Oral Answers to Questions

Stephen Timms Excerpts

Monday 23rd January 2023 Commons Chamber

[Mr Speaker]

I call the Chair of the Select Committee.

[Sir Stephen Timms (East Ham) (Lab)]

19. What assessment he has made of the impact of real-terms reductions in local housing allowance rates on families.

[The Secretary of State for Work and Pensions (Mel Stride)]

In 2020, as the right hon. Gentleman knows, the Government boosted the local housing allowance by almost £1 billion, taking it to the 30th percentile of rents. For those where there is a shortfall, the discretionary housing payments arrangements are available. We should all be mindful of the expense of the support for housing, which is running at £30 billion a year, and is projected to rise to £50 billion in 2050.

[Sir Stephen Timms]

Rightmove reported last autumn that rents in London had increased by more than 16% in a year, yet, as the Secretary of State has said, housing support through local housing allowance has been frozen since 2020. Will Ministers look again in the Budget at the level of local housing allowance for the coming financial year?

[Mel Stride]

The right hon. Gentleman makes a perfectly valid point, but he needs to see this issue in the round. My fellow Ministers have outlined at some length the cost of living support payments that were made available last year and that were announced in the autumn statement and will be available from April onwards. I have already mentioned discretionary housing payments, with £1.6 billion of support since 2011. There is also the household support fund, which gained an extra £1 billion for 2023-24. I look forward to appearing before his Committee at the end of March, where no doubt we can discuss these matters in greater detail.

Benefit Sanctions

Stephen Timms Excerpts

Tuesday 13th December 2022 Westminster Hall

[Chris Stephens]

I thank my good and hon. Friend for that intervention. I will mention similar specific case studies, and there are clear questions for the Department to answer on this matter.

Going back to the Work and Pensions Committee 2018 report, it criticised the fact that a sanction incurred under one conditionality regime continues to apply even if the claimant’s circumstances change and they are no longer able or required to look for work. The report said that the sanction serves no purpose in such circumstances, and the Work and Pensions Committee recommended that it be cancelled. It further criticised the fact that the decision to impose a sanction is made by an independent decision maker

“who has never met the claimant and who cannot be expected to understand fully the circumstances that led to them to fail to comply.”

It therefore recommended that work coaches should be able to recommend

“whether a sanction should be imposed”.

The Government responded to the report and each of the Work and Pensions Committee’s recommendations in January 2019. They agreed to evaluate the effectiveness of reforms to welfare conditionality and sanctions, and said that it would be focused on whether sanctions within the universal credit regime are effective at supporting claimants to search for work. The Government said they would look to publish the results in spring 2019, but that did not happen, and DWP Ministers were still saying in July 2020 that the Department was committed to conducting an evaluation and that it would look to so by the end of 2020. In January 2022, however, The Guardian reported that the Department for Work and Pensions had refused a freedom of information request from Dr David Webster to release a copy of the evaluation.

In February, it was reported to the Lords that the Department had not published its evaluation of the effectiveness of universal credit sanctions because it lacked robust legacy data. The former Secretary of State told the Work and Pensions Committee—in fact, it was in answer to the Chair, the right hon. Member for East Ham (Sir Stephen Timms), who is present—that she had noted that the evaluation had been commissioned by a previous Administration, and she explained that the notion of a sanction acts not only through its imposition on a claimant but, importantly, through its effect as a deterrent. That raises a couple of questions.

[Sir Stephen Timms (East Ham) (Lab)]

I am grateful to the hon. Gentleman for his points about the Select Committee’s report, and I pay tribute to him for his work on this subject. I understand that his membership on the Committee will shortly come to an end, but I thank him very much for all his work.

The hon. Gentleman will have heard the new Secretary of State say that he will want to have a fresh look at whether some of the things that the Department has refused to publish in the past should have been published. Does the hon. Gentleman agree that this particular report should be high on that list of priorities?

Oral Answers to Questions

Stephen Timms Excerpts

Monday 5th December 2022 Commons Chamber

[The Parliamentary Under-Secretary of State for Work and Pensions (Mims Davies)]

I thank the hon. Gentleman for raising that matter and it is a concern. There are 11 armed forces leaders and 50 champions across the DWP. I would be very happy to look at this particular case, if he were able to raise it directly with me.

[Sir Stephen Timms (East Ham) (Lab)]

We were grateful for the answers that the Secretary of State gave at the Work and Pensions Committee meeting last week, and we are looking forward to him returning on 11 January. He has been pressed this afternoon, repeatedly and rightly, about local housing allowance, and I have heard his answers to those questions. Next year will be the fourth year that the local housing allowance has been frozen at its current level, during a period when rents have risen sharply. Does he recognise that the case for rebasing local housing allowance, so that it reflects actual local rents, is becoming a very pressing one?

[Mel Stride]

Once again, I thank the right hon. Gentleman for the opportunity to appear before his Committee last week. He raises again the LHA. In 2020, it was, of course, raised to be in line with the local 30th percentile of rents at a cost of approaching £1 billion. He is absolutely right that, clearly, the higher the rate of inflation, and house rental inflation in particular, the more pressure that is put on that particular allowance. All I can undertake to do is to look at this matter very closely the next time I review these particular benefits, which will be in about a year’s time.

UN International Day of Persons with Disabilities

Stephen Timms Excerpts

Thursday 24th November 2022 Commons Chamber

[Sir Stephen Timms (East Ham) (Lab)]

I welcome the initiative that my hon. Friend the Member for Battersea (Marsha De Cordova) has taken in applying for and obtaining this debate. I want to pick up on a number of important points that she made in her excellent speech, but I will begin by commenting on the problem that the Government have over engagement with disabled people.

We know that poverty is particularly focused among families living with disability. That is very clear in the work of the Social Metrics Commission, chaired by the noble Baroness Stroud, who was the special adviser to the right hon. Member for Chingford and Woodford Green (Sir Iain Duncan Smith) when he was Secretary of State for Work and Pensions, so this is not a partisan point at all. Poverty is focused among those families, so it is not surprising that disabled people, from time to time, have cause to criticise the benefits system.

In the last few years, the Department for Work and Pensions has tended to respond to that by pulling up the drawbridge and refusing to talk properly to people, which led to the fiasco of the disability strategy to which my hon. Friend referred. It was launched with some fanfare in July last year but declared unlawful in January this year because of the failure to consult disabled people. As far as I know, it is still languishing—stuck and going nowhere—as a consequence.

The Social Security Advisory Committee is appointed by the Government and made up of experts, not politicians. It is chaired by Stephen Brien, who was one of the original architects, with the Centre for Social Justice, of universal credit. The committee produced a useful paper in December 2020 called, “How DWP involves disabled people when developing or evaluating programmes that affect them”—a slightly long-winded title, but it is clear what it is about. It says:

“DWP officials themselves acknowledge that the Department is not trusted by many disabled people and by some of the organisations who are led by, or work with, disabled people. Our own research confirmed this. Some of the individuals we spoke to did not believe that the Department engaged with disabled people’s organisations or sought views from individual disabled people. There was also a widespread belief that DWP would not represent accurately disabled people’s views when they did seek them.”

The committee therefore recommended that:

“DWP should develop a clear protocol for engagement…It should cover both national and local engagement”.

That is a clear, straightforward, constructive and helpful suggestion to try to overcome that serious problem, but the Department’s response was simply to reject the recommendation.

The committee also recommended that the Department should routinely report on its engagement with disabled people, but the Department rejected that as well. It said:

“We believe that our existing reporting provides sufficient information on our engagement with disabled people and stake- holders.”

I must say, however, that that is not the view of disabled people, as a Conservative Member of the House of Lords, Lord Shinkwin, told the Work and Pensions Committee that

“the DWP is handling its engagement with disabled people badly”

and, he said, with “palpable disrespect”. We now know that it is not the view of the courts either, hence the fiasco over the disability strategy.

The Department commissioned a report from a respected external agency to investigate disabled people’s experiences of the benefits system. It talked to a large number of disabled people in carrying out that research. When asking if they would take part in the study, it told each of them that the results would be published. When Ministers saw the report, however, they decided not to publish it, which is a clear breach of the cross-Government protocol on social research that requires such documents to be published. The Select Committee used its powers to obtain a copy of the report from its authors and published it, so that it reached the public domain.

It is true, of course, that being open about criticisms and difficulties exposes Ministers to awkward questions, but refusing open discussion and trying to keep things secret or keep a lid on them does far more damage than letting such debates take place in the open. I warmly welcome the new Minister and his colleagues in the ministerial team to their posts and I hope that they will take the opportunity to have a fresh look at how they deal with, talk to and engage with disabled people and their organisations. The practice of the team led by the previous Secretary of State was unnecessarily disastrous—there was no need to try to hide all those things. It would have been far less damaging to be open and to, yes, sometimes have a robust exchange. To try to keep it all hidden was very damaging and counterproductive.

As a first step, we have been told by the Department that it will not publish the number of work capability assessments that it carries out each month—I have no idea why; it is absolutely basic and fundamental data. I suppose the reason is that, if people know how many are being carried out, they can ask awkward questions about what is going on. That is another example of that damaging and counterproductive attempt to bury what is really happening.

