Child Poverty: London

Stephen Timms Excerpts

Thursday 22nd February 2018 Westminster Hall

[Siobhain McDonagh]

I absolutely agree with my hon. Friend. I know how much work she does on housing, but many Members present, in particular on the Labour Benches, spend most of their advice surgeries talking to families threatened with homelessness—people who live in the private sector and simply cannot afford the rents.

I want Members to hear children’s stories rather than just statistics, because ultimately we are talking about human beings rather than percentages, so I will read an extract from a heartbreaking letter I received from Mrs Sheridan, headteacher at Malmesbury Primary School in my constituency, outlining her experience of child poverty:

“A child had lost his reading book. We encouraged him to have a good look at home, including asking him to look under his bed. He replied ‘I haven’t got a bed to look under’…We see children who eat their lunch very quickly, whilst ‘protecting’ their plate with an arm as they eat…We see children who take extra bread and pasta from the salad bar daily to fill themselves up…We see children attending school in a uniform that is clearly outgrown…We had a family of five, the father who was in work, who lived in a van in a car park for a number of weeks…Parents have asked to use the school phone as they have lengthy delays in payment of Universal Credit, and have no money for phone credit to chase up their claim…We believe that we have a significant number of children who are so used to feeling hungry and cold that they do not recognise these feelings anymore.”

What message does the Minister have for Mrs Sheridan and, indeed, for those children, who are experiencing such deplorable examples of child poverty on a daily basis?

[Stephen Timms (East Ham) (Lab)]

I am grateful to my hon. Friend for raising this subject and for the case that she is making. She has mentioned universal credit. Does she agree with me that the roll-out of universal credit to a number of the constituencies that she listed earlier will make some of those families’ problems significantly worse over the next few months?

[Siobhain McDonagh]

I thank my right hon. Friend for his intervention and for all his work on poverty and helping poor families in London, in particular in his constituency. I completely agree that the delay in universal credit, the difficulties in claiming and the lack of face-to-face contact to be able to resolve some of the problems will have dire impacts on people.

Those examples I gave from Mrs Sheridan’s letter are just some of the examples of child poverty from just one school in just one constituency in our capital, across which four in 10 children now live in poverty—an astonishing figure that is expected to rise. London, however, is a divided city and significant affluence and poverty exist side by side, sometimes on the same street.

Take the London Borough of Merton, where my constituency neighbours the more wealthy constituency of Wimbledon. When we compare child poverty in our borough, it proves to be a sombre metaphor for the story of rich and poor across our capital. There are almost triple the number of children in poverty in my constituency than in Wimbledon and, to be clear, that is not because my constituents are less deserving or work less hard. At local ward level, Cricket Green ward in Mitcham and Morden has a staggering 38% of children in poverty, while less than a five-minute drive away, in the same borough, Wimbledon’s Hillside ward has only 5.5% of children in poverty. Furthermore, Mrs Sheridan, the Malmesbury headteacher, noted a distressing observation she had made: children from her school are significantly smaller physically than their peers in Wimbledon schools.

Oral Answers to Questions

Stephen Timms Excerpts

Monday 5th February 2018 Commons Chamber

[Alok Sharma]

I want to be absolutely clear: the changes that we are making in universal credit and in the benefit system are there to focus on protecting the most vulnerable. That is the underlying policy of universal credit and we will continue to do that.

[Stephen Timms (East Ham) (Lab)]

Has the Minister had any discussions with colleagues in the Department for Education about their proposals for the eligibility of universal credit claimants to free school meals? If the current proposal were to go ahead, it would introduce a huge new benefit trap into the system, far worse than anything in the old system. Universal credit was supposed to remove such traps, not create new ones.

[Alok Sharma]

Currently, 1.1 million young people—students—receive free school meals. If the policy that has been put forward as part of the consultation goes ahead—where there is an earnings threshold of £7,400—an additional 50,000 young people will benefit from free school meals.

PIP Back Payments

Stephen Timms Excerpts

Tuesday 30th January 2018 Commons Chamber

[Sarah Newton]

I thank my hon. Friend for her question and for the invaluable work that she and other members of the Work and Pensions Committee do. I look forward to receiving the Committee’s recommendations and will give them careful consideration.

