Universal Credit and Working Tax Credit

Debate between Stephen Timms and Steve Barclay

Monday 18th January 2021 Commons Chamber

[The Chief Secretary to the Treasury (Steve Barclay)]

It is a privilege to close this debate on behalf of the Government. Let me begin by thanking right hon. and hon. Members across the House for their contributions. Many spoke with great passion. Having listened to the debate, it is clear to me that there is a heartfelt desire, shared on both sides of the House, to support those constituents impacted by the economic consequences of covid. That was reflected in the well measured opening remarks of the hon. Member for Stalybridge and Hyde (Jonathan Reynolds), speaking from the Opposition Front Bench, and in the comments from my hon. Friends the Members for Sevenoaks (Laura Trott), for Barrow and Furness (Simon Fell) and for Guildford (Angela Richardson), among many others.

The Government are acutely aware of the harm that the crisis has done to people’s finances, including the most vulnerable in our society. At every stage of the pandemic, we have striven to support those who have found themselves at the sharp end. As the Minister for welfare delivery, my hon. Friend the Member for Colchester (Will Quince), outlined earlier, that is why we introduced a wide-ranging package of welfare measures worth over £7 billion this year. That included temporarily increasing the universal credit standard allowance and the working tax credit basic element by £20 a week—an increase that has boosted welfare spending by £6.1 billion. As my hon. Friend also pointed out, given the evolving nature of the pandemic, it is right that we wait until the Budget before making future tax and welfare decisions.

[Stephen Timms]

rose—

[Steve Barclay]

I will of course give way to the Chair of the Work and Pensions Committee.

[Stephen Timms]

Is it not unreasonable to force families who claim universal credit to wait until March to find out whether the rate of benefit will be cut by nearly a quarter at the end of March? Surely the Government need to announce their decision sooner.

[Steve Barclay]

I think what that ignores is that a quarter of the scheme is still to run, because there is still almost three months until the end of the financial year.

One should look at the package of measures as a whole. As a number of right hon. and hon. colleagues have pointed out, my right hon. Friend the Chancellor has allocated £280 billion in fiscal stimulus to help weather this crisis—I think the Chair of the Work and Pensions Committee has welcomed a number of these measures. As was further pointed out during the debate, and as Treasury analysis supports, the measures have overwhelmingly supported the poorest families most and reduced losses for working households by up to two thirds. That point was elegantly expressed by my hon. Friends the Members for Bexhill and Battle (Huw Merriman), for Meriden (Saqib Bhatti) and for Redcar (Jacob Young)—he correctly identified that the scale of Government support has been praised by many international observers, including the IMF, which has singled out the UK’s performance.

Let me briefly remind the House of some of the key elements of that support that relate most closely to this debate. The furlough scheme has protected the jobs of almost 10 million people, many of whom are on low incomes. Over 3 million people have benefited from self-employment grants. In addition to the temporary uplift in welfare payments, we have also suspended the universal credit minimum income floor and increased the local housing allowance rates for housing benefit and universal credit.

We have also supported those on low incomes through other measures, including council tax relief through the £500 million hardship fund, and the £500 payments for people on low incomes who have to self-isolate. Our covid winter support package includes the £170 million covid winter grants scheme and a £220 million expansion of the holiday activity and food programme for disadvantaged children. Those points were made during the debate, including by my hon. Friend the Member for Rushcliffe (Ruth Edwards). These measures have provided financial support to millions of families and individuals.

Beyond the state help that those measures have enabled, there can be no doubt that the best way to raise living standards is to keep as many people in work as possible and to support their wages. That is why my right hon. Friend the Chancellor has focused on our pledge to end low pay by increasing the national living wage by 2.2% to £8.91 an hour. Indeed, he has gone further, protecting, creating and supporting employment through our £30 billion plan for jobs—a point that my hon. Friend the Member for Stourbridge (Suzanne Webb) brought to the House’s attention very effectively. Measures including the furlough scheme, along with a raft of other initiatives designed to get people into work, have boosted jobcentre capacity, doubling the number of work coaches, and sit alongside measures such as the new £2.9 billion restart programme to help over 1 million unemployed people back into work.

As well as helping people to find jobs, we are creating new ones through a range of policies. They include our £8.6 billion investment in infrastructure, decarbonisation and maintenance programmes, and our £2 billion kickstart scheme for young people. Over the long term, we plan to unlock 250,000 highly skilled sustainable jobs that will boost our recovery under the Prime Minister’s 10-point plan for a green industrial revolution.

I have set out to the House the scale of support we are providing to people in this crisis, as well as our commitment to helping the most vulnerable and those on low incomes. Let me add that it would not have been possible to provide that support without the dedication of thousands of workers in the Department for Work and Pensions and on the frontline in jobcentres around the country. Let me echo the remarks of the Under-Secretary of State for Work and Pensions, my hon. Friend the Member for Colchester, the Minister for welfare delivery, by pointing out how well the universal credit system has coped with the enormous increase in claimants over the past months, a point recognised quite rightly by my right hon. Friend the Member for Preseli Pembrokeshire (Stephen Crabb), my hon. Friend the Member for Brecon and Radnorshire (Fay Jones)—I am sure colleagues will join me in wishing her a happy birthday—and my hon. Friend the Member for Gedling (Tom Randall).

