Disability Benefits

Tanmanjeet Singh Dhesi Excerpts

Tuesday 26th March 2024 Westminster Hall

[Mr Tanmanjeet Singh Dhesi (Slough) (Lab)]

I beg to move,

That this House has considered Personal Independence Payment and other disability benefits.

It is a pleasure to serve under your chairmanship, Mrs Latham.

I am grateful to the House authorities for allowing me to secure this important debate on an issue of huge concern to many across our country, including in my constituency. Often, constituents have come to my advice surgeries with tears streaming from their eyes, in absolute despair at the predicament they face, especially when they are struggling to make ends meet in the midst of a cost of living crisis.

This evening, I stand before the House to draw attention to the state of disability benefits in our nation. Those in our society with disabilities and other health conditions that often prevent them from working are valuable members of our society. They cannot be summarised by statistics, nor by how much they cost the public purse. Behind every such figure is a disabled person.

Successive Conservative Governments have again and again undermined social security in our country, whether through cutting support, a punitive culture towards disabled applicants, or—perhaps most disappointingly—divisive rhetoric about the most vulnerable in our society from none other than senior Government Ministers. My belief is that how we treat the most vulnerable is a benchmark of how healthy our society is.

I am proud to say that under a Labour Government, every stage of the social security system will be supportive and accessible. Labour understands the importance of every person with disabilities being treated with the respect and dignity that they deserve. Unfortunately, that is not a view shared by everyone in our society. Under the Conservatives, many disabled people feel that the Department for Work and Pensions is failing them, with an assessment process that does not understand their needs.

[Ruth Jones (Newport West) (Lab)]

My hon. Friend is making a powerful speech on a very important subject. Elinor, one of my constituents, got in touch with me recently. She had a young child and was pregnant; she was reassessed, her money was dropped—she found out just before she had her second child—and then the money was reinstated on appeal. Does my hon. Friend agree that the assessment process is mad at the moment? It is crazy. It is not sensible. We need to change it, and fast.

[Mr Dhesi]

I thank my hon. Friend for making the case for Elinor in her constituency. Indeed, my hon. Friend is a strong champion of her constituents, and no doubt she and other hon. Members in this place will have helped constituents to regain thousands of pounds in support that they are due. I agree that the assessment process is something that needs to be looked at, and I hope the Minister will give us some good news at the end of this debate.

[Debbie Abrahams (Oldham East and Saddleworth) (Lab)]

I, too, congratulate my hon. Friend on securing this debate. We have unfortunately had some tragic cases in recent years, including people who have gone through the transition from the disability living allowance to the personal independence payment. One person in particular sticks in my mind: Philippa Day, who took her own life because of the appalling transition process and all the mistakes that were made. We need to ensure that we have policies and systems in place, for health assessments and elsewhere, that protect vulnerable people and do not make things worse. I am sure he agrees.

[Mr Dhesi]

My hon. Friend speaks with a great deal of experience, having served previously as a shadow Secretary of State. The word to use is indeed tragedy. There have been countless tragedies. That is why the likes of me have been calling on the Government to deal with issues with compassion and empathy. These are real people that we are talking about and often, unfortunately, they have lost their lives or been put in a state of such despair that they do not know how to get out of their predicament.

My Slough constituent, Monika, told me about her struggles being assessed for PIP. Monika was informed that she was required to have a health assessment to extend her PIP. After appealing against 27 pages of discrepancies and outright untruths in the report from her previous assessment, she was predictably very worried about how she would get through the process again. Her assessment ended up being delayed for a month and taking place when she was suffering particularly ill health. Monika was again left in the lurch by the DWP and faces another appeal, which she is dreading.

Unfortunately stories like Monika’s are, as my hon. Friends have already eloquently explained, not news to any of us. We all have constituents who are failed by the system and by the DWP. Labour has a plan to replace the Government’s current flawed system of work capability assessments with a system that can support people to live with security.

Many benefit claimants are aspirational, but fearful that if they go back into work and find themselves unable to cope, they will be left high and dry—assessed as being able to work, but finding themselves unable to work full-time. Labour’s plan was born out of a desire to deliver for disabled people, helping those who can work back into work.

Too many disabled people say the current system does not work for them. Labour has pledged to introduce the “into work guarantee”, which I hope the shadow Minister will explain at length. That will allow claimants to agree with their benefits adviser that, if they try paid work and it does not work out, within a period of a year, they can go back to the exact benefits that they were on without fresh health assessments. With 288,000 PIP claims outstanding in October 2023, does the Minister agree that Labour’s plan will help to reduce the number of disabled people who want to work, but do not want to risk having their benefits reassessed?

This January, the latest statistics from the House of Commons Library found that the most common main disabling conditions among claimants of PIP were psychiatric disorders. Nationwide, 37.7% of PIP claims were due to those. With mental health waiting lists ballooning under the Conservatives, it is unfortunately not a surprising statistic. When the Government leave suffering people for far too long—people often see their condition worsen before being able to access treatment—it is no wonder that the number is so unacceptably high. I believe that begs a question: will the Minister admit that her party’s policies on mental health over the past 14 years have significantly contributed to the PIP backlog?

The latest numbers from Macmillan Cancer Support show that claimants are still waiting 15 weeks on average for their PIP claim to be processed. Unacceptably, that is higher than it was at the same time last year. Four in five people living with cancer are facing an increased financial impact from their diagnosis, even before the pandemic and the cost of living crisis. It is unacceptable that the Government have failed to fix those issues, which affect our constituents at some of the most difficult periods in their lives. The Government announced extra funding for processing disability claims in the Budget, but can the Minister clarify how exactly that will be used to reduce delays?

Among PIP claimants in my Slough constituency, 16.3% of claims are due to musculoskeletal disorders. MS Society research found that the current disability assessment system is not fit for purpose for those living with multiple sclerosis, a condition that significantly varies in its impact from day to day. A staggering three in five people with MS have reported being unable to explain adequately the effects of their condition on the standard application form. That figure highlights a systemic failure to capture the true extent of disabilities that are not constant, but fluctuate, and underscores the Government’s failure to create a nuanced system that understands the lived realities of those with MS and other conditions.