I want to reassure my hon. Friend and other hon. Members that I believe in continuous improvement. I am very grateful for the constructive working relationship that I have with many disability rights organisations and charities that support disabled people, and for the time they give to my PIP stakeholder group. We are about to set up panels of claimants of both employment and support allowance and PIP so that we further engage with claimants themselves. Of course, we undertake proper independent customer satisfaction surveys to ensure that we take every opportunity to improve the claimant experience.

[Stephen Timms (East Ham) (Lab)]

The Minister has told the House that all 1.6 million existing claimants will have their cases reviewed. I am grateful to her for adding that those who had zero points, and therefore did not get PIP, will also be included in the review. Will she confirm that the 180,000 people who used to be on disability living allowance and are no longer receiving benefit will be included? In total, on top of the 1.6 million, how many cases does she expect to review?

[Sarah Newton]

As all Members will know, people have been going through a managed process of transferring from disability living allowance to PIP. We will be looking at people who have gone through the PIP assessment process. Just over half of people on disability living allowance have gone through the managed process to PIP. There are still people on DLA who are yet to go through the process, but we are taking on board all the findings of the appeal and improving the process to ensure that we make the right decision the first time. That is really important to us and to claimants.

Personal Independence Payment

Stephen Timms Excerpts

Tuesday 23rd January 2018 Commons Chamber

[Ms McVey]

My hon. Friend and neighbour rightly acknowledges the work that the work coaches do in her constituency and right across the country. The aim of the Government in carrying out this transformation was to get a tailor-made benefit service, whether through PIP or universal credit, so that the work coaches know who they are dealing with and therefore how they can help and support them in the best possible ways. The Government should be proud of what they are aiming to do.

[Stephen Timms (East Ham) (Lab)]

This was an ill-advised attempt to reduce the amount of benefit payable to people with mental health problems, and I am glad that it has been abandoned. Will the Secretary of State take steps to ensure that, in future, her Department complies with its obligations under the Equality Act 2010?

[Ms McVey]

The right hon. Gentleman is very knowledgeable on this subject, and we spent hours debating these issues across the Dispatch Box when I was last in the House. He knows as well as I do that we always aim to fulfil all obligations. If we do not, this is what happens: we get a court case and we have to deal with the consequences. I hope that I have dealt with them correctly today and received support across the House. I will not be seeking leave to appeal, and that is right on this occasion.

Private Sector Pensions

Stephen Timms Excerpts

Monday 22nd January 2018 Commons Chamber

[Ms McVey]

I thank my hon. Friend. An investigation is going on. Not only is there one that has been initiated by the Business Minister, but the Insolvency Service will also be investigating what went on. If there is any evidence that untoward things have been done, a prosecution will follow. That is what we are about: we want businesses to act responsibly. They employ the majority of people in this country, so it is only right that we support them when they need our support and bring them to account when they are doing things wrong.

[Stephen Timms (East Ham) (Lab)]

I welcome the right hon. Lady back to this Department. The Government, of course, are responsible for the regulatory framework for pensions. Will she respond to the point raised by my hon. Friend the Member for Oldham East and Saddleworth (Debbie Abrahams) about defined contribution schemes? Are the Government looking at possible changes to the rules for those, as well as for defined benefit schemes, which the Minister has said the Government are looking at?

[Ms McVey]

We are not currently considering changing the rules on defined contribution schemes. In that instance a contribution has been made which will be protected and moved to another pension, whereas a pension in a defined benefit scheme is what someone was expecting to receive at the end, and will therefore be protected. They are very different schemes, and different protections and rules apply to them.

Oral Answers to Questions

Stephen Timms Excerpts

Monday 18th December 2017 Commons Chamber

[Damian Hinds]

Yes, we are ensuring that stakeholders, including the key advice services, have a proper overview of universal credit, and we work closely with the citizens advice bureau and others. A dedicated employer and partnership team engages directly with local authorities, landlords and others to ensure there is a joined-up approach to supporting claimants.

