Universal Credit

Debate between Stephen Timms and Esther McVey

Monday 5th November 2018 Commons Chamber

[Stephen Timms (East Ham) (Lab)]

Everybody claiming universal credit has to wait at least five weeks before being entitled to payments, including those being moved across from previous benefits. The Secretary of State referred to the additional two weeks of previous benefits announced by the Chancellor in the Budget. How can Ministers justify stopping all benefits for a period of at least three weeks for people migrating from previous benefits on to universal credit?

[Ms McVey]

It will be a continuum. The payment cycle will be going from two weeks to four weeks, and this is actually extra money. They will be getting two weeks’ extra money because they will be getting the full period they are entitled to when it comes along after four weeks. This is not giving them less money, or even part of their money; this is two weeks’ extra benefit.

Universal Credit

Debate between Stephen Timms and Esther McVey

Wednesday 17th October 2018 Commons Chamber

[Ms McVey]

I will indeed give way. Who shall I choose from this merry bunch?

[Stephen Timms (East Ham) (Lab)]

One of the representations the Secretary of State will have received is from the Residential Landlords Association saying that a majority of its members are now not willing to let accommodation to universal credit claimants because they quickly get into arrears and cannot pay the rent. Is she proposing some change to address that specific problem?

[Ms McVey]

As the right hon. Gentleman will know, we have made various changes to make sure that we can pay direct to the landlords—that we can give alternative payments. It is only right that we do that. However, when we talk about the difficulties that claimants have got into, it is good to look at the legacy benefits and Labour’s track record. Between 1997 and 2010, benefits claimants’ debt to local authorities increased by £1.8 billion through overpayment and errors in the legacy system. On tax credits, introduced by the Opposition, claimants got into £5.86 billion-worth of debt through error and overpayments. That is a shameful record from the Opposition.

Universal Credit

Debate between Stephen Timms and Esther McVey

Thursday 5th July 2018 Commons Chamber

[Ms McVey]

I did not know my hon. Friend also spent his formative years in Liverpool. There are so many Conservative Members who spent their formative years and grew up in Liverpool. [Interruption.] I smile because there are so many of us even in this Department.

My hon. Friend is quite right. This is what we are about: getting more people into work, which we have done—and significantly so. Now we are reaching out to help even more people, significantly so.

[Stephen Timms (East Ham) (Lab)]

For eight years Parliament’s only reliable information about the status of universal credit has come from the National Audit Office. Ministers have consistently responded with denials and cover-up statements that, as the Secretary of State has acknowledged this week, were simply untrue. Might her apology herald a new openness about the very real problems with the universal credit project?

[Ms McVey]

I thank the right hon. Gentleman for mentioning my openness and the fact that I was willing, by myself, to come and apologise for using the wrong words. People who know me will always say about me that I am open, that I am straight and that I say it as it is, which I will do. Equally, if we need to make more changes, which I have done from the moment I got here—I did not seek leave to appeal to the Court of Appeal because I did not feel it would have been right; and I looked at the position of kinship carers and did not think it was right, so we changed it, as we did for the 18-to-21 group—I am more than happy to change things when we can, if we can.

Oral Answers to Questions

Debate between Stephen Timms and Esther McVey

Monday 2nd July 2018 Commons Chamber

[Ms McVey]

I was delighted to visit my hon. Friend’s constituency and local jobcentre and to visit the Greenhouse Café, which he champions and which helps vulnerable people to get closer to the workplace. On the question that he and the work coaches raised about the advance, those advances could be given up to 100%, and with the personal relationship that the work coaches have, through this training they can assess what the right needs are. That is the right thing to do.

[Stephen Timms (East Ham) (Lab)]

One of the concerns raised by the National Audit Office is that the Department does not really know who the vulnerable claimants are, and particular problems are being caused by the very long delay before people are entitled to their benefit. The right hon. Lady’s predecessor took an important step by reducing the minimum wait from six weeks to five. Will she commit to taking that further and reducing the period further still?

[Ms McVey]

Universal credit is all about the relationship with the work coach. They get to know their claimants and their claimants’ needs, so it is very much a tailor-made benefit. We as Ministers have always said that, should we need to adapt and change universal credit so that it best supports the individual, we will do just that. I am glad that the right hon. Gentleman welcomed the changes that we have already made.

Universal Credit and Welfare Changes

Debate between Stephen Timms and Esther McVey

Thursday 21st June 2018 Commons Chamber

[Ms McVey]

It was lovely listening to my hon. Friend—my learned friend, who knows so much about technology—because those words needed to be heard. As I said, this is at the leading edge of technology. Great Britain is leading the way. Countries that are coming to see us range from Sweden to the United States, Italy, New Zealand, Spain, Canada, Cyprus, France and Denmark. They all want to know how it works to take it back home to their countries.