Furthermore, based on its findings, the MS Society urges the Government to consider the elimination of the 20-metre rule used in mobility assessments, and to seek a more flexible approach that accurately reflects the variable nature of MS. Current criteria fail to accommodate the day-to-day changes in symptoms that people with MS experience. On one day, walking 20 metres is achievable; on others, it is downright impossible. That clearly leads to assessments that do not reflect disabled people’s actual needs.

Incorporating those changes into our approach to disability benefits would not only make the system fairer, but ensure that individuals with MS and similar fluctuating conditions receive the support that they truly need. I am proud that Labour is committed to delivering a system that works for disabled people, ensuring that every person with a disability receives the respect, support and dignity that they deserve.

In conclusion, I thank the constituents who have asked me to share their stories. I am also grateful to various voluntary organisations that make such an enormous impact to help those in dire need. As we conclude this debate on personal independence payments and other disability benefits, let us remember the essence of what we are discussing: the lives and wellbeing of some of the most vulnerable members of our society.

The accounts we have heard serve as a stark reminder of the critical work that lies ahead. It is evident that our current system, in its rigidity and lack of understanding, falls short of providing the necessary support to those living with conditions such as MS. The call to reform, to dismantle barriers such as the 20-metre rule and to embrace a more nuanced approach to disability assessment is more than just policy revision; it is a moral imperative.

We stand at a crossroads where the choices we make can significantly enhance the lives of thousands. By advocating for a system that truly understands the variable and complex nature of disabilities, we advocate for a society that places dignity, empathy and support at its heart. This is not just about adjusting guidelines or streamlining processes; it is about ensuring that every individual feels seen, heard and valued. Our commitment to reforming PIP and other disability benefits is a testament to our dedication to justice and equity for all citizens, regardless of their physical or mental health challenges.

Let us leave this room with a renewed dedication to serving those within our constituencies and beyond, ready to enact the changes necessary for a fairer, more compassionate benefits system. Together we have the power to transform lives. Let that be our guiding principle in the days ahead.

--- Later in debate ---

[Mr Dhesi]

Will the Minister give way?

[Mims Davies]

I will give way to the hon. Gentleman shortly.

With PIP, there were three million decisions from October 2018 to September 2023; 8% were appealed, with 5% cleared at tribunal and 3% overturned. However, I appreciate that the hon. Member for Slough made the point, of which I am very mindful, that none of these statistics are just statistics; they are individual people with individual needs, and we should be very mindful of that.

[Mr Dhesi]

I thank the Minister for giving way. Given the time, I would like an answer to one of my various questions. The Government announced extra funding in the Budget for processing disability claims. Can she clarify exactly how that will be used to reduce the huge delays?

[Mims Davies]

Yes—I am keen to try to come on to that. There were many questions this afternoon and I am trying to get through as many of them as I can.

The chance to work guarantee was mentioned, which will effectively remove the work capability assessment for most claimants; they are already assessed without work-related requirements. That will remove the fear of reassessment and give the group the confidence to try work within the existing permitted work rules in employment support allowance and work allowance rules in universal credit. I am absolutely delighted about what we have done around disability employment. I am keen to do and say more around it, which should feed in again to the process of trying to allay some of the concerns that have been expressed this afternoon.

The proportion of those people in receipt of PIP with a mental health condition who are getting top rates is actually six times higher compared with DLA—PIP is at 41% and DLA is at 7%. I will just point out that customer satisfaction for PIP customers was 77%, with different scores according to different providers; again, I will go away and have a look at that. People being treated with dignity and satisfaction with how they are treated is extremely important to me. Indeed, this morning I raised the issue of disability services complaints. The number has decreased from 2,690 in 2021-22 to 2,330 in 2022-23. I am very mindful again that all of this is about individual experience.

Let me quickly try to canter through a couple of other questions before I close. The hon. Member for Slough talked about PIP clearance times. We have increased the number of case managers—health professional assessment providers—to deal with the increased demand and we have addressed the blend of phone, video and face-to-face meetings, to ensure that it is more centred on service users and is suitable. We have also empowered case managers, where they have robust evidence, to make decisions on award reviews, without referral to an assessment provider, so that decisions are quicker and we can avoid claims going out of payment. I am very much looking at that myself, and the end-to-end claim process for new claims has been reduced from 26 weeks in August 2021 to a current wait of 15 weeks. We are in a better position than we were before the pandemic. That is an achievement that I am proud of. Is there more to do? Absolutely, yes, but again I want those who are watching or listening to this debate to see that this is a big focus.

We are fully committed to delivering on the issues that matter to the British people. This is delivering for disabled people. It is an absolute mission for me in this role to make sure that the most vulnerable members of our society lead decent, fulfilling lives and I will use my time in this role to make sure that I can make the changes that everybody would wish to see.

Women’s State Pension Age

Tanmanjeet Singh Dhesi Excerpts

Monday 25th March 2024 Commons Chamber

[Mel Stride]

I can assure my hon. Friend that we will continue to engage closely with Parliament, as we have done to date and with the ombudsman. She quite reasonably raises gender pension gaps. This Government have brought in and encouraged automatic enrolment—we have consulted on further changes that we are considering —which has led to a narrowing of that gap as it relates to private pensions. There is always more to do, but we are definitely serious about making further progress.

[Mr Tanmanjeet Singh Dhesi (Slough) (Lab)]

The WASPI women in Slough and across our country have been campaigning courageously and consistently for their rights for years. It is the Government’s duty to set out exactly how they will help those women and deliver justice. Given that someone’s entitlement to the state pension depends on how many years they have paid national insurance contributions, what will happen, under the Chancellor’s plans to abolish NICs, to those who are yet to retire? Will they still receive the state pension to which they have been contributing, or will their entitlements change?