[Stephen Timms (East Ham) (Lab)]

rose—

[Mr Speaker]

I will interpret the Minister’s answer as being wide and therefore admitting of other constituencies, although it is not clear beyond peradventure. I will give Members the benefit of the doubt.

[Stephen Timms]

Thank you, Mr Speaker. There will be problems in Torbay and elsewhere if the universal credit calculation is wrong. The Minister told me in a written answer that there is no specific initiative called Late, Missing and Incorrect, but it turns out that there is, run jointly by his Department and Her Majesty’s Revenue and Customs. Will he confirm that if real-time PAYE—pay-as-you-earn—information is late, missing or incorrect, then the universal credit calculation will be wrong?

[Damian Hinds]

We all admire the right hon. Gentleman for his deftness in getting from Torbay to that point. He and I have had quite an extended correspondence in parliamentary questions on the subject of real-time information in its various aspects. Of course we want to continue to make sure that every aspect of universal credit is working entirely as it should, and he has my commitment that we will do so.

Universal Credit Project Assessment Reviews

Stephen Timms Excerpts

Tuesday 5th December 2017 Commons Chamber

[Debbie Abrahams]

Well, where to start with that? First, unless the hon. Gentleman has a crystal ball and has been able to read the reports, I do not think he is in a position to say that they will reveal nothing else. Secondly, on the stats he mentioned, I think there is enough on the record to refute those points.

[Stephen Timms (East Ham) (Lab)]

Does my hon. Friend agree that the Government’s insistence on cloaking this project in secrecy, right from the start, has been one reason why it has gone so badly wrong?

[Debbie Abrahams]

My right hon. Friend hits the nail on the head. We must have greater openness and transparency about this and other Government schemes. For universal credit especially, the effect it is having on people now means that we must do the right thing. As I said, the ruling must be complied with.

--- Later in debate ---

[The Secretary of State for Work and Pensions (Mr David Gauke)]

Let me deal first with the motion. The challenge for any Government—and, one would think, for any aspiring Government—is to strike the right balance between transparency, and encouraging candid evaluation and debate. There is a reason why project assessment reports commissioned by the Infrastructure and Projects Authority, and formerly the Major Projects Authority, have not been released by Governments. The Public Accounts Committee has already recognised that there is a need to protect information that is commercially sensitive, and for there to be a safe space for candid evaluation and debate. The assessments we are discussing represent an important period of reflection and, by their very nature, are useful only if everyone involved is able to offer their views freely and frankly to evaluate fairly the project on which they are working. Ultimately, this is about protecting the interests of the taxpayer.

Successive Governments have continued to improve project delivery. The PAC supported the creation of the Major Projects Authority, and its objectives of strengthening project assurance and improving the transparency of information on the costs, risks and performance of major Government projects. The PAC recognised the challenges that the Government face in improving project delivery within government. Supporting all that is the rigorous scrutiny of individual projects by the National Audit Office, with full access to all papers.

Parliament has consistently directed the Government to manage projects professionally, more efficiently and effectively, and with due consideration for commercial imperatives. Consequently, I hope there is a consensus that the disclosure of information beyond the existing well-established and robust transparency policy that the PAC supports must not undermine the integrity and validity of the review process, risk weakening our commercial negotiating position, or expose us to possible legal challenge.

[Stephen Timms]

The Secretary of State refers to the National Audit Office, which he will know at one stage characterised the universal credit project as having a “good news” culture in which staff were not allowed to acknowledge and draw attention to problems. Does he agree that that should not have prevailed? Will he reassure the House that that culture has been dealt with?

[Mr Gauke]

I very much agree about the importance of a culture in which problems can be identified and passed up the command chain, with that system understood across the board. Clearly, when that does not happen, something needs to be addressed. When I entered this House in 2005—the right hon. Gentleman was a Minister at the time—we were wrestling with the problems of the tax credit fiasco, which was causing misery for vast numbers of people. If Members want an example of a project that failed because there was not a willingness to identify problems early, that is it.