[John McDonnell (Hayes and Harlington) (Lab)]

I am sorry that I came late to the debate; I was delayed in traffic after another meeting. I remind my right hon. Friend that some of the concerns expressed by disabled organisations over the years commenced largely around the WCAs. I remember that he, I and several other hon. Members simply asked the DWP whether it was monitoring, for example, the consequences and impact of WCAs on certain vulnerable people and the suicides that were taking place. It denied us that knowledge at the time, so it is understandable that a number of disability organisations are sceptical about its role.

[Sir Stephen Timms]

My right hon. Friend is absolutely correct that this has quite a long history, but my sense is that it has got considerably worse in the last few years and the Department has stopped publishing things that obviously should be published and answering perfectly reasonable questions. As a result, it has badly damaged its reputation with disabled people. I hope that the new ministerial team will want to rebuild those links and rebuild trust.

My hon. Friend the Member for Battersea made some important points about the disability employment gap, which has increased in the last two quarters. Many disabled people would like to work but cannot. The pandemic has had a damaging impact, because since then, there has been a steep rise in the number of people who are out of work on health grounds. We urgently need to be able to support disabled people who would like to work into jobs, because that is one of the key ways to tackle the current labour shortage. We can take advantage of that big opportunity.

In July last year, the Select Committee published its report on the disability employment gap. Shortly before the 2015 general election, David Cameron announced a target to halve the disability employment gap, but the target was scrapped shortly after that general election. We want it reinstated. Our report called for a radical overhaul of employment support for disabled people. The big national Work and Health programme is helpful but it is not working for many people. The truth is that, as we can all recognise, smaller specialist providers are often best placed to deliver the help that is needed. People have to be on the ground locally to know who can do the best job; that kind of support cannot be commissioned from Whitehall.

We proposed that funding for this employment support should be devolved. Where the capacity exists, we want groups of local authorities, probably based on the new NHS integrated care system boundaries, to be responsible for commissioning and delivering employment support for disabled people. The Department should allocate funding, monitor performance and publish detailed comparative performance data, but it should not deliver the support, which should be closely integrated with the local health service, colleges and voluntary sector groups. In its response to our report, the Department did not reject that idea, but it has not moved in that direction at all since; I hope that it will.

My hon. Friend was right about Access to Work, which is vital to overcoming work-related obstacles resulting from disability. It is a lifeline for many, but it is not well enough known. Many employers do not know about it and it is dogged, as she said, by a bureaucratic and extraordinarily cumbersome application process that puts people off and leaves many in limbo. Once they have applied, they sometimes have to wait for quite a long time to find out what support they will receive. If somebody benefits from Access to Work in one job and then changes job, they have to go back to square one. There should be a passporting arrangement, as my hon. Friend argued. If they apply for a new job at the moment, their potential new employer cannot be certain what, if any, help Access to Work will provide.

The Minister’s predecessor told the Select Committee about a planned “digital transformation” for Access to Work, which I hope will address those obvious failings, and I hope the Department will involve disabled people themselves in the redesign of the Access to Work programme. I would be particularly grateful if the Minister, in winding up, could give us an update on the progress of that initiative.

[Marion Fellows (Motherwell and Wishaw) (SNP)]

The right hon. Member is making some powerful points. Does he agree that, where there is a cap on individual benefits through the Access to Work scheme, that stops some people getting everything they deserve, while money for that purpose is left lying in other pools?

[Sir Stephen Timms]

The hon. Lady is right and my hon. Friend the Member for Battersea made that point as well. I think that is unhelpful and should be removed.

We also called in our report for larger employers to be required to publish the proportion of their employees who are disabled, and my hon. Friend referred, rightly, to disability pay gap reporting. Like her, the Select Committee thinks it is high time for a rigorous evaluation of the well-intentioned Disability Confident scheme.

For our current inquiry, we conducted a survey of personal independence payment and employment and support allowance claimants. My hon. Friend referred to the experiences of some of those applicants. We are going to publish our report from that inquiry soon, but it was striking how many respondents to that survey said the assessments had damaged their mental health. In describing the assessments, many respondents said that they were humiliating, undignified or even, in some cases, traumatic. There is a serious PIP application backlog at the moment.

[Marsha De Cordova]

My right hon. Friend is making an interesting point about the negative and long-lasting impact that the assessment frameworks for employment and support allowance and PIP are having. Does he agree that now is the time to overhaul those assessment frameworks to something that is co-created with disabled people, is less intrusive and focuses on providing the essential support and extra costs of living support that are needed?

[Sir Stephen Timms]

I agree. There is a big job to be done, and involving disabled people in doing it would be an important part of the solution.

There is also an industrial injuries disablement benefit backlog at the moment. It remains the case, as my hon. Friend has pointed out, that when people appeal against an adverse PIP decision, the great majority win their appeal, which shows pretty clearly that there is something going badly wrong.

The Department did introduce some welcome, imaginative flexibility in assessments during the pandemic. I pay tribute to those who came up with some new ways of doing things—telephone and video assessments—when obviously the old ways could not be applied during the pandemic, and who took advantage of those long term. It is important to maintain flexibility. For some people, being able to be assessed at home over the telephone or via a video link avoids enormous distress and is a real boon, but for others it is important to be able to talk about their impairment face to face and they are happy to travel to an assessment centre to do so. I do not think there is a single solution here, but I think the flexibility that has been introduced of late will be valuable.

The Equality and Human Rights Commission is in negotiation with the Department on a section 23 agreement over the protection of vulnerable claimants, arising from grave concern, which we have heard about already, about claimants who have been badly treated by the Department too often having lost their benefits or being sanctioned when the issue was, for example, a known and serious mental health problem. Too many benefit claimants, as we have been reminded, have taken their lives in these circumstances. So I welcome the initiative that the Equality and Human Rights Commission has taken, and very much hope that the section 23 agreement will be concluded and published soon.

The new ministerial team has the chance to establish a new, much more positive relationship with disabled people, based on openness in place of defensiveness. In welcoming the new Minister to his post, I urge him to take that opportunity.

--- Later in debate ---

[Sir Stephen Timms]

The Work and Pensions Committee visited Glasgow and met senior officers of Social Security Scotland. There is a great deal in the approach for which the hon. Lady is advocating. She is right and the Minister would do well to take a look at that.

[Marion Fellows]

I thank the right hon. Gentleman for his intervention. I have spoken to many people who were employed by the DWP in Scotland. They are able to compare and contrast the two regimes and they are so pleased to be working for Social Security Scotland.

Those with disabilities are fearful of being left behind once again, with the return to the parliamentary agenda of the British Bill of Rights Bill and the corresponding abolition of the Human Rights Act, if that goes ahead. Its worrying re-emergence rekindles the fears of many disability organisations regarding the removal of statutory protections for those with disabilities. At a time when we should be strengthening the protections in place for those with disabilities to ensure that they can live with as few barriers as possible, the Government risk regressing the regulatory regime for disability rights. The Human Rights Act offers a critically important mechanism for recourse for those with disabilities; abolishing it would weaken avenues for those with disabilities to enforce their rights. I would welcome the Minister telling me that I am wrong and that that will not happen, as I think we all would.

The British Institute of Human Rights has drawn my attention to a story highlighting the necessity of challenging inequality for disabled people using human rights legislation. Bryn was 60 years old and lived in supported living. He had learning disabilities, epilepsy, was non-communicative and blind. Staff at the home became concerned that Bryn had a heart condition and called a doctor from the local NHS surgery, who came to visit. Bryn had an independent mental capacity advocate who was supporting him. The advocate attended a multidisciplinary meeting to represent Bryn. At the meeting, the GP stated that he would not be arranging a heart scan for Bryn as

“he has a learning disability and no quality of life”.

Bryn’s advocate challenged that by raising Bryn’s right to life, under article 2 of the Human Rights Act, and his right to be free from discrimination, under article 14. The advocate asked the doctor whether he would arrange a heart scan if anyone else in the room was in that situation. The GP said yes and then agreed to the scan. The Human Rights Act gave the advocate the legal grounds to challenge the discrimination and take steps to protect Bryn’s life. Sadly, Bryn passed away because of his heart condition before any treatment could take place. I would like us all to reflect on that. I thank the British Institute of Human Rights for bringing that to my attention.

Clause 5 of the rights removal Bill destroys positive obligations, which is the positive duty on public officials to protect people from harm. The new Bill allows public bodies to refuse to act to safeguard people like Bryn, and to raise financial resources or operational priorities as the reasoning behind not taking action. Disability rights groups across the UK are gravely concerned that public officials will not take proactive steps to protect disabled people from harm, due to discriminatory attitudes or the resources required to protect that person, and that the rights removal Bill removes accountability for that. That is very dangerous and increases the likelihood of more awful stories like Bryn’s occurring—[Interruption.] I want to complete these points, Mr Deputy Speaker, so I beg your indulgence—[Interruption.] You are shaking your head.

--- Later in debate ---

[Tom Pursglove]

I am grateful to the right hon. Gentleman for his intervention. I would be happy to meet him to discuss those issues further. I am determined that Ministers will have constructive working relationships with colleagues across Parliament, and with third sector organisations and international organisations pertinent to this work, to ensure that we deliver the best outcomes possible. I would be happy to have a conversation with him about the particular point that he has raised.