Disability Action Plan

Tanmanjeet Singh Dhesi Excerpts

Monday 5th February 2024 Commons Chamber

[Mims Davies]

I thank my right hon. Friend for making some really pertinent points. In regard to his point about playgrounds, that is why there will be a portal and some best practice. Some local authorities are already delivering; others will be able to learn from those interventions, so that families can enjoy playing together in the way that everybody else would take for granted. That should be available in every community.

My right hon. Friend also mentioned the wider structural changes. I am happy to look at the specific case he raised. If he would kindly send me the details, I would be very grateful. This plan is part of the wider national disability strategy, including changes to the work capability assessment. The engagement I have had with disabled people and their organisations has made clear that there are some very vulnerable people who are very keen to be protected and supported, and there are other groups who are very keen to get the opportunities and chances they need. This Government are determined to get the approach right for everybody and every community.

[Mr Tanmanjeet Singh Dhesi (Slough) (Lab)]

According to the charity Sense, 85% of people with complex disabilities are worried about the rising cost of living. The Minister’s predecessor said that the disability action plan would outline the “immediate” action this Government would take to make the lives of disabled people better, so why does the disability action plan do so little to address the cost of living crisis now?

[Mims Davies]

I would point the hon. Gentleman to the next stage of the cost of living payments, which start tomorrow, and again to the household support fund, which we see, evidentially, is supporting carers and those with disabilities at a really difficult time. We have ensured the energy price guarantee remains in place as an additional safety net until March this year. It will hold bills down, and I hope, as energy prices fall, it will help low-paid workers or disabled people, as he describes. The Government are providing millions of households with further cost of living payments, as I say, and there is a £104 billion package to support households until 2025. I am engaged with the other disability champion, the Under-Secretary of State for Energy Security and Net Zero, my hon. Friend the Member for Derby North (Amanda Solloway), on this matter. That is wider than this specific plan, but the hon. Gentleman can be assured that we continue to engage on this matter.

Oral Answers to Questions

Tanmanjeet Singh Dhesi Excerpts

Monday 13th November 2023 Commons Chamber

[Keir Mather (Selby and Ainsty) (Lab)]

9. What steps his Department is taking to reduce the number of children experiencing destitution.

[Mr Tanmanjeet Singh Dhesi (Slough) (Lab)]

23. What steps his Department is taking to reduce the number of children experiencing destitution.

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

Child poverty and its reduction is absolutely core to the mission of my Department, which is why we have focused on cost of living payments, why we have put up benefits across the board by 10.1% and why the Chancellor announced £3.5 billion in the spring statement to support our back to work programmes to raise people out of poverty.

--- Later in debate ---

[Mel Stride]

Heaven forbid that we do have another Labour Government, Mr Speaker, because I have just set out the case against the last one and their appalling record on poverty. When it comes to cost of living payments, those went to 8 million low-income households and to 6 million people with disabilities. There will be further payments of £300 for pensioners alongside the winter fuel payment in the coming months.

[Mr Dhesi]

I wish to draw your attention, Mr Speaker, to a very distressing case in my Slough constituency. A single mother, a victim of domestic violence, is struggling to pay her rent and meet basic needs due to cuts in her universal credit after being compelled to find part-time work. Her living conditions, including mould in her home, are very badly affecting the health of her children. Will the Secretary of State explain how current policies are helping to support such vulnerable families, and what immediate measures will he put in place to ensure that we do not have such dire situations of destitution?

[Mel Stride]

I cannot comment on the specific case that the hon. Gentleman has put forward, other than to say that what he has described is of concern to me and I will want us to look into that extremely carefully. I will be happy to make sure that he has the appropriate time with the appropriate Minister—I think the Minister for Employment—to look into those matters.

In-work Poverty

Tanmanjeet Singh Dhesi Excerpts

Wednesday 28th June 2023 Westminster Hall

[Mr Tanmanjeet Singh Dhesi (Slough) (Lab)]

I beg to move,

That this House has considered in-work poverty.

It is a pleasure to serve under your chairmanship once again, Sir George. I am grateful to have secured this important debate on the scandal that is in-work poverty. Such a debate should not be needed in the 21st century in one of the wealthiest nations in the world, and yet here we are. I hope the debate will explore why so many people face unacceptable levels of poverty not when they are out of work, but while they are working and earning a living.

“If you work hard, you can earn a decent wage, buy a house and raise a family”—that is the promise the Government made to the country in their last election manifesto when they stated:

“We will help people and families throughout their lives by bringing down the cost of living and making sure that work always pays.”

I do not think it is controversial to say that I agree with that. People who work hard should be able to earn a decent wage, afford a home and raise a family. A job that pays, a home of their own and a family they can support are not great gifts bestowed by a generous Government; they are key indicators of a healthy and functioning society. They are our modest expectations and reasonable aspirations, and any half-competent Government should be expected to deliver them. Cruelly, over the past 13 years, this Conservative Government have not only failed to do their job and deliver for the British people; they have also, systematically, through either incompetence or intention—probably both—prevented millions across the UK from getting on in life, trapping them in an inescapable cycle of poverty and hardship.

Data from the Department for Work and Pensions shows that one in five people in the UK were in relative poverty in 2021-22. It is clear that working does not preclude a family or an individual from poverty. After housing costs, 71% of children and 57% of working-age adults who are in poverty are in poverty. In-work poverty has increased by a shocking 1.5 million people since the Conservatives took office in 2010. There are three overarching reasons why things have become so bad: earnings, housing and the cost of living. On each, the Government have taken a bad situation and made it much worse.

Wages today are at the same level as in 2005. That is the longest period of stagnation in terms of earnings in nearly 200 years. Public services have been cut to the bone, and many public sector workers have seen their pay significantly eroded by years of below-inflation rises. At the same time, there has been an explosion in the gig economy and other insecure work—a damning indictment of the Tories’ economic and political choices, which have forced ever more people to rely on the benefits system.

[Chris Stephens (Glasgow South West) (SNP)]

I congratulate the hon. Gentleman on securing the debate. He mentions the gig economy. Three of the reasons for in-work poverty are insecure work and zero-hours contracts, bogus self-employment and low wages. The Government made promises in response to the Taylor review eight years ago, but we are still waiting for that employment Bill. Does he agree that we need that employment Bill now?