The Infrastructure and Projects Authority’s policy that review reports remain confidential is founded on the position that an effective and trusted system of assurance in government is in the public interest, and that the premature disclosure of review reports undermines that public interest. Those considerations must be balanced with the desire for transparency and parliamentary scrutiny. In exceptional cases, sharing information with a Select Committee, in confidence, can be appropriate.

The motion refers to a number of reports, many of which date back some years, as my hon. Friend the Member for South Cambridgeshire (Heidi Allen) pointed out. To disclose those papers without subsequent reports showing how well universal credit has progressed would give a partial picture. In line with the motion, I will provide, by the time the House rises for the Christmas recess, the reports directly to the Work and Pensions Committee. Let me point out to the shadow Secretary of State that her motion does not require us to publish these reports or to lay them before the House. Specifically, it says that those reports should be provided to the Committee. In those circumstances, it is acceptable for us to do so. As is customary, I will need to consider redacting any appropriate material, such as the names of junior officials and information that is commercially sensitive. I wish to emphasise that it is the Government’s view that this is an exceptional request that will be agreed to on an exceptional basis, and does not set any precedent for future action. Against that background, I shall provide the reports to the Select Committee on a confidential basis. In those circumstances, I hope and expect that the documents will not be disclosed further.

Universal Credit

Stephen Timms Excerpts

Thursday 23rd November 2017 Commons Chamber

[Mr Gauke]

My hon. Friend is right to draw attention to Citizens Advice, with which we have strongly engaged. Indeed, I spoke to its chief executive yesterday, and I have a meeting with her—the chief executive—later today. We will continue to work closely with Citizens Advice, and I am keen to ensure that, when it comes to universal support, we continue to work closely with Citizens Advice because it provides people with a huge amount of practical support and help.

[Stephen Timms (East Ham) (Lab)]

The Secretary of State’s characterisation of the tax credits system is wrong, but I welcome the helpful steps he announced today to start clearing up the problems he inherited. Will he make available large-print versions of the documentation about these changes? Does he accept that, if someone who is paid weekly and has no savings loses their job, denying them any income at all for five weeks will cause a serious problem that offering a loan does not resolve?

Universal Credit Roll-out

Stephen Timms Excerpts

Thursday 16th November 2017 Commons Chamber

[Conor McGinn (St Helens North) (Lab)]

rose—

[Stephen Timms (East Ham) (Lab)]

rose—

[Frank Field]

I am anxious that everybody gets in, so may I move on? I have real affection for people who have fought the battle hard on this, but I wish to pursue the matter. Four constituents of mine have had their claims closed down, with the only too imaginable consequences of what it has meant for their lives. The landlord of one of them has said, “I do not want to evict the tenant, however I might be left with no choice.” That tenant has said, “I am behind with not only my rent, but my council tax. All I’ve got to live off is child benefit. The school has been so worried about the welfare of my son that my sister offered to take him in to her household so that he was not taken into care.”

--- Later in debate ---

[Mr Steve Reed (Croydon North) (Lab/Co-op)]

I congratulate the hon. Member for Banff and Buchan (David Duguid) on a really powerful maiden speech. He made a good case for getting up to visit Banff and Buchan, so I will be booking a trip there as soon as possible to taste the whisky and see the wildlife that he talked about. He is a wonderful advocate for the area.

The hon. Gentleman also looked incredibly confident and relaxed as he gave his speech. I think back to how nervous I felt when I gave my maiden speech, but he made his like an old pro—[Interruption.] Seasoned might be a better term. We can look forward to many more excellent contributions from him and I wish him very well in his career in this House.

I thank my right hon. Friend the Member for Birkenhead (Frank Field), who is no longer in the Chamber, for securing this important debate. Croydon was one of the first boroughs to experience the roll out of universal credit, so we have had longer to see what a total and utter disaster it is. A long and growing stream of people have come to my office, many of whom have been close to tears because universal credit has forced them into debt. It has made it harder for them to stay in work and left many of them facing eviction for rent arrears.