We also made similar changes to universal credit and employment and support allowance in April this year.

One particular Bill reflects positively on the cross-party constructive work that has gone on. The hon. Member for West Lancashire (Rosie Cooper) brought the British Sign Language Bill to Parliament and worked constructively with Ministers to deliver it, including with my right hon. Friends the Members for Suffolk Coastal (Dr Coffey) and for Norwich North. The Bill passed into law earlier this year and will recognise BSL as a language of England, Wales and Scotland in its own right. It is also supported by a duty on the Secretary of State for Work and Pensions to regularly report on what each relevant Government Department has done to promote or facilitate the use of British Sign Language in its communications with the public.

We laid regulations in the summer to allow more health- care professionals to certify fit notes in addition to doctors. Nurses, occupational therapists, pharmacists and physiotherapists can all legally certify fit notes, reducing the pressure on NHS doctors, particularly GPs. This followed legislative changes in the spring, which removed the need for fit notes to be signed in ink.

On World Mental Health Day in October, we announced the expansion of a joint programme by DWP, DHSC and NHS England—with expenditure of £122 million—to expand the provision of employment advisers in improving access to psychological therapy services across England.

[Sir Stephen Timms]

rose—

[Tom Pursglove]

I am conscious that I need to make a bit of progress, but I will gladly give way to the right hon. Gentleman.

[Sir Stephen Timms]

As the Minister is running through the things that the Government are doing, can he clarify what their intentions are on the national disability strategy? That was stuck in the courts in January. Do the Government intend to move that forward and, if so, when?

[Tom Pursglove]

I will get to that very point. It is one that I want to reflect on briefly in my remarks. I will get there and I hope that the right hon. Gentleman will welcome what I have to say.

This voluntary service will recruit an additional 700 employment advisers to support people with common mental health conditions to improve their mental health, while also helping them to stay in or find work.

A key priority for this Government is increasing disability employment and reducing the disability employment gap. We have heard strong representations for that important objective across the House this afternoon. The Government have a range of programmes and initiatives that are supporting disabled people and those with health conditions to start, stay and succeed in work. This includes disability employment advisers providing specialist expertise and upskilling work coaches in our Jobcentres. The schemes include Access to Work and Disability Confident; and employment programmes such as local supported employment, where we are working in partnership with local authorities to support adults with autism and learning disabilities.

As a Government, we are committed to supporting all people with a disability to lead fulfilled, independent lives. That is a mission that the Prime Minister, the Chancellor, the Secretary of State and I are determined to deliver on. We are delivering a wide range of actions that will positively impact the everyday lives of disabled people—from education to transport, from housing to leisure. We are also committed to challenging unhelpful perceptions of disabled people—all changes that can make a big difference and all changes that feed into enabling disabled people to thrive.

The latest disability employment figures show an increase of 240,000 on the year and an overall increase of 2 million in work since the same quarter in 2013. Our improving lives strategy set out the Government’s goal to see 1 million more disabled people in work between 2017 and 2027, in line with the 2017 manifesto commitment. The figures released for quarter 1 2022 showed that, between quarter 1 2017 and quarter 1 2022, the number of disabled people in employment increased by 1.3 million, meaning that the goal was met after only five years. Our goal to reduce the disability employment gap remains. We will continue to galvanise action across Government and outside Government to ensure that we are ambitious about the employment of disabled people and people with health conditions. It was to that end that, last week, I went to the Jobcentre in Stratford to learn more about the initiative that we are rolling out across the country to deliver additional work coach time. That is designed specifically to help support people into work, where possible, meeting those individual needs and widening the access and availability of work coach support, which is very welcome.

Returning to the theme of innovation, assistive technology is key to our ambition for the UK to be the most accessible place to live and work. We are taking vital first steps towards our overall aim to make our country the most accessible place in the world to live and to work with technology. Advances in technology aimed at increasing disabled people’s participation in society can result in trickle-down benefits for wider society. Some advances can be especially beneficial for disabled people, as I heard about at an excellent event that was held in Parliament only last week.

To capitalise on the many advances in technology, we need to translate what is cross-party political enthusiasm and the Government’s overarching policy commitments into well-designed, evidence-based, and funded initiatives. As a first step to achieve that, we are carrying out an ATech needs assessment. That will explore the needs, demands and impacts on the lives of disabled people and help us to better understand the market capacity for procuring and providing ATech.

Also on the theme of innovation, businesses have an important role to play. Important partnerships have been formed with our disability and access ambassadors. These are senior business leaders who use their influential status to push forward improvements to the accessibility and quality of services and facilities for disabled people. New ambassadors were appointed in July 2021 and in January 2022. In total, they cover 19 private sector industries, from advertising to housing. I am committed to working with these ambassadors to shine a light on their sectors to ensure that disabled people have increased opportunities to participate in a modern, inclusive British society. I thank the ambassadors for all the good work that they do.

I now wish to briefly touch on a few of the points raised by my colleagues here, mindful of the wide variety points that have been raised during the debate. On the point about inclusive and cumulative impact assessments of social security policies on disabled people, in line with the public sector equality duty, the Government carefully consider the equality impacts of policies on those shared and protected characteristics. That is in line with both their legal obligations and their strong commitment to fairness.

On the cost of living, we have had many debates about the comprehensive support that is being provided by this Government to help to address the pressing challenges that many families across the country understandably feel at the present time. That help and support should be seen in the round. As I am responsible for overseeing this, I know that the current latest batch of cost of living payments are being made at the present time. That is welcome support and, no doubt, we will have the opportunity to talk more about cost of living support in the debates that we will have in the weeks and months ahead.

On energy, the warm home discount scheme currently provides around 3 million low-income and vulnerable households across Great Britain with a £150 rebate off their winter energy bill. We have extended the scheme to 2025-26, expanded the scheme to support 800,000 more households and reformed the scheme in England and Wales to provide more rebates automatically and better target households that are in fuel poverty.

On the national disability strategy and the court judgment, what I can say at this stage is that the UK Government strongly disagree with the UN inquiry’s findings and we were disappointed with the NDS ruling, which we are appealing. We continue to be fully committed to the convention and will be publishing our response shortly.

On personal independence payment appeals and work capability assessments, since PIP was introduced, we have made 4.5 million decisions, and only 4% of those have been changed after tribunal hearings. For employment and support allowance, there have been 3.3 million completed WCAs on ESA claims between October 2013 and December 2021, 3% have gone to complete an appeal of a fit-for-work decision and 2% have been overturned. But I am not complacent. I am determined that we will do everything we can to ensure that we focus on quality decision making and that decisions are got right first time.

There were also, rightly, comments made about Access to Work, which is a very effective scheme in enabling people to access employment opportunities and to sustain that employment. Access to Work developed the health adjustment passport, which has been rolled out across Jobcentre Plus. To support the transition from education into employment, Access to Work has delivered a passport pilot in universities. Both have received positive feedback and we are keen to go further. That is an area that I am looking closely at. Again, if colleagues have any observations or ideas, I would be keen to hear them so that I can reflect on them as part of my consideration.

The hon. Member for Rutherglen and Hamilton West (Margaret Ferrier) raised the issue of taxi and private hire drivers and disability access, particularly for individuals who are blind. Under the Equality Act 2010, private hire drivers and taxis have a duty to carry guide dogs and assistance dogs at no extra cost to the passenger. On accessible transport more generally, officials will deliver a review of the Public Service Vehicles Accessibility Regulations 2000 by the end of 2023, which will ensure that future decisions on accessibility standards are based on an updated understanding of passenger needs.

I also want to touch on hate crime, a subject that came across strongly in a number of the contributions. Speaking as someone who was a former policing Minister and victims Minister, this is an area that I feel very strongly about, as I think we all do. We must come together as one House of Commons and as a society in calling out hate crime wherever we see it, in whatever form it takes. The UK Government have asked the Law Commission to review existing criminal law for harmful communications both online and offline. Following the Law Commission’s final report, the Government are taking forward the recommended harmful communications, false communications and threatening communications offences through the Online Safety Bill.

In my role as the Minister for Disabled People, Health and Work, I am committed to driving forward the disability agenda across Government, tackling the barriers that disabled people face.

[Sir Stephen Timms]

Is the Minister going to come back to the subject of the national disability strategy and tell us what the Government’s intentions are on that?

[Tom Pursglove]

I could speak at some length on that, but I think I will write to the right hon. Gentleman as Chairman of the Committee and provide him with an update on where we are in relation to that particular point. I think that is the best way of addressing that question.

I assure the House that I will continue to work with ministerial colleagues across Government, especially as convener and new chairman of the ministerial disability champions, who were appointed in summer 2020 at the request of the then Prime Minister to help to drive progress across Government to help to improve the lives of disabled people. That commitment remains. The ministerial disability champions meet regularly throughout the year. They act as personal leads within their respective Departments, encouraging joined-up working across Departments and committing to championing disabled people.

I am keen to look at, consider and try to advance particular projects that colleagues and wider society feel would be beneficial in improving things for disabled people. I will also continue to meet with disabled people, disabled people’s organisations and disability charities across the UK, so many of whom are inspirational with the work that they do and in the example that they set.