[Stephen Timms (East Ham) (Lab)]

When the former Secretary of State was assuring the House that universal credit implementation was going well, it was the National Audit Office that told us what was really happening. Its reports have never been shoddy and have never been scaremongering. They have embarrassed Ministers—that is true—but they have proved to be truthful. The Secretary of State will recognise many of the findings of this latest NAO report in warnings given by Opposition Members when she was in the Department four or five years ago. The central flaw, of course, is the very long wait that people have before they are entitled to receive cash. Her predecessor, who was in the job for only a short time, managed, greatly to his credit, to reduce the waiting time from six weeks to five. Will the Secretary of State commit to build on that progress and reduce the waiting time significantly further?

[Ms McVey]

I have heard the warnings from the Opposition before. I heard the warnings even about work experience and sector-based work academies—“Oh, we couldn’t do that for our young people.” We did, and youth unemployment dropped by over 43%. I have heard the warnings, and I appreciate that the Opposition do not like the way we do things, but the way we do things provides results—hence 1,000 more people in work every day since 2010.

I do agree with the right hon. Gentleman that my predecessor made significant changes in how we were rolling out this system. We have to make sure that waiting times are reduced as much as possible, but two thirds of those longer waiting times are due to a lack of verification. We need the verification to know whether people are legally entitled to benefit.

Oral Answers to Questions

Debate between Stephen Timms and Esther McVey

Monday 21st May 2018 Commons Chamber

[Ms McVey]

People are moving on to universal credit now with a smoother transition. When on universal credit, they are getting into work quicker, staying in work longer and looking for more opportunities in work. They are also getting more personalised support through the claimant commitment, which is helping them whether they are in debt or need IT support. This is about developing universal credit to respond to people’s needs.

[Stephen Timms (East Ham) (Lab)]

The modest changes in the Budget were welcome, but I wonder whether the Secretary of State has seen the recent research showing that food bank demand is growing much faster in areas where universal credit has been fully rolled out than it is elsewhere. Does she have substantial proposals to solve the very serious problems with this new benefit?

[Ms McVey]

They were not modest changes; they were quite significant changes, made after listening to what people said on the ground and meeting various action groups on the ground to see what was needed. We listened and we changed, and that is why we have done a very slow roll-out. I meet some of the poverty action groups across the country on a weekly basis to ask what else can be done. All have welcomed the changes we have put in place and the record number of people we have now got into employment, but of course where we need to give debt support or advances, we will continue to do so.

Universal Credit

Debate between Stephen Timms and Esther McVey

Tuesday 13th March 2018 Commons Chamber

[Ms McVey]

Unfortunately—I think that I was taught this as a child—when someone has totally lost the argument, they make up the facts, and that is what we are hearing from the Opposition. Although we have brought in all the requests that they wanted to support more people into work—I have just read out the list—they just scaremonger and make things up as they go along. I hope that it is clear to the whole House that these regulations will bring in real and tangible benefits for claimants and that, as promised, we are making the changes necessary to continue to deliver universal credit safely and securely, with all the necessary support that claimants need.

I want to be clear about another thing, too, because Members have stood up during past universal credit debates to recount stories of cases where their constituents have reported difficulties with universal credit. Where that has happened, we have immediately sought to address the concerns, because it is vital to us all that we get this right, so that we can deliver the most modern, forward-thinking, flexible benefit in the world, and that is what this Government are seeking to deliver. This benefit will be at the cutting edge of support throughout the world—that is what this Government are delivering.

[Stephen Timms (East Ham) (Lab)]

On problems with universal credit, the Secretary of State will, I think, recognise that the last thing that families earning a bit less than £7,400 a year will want is a pay rise, because if they get it, they will immediately lose their free school meals and be much worse off as a result. That is a very serious problem for work incentives, which used to be a big priority for her Department. Does she recognise that major problem?

[Ms McVey]

The right hon. Gentleman raises a fair point that I would like to address. By contrast, the other points that we have heard so far have been fabrication. He mentioned people earning £7,400. Actually, with universal credit, we are talking about people who will be bringing home somewhere between £18,000 to £24,000. He is quite right—[Interruption.] If Members will kindly let me finish this answer to the very pertinent question asked by the right hon. Gentleman, as this is now a personalised benefit where people will have their own work coaches, we will not seek to put someone in a less advantageous situation. Therefore, if people look at the money that is coming in and the extra support that is coming from school meals, they can see that we will not seek to do that to an individual. A work coach will be working with individuals to help them to progress in work, so that they are in a better situation.

Personal Independence Payment

Debate between Stephen Timms and Esther McVey

Tuesday 23rd January 2018 Commons Chamber

[Ms McVey]

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

[Stephen Timms (East Ham) (Lab)]

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

[Ms McVey]

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

Private Sector Pensions

Debate between Stephen Timms and Esther McVey

Monday 22nd January 2018 Commons Chamber

[Ms McVey]

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

[Stephen Timms (East Ham) (Lab)]

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

[Ms McVey]

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