[Mr Dhesi]

I could not agree more. I remember standing in this very place after I had managed to secure a debate on the Taylor review of modern working practices. In fact, some of the same Members who are here today also took part in that debate, during which we asked for the employment Bill to be introduced. It is shocking that only seven of the 53 agreed areas of legislation were enacted. Such intransigence is what leads to more in-work poverty.

For 13 years, successive Conservative Governments have sought to undermine social security in our country. Universal credit is not protecting working families from poverty. More than a third of children and working age adults in working families in receipt of universal credit are still in poverty after housing costs.

Ms Clarke, one of my constituents in Slough, is a nurse who supported the most vulnerable during the covid-19 pandemic. She is struggling to pay for the loans that she took out for her training and has to claim universal credit. For that, she must take annual leave to attend her appointments at the jobcentre. How is any of that fair or right? She is a nurse and a single mother without the support she clearly requires.

[Mrs Sharon Hodgson (Washington and Sunderland West) (Lab)]

My hon. Friend is making an excellent speech about in-work poverty. Does he agree that universal free school meals would help alleviate in-work poverty for those at the lower end of the wage spectrum? They are already available in primary schools in Scotland and Wales, and the Mayor of London has announced that they will be extended to primary schools across London. Northern Ireland has a higher earnings threshold of £14,000, which is double the England threshold of £7,400. Does my hon. Friend agree that that would provide a massive boost and really help those people in work who are in poverty, especially the lady he has just spoken about?

[Mr Dhesi]

My hon. Friend is a doughty champion for free school meals. She is known as the all-party parliamentary group queen and has organised various events, including on free school meals. I remember highlighting their importance as we served them alongside dinner ladies and gents. I thank my hon. Friend, because I will bring home that point of view later in my speech.

The punitive benefits system is driving more people to use food banks. At Slough food bank in my constituency, kind and amazing people who undertake much-needed selfless service report that six in 10 of the people they support are on universal credit, and many of them are employed. Charities openly acknowledge that they would rather not exist because they do not want a society where working people are forced to rely on food parcels to survive.

It is worth noting that in 2010 the Trussell Trust operated only 35 food banks. Staggeringly, today that number is closer to 1,300 across the UK, and between April 2022 and March 2023, they gave out 3 million emergency food parcels. That is a third more than during the pandemic and double the number before the pandemic. What a shocking legacy this Government are leaving behind.

[Stephanie Peacock (Barnsley East) (Lab)]

I congratulate my hon. Friend on securing this important debate. In Barnsley we have seen a tripling of demand for food banks. As he rightly points out, we did not have any 10 to 15 years ago. It is because of the Government that, sadly, 35% of kids in Barnsley are growing up in poverty and families are relying on food banks. They are in work but cannot afford to pay their bills.

[Mr Dhesi]

My hon. Friend has eloquently explained what the experts across our country are explaining: this is happening before our very eyes and we should not allow the situation to deteriorate any further.

As many will know, housing is a huge and growing driver of in-work poverty. Thanks to the Government’s failure to build enough new and affordable homes and new social housing, last year the gulf between price of houses and earnings in the UK was the worst since 1876. We really are back in Victorian times under this Government.

One of my Slough constituents privately rents and wrote to me for help. As many other private renters have experienced, they have been served with a section 21 no-fault eviction notice. Their partner works full time, but they themselves cannot work full-time hours because they have cancer. High rent costs mean that they cannot now find anywhere that is affordable. Although the family are on universal credit, it does not cover the basic cost of living. Even if they did find somewhere with an affordable rent, the need for a large deposit and a guarantor has erected huge barriers to finding new, long-term accommodation.

The supply of social housing has continued to plummet. The Government’s promise—cancelled, then reinstated—to build 300,000 new homes each year has not materialised. As my right hon. and learned Friend the Leader of the Opposition said at Prime Minister’s questions today, house building has collapsed and the Government are nowhere near their target, which means that more people are trapped in private rented accommodation as rents go through the roof. In turn, that means that people are taking longer to save for their first house. That is why levels of home ownership are down and private renting is up. Those who have been fortunate enough finally to buy a home after years and years of saving now face mortgage misery the likes of which we have not seen in generations or perhaps longer, thanks to this Government’s inability to get to grips with inflation.

Perhaps if Ministers were more focused on supporting those impacted by their child benefit cap than on removing the cap on bankers’ bonuses, and more focused on spending public money to invest in our public services than on giving away billions in failed personal protective equipment contracts to their mates and cronies, our economy would be in a much better place. Sadly, so many people are in dire straits. On top of stagnant earnings and unaffordable housing, we have a cost of living crisis, driving ever more people into in-work poverty. With food prices soaring and energy and utility bills going through the roof, many working people find themselves unable to put meals on the table, heat their home, pay their bills or provide for their families.

[Dr Dan Poulter (Central Suffolk and North Ipswich) (Con)]

The hon. Gentleman will not be surprised to hear that I have a slightly different interpretation of some of the issues that he has presented today. However, one thing that we certainly agree on is that a lot of public sector workers have seen real-terms reductions in their pay; I draw the House’s attention to my entry in the Register of Members’ Financial Interests as a practising NHS doctor. Does he agree that it is particularly important that the Government implement the recommendations of the national pay review bodies about public sector pay?

[Mr Dhesi]

I thank the hon. Member for his intervention. We may disagree about certain things, but hard-hitting facts are hard to ignore, especially when the truth hits us. I agree that the work of the independent pay review bodies is very important, but even this week we have seen the Government, including the Prime Minister, not accepting their recommendations. The Government are very selective in when they agree to the recommendations of the independent pay review bodies. That must change. They should either comply with them or completely disregard them; they cannot do both to suit their needs as required.

[David Linden (Glasgow East) (SNP)]

Can I just confirm that the position of the Labour Front Bench is that Labour would implement the recommendations of the public sector pay review bodies?