Ensuring the voices of disabled people are heard is a priority for this Government. We continue to work closely with disabled people and disabled people’s organisations to ensure we hear from the full diversity of the community. Only this week I have met the Disability Charities Consortium, Disability Benefits Consortium and DPO Forum England to discuss issues impacting the lives of disabled people. I hope that that reassures the House about my determination, commitment and willingness to engage thoroughly and extensively. No one person has a monopoly on good ideas about the next steps we should take.

The disability unit runs multiple stakeholder networks to support and supplement Government engagement with disabled people and their organisations. Departments across Government also have their own networks specific to their policy focus. The unit is currently considering how we can strengthen our engagement with the sector even further. We stay cognisant of opportunities to consult and co-create with the sector in designing and delivering impactful policies to improve disabled people’s lives, which is our ultimate aim.

Ahead of this year’s UN International Day of Persons with Disabilities, I wish to emphasise our ongoing commitment to drive forward inclusion for disabled people at all levels of British society and continue to be global leaders in the disability space. I know that that is a firm commitment that we share across this House.

State Pension Triple Lock

Stephen Timms Excerpts

Tuesday 8th November 2022 Commons Chamber

[Mel Stride]

As I have set out, we are facing what is being called a Budget. It is a major fiscal event and many decisions will be taken within it. It would not be right for a member of the Government at the Dispatch Box to prejudge what may be included in it.

[Sir Stephen Timms (East Ham) (Lab)]

I welcome the Secretary of State to his first Department for Work and Pensions debate. Surely he is not suggesting that the current Prime Minister was irresponsible when he said last May that the triple lock would be honoured for next April. Will he confirm that, if the triple lock is not honoured for next April, it will be almost without precedent, going back 50 years or more, for the state pension not to be uprated at least in line with inflation?

[Mel Stride]

I welcome the question from the Chair of the Work and Pensions Committee. As a former Pensions Minister, he will know that, in the situation we are in at the moment, right hard up against a major fiscal event that is about to set out major tax and spending decisions, it would simply not be right, as I have said on countless occasions, for any member of the Government to prejudge and pre-empt the measures that the Chancellor will be coming forward with.

--- Later in debate ---

[Sir Stephen Timms (East Ham) (Lab)]

I am pleased to follow the hon. Member for Torbay (Kevin Foster). I thank him for the help he gave me when he was a Minister, and I agree with what he says about pension credit. I think the key is probably for local government to work more closely with central Government, because local councils have the pensioner income data to work out whether pensioners are entitled to pension credit. If we could improve co-operation, judgments could be made much more automatically.

I agree with my right hon. Friend the Member for Leicester South (Jonathan Ashworth) that this debate is happening only because of the catastrophic Government blunders in September. Before then, there was no issue; there was a very clear commitment from the then Chancellor, who is now Prime Minister, that the triple lock would be honoured. Unfortunately, what happened in September has created the very difficult situation that the Secretary of State rightly described.

It is important to remember that there has already been a big real-terms fall this year in the value not only of the state pension, but of working-age benefits, which were increased by 3.1% in April when inflation was at nearly 10%. That was justified at the time on the basis that that is how the usual uprating formula works: pensions and benefits are uprated in April by the rate of inflation in the previous September. The then Chancellor acknowledged that the effects would need to be addressed next April, so he gave an assurance in May that the same formula would be applied again for next April’s uprating. We now know that pensions and benefits will be uprated by 10.1%, which was the rate of inflation in September.

On pensions, as we have been reminded, there is also a Conservative manifesto commitment. As I said in my intervention on the Secretary of State, if the promise on pensions is not kept next April and pensions are instead uprated by less than the rate of inflation, it will be almost without precedent.

Since 1977, there has been a statutory obligation, defined in a variety of ways, to uprate in line with inflation. It has been honoured every year since then except 1986, when the rate of inflation was 1.1% and the decision was made to uprate the state pension by 1%—0.1 percentage points less. Apart from that, there has been uprating by at least the rate of inflation every single year. To depart from that approach now, on the scale that has apparently been considered recently, would be absolutely without precedent in 50 years. In November 1980, inflation was at 16.5%; the state pension was uprated by 16.5%. In April 1991, inflation was at 10.9%; the state pension was uprated by 10.9%.

It is clear why there has been that commitment all the way through: because people who have given a lifetime of work and have retired from working have already made their contribution, so there is nothing that they can do to make up the difference if the value of their state pension falls. I think we all recognise that there is an obligation on the state—a social contract—to maintain the value of the state pension. That contract should not be breached as a result of the Government making catastrophic errors in their management of the economy in September.

The considerations with working-age benefits are different. They have also been sharply reduced in real terms this year, but over the years they have frequently not been uprated in line with inflation. As a cumulative result, according to the Library, they are now at their lowest level in real terms in the 40 years since 1982-83. Trussell Trust food banks gave out 2.1 million emergency food parcels in 2021-22; they gave out 60,000 in 2010-11. They have reported that demand in August and September this year was 46% higher than last year. Why is the economy failing so many people? How many more are the Government willing to push into destitution?

The annual family resources survey has started to collect data on food insecurity to get a handle on what is going on with food banks. We now have results for the first two years, 2019-20 and 2020-21; the Secretary of State and I had an exchange about them at Work and Pensions questions recently. Food insecurity among universal credit claimants fell from 43% in 2019-20 to 27% in 2020-21, reflecting the £20 universal credit uplift introduced in March 2020, just between those two financial years. Now that that has been taken away, food insecurity will have shot up again. We will have to raise the level of universal credit to address the current mass dependence on charitable food banks.

[Tahir Ali (Birmingham, Hall Green) (Lab)]

Does my right hon. Friend agree that it is outrageous that we now have more branches of food banks than of McDonald’s?

[Sir Stephen Timms]

It is a great shame on us all that so many people are dependent on charitable food banks, and the numbers are still rising. We certainly must not fail to uprate social security, universal credit and pensions in line with inflation in April, because otherwise there will be yet another big surge in demand. That is why it is so important for the Prime Minister to honour the promise that he made as Chancellor.

There is one more uprating we need that cannot be ignored. The benefit cap was introduced in 2012. At the time, it was based on the level of median earnings. It has never been uprated. It has changed only once: in 2016, it was reduced. Its value has lost any connection with the earnings level to which it was supposed to be linked when it was introduced. If it is not uprated next April, whatever level of uprating is decided on, thousands more families will crash into the cap for the first time and many will have to start going to a food bank to keep themselves alive.

It is time to recognise that mass food bank dependence is not inevitable. We can turn back from this. We can do much better than this. In the decisions announced next week, we must—at the very least—not make things worse.

[Several hon. Members rose—]

Oral Answers to Questions

Stephen Timms Excerpts

Monday 31st October 2022 Commons Chamber

[Sir Stephen Timms (East Ham) (Lab)]

7. What assessment he has made of the impact of the level of universal credit on food insecurity.

[The Secretary of State for Work and Pensions (Mel Stride)]

I begin by recognising the important work that the right hon. Gentleman carries out as Chair of the Work and Pensions Committee and thank him for the co-operation that he showed me when I was a fellow Chair of a Select Committee. I look forward to appearing before his Committee before too long.

As the right hon. Gentleman will know, universal credit is but one factor in addressing food insecurity. The Government have provided significant support with the £37 billion cost of living package.

[Sir Stephen Timms]

I congratulate the Secretary of State on his appointment and warmly welcome him. We already have a date in the diary for him to come before the Committee and we look forward to that.

Current large-scale food bank dependence is shameful. It was up by 46% in August and September on a year previously, according to the Trussell Trust, and it is reported in the press today that hospitals are seeing a big rise in malnutrition cases. The family resources survey also says that food insecurity among universal credit claimants fell from 43% to 27% after the £20 a week uplift was introduced. Does not all that show how crucial it is that the Prime Minister keeps the promise he made as Chancellor to uprate benefits next April by 10.1%?

[Mel Stride]

I am not going to pre-empt my decision on the uprating of benefits or indeed the triple lock. We will need to wait until at least 17 November when my right hon. Friend the Chancellor will come to the House with his autumn statement and those details will be known at that point.

The right hon. Gentleman raises the family resources survey. One statistic that caught my eye was that the percentage of households with UC claimants who are in food security rose from 57% in 2019-20 to 73% in 2020-21. Any element of food insecurity is too much—I recognise that—which is why this Government and this Prime Minister are absolutely determined to use whatever we have at our disposal to work on those figures and to improve them. That includes the various interventions that we have already discussed during these questions.

Social Security (Special Rules for End of Life) Bill [Lords]

Stephen Timms Excerpts

2nd reading
Thursday 8th September 2022 Commons Chamber

[The Secretary of State for Work and Pensions (Chloe Smith)]

I beg to move, That the Bill be now read a Second time.

It is a pleasure to move the Second Reading of the Bill in this role, and I welcome the new member of my ministerial team, the Minister of State, my hon. Friend the Member for Banbury (Victoria Prentis), who will be at the Dispatch Box for the later stages of this Bill.