Our local council has had to spend £3 million so far to stop people from being evicted because of late rent payments. Local food banks are running out of food because of the vast increase in demand from people who are going hungry because of what the Government’s scheme has done to them. More than 1,000 tenants in Croydon have over three months’ rent arrears and are at risk of losing their home because of the failures of universal credit.

[Stephen Timms]

Does my hon. Friend agree that one of the problems—it is certainly not the only one—although it is denied by Ministers, is the fact that the IT system for universal credit is not yet working properly?

[Mr Reed]

I absolutely agree with my right hon. Friend. I cannot for the life of me understand why the Government insist on ploughing ahead when it is quite clear that the IT system is not fit for purpose. They should pause the process and fix that before they inflict this damage on any more people.

According to my council’s figures, a tenant on housing benefit—the legacy system—had an average rent account that was £42 in credit. Under universal credit, a tenant has an average balance of £722 in arrears. This is supposed to be a system that helps low-income families, but it is instead forcing them into debt and out of their homes.

I wish to share just a few short examples from my own casework, and I suspect that we will hear many, many more throughout the debate. One constituent told me that he had £1,400 of debt and two months’ rent arrears because of errors with her universal credit. She had no money to buy food for her family or to heat her home.

A mother of five children was left waiting nine weeks for her first payment. She works part time and is desperate to keep working. She wants to do exactly what the Government tell her that she should be doing, but the new system has let her down and pushed her into debt.

A pregnant mother with two young children came to see me. She was not eating properly because of debt, which posed a serious risk to not only herself, but her unborn child. She had no option but to take out several high-interest payday loans and has been threatened with eviction because of underpayments. It is outrageous to leave anyone in those circumstances, let alone a pregnant woman.

Severely disabled people face the particular problem that universal credit does not include a severe disability premium. Although the Work and Pensions Committee raised its concerns about precisely that earlier this year, as yet the Government have done absolutely nothing.

Under the current system, a person with severe disabilities in receipt of income-related employment and support allowance with a severe disability premium gets £172 a week. Under universal credit, that is cut to just £146 a week. I became aware of that when our citizens advice bureau referred to me the case of a claimant with severe mental ill health who was moved on to universal credit when he became liable for housing costs. The effect was that he lost more than £100 from his benefits to cover his living expenses, and he had no transitional protection because he had experienced a change of circumstances. When a person has so little income, financial loss on such a scale is utterly devastating.

Universal credit is an unmitigated disaster for hundreds of the most vulnerable people in Croydon North. If the roll-out continues before the system is fixed, those hundreds will become thousands. People just cannot cope. What kind of system penalises the poor, and forces people out of jobs and on to benefits and into food banks? The Secretary of State for Work and Pensions and the Minister for Employment must do what this House instructed them to do in a recent vote: pause and fix the system before it devastates any more lives.

Oral Answers to Questions

Stephen Timms Excerpts

Monday 13th November 2017 Commons Chamber

[Caroline Dinenage]

On behalf of the Minister for Employment, may I say that my hon. Friend makes a very important point? We do want people to address their levels of debt, and that is why we have this effective system of advance payments, which enables people to budget properly and to meet their debts.

[Stephen Timms (East Ham) (Lab)]

18. Whether he has investigated reports of online applications for universal credit being lost; and if he will make a statement.

[The Minister for Employment (Damian Hinds)]

We are rolling out universal credit full service in a very measured way. I am not aware of any recent cases of claims being lost, but if the right hon. Gentleman knows of such incidents, I of course very much welcome him bringing these to my attention.

[Stephen Timms]

There are serious concerns about glitches with universal credit apparently arising because the IT does not yet work properly in some areas. The Child Poverty Action Group has reported instances of claims being made and then vanishing into the ether without trace. Will the Minister assure the House that glitches of that kind will be addressed and resolved, not simply denied?

[Damian Hinds]

The CPAG report to which the right hon. Gentleman refers says in its summary that many claims seem to have disappeared, but the text refers to a small number, and then goes on to mention just one case. That is not to say that I ignore this matter or belittle it in any way—of course, I take what he says very seriously. He has my absolute assurance that I will pay attention to any glitches.