[Mr Dhesi]

I thank the hon. Gentleman for his intervention. Today I am not on the Labour Front Bench, but I am sure that the shadow Minister, my hon. Friend the Member for Westminster North (Ms Buck), will highlight exactly what the Labour policy is in that regard. As far as I am concerned, I think it is very important that if we have independent pay review bodies, either they and their work are respected or we do not have them. I am sure that that will be teased out in due course.

The Office for Budget Responsibility forecast in March this year that real household disposable income per person—a measure of living standards—will fall by a cumulative 5.7% between 2022 and 2024. That would be the largest two-year fall since records began back in the 1950s.

One of my Slough constituents wrote to tell me that despite their family of five having a full-time worker and the support of universal credit, they still could not afford their children’s school lunches—an issue that my hon. Friend the Member for Washington and Sunderland West (Mrs Hodgson) alluded to earlier. Imagine being a parent who has to send their children off to school knowing that they are hungry. They know that they have done everything they can to provide for them; they have worked hard, sought support and tried their hardest, but there is nothing more they can do and their children will be going hungry. It is a desperate situation for so many, and one we should not be seeing in the world’s sixth largest economy.

Child poverty in the UK is overwhelmingly related to in-work poverty. Some 67% of children living in relative poverty in our country come from working households. Households in which at least one adult is in work have seen a steep rise in poverty under the Tories. Absolute poverty has not fallen since Labour was in power. It has stagnated while the Conservatives have been in power, but, most concerningly, it has started to rise. Absolute child poverty is set to increase even more by the end of this year, meaning that another 400,000 children could be going hungry and cold day to day, or even homeless. Are the Government not ashamed?

[Mrs Hodgson]

I just want to add some further statistics to the ones that my hon. Friend is very helpfully providing us with on hungry children. On the economics of universal free school meals, PricewaterhouseCoopers did some work on the numbers and found that for every £1 invested in universal free school meals, the return on investment to the economy in savings on health, child poverty, malnutrition and all the rest is £1.71—so every £1 returns £1.71. Does my hon. Friend not think that that proves the policy would pay for itself?

[Mr Dhesi]

I defer to my hon. Friend’s expertise. I am sure that the Minister is listening and will be looking at why that is so important.

We need a Government who will focus on breaking the cycle of poverty, who will ensure that respect and dignity are once more at the heart of our social security system, who will make it easier to own a home and raise a family, and who will put an end to the soaring use of food banks. We need an economy and a system that work for everyone, not just a select few, and that do not embed poverty through low-paid insecure work, leave children without meals or homes, or see the hard-working go hungry.

[Several hon. Members rose—]

--- Later in debate ---

[Mr Dhesi]

Thank you, Sir George, for chairing today’s important debate on in-work poverty. I thank the Minister, the Labour shadow Minister, my hon. Friend the Member for Westminster North (Ms Buck), and the SNP spokesman, the hon. Member for Glasgow East (David Linden), for their responses, as well as other hon. Members who made such sobering, excellent contributions in speeches and interventions.

My gratitude also goes to the House of Commons Library for providing accurate and relevant statistics. I thank Crisis, the Trussell Trust, the Joseph Rowntree Foundation and Slough food bank for providing their analyses, as well as for the brilliant work that they do in my Slough constituency and across our country.

Ministers may want something to blame, whether that is covid, the war in Ukraine or the energy crisis, but the truth is that in-work poverty has been caused by low and insecure earnings, a high cost of living and little affordable housing. As my hon. Friends have eloquently explained, the problems are worse for marginalised communities, especially for many in ethnic minority communities.

All three of the problems that I have highlighted are consequences of Government incompetence and ideology. All three have led to stagnation and suffering. According to Crisis, one in four households who became homeless in 2022 had at least one person in work. The crisis of in-work poverty is leading to a crisis of in-work homelessness, caused by a toxic mix of low-paid, insecure work and a lack of affordable housing. That is why we have a situation in our country where many people are going into work without having a home to return to. We must be in a position whereby people in our country—or in any country—should be able to aspire to a decent wage, to own their own home and to raise and support a family. The Government must ensure that people can aspire to do more than merely survive—

Budget Resolutions and Economic Situation

Tanmanjeet Singh Dhesi Excerpts

Thursday 16th March 2023 Commons Chamber

[Rachel Reeves]

It is wonderful to see you in your place. We were told that this was a “Budget for growth”, but the documents published with this Budget confirm that the UK economy will shrink this year. The Chancellor expects us to cheer at the news that the economy will shrink a little bit less than he previously thought. Is that really what “good” looks like for the British economy?

The Office for Budget Responsibility also confirmed that we will have the weakest growth in the G7 this year and next year, and it saw growth downgraded for each of the last three years of the forecast period. All the while, the UK is the only G7 economy that is still smaller than it was before the global pandemic.

[Mr Tanmanjeet Singh Dhesi (Slough) (Lab)]

This Budget will not do a great deal for my Slough constituents who are really struggling to make ends meet and pay their bills, apart from a big tax cut for the very richest in our society. My constituents will have the highest tax burden and the biggest drop in disposable income since the second world war inflicted on them. Does my right hon. Friend agree that this Budget will not actually help to solve the cost of living crisis?

[Rachel Reeves]

I have spent time in my hon. Friend’s Slough constituency talking to working people and businesses. On the most recent couple of visits there, I do not remember anyone saying, “The big priority for families and businesses in Slough is a tax cut for the 1%.” Instead, they were saying, “Let’s have a targeted scheme for the NHS, as Labour has called for, instead of this blanket approach for the top 1%.”

The Government have, to be fair, given us some growth: growth in stealth taxes, growth in mortgage costs and growth in NHS waiting lists. There is no plan for the future, just a Tory legacy of pain. It will take a Labour Government to spark and sustain growth, lift people’s living standards in every part of the country, meet the challenges of the future and achieve the change that our country desperately needs.

When I meet people in industry, I hear frustration from employers who cannot get and retain the staff that they need. It is a feeling the Tories know all too well, with three Prime Ministers in one year, and the current Chancellor the fourth in that role since just last summer. Yet somehow, it is the same Tory Government. It is a bit like Trigger’s broom in “Only Fools and Horses”, with its 17 new heads and 14 new handles, only much less useful.