For a person to find out that their illness cannot be cured can be a frightening experience. As a Government, we are committed to do all that we can to alleviate the pressures facing those who are nearing the end of their lives and their families. To provide some financial security to those who find themselves in this difficult position, the Department for Work and Pensions has, since the 1990s, provided access to key benefits via what are often referred to as the “special rules”. These are benefit rules that enable people who are nearing the end of their lives to get fast-track access to certain benefits. Historically, people eligible under those rules have not had to wait as long as others to start getting benefit payments. They have not been required to go through medical assessments, and, in most cases, have qualified for higher rates of benefit. In order to access this fast-track route, people had to be assessed by their healthcare professional as having six months or less to live, and this became known as the six-month rule.

For more than 30 years, these special rules have ensured that, at this most difficult time, people have got the financial support to which they are entitled quickly and easily. None the less, since those rules were first introduced there have been significant advances in how the NHS treats and cares for people nearing the end of their lives, meaning that many terminally ill people are now living longer. Given these advances, in July 2019 the Department launched an in-depth evaluation of how the benefit system supports people nearing the end of their lives. As part of that consultation, the Department worked with those people, those who support them and clinicians.

The evaluation’s findings showed that there was consensus across all groups that the Government should extend the current six-month rule. It showed support for the DWP to adopt a 12-month end-of-life approach that would allow people in the final year of their life to claim under the special rules. An added benefit of the 12-month approach was that it would also bring greater consistency with the definition of “end of life” used within the NHS and across Government.

[Sir Stephen Timms (East Ham) (Lab)]

May I be the first to congratulate the right hon. Lady on her appointment and say on behalf of the Work and Pensions Committee how much we are looking forward to working with her and her colleagues in the months ahead?

The Select Committee had previously suggested getting rid of the time period altogether and referring simply to people having a terminal illness, and that approach has now been taken in Scotland. Did the Department consider that in looking at this change, and, if so, what was the reason for rejecting it?

[Chloe Smith]

The Chair of the Select Committee makes, as ever, a thoughtful point. I very much look forward to working with him and the Committee. Yes, our evaluation did look at exactly that point. As I was just coming on to argue, our approach brings a greater consistency with the NHS, which considers people to be

“approaching the end of their lives when they are likely to die within the next 12 months.”

That consistency is an important objective. At that 12-month point, clinicians are encouraged to think about the support that their patients need, including any financial support.

A point that I am sure my hon. Friend the Minister of State will draw out at Committee stage is that we also think it is important that clinicians can be supported to make the most consistent and straightforward decisions. Of course, in many cases that is not straightforward, but we want to enable clinicians to have the best chance of making a clear decision in support of their patient. That was the evidence that our evaluation found in favour of the 12-month definition. Indeed, that has been borne out by a great deal of support for what we have since been able to announce, which the right hon. Gentleman will be aware of from the various groups that support those in their last stage of life.

Oral Answers to Questions

Stephen Timms Excerpts

Monday 11th July 2022 Commons Chamber

[Mr Speaker]

I call the Chair of the Select Committee, Sir Stephen Timms.

[Sir Stephen Timms (East Ham) (Lab)]

The Government’s response last November to the Select Committee’s report on the disability employment gap promised key improvements to Access to Work to make it easier for people to use. Can the Minister give us an update on progress with that? Specifically, the trial of Access to Work passports started last November, so that people can take their support from one job to another. Can the Minister tell us whether that will be extended to everybody on the scheme and when we can expect that to happen?

[Chloe Smith]

These are incredibly important details and aspects of the Access to Work scheme, and the right hon. Gentleman is correct that those improvements are in the pipeline. We have been able to pilot a number of different passports. I will write to him with details and I am also with his Committee next week, where I can provide the precise details of that. By way of example, a passport now in operation assists freelancers and people who work in contract form to be able to carry their requirements with them from job to job, so that it is easier for them to stay and succeed in work, which is the goal we are talking about. I also look forward to talking further with him about the digital improvements we want to make to the process, again to help people get that support earlier and faster, so that they can get the benefits of being in work.

Cost of Living

Stephen Timms Excerpts

Tuesday 5th July 2022 Commons Chamber

[Sir Stephen Timms (East Ham) (Lab)]

I am grateful that we have been granted this debate to discuss the spending of the Department for Work and Pensions. We are all familiar with the facts of the cost of living crisis: price rises are accelerating and inflation in May was the highest since 1982—the highest for 40 years—at 9.1%. In France, inflation was 5.8% and in the eurozone, it was 8.1% on average, so we have a particularly acute problem in the UK. The Bank of England Monetary Policy Committee said last month that it expects inflation to rise to slightly above 11% in October.

In the light of those rapidly increasing costs, the Chancellor announced measures to support households in February, March and May. I warmly welcome that support, which is valued at £37 billion. Two of the support measures that he announced are funded by the DWP and are therefore a focus of this debate: first, the £650 payment for households receiving means-tested benefits, and secondly, the £150 payment for people receiving disability benefits.

I understand that the DWP will pay the first £326 instalment of the £650 payment in the second half of this month. The qualifying day for that—the day on which someone had to have been claiming means-tested benefits—was 25 May. The qualifying day for the second instalment has not yet been announced, but I gather that it will be no later than 31 October. Those payments will be tax free and will not affect other benefit awards. I particularly welcome the fact that, as the Secretary of State confirmed to me in the debate on the recent legislation to enable the payments, they will not be constrained by the benefit cap.

The other measures that the Chancellor announced in May, which are not legislated for by the Social Security (Additional Payments) Act 2022, include two extensions of existing programmes for which DWP is responsible. First, pensioner households will receive a one-off £300 pensioner cost of living payment as a top-up to their winter fuel payment, which will cost in total £2.5 billion. Secondly, there will be an additional £500 million for the household support fund for local authorities to make discretionary payments to people in need—some £421 million for England and £79 million for the devolved Administrations through the Barnett formula. That will cover the period from October this year to March next year.

The household support fund was originally announced in September 2021 with £500 million for local authorities for the six months from October 2021 to March 2022. It was extended with another £500 million for the following six months from April to September this year. I will say more about that later as a relatively new feature of the estimates.

It is worth pausing to reflect on the fact that, although the Chancellor’s announcements are welcome, there are still some concerns. The Resolution Foundation estimates that the

“measures announced this year to support households will in effect offset 82 per cent of the rise in households’ energy costs in 2022-23, rising to over 90 per cent for poorer households.”

It is a substantial response to a substantial problem. The Treasury says that households with incomes among the lowest 10% of all households in England will gain just under £1,200 a year on average as a result of the package, while those among the top 10% will gain around £700 a year on average—significantly less. That strikes me as a broadly appropriate distributional impact.

There are some caveats—for example, the payments are per household. As Save the Children and others have pointed out, larger families will not get any more support than smaller ones, even though children in larger families are at much greater risk of being in poverty. Nearly half—47%—of all UK children in a family with three or more children were in poverty in 2020, so that has a big impact.

The Joseph Rowntree Foundation made the point that:

“One key group who has lost out are unpaid carers”.

We have just debated kinship carers. Only 59% of the 1 million people who claim carer’s allowance also claim means-tested benefits, so the other 41% will not get any additional support through the package. I applaud the Welsh Government’s initiative to provide an additional £500 payment for carers in Wales, and I think consideration should be given to comparable additional support elsewhere in the UK.

People waiting to be assessed for a personal independence payment cannot access the £150 payment. People wait on average five months to be assessed and receive a decision, and some 300,000 people are waiting at the moment. We might think that they ought to be getting some help, but they will not. People waiting for a work capability assessment will not get the payment either. The backlog for work capability assessments for universal credit is not published, so we do not know the size of it, but we know that there is one.

In April, as we all know, inflation-linked benefits were increased by 3.1% in line with the increase in the consumer prices index last September. When the uprating took effect, however, inflation was already over 7% and, as we have been reminded, it is now expected to rise to 11% this year. The Secretary of State previously told the Work and Pensions Committee that she does not favour one-off payments of the kind that the Chancellor announced in May. She is right: welcome though the Chancellor’s announcements are, I agree that it would be far better to have an uprating system that works properly, rather than having to resort to these stopgap measures to deal with the emergency.

Universal credit can be updated quickly, as we saw when lockdown hit, but the legacy benefits cannot be. The permanent secretary told the Select Committee last week that the problem is that uprating programs can only be run at weekends, when the computer systems are not doing other jobs, and that is apparently why it takes such a long time to implement the uprating of the legacy benefits. We have already called for those older systems to be improved urgently, and for the gap between assessing inflation and uprating benefits to be reduced. The need for that to happen is now even clearer, given the problems that we have run into this year.

The crisis is also exposing a much bigger and longer-term problem, which is the continued failure to keep the level of benefits in line with inflation. That is a consequence of successive policy decisions over the last 12 years. The chief executive of the Resolution Foundation said yesterday that the headline rate of benefit for someone who is unemployed is now 13% of average earnings, and that that is the lowest level it has ever been. That is lower, I think, than when Lloyd George introduced unemployment benefit for the first time in 1911.

