Byrne) knows that only too well. As a result, the factories have become increasingly loss-making, and their future has become more precarious. That has left all staff in a vulnerable position. The answer must be to find them work and help them into mainstream employment, and the changes that are being made are focused on ensuring that they all obtain long-term, sustainable jobs.
I do, of course, understand how unsettling it is for Remploy employees to find that they are faced with the threat of losing their jobs. I know that a large number of them have given many years of service, and that they now face the prospect of looking for alternative work. That is why we set up the people help and support package especially for them. All disabled Remploy staff affected by the changes who give their consent will be guaranteed access to £8 million of tailored support to help them to find alternative employment. Despite a slow start, we are making a number of improvements to the package. Over the past three months, 148 of the 960 or so disabled people who have come forward to work with us and our personal case workers have found employment. We have every expectation that the number of job outcomes, which is already increasing daily, will increase further. We are monitoring and tracking these people and helping them to obtain work, which is something that the last Government never did when they closed their factories.
Jobcentre Plus reached agreements today with five major national employers—some of the biggest high street retailers and restaurant chains—to help ex-Remploy staff into work, and they will also have access to support from Remploy Employment Services. Since 2010, despite the tough economic climate, it has found 50,000 jobs for disabled and disadvantaged people, many of whose disabilities are similar to those of staff in Remploy factories.
Let me give a few instances of former Remploy staff who have begun work in a vast array of jobs. Four former employees from Aberdeen have started a co-operative business in their old factory. Red Rock Data Processing Services in Wigan is reopening its factory and employing former Remploy staff. Ex-employees have found work at Dekko Windows in Oldham, Camborne college in Penzance and Hayman Construction in Plymouth, and at Asda. All those people are moving into mainstream work, and I expect that, as the support continues, we shall see an increasing number of such good outcomes.
I have met many Members on both sides of the House to discuss this matter, and I shall continue to do so. We seek the best possible outcomes and opportunities for all Remploy staff.
Mr Speaker
I am grateful to the Minister. She did somewhat exceed her allotted time, which simply means that I must allow some modest latitude to the right hon. Member for Birmingham, Hodge Hill (Mr Byrne).
Mr Liam Byrne (Birmingham, Hodge Hill) (Lab)
May I start, Mr Speaker, by saying how grateful we are to you for allowing this urgent question this afternoon? I say to the Minister that, frankly, it is shameful that her Department tried to sneak out through a written ministerial statement last week news that it was shutting a further 10 Remploy factories and putting five more at risk. It was a mark of contempt for Remploy workers that the Minister sought to duck a debate in the House.
This statement marks the destruction of a tradition that stretches back to the foundation of the welfare state. If there is an ideal that Labour Members cherish, it is that the welfare state should be strong on the ethic to work and strong on the ethic to care. Remploy epitomises both those ideals, yet over the past year all we have heard from the Government is one plan after another to close Remploy down, without any regard for how its workers are connected to a future—to jobs and prosperity in the years to come.
Months ago, a Minister from this Department promised the House that the Government would move hell and high water to ensure sacked Remploy workers got into jobs, yet today about 90% of those workers sacked this year are still out of work. That is not good enough. The Work programme is not delivering for disabled people. Fewer than 1% of people on employment and support allowance have been found sustained jobs. When we undertook the modernisation of Remploy, we set aside £500 million to help support the process. I am afraid that is in sharp contrast to what we heard from the Minister this afternoon.
It is now apparent that this closure programme must stop until we are clear about what has gone wrong in getting sacked Remploy workers back into jobs. We need to learn far more from the example set by the Welsh Government, who have already provided 97 opportunities for 250 workers who have lost their jobs. The Minister will have heard, as I have, just how important this is, because she will know, as I do, that for Remploy workers their job is far more than simply an income; it is their connection to a social network and to a world outside. It is often everything to them.
Let me ask the Minister this: will she apologise to the House for trying to sneak this announcement out through a written ministerial statement? Especially after the Secretary of State dismissed Remploy workers as doing nothing more than sitting around drinking coffee, I think that that would be an appropriate gesture. Will the Minister stop this closure programme until we have a report on the table from her Department about what has gone wrong in getting the workers sacked earlier this year back into jobs? Specifically in respect of Wales, will she take up the proposal of Leighton Andrews that two factories in Wales be transferred to the Welsh Government, because although she does not feel they have a future, the Government of Wales certainly do?
Mr Speaker
Order. I am sure the Minister was not suggesting that anybody would knowingly mislead the House.
Mr Speaker
I was guilty of many cheap gibes and bluster as a Back Bencher, but the Speaker does not engage in cheap gibes or bluster. Just as long as we are clear about that—very good.
Conor Burns (Bournemouth West) (Con)
The Minister will be aware that the Remploy factory at Alder Hills in my constituency closed; she wrote to tell me that it was closing in her first days in her new job. She will also be aware that Giles Verdon and his team at that factory were working to put together a community interest company. May I tell her that in all their dealings with Remploy centrally phone calls went unanswered, information requested was not forthcoming and deadlines were too short? They did not stand a chance. Will she agree to meet me and representatives of Remploy in Poole so that they can tell her about their experience in dealing with Remploy centrally?
Chris Bryant (Rhondda) (Lab)
Right—I did not expect to be called quite so soon, Mr Speaker.
Chris Bryant
Thank you very much, Mr Speaker.
The real problem at the Remploy factory in the Rhondda is that, although the vast majority of disabled people in the Rhondda are in mainstream employment, we have 72 people there who are affected, some of whom have been transferred from a previous Remploy factory that was closed, and we have rising unemployment and very little prospect of jobs for people. So will the Minister please take up the offer that Leighton Andrews, the Assembly Member for the Rhondda and also a Minister in the Welsh Assembly Government, made to take over the Welsh factories with their assets, so that if she is not prepared to do anything to protect these jobs, the Welsh Assembly can?
Mr Speaker
Points of order come after statements and we have a statement now, so if the hon. Gentleman is patient he may have his opportunity ere long.
Mr Speaker
I understand that it relates to this matter, but I am afraid that the rules do not change for the circumstance.
Oral Answers to Questions
John Bercow Excerpts(12 years ago)
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Esther McVey
The hon. Lady represents the constituency next to mine and we should both celebrate the fact that employment figures are up for every age group, locally, nationally and regionally. The unemployment rate for people over 50 is 4.5%, and for women over 50 it is 3.5%. Those figures are lower than the total unemployment rate of 7.8%. I would question your facts.
Mr Speaker
Order. I am sure the Minister is not questioning my facts, but I think I have the gist of what she is saying.
Tom Blenkinsop
Over the past two years, long-term unemployment among young women increased by 412% on Teesside, with 640 women aged 24 and under claiming jobseeker’s allowance for more than 12 months. Does the Minister agree with figures from the Office for National Statistics which show that under this Government, long-term youth unemployment among women on Teesside has skyrocketed, and what will she do about it?