After his five months as Chancellor, the right hon. Member for South West Surrey (Jeremy Hunt) might feel that he should qualify for a Conservative party long-service award. In fact, of the past three Chancellors, he is the first to deliver a Budget, although the last Chancellor did last long enough to deliver a mini-Budget that crashed our economy—an extreme experiment in ultra-Tory ideology, using Britain’s economy and people’s livelihoods as their laboratory. It must never happen again.

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[Mel Stride]

I have made it very clear that thousands upon thousands will be affected. The right hon. Lady is adopting a completely perverse policy in view of the position taken by the shadow Health Secretary until quite recently, when political opportunism around this Budget reared its head. I say that we should stand up for the national health service and the millions of people who depend on it, and we should do what is right for them. That is the right thing to do.

This is also a Budget for parents, with a multibillion-pound extension to childcare support. I note and appreciate the right hon. Lady’s welcome for those proposals. They formed a major centrepiece of the Budget, and I am pleased that she has personally welcomed them.

[Mr Dhesi]

I am so glad that the Secretary of State is talking about pension reforms, but the Resolution Foundation noted that the beneficiaries of these reforms will predominantly gain large amounts of money, and they will be concentrated among the very rich. Does he agree with the Resolution Foundation’s conclusion:

“The more you think about this policy, the worse it is”?

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[Mr Tanmanjeet Singh Dhesi (Slough) (Lab)]

I congratulate my hon. Friend the Member for West Lancashire (Ashley Dalton) on her excellent maiden speech in this Budget debate.

How could the Chancellor devise a Budget that was so out of touch with the problems facing our country? In the context of a cost of living crisis that is sweeping our nation, devastating household budgets and squeezing already low wages, the Government have offered very little in this Budget to help ordinary working people. It is clear that the Government are out of touch and out of time.

When I meet my Slough constituents, they are concerned about paying their bills, earning a fair wage, having an affordable roof over their heads and keeping their families safe. In my regular advice surgeries—five a month, including on a Sunday morning—constituents do not come to me asking for less to be done to tackle modern slavery, for the richest to get a tax cut, or for the economy to stagnate. Yet that is exactly what is being delivered by 13 years of Tory government. It is Tory MPs’ priorities over the public’s priorities.

Even when it comes to addressing real issues that matter to those who are struggling, the Chancellor’s announcements were woefully inadequate. On childcare, he has announced measures that will not be fully up and running until after an election, long after the Tories will, I hope, have been booted out of power by the British people. There is no real plan to magic up extra capacity to cater for the additional provision that has been promised. On pensions, their gift to the top 1% prioritises those who need it least. It is a nearly £1 billion giveaway to benefit only a small number of high-earning individuals.

The Government have tried to copy and paste Labour policy on energy bills, but they have implemented too little too late; they are failing our country and all they have managed to come up with is a windfall tax that has more holes in it than a Swiss cheese. At every turn, the Budget creates inequalities and solidifies the failures of the past 13 years. The Government are creating a stagnant economy. There is a chronic lack of ambition among Ministers. It is not just Opposition parties who highlight the continued failures. The Office for Budget Responsibility forecast shows that the UK’s current account deficit will be just above 6% of GDP—the widest gap since the 1940s. According to the CBI, we are investing five times less in green industries than Germany and roughly half what France and the USA invest. The highly respected Institute for Fiscal Studies has heavily criticised the lack of long-term certainty provided in the Budget, calling the lack of strategy “damaging”.

In critical business centres such as Slough, this has a real impact. We are proud to be home to Europe’s largest trading estate in single ownership and some of the country’s most iconic and influential brands, which rely on responsible stewardship of the economy.

We have a potential labour force of 2.6 million people living within an hour’s drive. We have the highest GDP per capita in the country, for a unitary authority. This has all been achieved in spite of the Government, not because of them.

We must truly harness our business power, and ensure that local communities reap the benefits, particularly as we build back from the pandemic, yet businesses are struggling more than ever. This lack of ambition and the Government’s persistent underfunding of vital services has left constituents short-changed, paying for Government incompetence. Under the Tories, UK Government funding for Slough Borough Council has been slashed to less than half of what it was in 2010. It is no wonder that local councils up and down our country are struggling under this Government’s watch. These cuts leave constituents desperate to see investment in tackling issues that they face every single day—crime, NHS waiting lists and housing shortages. Where were the measures to tackle this, when house building has halved in 50 years, forecasts show that mortgage rates will be twice as high for my constituents as they were in 2021 and house prices have risen to eight times an average salary? Those are all problems of the Government’s own making, all being ignored by our Chancellor. It is all slogans and no substance.

My constituents can see right through this facade. People can see the difference when they pay for their weekly shop, try to use cash-strapped public services, or check their bank accounts. They can see who the Government have prioritised in this Budget. There have been endless failures on crime, housing, bills, wages and growing our economy, but there is a better way. Labour will ensure the highest sustained growth in the G7, creating good jobs and boosting productivity in every corner of the UK—all things my constituents rely on for a better quality of life, and something that they so richly deserve.

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[The Exchequer Secretary to the Treasury (James Cartlidge)]

It is a real pleasure to conclude today’s debate. I am glad that the hon. Member for Stalybridge and Hyde (Jonathan Reynolds) welcomed the measures in relation to the north-west and the Mayor. I join him in congratulating the hon. Member for West Lancashire (Ashley Dalton) on her brilliant maiden speech, which I very much enjoyed. I especially enjoyed hearing about the women of Ormskirk and their famous gingerbread. I understand that King Edward VII is rumoured to have stopped the royal train in Ormskirk to get his supply of gingerbread to take with him to Balmoral. Her speech was delivered with great passion and I was particularly pleased to hear her tribute to her predecessor, with which we all agreed.