Nobody should be surprised that so many are having such a hard time; there is no resilience in the support that is being provided, because the level is now so low. We have asked Ministers to explain the reason or thinking behind setting the benefits so low, and all we have been told is, “Well, we uprated it that year, we did not uprate it that year, and this is where we’ve ended up.” There is no rationale for the situation that we have found ourselves in where, in real terms, the level of benefits is at its lowest for more than 30 years.

Citizens Advice North Lancashire, one of the organisations that contacted the Select Committee, told us that

“one-off payments are not a solution to inadequate benefit levels.”

It is right about that. It went on:

“Our detailed research…on Universal Credit from across Lancashire…shows that Universal Credit is not enough to live on in Lancashire. Benefit payments urgently need uprating so that people who cannot work can afford to live off them.”

The Select Committee has agreed to look at the longer-term issue of benefit levels in an inquiry in the coming months, and we will be considering these issues carefully.

I want to comment today on two specific features of these estimates. The first is the household support fund. As I have said, the Chancellor’s package included an additional £500 million for the household support fund, bringing the total amount in that fund to £1.5 billion since October 2021. It is administered by local councils in England, and each council sets its own eligibility criteria.

The grant conditions set by the Government are, frankly, pretty vague. They specify that assistance can be issued by the authority itself or through a third party. One third of the grant is to support households that include a child, another third is to support households that include somebody of state pension age and the balance is for everybody else. It is for support with food, energy and other essential living needs. In a so-called exceptional circumstance, the household support fund can be used to support housing costs.

Local authorities have to submit a statement of grant usage to the Department with plans of how they are going to spend the money, and they are supposed to maintain an adequate audit trail for how they do in fact spend it. We asked the Secretary of State about that at the Select Committee last week, and she told us that local authorities have to make two returns a year to the Department about what happens to that money. I think that information is supposed to be published, but as far as I can see, no information has been published about how the household support fund has been used. The truth is that we know very little about what has happened to that £1.5 billion.

One thing that money could be used for is supporting families with no recourse to public funds, some of whom have been in a desperate situation in the last two years. When asked if the household support fund can he used for that, given that it is a public fund, Ministers—absurdly—say that local authorities should take their own legal advice to find out. At the very least, there must surely be clarity about what councils are allowed to do with this funding.

It may well be that the household support fund is playing a valuable role—I imagine it very likely is—but we just do not know, and we should. If there is to be continued use of discretionary funds such as this, instead of uprating benefits properly, the Department must at least work with councils and develop a clear reporting framework for the household support fund to provide assurance that it is being used effectively and that the support is getting to where it is most needed, because at the moment we just do not know. It would be far better to have an effective and reliable system for uprating the level of social security benefits, so that we do not have to resort to these stopgap measures in situations such as the one we are in at the moment.

The second point I want to pick out is about the benefit cap. The cap has not been changed since 2016, and in 2016 it was lowered. It continues to limit overall annual benefit support for a family to £23,000 in London and £20,000 across the rest of the UK, with comparable figures for a single person of £15,410 and £13,410 respectively. The new cost of living payments will not be constrained by the benefit cap, and I warmly welcome that. I think this sets an important and welcome precedent. It recognises that families up against the cap—and there are over 100,000 of them at the moment—are seeing their costs rising like everybody else.

Given the uprating expected next April, based on the rate of inflation expected in September, the Child Poverty Action Group has estimated that

“an additional 35,000 households will become capped overnight, resulting in a total of around 150,000 households capped in April 2023”.

The North East Child Poverty Commission also contacted the Select Committee, and it told us:

“The benefit cap impacts a relatively small number of households in the North East (fewer than 5,000)…almost all…are families with children…but they are being prevented by the cap from receiving all the support they have been assessed as needing. We urge the Government to lift the benefit cap.” The Government have a statutory duty to review the level of the benefit cap every five years. Until March this year, the obligation was to review it in every Parliament. The last published review of the benefit cap was in 2014, which was eight years ago. The cap was lowered in 2016. The Secretary of State, when we asked her about this last week, could not tell us when it was last reviewed. If it has been reviewed within the last five years, the review certainly has not been published, despite promises to the Select Committee that it would be—and of course it should be. The Government should be open about their thinking in this area.

When the benefit cap was introduced in 2013—my hon. Friend the Member for Westminster North (Ms Buck), who is on the Front Bench, and I were in the Committee that debated this before it took effect—the income threshold was set at median full-time earnings, which at that time was £26,000 a year. Since then, it has been reduced, and of course median full-time earnings are very different now from what they were in 2013 anyway. The level of the cap now bears no relation at all to any particular earnings level.

I warmly welcome that the cap will not apply to the additional payments announced by the Chancellor. That is an important precedent, recognising that families at the benefit cap will be hard hit too. However, with inflation at over 10%, it is imperative that the cap is reviewed ahead of next April’s uprating. It needs at least to reflect average household incomes, as it initially did—it needs to bear some relation to them, surely—and take account of increasing rent, energy and food costs. I urge the Minister to be open with the public and to publish the outcome of that review. The Chancellor’s package means relief from the benefit cap for tens of thousands of families this year, but next year the cap will be back and presumably there will not be any further additional payments from the Chancellor. The level of the cap must be raised before next April because if it is not, the consequences will be dire.

I am very grateful for this opportunity to debate the very important estimates that the Government have provided for us. They make such a big impact on millions of our fellow citizens, and it is vital that such decisions about them are the right ones.

--- Later in debate ---

[David Rutley]

We are having to deal with some challenging headwinds, as a result of the pandemic and now these inflationary pressures, but we have sought to take targeted measures. During the pandemic, especially the early stages, we focused particularly on those who were feeling the impact of changes in the employment market, which were immediate. Now we are focusing our efforts on targeted support for the people and households who will be most affected by inflationary pressures. The means of dealing with those are complex, and we are having to develop systems and processes to get the payments out quickly. Because of their nature they will never be 100% perfect, but we have taken other steps to support those who may not previously have been eligible for support. I shall say more about that shortly.

Our labour market policies are part of our plan to manage inflation, and that is a further reason for us to redouble our efforts to encourage more people to get into work and take advantage of the current buoyant labour market, with a record 1.3 million vacancies. Our multimillion-pound plan for jobs is helping many people into work with the kickstart scheme and the restart programme. Opposition Members do not always talk about the importance of work and the achievements that have been made in the labour market, so let me point out that last week our Way to Work campaign met its ambition of moving more than half a million people into work in under six months. That is an important achievement, not necessarily for the Government —although we welcome it—but in terms of the difference it will make to households throughout the country.

Moving into work and making work pay are core tenets of our strategy to build long-term growth and prosperity up and down the country, which is why we have introduced a number of work incentives. In particular, we have cut the universal credit taper rate from 63% to 55%, and have increased work allowances by £500 a year. Tomorrow, 6 July, we are cutting the national insurance threshold, a move that will be worth up to £330 a year for nearly 30 million working people.

Some Members have mentioned uprating, including the Select Committee Chair, the right hon. Member for East Ham. As part of the Department’s long-term approach, the Secretary of State completed her annual review of benefit and pension rates last year in the usual way, using well-worn, well-proven methods and processes. The state pension and the pension credit standard minimum guarantee were increased by 3.1%, the rate of inflation for the year to September 2021 as measured by the consumer prices index. As I think the right hon. Gentleman will know, we remain committed to implementing the state pension triple lock for the remainder of this Parliament, and on 26 May the Chancellor confirmed that it would be reinstated next year. All other benefits have also been increased this year in line with the consumer prices index of 3.1%. That approach has formed part of a long-standing convention. Since April 1987, all benefit uprating has been based on the increase in the relevant price inflation index in the 12 months to the previous September, helping claimants through the inflationary cycles.

[Sir Stephen Timms]

I am grateful to the Minister for setting out the commitment to uprating in line with inflation, but does he accept my earlier point about the need, in this very inflationary environment, to uprate the level of the benefit cap? Is he able to tell us whether it will be reviewed between now and next April?

[David Rutley]

I was going to come to that later, but as it is an important point, I will address it now.

As has been acknowledged today, none of the new one-off payments will be taken into account in the benefit cap, but there is a statutory duty to review the levels of the cap at least once every five years, and that will happen at the appropriate time. The current unusual economic period, with potentially counterintuitive and shifting trends, will need to be considered in the context of any decision about a review. The benefit cap provides a strong incentive and fairness for hard-working taxpayers and households, and encourages people to move into work. Last week, the Secretary of State told the Select Committee that she was taking advice on the exact timing and the approach. The statutory obligation to review the cap levels at least once a year in each Parliament changed on 24 March 2022, when the Fixed-term Parliaments Act 2011 was repealed, and the new obligation requiring the Secretary of State to review the levels at least once every five years means that the DWP now has until 2027 to complete a review. As I have said, however, she is seeking advice on that.

The annual review of benefits and pensions for the next tax year will begin in the autumn. To measure inflation, the Secretary of State will use the consumer prices index in the year to September. To measure earnings related to the pensions side of the equation, she will use average weekly earnings for the period from May to July. The uprated benefits and pensions will come into effect in April 2023.