Despite immense pressures, payments have still been issued swiftly and efficiently to millions of people through the universal credit system. It is clear that every Member of this House is concerned for the financial wellbeing of families and individuals in their constituencies and across the country. That has been reflected in the remarks from all sides of the House during the course of the debate. The Government, too, are acutely aware of the challenges people face. That is why we have spent £280 billion in response to covid, reflecting the Government’s and the Chancellor’s commitment to support individuals, businesses and our public services. As such, we will not move an amendment to this debate.

Question put.

Oral Answers to Questions

Debate between Stephen Timms and Steve Barclay

Tuesday 1st December 2020 Commons Chamber

[The Chief Secretary to the Treasury (Steve Barclay)]

The £20 per week increase to universal credit and working tax credit is benefiting claimants by a total of £6.1 billion this year and is just one part of the wide-ranging package of Government support during this crisis.

[Stephen Timms]

The Joseph Rowntree Foundation points out that raising social security benefits not only helps hard-pressed families, but boosts the economy because the increase is likely to be spent. Does the Chief Secretary recognise that raising legacy benefits in line with the £20 a week increase he has referred to that has already been introduced in universal credit would boost the economy while also addressing the current unfair discrepancy between them?

[Steve Barclay]

I recognise that the right hon. Gentleman has, as Chair of the Work and Pensions Committee, raised this issue on a number of occasions, and he will know that the uplift continues until the end of March; the benefit to which he refers continues until then. The Government are not ruling anything out for the future, but it is right that we wait for more clarity on the national economic picture before making any further decisions.

Oral Answers to Questions

Debate between Stephen Timms and Steve Barclay

Tuesday 20th October 2020 Commons Chamber

[Stephen Timms (East Ham) (Lab)]

[The Chief Secretary to the Treasury (Steve Barclay)]

[Stephen Timms]

[Steve Barclay]

European Union (Withdrawal Agreement) Bill

Debate between Stephen Timms and Steve Barclay

Consideration of Lords amendments & Ping Pong: House of Commons & Ping Pong
Wednesday 22nd January 2020 Commons Chamber

[Steve Barclay]

I shall make a little more progress before taking further interventions. I urge Members to reject both amendments.

I turn to Lords amendment 4, tabled by the noble Lord Dubs. Although the Government humbly disagree with the amendment, we recognise his sincerity about and dedication to this issue and the constructive scrutiny that he has provided on behalf of vulnerable children. The amendment would remove the provision that amends the European Union (Withdrawal) Act 2018 to require the Government to report on their policy on unaccompanied asylum-seeking children.

I can only say again, as I did in our previous debates, that the Government’s policy is unchanged. Delivering on it will not require legislation. The Government have a proud record on supporting the most vulnerable children. The UK has granted protection to more than 41,000 children since the start of 2010. In 2018, the UK received more than 3,000 asylum applications from unaccompanied children, and the UK deals with 15% of all claims in the EU, making us the country with the third highest intake in Europe. Indeed, in the year ending September 2019 the intake rose to more than 3,500.

[Stephen Timms (East Ham) (Lab)]

I am pleased that the policy has not changed, but why is the Secretary of State changing the legislation?

[Steve Barclay]

The right hon. Gentleman pre-empts the passage that I am just coming to.

As hon. Members will be aware, my right hon. Friend the Home Secretary wrote to the European Commission on 22 October on this very issue. The amendment in no way affects our commitment to seek an agreement with the EU. Primary legislation cannot deliver the best outcomes for these children, as it cannot guarantee that we will reach an agreement. That is why this is ultimately a matter that must be negotiated with the EU. The Government are committed to seeking the best possible outcome in those negotiations.

Oral Answers to Questions

Debate between Stephen Timms and Steve Barclay

Thursday 27th June 2019 Commons Chamber

[The Secretary of State for Exiting the European Union (Stephen Barclay)]

The Government’s position on a second referendum has not changed.

[Stephen Timms]

I am sorry to hear that. Brexit was supposed to deliver frictionless trade, the exact same benefits as the single market and the customs union and an extra £350 million a week for the NHS, but the Prime Minister was not able to deliver and any actual Brexit deal will fall far short of those promises. Should not the voters get the choice between proceeding on the basis of whatever deal is actually available or remaining?

[Stephen Barclay]

The voters in the right hon. Gentleman’s constituency, such as those at Tate and Lyle, should get the choice. Eight hundred and fifty people work at Tate and Lyle in his constituency. It is a business that has suffered because of the EU protectionism applied to sugar beet and a business where 19,000 lorries bringing sugar in could be transferred if we moved to cane. He should be listening to voices such as those at Tate and Lyle who want to see us leave because they see what the voters who voted to leave the EU saw, which is the opportunities that Brexit will unlock.