Yesterday, the Chancellor delivered a Budget for growth —a Budget that builds on the decisions we took in the autumn to deliver stability and sound money; that provides a blueprint for prosperity that will spur on the economy and make us one of the most prosperous nations in the world; and that spreads opportunity. At the heart of the Budget is the steps we are taking to spread the opportunities of employment, to tackle labour shortage and to tear down the walls that stop people working.

Many Opposition Members said there was nothing in the Budget about public sector workers. I hope they will join me in welcoming the fantastic news we heard, less than an hour ago, that an agreement has been reached that will provide a fair and reasonable pay deal for health workers, from nurses to paramedics and midwives, thereby ending strike action across the NHS.

On the subject of workers in our brilliant NHS, we have seen today the most extraordinary U-turn yet by the Labour party. We should remember that barely six months ago the shadow Secretary of State for Health and Social Care, the hon. Member for Ilford North (Wes Streeting), told us that Labour policy was not to have a specific scheme for the NHS but to abolish the lifetime cap. Let me quote what he said six months ago:

“I’m not pretending that doing away with the cap is a particularly progressive move. But it is one that sees patients seen faster, and will inevitably save lives. I’m just being hard-headed and pragmatic about this.”

We totally agree with him.

[Mr Dhesi]

Perhaps the Minister would like to retract his statement, because I think he is inadvertently misleading the House. When the shadow Secretary of State said that, he referred specifically to that scheme for doctors, not for everybody. He was not talking about giving the 1% throughout our whole country—the rich—that huge tax cut.

[James Cartlidge]

The quote says,

“doing away with the cap”.

The removal of the cap is a tax measure that applies to all people who qualify for it. There is a really important point that Opposition Members probably want to listen to: there is a real danger in making up policy as one goes along. To be clear, our tax change will come in immediately, or as soon as we can possibly do it—it will come in on 6 April—but it is our view that a specific scheme for the NHS would take up to a year to put in place. Were we to bring forward an NHS-only scheme, the Department of Health and Social Care would have to consult on that scheme and then respond to the consultation. Only after that could it start to develop the scheme, because it could not predetermine the consultation. After that, the Department would have to transfer eligible people into the scheme. All that assumes that there would not be legal challenges from those who would argue that such a scheme should apply to other key people in the public sector, such as headteachers, senior police officers and senior people in the Ministry of Defence who might think that they too work hard in our public services. The Labour party has made it up as it has gone along. The fact is that Labour has U-turned from a perfectly sensible policy back to being ridden with the politics of envy, which we have heard from every single Opposition Member today.

Turning to some of the speeches, my right hon. Friend the Member for Norwich North (Chloe Smith) made an excellent contribution. She speaks with great expertise and passion on the matter of getting the disabled into work. She made the very important point that that is not just for the Government and that we also need to talk about the role that employers can play. I hope she will be pleased to hear that in the build-up to the Budget I, along with my hon. Friend the Minister for Employment and the small business Minister—my hon. Friend the Member for Thirsk and Malton (Kevin Hollinrake)—engaged directly with employer groups and worked with them to come up with some of the Budget’s proposals, particularly the extension of the occupational health subsidy pilot, the returneeship policy and boot camps for over-50s. Those are very positive measures.

The hon. Member for Glasgow South West (Chris Stephens) said that all the measures we have taken are on the backs of the poor, while the hon. Member for Jarrow (Kate Osborne) and other Opposition Members said that we have let down those on the lowest incomes. I remind the House that this year it is possible, for the first time, to earn £1,000 a month without having to pay any income tax or national insurance. We have doubled the personal income tax allowance since 2010, and in the last year we have increased benefits in line with inflation. On energy support, this financial year we have given a £650 cost of living payment to those on benefits, and in the financial year to come it will be £900. Those are not the actions of a Government turning their back on the poor. This is a Government taking difficult decisions to balance the books of this country, but in a compassionate way that helps those who have the least.

Oral Answers to Questions

Tanmanjeet Singh Dhesi Excerpts

Monday 6th March 2023 Commons Chamber

[Cat Smith (Lancaster and Fleetwood) (Lab)]

6. What assessment he has made of the implications for his policies of the fall in the level of single-parent employment between 2019 and 2022.

[Mr Tanmanjeet Singh Dhesi (Slough) (Lab)]

15. What assessment he has made of the implications for his policies of the fall in the level of single-parent employment between 2019 and 2022.

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

We are committed to helping parents to increase their income through work. We have cut the earnings taper on universal credit and increased work allowances, meaning that families are, on average, better off by £1,000 a year. Additionally, eligible parents can claim up to 85% of their childcare costs through UC, and further assistance is available through the flexible support fund, Jobcentre Plus and work coaches.

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[Mims Davies]

I thank the hon. Lady for that question. The UC childcare element can be used to top up a claimant’s eligible free childcare hours if more hours are worked and more childcare is required. We also use the flexible support fund to support those up-front costs, as we heard earlier. However, I would like to take this opportunity to talk about employers; this is not solely about what the Government can do on our own to help lone parents. Job design, the opportunity to progress and flexible work are really important too, as is the opportunity to return and progress. We cannot do this on our own.

[Mr Dhesi]

It is alarming that last year the employment rate for single parents had the biggest annual fall on record, and it is all the more worrying because the single parent employment rate has been on an upward long-term trend since the mid-1990s. Surely the Minister would agree that the eligible cost limit on childcare in universal credit needs to be uprated to reflect the ground reality of today’s soaring childcare costs.

[Mims Davies]

I thank the hon. Gentleman for his question. Under this Government since 2010, we have seen a significant increase in lone parents in work, with the rate going up from 56.1% in 2010 to 65.5% in 2022. However, the reality—and I think he describes it—is that there are too many challenges for lone parents, and it is absolutely right that we look at this. As we have heard from the Secretary of State, we are hoping to hear more: the Chancellor is ever present in our minds. As a lone parent, I again make the plea to employers to help people come back to work, because we know it is more than just a pay packet; it is really important to see the whole of society represented in the labour market.