--- Later in debate ---

[Sir Stephen Timms]

I am grateful that we have been able to discuss these important issues, and I want to thank everyone who has contributed to the debate. I commend the hon. Member for Glasgow South West (Chris Stephens) for his long-standing campaign on bereavement benefits, and I hope we are reaching a successful conclusion on that. I am grateful to him for all his work on the Select Committee as well. He made an important point in his speech, which I had not thought of before: now that we have a new Government system for paying one-off grants, surely we could use it to make starter payments for universal credit, as the Select Committee recommended in its report on the five-week wait. As things stand, universal credit is not fit for purpose because of that five-week wait for the first regular benefit payment, and I am grateful to the hon. Member for his suggestion. I hope that we can take that up.

My hon. Friend the Member for Oldham East and Saddleworth (Debbie Abrahams) made some important points, and I thank her for her work on the Select Committee as well, not least her dogged advocacy for vulnerable claimants of disability benefits. We have heard far too many reports of tragic disasters and errors on the part of the DWP, and we are not yet convinced that those problems have been entirely overcome. She gave us some sobering figures on the extent to which social security has been cut over the last 12 years, and we need to do much better. The hon. Member for North East Fife (Wendy Chamberlain) was right to draw our attention to the position of carers and the need for us to do better on supporting them, as we are now doing in Wales and Scotland. I am grateful to everybody who has spoken today, including my hon. Friend the Member for Westminster North (Ms Buck) on the Front Bench and the hon. Member for Aberdeen North (Kirsty Blackman), who spoke for the SNP.

I think the Minister said, in answer to my intervention, that the Government were not required to review the benefit cap until 2027 because the five-year clock had gone back to square one. I do not think it was reviewed in the last Parliament and I have no information about it being reviewed in the Parliament before that, but whatever the statutory obligation, surely when inflation is 10%-plus the Government need to recognise that families on the benefit cap—there are now more than 100,000 of them—are facing rising prices like everybody else and that the benefit cap must be raised in time for next April.

Question deferred until tomorrow at Seven o’clock (Standing Order No. 54).

Office of the Secretary of State for Wales

Social Security (Additional Payments) Bill

Stephen Timms Excerpts

2nd reading
Wednesday 22nd June 2022 Commons Chamber

[Dr Coffey]

My understanding is that the Secretary of State for Business, Energy and Industrial Strategy, my right hon. Friend the Member for Spelthorne (Kwasi Kwarteng), is aware of that particular channel. I am led to believe that a solution is being developed so that people will benefit from that cost even if they do not receive the money directly, because a lot of park home owners do not pay their energy bills directly. I know that my right hon. Friend is aware.

Returning to what we are doing to help people, we are providing a direct cost of living payment of £650—split into two payments of £326 and £324—to over 8 million families who already get help through means-tested benefits. This includes people on universal credit, income-based jobseeker’s allowance, income-related employment and support allowance, income support, working tax credit, child tax credit and pension credit—both guarantee and savings credit recipients. On top of that, we are providing a £150 payment for approximately 6 million people with disabilities who are on qualifying benefits, and giving 8 million pensioner households an additional £300 alongside their winter fuel payment. Combined, that is extra support of at least £1,200 this year for the majority of households that are least able to absorb rising costs, which takes our total support package to £37 billion.

[Sir Stephen Timms (East Ham) (Lab)]

I just want to check one point. At the moment, about 150,000 working-age people who receive universal credit have their benefits limited by the benefit cap. Am I right to say that these additional payments are not constrained at all by the level of the benefit cap?

[Dr Coffey]

Yes, that is the case. I was planning to cover that later. For the record, I will still make that point.

Our household support fund administered through local authorities in England and the money given to devolved Administrations are further avenues for people to seek help with the cost of essentials. From October, the Government are adding an additional £500 million to the fund, extending support through the winter. That equates to an additional £421 million in England and £79 million for the devolved Administrations, and that will take total funding for this UK-wide household support to £1.5 billion.

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[Sir Stephen Timms (East Ham) (Lab)]

I am very pleased that the Bill is in front of us. The Select Committee has been clear in the past few weeks that, without a big measure on this kind of scale, low-income families would be in very serious trouble indeed in the coming months. I echo the tribute that has just been paid by the hon. Member for Aberdeen North (Kirsty Blackman) to Jack Monroe and her campaigning on this. She gave very compelling evidence to the Select Committee at our meeting on 9 March.

The package that has come forward has been widely welcomed. We put out a call for evidence on the cost of living in May. In response, the Joseph Rowntree Foundation said that,

“the package provided much-needed support for households, which will protect many of them against rising costs over the coming year.”

Citizens Advice welcomes the targeted support to low-income households and hoped that it would

“start to reverse the worrying trends we have seen in our data, including record-breaking food bank referrals.”

Unlike the previous announcements, this May package is properly targeted on low-income families, as it needed to be. The Resolution Foundation described it as offsetting

“the poor targeting of previous announcements.”

It also described it as “serious redistribution”. It is, I think, a serious response to a serious problem. I also welcome the Chancellor’s change of heart over the windfall tax to fund some of the help that is needed.

However, we need to be clear: the reason the Bill is needed is that the system for social security uprating has failed. It is a long-standing system. There is nothing new about the way it is done, but the unforeseen burst in inflation means that it simply has not worked this year. On this occasion, the decision has been taken to replace adequate uprating with ad hoc payments from the Treasury, which will certainly help us through the next few months. We need now to rethink the uprating system to make sure that it does not let us down again.

[Jonathan Ashworth]

I have a question for my right hon. Friend, the Chair of the Select Committee. Is he aware that, in 1976, the then Social Services Secretary, Barbara Castle, came to the House and uprated benefits and pensions for a second time in a year—there was a cost of living crisis then as well. The policy of the then shadow Secretary of State, Norman Fowler, was that uprating should take place twice a year. I wonder whether the Select Committee will consider the arguments that were made in the 1970s.

[Sir Stephen Timms]

My right hon. Friend makes a very important point. The Select Committee will certainly be looking at that. We are conducting an inquiry later this year on the question of the level of benefits, and the issue of how benefits should be uprated will certainly feature. I am intrigued to learn that the Secretary of State was able to do that in the 1970s given that we have been told that the IT systems in the 2020s cannot cope with it. I am certainly interested in seeing more on that.

[Stephen Crabb]

The right hon. Gentleman is making an interesting and important point about how we do upratings. I urge him not to get drawn too far down the path of looking at the system in the 1970s, which was in very different circumstances. There is an issue about the timing of uprating and the figures that are used to calculate it, but the bigger practical issue is the different IT systems and the plethora of different benefits that are still in play. Does he agree that we need to find a way to rationalise and simplify them?

[Sir Stephen Timms]

That would help—just modernising the old systems would help, and I will say something about that in a moment.

We are getting ad hoc payments from the Treasury to tide us over. The Secretary of State rightly spelled out to the Committee the downsides of one-off ad hoc payments such as those that the Bill enables. In oral evidence in February last year, she told the Committee that there were higher risks of fraud attached to one-off payments and that they can make it difficult for claimants to budget effectively—both quite telling points. She said that one-off payments were not

“one of the Department’s preferred approaches”

for providing that financial support. She noted:

“There are some challenges about fraud”

and that there would be difficulties if people claiming tax credits received a one-off payment and then moved to universal credit shortly afterwards. On the question of what might work best for claimants, she told us:

“Previous experience would be that a steady sum of money would probably be more beneficial to claimants and customers, to help with that budgeting process.”

I think she is right; it is not ideal for the Treasury to provide lump sums instead.

Why was proper uprating not done in this case? The Chancellor pointed out that legacy benefits cannot be quickly uprated because they are run on antiquated IT systems, as the right hon. Member for Preseli Pembrokeshire (Stephen Crabb) referred to, so uprating takes several months. The Chancellor told us that that was why he was unwilling simply to uprate benefits: it could have been done quickly for universal credit, as we discovered in the pandemic, but not for legacy benefits.

In an earlier debate, I recall the shadow Secretary of State, my right hon. Friend the Member for Leicester South (Jonathan Ashworth) brandishing a document from an IT company, perhaps Oracle, about the front end that it had built for the Department’s legacy systems, which it said enabled changes to be made to them more quickly. I wonder whether the Minister, in closing, could tell us the truth behind that claim about the front end that had been provided. I know that the Department has certainly commissioned such front ends for the legacy systems over a long time, so I am interested to know why, notwithstanding what that brandished document said, it is apparently still the case that uprating takes four or five months. Are front ends in place? Why have they apparently not made faster changes possible?

In our June 2020 report on the Department’s response to coronavirus, the Select Committee recommended an increase in the speed with which changes could be made to legacy benefits. We said:

“People will be claiming legacy benefits until at least September 2024, the Government’s most recent estimate for completing the rollout of Universal Credit. It is simply not tenable for the Department to continue to operate antiquated systems that prevent Ministers from making timely changes to the rates at which legacy benefits are paid. We recommend that the Department work to increase the speed with which changes can be made to legacy benefit rates.”

In its response in September that year, the Department said that it

“recognises the need to be able to respond to events flexibly which is why we are investing in Universal Credit which is more agile than the systems that support legacy benefits.”

While substantial numbers of people depend on legacy benefits, the Government surely need to keep the systems that support those benefits fit for purpose. They are clearly not fit for purpose at the moment, and that ought to be addressed.