--- Later in debate ---

[Stephen Barclay]

My hon. Friend makes an important point about data adequacy and the EU Commission’s position on that. Unilateral action can be taken to put standard contractual terms in place, for example, which a lot of firms and organisations have done. The wider point, however, is that 40% of the EU’s data centres are within the UK, and many of the underground cables carrying data go through UK waters. It is important to remember that there are reciprocal benefits in coming to sensible arrangements on data adequacy, because not having a flow of data would be devastating to many European firms if they were to find themselves unable, for example, to send personal data linked to tourists. That is just one of the many examples that I could cite.

[Stephen Timms (East Ham) (Lab)]

The hon. Member for Stafford (Jeremy Lefroy) is absolutely right. The Prime Minister failed in her aim to secure a continuing place for the UK on the European Data Protection Board, which oversees GDPR. Is it not a profoundly unsatisfactory aspect of the Prime Minister’s deal that, in that area and lots of others, we would have to comply with loads of EU rules over which we would have no influence at all?

[Stephen Barclay]

The right hon. Gentleman raises an important point. Within any future trade deal, whether with the EU or further afield, there will always be a trade-off around what access we would get and what sovereignty we would trade. He knows from his time in the Treasury that that is always at the core of the debate around trade deals. In relation to the political declaration, when the debate around medicines and a number of other EU agencies has come up, we have said that we stand ready to work with the Commission on developing good regulatory standards. There is no race to the bottom on regulation from this Government, but there is also the question of what the Commission is willing to agree. It is in our mutual interests to come to sensible arrangements on data, for the reasons that I gave to my hon. Friend the Member for Stafford.

Article 50 Extension

Debate between Stephen Timms and Steve Barclay

Wednesday 20th March 2019 Commons Chamber

[Stephen Barclay]

I will give way once more and then I will wrap up, because I am conscious of time.

[Stephen Timms]

In his last speech in the House, the Secretary of State commended a Government motion to us and then voted against it. Will he explain to us what on earth he was doing?

[Stephen Barclay]

Again, I touched on this in various media rounds I did yesterday. The point, looking at the entirety of my speech, is that all of my speech except the final line addressed the substance before the House that day: the amendments, in particular the amendment from the Chair of the Exiting the European Union Committee, the right hon. Member for Leeds Central, which would have taken control of the Order Paper away from the Government. I happen to feel, and the Government felt, that that was not just damaging to Brexit but constitutionally significant. As the right hon. Gentleman will know, the Government won that vote by two votes. There were three votes. What was reported was that the conclusion of the speech was quickly followed by a vote. What actually happened was that the three amendments were defeated and it was only at that point, following a commitment to a further amendable motion on 25 March, that the Chief Whip was in a position to change the Whip. So it was not just my view that changed, but the Chief Whip’s and the Government’s. [Interruption.] He chunters away. He asked a question and he is getting a straight answer.

Oral Answers to Questions

Debate between Stephen Timms and Steve Barclay

Thursday 28th February 2019 Commons Chamber

[Stephen Timms (East Ham) (Lab)]

T3. Does the Secretary of State recognise that if the Prime Minister returns with an amended version of her deal, there is a very strong case that parliamentary approval being subject to subsequent ratification in a public vote?

[Stephen Barclay]

We have had a public vote. The people voted in record numbers, and they gave us a clear instruction to deliver on that. I simply remind the right hon. Gentleman that he, like so many Labour Members, stood on a manifesto that committed to give force to that vote. Many voters in his constituency and others across the country will be baffled as to why, given that manifesto, his party now seems to be going back on it and supporting a second referendum. That is not what it was saying at the general election.

Oral Answers to Questions

Debate between Stephen Timms and Steve Barclay

Tuesday 6th February 2018 Commons Chamber

[Stephen Barclay]

There are good plans in place for getting Worcestershire Acute Hospitals NHS Trust and the Alex, specifically, out of special measures. A package of support is in place to enable the trust to improve its quality of care. Delivery of the acute service redesign plan is a key driver to sustaining services in the medium term and £29.6 million of STP funding has been agreed to support that.

[Stephen Timms (East Ham) (Lab)]

At the weekend, NHS England, as my colleagues have pointed out, gave up on the key A&E waiting time target. Does the Minister agree that it is very important that when people go to A&E they do not have to wait longer than four hours, as more than 2.5 million did last year? Whose responsibility is this delivery failure?

High Speed Rail (Preparation) Bill

Debate between Stephen Timms and Steve Barclay

Thursday 31st October 2013 Commons Chamber

[Stephen Timms]

I am grateful to the right hon. Lady. However, I believe that an adequate connection should be part of the initial proposal.

[Stephen Barclay]

Will the right hon. Gentleman give way?

[Stephen Timms]

No, I will not give way again.

I welcome amendment 17 and the Government’s support for it. I have raised this matter with Ministers before, but I ask the new Minister for the first time to pay particular attention to the connectivity problem between High Speed 1 and High Speed 2, which was highlighted by the right hon. Member for Chesham and Amersham.