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[Tom Pursglove]

I wholeheartedly agree with my hon. Friend and send my best wishes to his constituent for their surgery. The Department offers support through disability employment advisers who work alongside all work coaches, specialising in finding the right support to help customers who have a disability or health condition into work. I know that the dedicated team in Nottinghamshire would certainly be delighted to engage with my hon. Friend or his constituent and try to help with this issue.

[Mr Tanmanjeet Singh Dhesi (Slough) (Lab)]

T9.   At the end of last year, the National Audit Office found that levels of benefit fraud and error were “unacceptably high”, totalling £8.6 billion for the year. How exactly will the Secretary of State reduce benefit fraud and error and claw back this appalling waste of taxpayers’ money?

[Tom Pursglove]

I would argue that the Public Accounts Committee report does not reflect the steps that we took and that we set out in the plan that was published last May. As I set out to the House earlier, we are taking a tough approach to the issue, and rightly so—this is taxpayers’ money. For example, the work of the 2,000 extra officials on targeted case reviews, 2 million of which are in universal credit, is a really important part of getting that money back.

Oral Answers to Questions

Tanmanjeet Singh Dhesi Excerpts

Monday 31st October 2022 Commons Chamber

[Gerald Jones (Merthyr Tydfil and Rhymney) (Lab)]

12. What support his Department is providing to pensioners during the cost of living crisis.

[Mr Tanmanjeet Singh Dhesi (Slough) (Lab)]

14. What support his Department is providing to pensioners during the cost of living crisis.

[The Parliamentary Under-Secretary of State for Work and Pensions (Laura Trott)]

This winter more than 8 million pensioner households will receive an increased winter fuel payment; in addition, those eligible for pension credit will receive an extra £650. This Government will always support the most vulnerable.

[Laura Trott]

I applaud the hon. Gentleman for the work he is doing in his constituency. This is an incredibly important matter; seven out of 10 people who are entitled to pension credit claim it and we want to drive that rate up. My hon. Friend the Member for Hexham (Guy Opperman) has done a huge amount of work on this and I intend to continue that in the Department.

[Mr Dhesi]

Irresponsible Conservative policies have meant pension funds needed three emergency bail-outs to the tune of billions of pounds, while the spiralling prices of energy, food and other essential items have meant millions of people will be facing a very difficult winter. Statistics from earlier this year, before the cost of living crisis worsened even further, showed that 20%, or well over 2 million, pensioners already lived in poverty, a dramatic increase from a decade ago. Why should pensioners trust this Government to help them through this mess when the reckless behaviour of Conservative Ministers has worsened their plight?

Oral Answers to Questions

Tanmanjeet Singh Dhesi Excerpts

Monday 21st March 2022 Commons Chamber

[Chris Elmore (Ogmore) (Lab)]

9. What steps her Department is taking to support pensioners to manage the increase in the cost of living.

[Mr Tanmanjeet Singh Dhesi (Slough) (Lab)]

10. What steps her Department is taking to support pensioners to manage the increase in the cost of living.

[Jonathan Gullis (Stoke-on-Trent North) (Con)]

12. What steps she is taking to help support pensioners with the cost of living.

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[Guy Opperman]

I have—I have written to all local papers in the country.

The bottom line is that there is a £200 discount on energy bills from this autumn for domestic electricity customers in Great Britain. There is also the £150 non-repayable council tax rebate and the £144 million of discretionary funding for local authorities to support households who need support but are not eligible for the council tax rebate.

[Mr Dhesi]

We know that the Government have already abandoned their promises on keeping the pensions triple lock and free TV licences for the over-75s. Now, before the soaring inflation and the soaring energy bills have even kicked in, thanks to the Government’s policies, almost a fifth of all pensioners in the UK are living in poverty. One million households are missing out on pension credits and thousands of pensioners, including in my Slough constituency, are bothered by delays, underpayments and other issues. When will the Government finally get a grip and resolve these problems?

[Guy Opperman]

With respect, there are 200,000 fewer pensioners in absolute poverty, both before and after housing costs, than in 2009-10. [Interruption.] With respect, the statistics are correct. The hon. Gentleman will recall, as a Labour Member of Parliament, that when the Government changed in 2010, the state pension was barely £100; the new state pension will be over £185 this coming year. It has risen by £2,300 in cash terms over the last eight years.

Oral Answers to Questions

Tanmanjeet Singh Dhesi Excerpts

Monday 17th May 2021 Commons Chamber

[Tony Lloyd (Rochdale) (Lab)]

What recent assessment she has made of trends in the level of in-work poverty.

[Mr Tanmanjeet Singh Dhesi (Slough) (Lab)]

What recent assessment she has made of trends in the level of in-work poverty.

[The Parliamentary Under-Secretary of State for Work and Pensions (Will Quince)]

Analysis shows that prior to the pandemic, the poorest 20% of households saw their incomes increase by over 6% in 2019-20, even after taking account of inflation. Since the pandemic hit, we have strengthened the welfare system, spending £7.4 billion on measures such as the universal credit uplift, on top of additional support such as the coronavirus job retention scheme and the self-employment income support scheme. Her Majesty’s Treasury analysis has shown that the Government’s unprecedented support package means that working working-age households in the bottom 10% of the income distribution have seen no income reduction.

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[Mr Dhesi]

Over the years, Ministers have parroted the same lines over and over again on poverty, which is that work is the route out of it. Elements of the right-wing media have been trying to unscrupulously label hard-working people as scroungers from the welfare state, yet the true legacy of a decade of Tory Government is that the number of households in poverty where at least one adult is working increased by almost 2 million people. What are the Government going to do to rectify that unacceptable situation and ensure that hard-working Brits get a decent wage?

[Will Quince]

I have been absolutely clear. The evidence suggests that work is the best route out of poverty and that is why, through our £30 billion plan for jobs, we plan to make that happen. We increased the national living wage and have taken millions of people out of income tax all together. We continue to take action on the cost of living and the Secretary of State is looking at further measures we can take in that regard, such as, for example, our childcare offer. As I said, our plan for jobs will be game-changing and I hope the hon. Gentleman will get behind it. I will of course be very happy to meet him and businesses in Slough to see how we can make it happen.