[Kirsty Blackman]

On that note, the new systems that we have created in Scotland under Social Security Scotland are doing exactly what the right hon. Gentleman asks. It has the ability to make those extra payments, because we set up the systems. Does he agree that the Government need to just invest to sort that out for many thousands of people?

[Sir Stephen Timms]

It certainly does need to be done. I am pleased to tell the hon. Lady that on Monday the Select Committee will visit Social Security Scotland and that our vice-chair, the hon. Member for Amber Valley (Nigel Mills), who is in his place, will be part of that group. We look forward to that visit.

The reason why benefit uprating has not worked this year is, of course, the six-month gap between September, when the inflation figure forms the basis of uprating for the following year, and April, when increases take effect. In response to our call for evidence on the cost of living, the Joseph Rowntree Foundation called on the Government to

“commit to a much shorter timeframe for annual uprating between measuring inflation and uprating accordingly, to ensure benefit uprating genuinely reflects inflation for the year in question.”

Lloyds Bank Foundation told us that the Government should

“consider uprating benefits in line with inflation in the autumn to ensure they more accurately reflect the true cost of living.”

That sounds like what was done in the 1970s. The Legatum Institute also suggested reducing the delay between CPI measurement and the application of uprating as well as introducing a mid-year uprating review. Citizens Advice called for a more sustainable, responsive uprating approach, which means

“addressing the lag between benefit uprating decision-making and implementation and the exclusion of the benefit cap from wider uprating.”

It says that while the one-off payments to be made under the Bill

“are more generous…for some households than if uprating had been brought forward”,

there are problems. For example, as we were reminded by my right hon. Friend the shadow Secretary of State, the one-off payments are the same amount regardless of family size. They also have cut-off dates, which risks arbitrarily excluding people from support.

Flat-rate payments being irrespective of family size appears to be pretty unfair to larger families. Overall, the package is somewhat more generous than early benefit uprating would have been, but it is less generous for larger families. The justification for that is not clear.

The North East Child Poverty Committee told us that

“a flat-rate £650 payment for all households on means-tested benefits, regardless of household size, additionally fails to recognise the clear link between family size and essential outgoings, with many larger families (already at much greater risk of poverty, a situation compounded by the two-child limit) facing intolerable financial pressures as a result of rising household bills.”

I will make one final point. One great advantage of the Chancellor’s package for low-income families, compared with a straightforward benefit uprating—I was grateful to the Secretary of State for confirming this—is that the benefit cap does not apply. It is striking that when it appears that the headline rate of social security benefits is likely to be raised by perhaps 10-plus per cent. next year, there is no indication at all about the benefit cap being lifted at all. That means that the growing number of families whose benefit has been capped will receive no increase in their income at all at a time when inflation is likely to be over 10%.

In evidence to the Select Committee, the Child Poverty Action Group Told us that

“the Government has made a welcome commitment to increase benefits in April 2023 in line with prices. However, not all price-related elements of the system are included in the annual uprating exercise and the benefit cap means a substantial minority of claimants—an estimated 150,000—will see no increase at all and face another real terms cut to their benefits.”

At a time when inflation is so high, surely at least the level of the benefit cap must be reviewed. Will the Minister give us any encouragement that it will be, ahead of April next year? For now, and in the context of the Bill, it is welcome, and quite a significant precedent, that the benefit cap will not apply to these additional payments.

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[The Parliamentary Under-Secretary of State for Work and Pensions (David Rutley)]

I thank those who have contributed to this debate. I echo the points made by my right hon. Friend the Secretary of State to stress the importance of this urgent legislation to support people up and down the country. The sharp increase in the cost of living is a challenge shared across the globe due to the aftershocks of covid on global supply, amplified by Russia’s unacceptable invasion of Ukraine. This Bill is the flagship component of our bold package of cost of living additional payments which have been designed to help people to cope with increased costs.

We are grateful for the support of Opposition Front Benchers in facilitating the speedy progress of the legislation. It is vital that these payments get to the people who need them. I am also very grateful for the contributions that have highlighted that these are a serious response to serious challenges, such as those made by the Chair of the Select Committee, the right hon. Member for East Ham (Sir Stephen Timms), as well as by my right hon. Friend the Member for Preseli Pembrokeshire (Stephen Crabb) and my hon. Friend the Member for Amber Valley (Nigel Mills).

The support provided through this Bill is timely and comprehensive, and we are taking significant steps and targeting resource to support those in greatest need. The spirit of this Bill is in line with the approach that the Government have taken since the start of the pandemic, which has been shown to deliver for the people of this country in challenging times. We will continue to work hard to help people on low incomes get the support that they need.

We have worked hard through the vaccine roll-out, through the dedication of amazing people, to reopen society, and our economy has responded positively. There are record numbers of people in payroll employment, unemployment is just 3.8%, which is around the lowest level since the 1970s, and there are 1.3 million vacancies, which we are working diligently with employers and communities to fill. My hon. Friend the Member for Ashfield (Lee Anderson) will be pleased to know that, given his focus on work.

With all the work going on to help get people into work and progress in work, we recognise that people do need additional support in dealing with the cost of living challenges. That is why the Chancellor has set out his generous package, with another £15 billion of targeted support, which brings our total package to £35 billion this year alone. Of these additional payments, a particularly important one is the means-tested benefit that will provide a £650 one-off cost of living payment. It will be paid in two instalments to recipients entitled to qualifying means-tested benefits or tax credit. The first starts on 14 July and the second, of £324, later in the year. The hon. Member for Richmond Park (Sarah Olney) asked if there could be one payment. I understand the point she made, but we have consciously staggered the payments to help people on low incomes with their budgeting, which I hope she will welcome. The other important element of the Bill is providing disability cost of living payments of £150, which will go to 6 million people in the United Kingdom and will be paid in September.

We have deliberately kept the rules of the additional cost of living payments as simple as possible, because that is the way we can ensure that we develop the systems and processes required to make the payments at pace. I pay tribute to the hard work of officials across the Government to make that possible.

There are a number of contributions in the debate to which I need to respond. The benefit cap was raised by the right hon. Members for East Ham and for Leicester South (Jonathan Ashworth) and also by my hon. Friend the Member for Amber Valley. We have kept the payments very simple both for those receiving them and for Government systems. They are tax-free, they will not impact on benefit entitlement or the benefit cap, and they will be paid to people without the need for paperwork. They will be paid into people’s bank accounts.

The hon. Member for Aberdeen North (Kirsty Blackman) made points about uprating. Of course, as the Secretary of State said in her speech at the start of the debate, there will be an annual review of benefits and pensions for the tax year 2023-24, which will commence in the autumn as per convention.

Some hon. Members have highlighted the legacy systems and pensions, and asked why we cannot do uprating more frequently. I think we know that the legacy systems are not that agile. Of course, what we are trying to do and working very hard to do—recognising how flexible universal credit is and how resilient it has proven through the pandemic—is to move people through to universal credit by the end of 2024.

[Sir Stephen Timms]

I want to go back to what the Minister said about the benefit cap, and I welcome the point he made. Does he recognise that, in a very high inflation environment, there really is quite a compelling case for looking again at the level of the benefit cap for next year alongside the other benefit uprating matters?

[David Rutley]

There is a statutory duty to review benefit cap levels at least once every five years, and this will happen at the appropriate time. When the Secretary of State decides to undertake the review, she will consider the national economic situation and any other matters she considers relevant at that moment in time.

I reiterate that carer’s allowance is not a means-tested benefit. Nearly 60% of working-age people on carer’s allowance will get the cost of living payment as they are on means-tested benefits or disability benefits. Carer’s allowance recipients will benefit from the £400 per household universal support being provided to help with the cost of energy bills.

People who receive carer’s allowance may live in a household that will benefit from the Government’s support package. For example, they may live with someone who receives a means-tested benefit, a disability benefit or tax credits. If so, the household will benefit from the cost of living payment.

The hon. Member for Westminster North (Ms Buck) has asked me in a number of debates why this measure does not more fully reflect different family sizes and formations. The challenge is trying to get these payments out as fast as possible. To do that, we need to get the payments out to “single benefit units,” as they are described, and households. The important thing to highlight is that most low-income families will be able to receive the £150 council tax support and the energy bill support, on top of the work allowance taper and the increase in the national living wage.

It is not possible to distinguish between those who have a permanent increase in their earnings and those whose earnings are temporarily fluctuating. If a UC claimant’s income subsequently falls, they will return to having a positive award after the cut-off date, and they may be eligible for the second payment.

The right hon. Member for Leicester South talked about the minimum income floor, which ensures we do not prop up unproductive employment or self-employment indefinitely. There is a start-up period to protect newly self-employed people. Beyond that, having a minimum income floor is the right policy. If it means there is a nil UC payment, the claimant would not be entitled to the means-tested payment. However, they would get the £400 energy payment and the £150 council tax rebate, and they would potentially be eligible for the household support fund. It is worth recognising that there are paid employment opportunities out there, given the high level of vacancies.

We have heard about the take-up of pension credit, and I am sitting next to the expert, the Under-Secretary of State for Work and Pensions, my hon. Friend the Member for Hexham (Guy Opperman).