(8 months, 1 week ago)
Commons ChamberI am pleased that the hon. Lady raises Access to Work, because it is extremely effective. The grant can be there year in, year out and be up to a maximum of £66,000. Along with other approaches, it has very much led to our meeting our employment goal for disabled people in half the time that we set in 2017—over a million more disabled people were in work by 2022.
What are the Government doing to use apprenticeships to help young people engage with the labour market, to tackle levels of economic inactivity and to give them the opportunities they need to get the careers that they want?
My right hon. Friend raises economic inactivity, which is lower in our country than in the United States, France and Italy. It is below the average of the OECD, the G7 and the European Union. Apprenticeships play a very important part in producing those good figures, though there is of course always more to be done, not least through our approach of engaging extremely closely with employers, both at the national level and through our jobcentres.
(1 year, 2 months ago)
Commons ChamberThe hon. Lady asked about this last time, and I believe I informed her previously that all alive people will be receiving the benefits they are entitled to by the end of this year.
We have made available a diversity of assessment channels to people, but the key point is that anybody who wants to have a face-to-face appointment is able to have one. They can request one and that will be facilitated, and I think that is important. Jobcentres will be at the leading edge of delivering on our new supported employment programme—universal support—and we have WorkWell coming on stream as well. We do not want to write anybody off. Where people want to work or to try to work, we should be supporting that wherever we can, and that is precisely what we are all about.
(1 year, 5 months ago)
Commons ChamberThe hon. Lady raises an important point. The Government’s record under my stewardship at the DWP is a good one. In fact, since the fraud plan was published last May, fraud across the benefit system has reduced by some 10%, and across universal credit there has been a 13% drop. We expect to see those figures increasing through time. We are doing that through targeted case reviews—going through cases and looking for fraud and error—and I have another 1,000 people being recruited for that purpose. We are also using artificial intelligence, data analytics and machine learning to ensure that we catch up with the more sophisticated attacks on our system. There is evidence that we are making good headway.
My right hon. Friend will be aware that, under universal credit, there is always the incentive to work. That operates through the taper, which we reduced in recent times from 63% to 55%, and we increased the work allowance by £500 in November 2021.
At this time of rising prices, I feel certain that many of my constituents are worried about the high cost of childcare. Will the Secretary of State confirm that the changes to universal credit announced in the Budget will help people into work by giving them better up-front support with the cost of childcare?
(1 year, 7 months ago)
Commons ChamberOur recent White Paper sets out our ambitions to create a better experience for disabled people when applying for, and receiving, health and disability benefits. Our proposals will transform support, so more disabled people can start, stay and succeed in work.
A disabled constituent who came to my advice surgery recently described the many hurdles she had to go through to get welfare support. She felt stigmatised by the whole process and was subjected to really frustrating delays, so I am keen to hear from the Minister what the Government are doing to reform assessments and improve the way the benefits system works to help disabled people get the support they need without it feeling like a battle.
I really appreciate my right hon. Friend highlighting the concerns raised with her by her constituent. I know she supports the fundamental change we are determined to bring about, whereby we will focus more on what people can do. We will remove what is a structural barrier to work: the impediment that means people feel prevented from trying work because of the fear that if it does not work out they will lose their entitlement and have to go back through a re-application and reassessment processes. I hope she will welcome the steps we are taking, for example to link expert assessors with particular conditions to help us to get decisions right first time, as well as the commitment we have made to reduce the assessment burden more generally.
(1 year, 8 months ago)
Commons ChamberThe reality of yesterday’s Budget is clear: long-term growth downgraded, household incomes falling, public services on their knees. Families are facing the biggest hit to living standards since records began. The only surprise was a huge handout to the richest 1% of pension savers. Yet again, working people and businesses—the key to our economic success—have been put at the bottom of the pile.
The questions people will be asking themselves after 13 years of Conservative Government are these. Am I and my family better off? Are our school, hospitals and transport systems working any better than 13 years ago? Frankly, is anything in Britain working better today than it did when the Conservatives came into office? The answer to those questions is a resounding no.
Labour believes that the tax burden must be shared fairly. That is why I have announced today that Labour will reverse the changes to tax-free pension allowances. It is the wrong priority, at the wrong time, for the wrong people. Instead, we would create a targeted scheme to encourage doctors to work overtime and not to retire early. That could be done at a fraction of the cost, as the British Medical Association has said.
The Government’s policy to give tax cuts to the wealthiest 1% is unravelling before our eyes. Paul Johnson, the director of the Institute for Fiscal Studies, says that even on the “optimistic” Office for Budget Responsibility costings, it will cost an eye-watering £100,000 per job retained. The Resolution Foundation said:
“The beneficiaries from these reforms stand to gain large amounts, and they are heavily concentrated among the very rich”.
It added that
“this giveaway could lead to inheritance tax ‘abuse’”.
Pensions expert John Ralfe has said that
“this is not about supporting a hard-pressed NHS, it is really a tax giveaway...for the very highest earners.”
Labour recognises the mess that the Government have got into with our NHS workforce planning, and we have called for changes to doctors’ pensions, but we will oppose this untargeted scheme for the wealthiest and we will put this measure to a vote in Parliament next week. I defy Conservative Members to vote in favour of a policy that they know will do absolutely nothing to lift the living standards of their constituents.
Last autumn we saw the Chancellor of the day announce reckless tax cuts to help the richest, too. Why does this keep happening? The reason why the Tories get the wrong answers is that they have the wrong priorities for our country and the wrong analysis of the economy. Wealth does not just trickle down from the top; it comes from the efforts of millions of working people and thousands of businesses. That is Labour’s approach to growth.
The right hon. Lady denounces the abolition of the lifetime allowance, but it was actually something that never applied under Labour at all. If Labour is so concerned about its loss, why did it not introduce it in the first place?
Gordon Brown introduced a lifetime allowance for pensions savings, as I am sure the right hon. Lady remembers. However, the point here is about priorities. For all our constituents, there is an average tax increase per household of £650, starting next month with the freezing of the tax thresholds and the increase in council tax. Yet yesterday, the only permanent tax cut provided in the Budget was for people who already have pensions savings of more than £1 million. I just do not believe that that is the priority for our constituents, and I think hon. Members right across the House, if they think about it, know that too.
Mr Deputy Speaker—is that what I call you?
The worst health emergency for 100 years and the worst energy price shock for 50 years have done severe damage to our economy in the last few years, but the Budget has demonstrated the positive impact of the difficult decisions taken in the autumn statement to repair the public finances and restore stability after the damage done by global economic turmoil. As we have heard, unemployment is near a 50-year low, productivity is higher now than it was before the pandemic, and the OBR predicts that we will not go into recession, that inflation will fall and that growth is returning. That means we are on track to meet the first three of the Prime Minister’s five priorities, which are to halve inflation, grow the economy, reduce debt, cut NHS waiting times and stop the boats.
At the heart of the Budget and the Government’s wider economic policy is helping people with cost of living pressures. Taken together, the measures in the Budget and those previously announced are worth £94 billion over this year and next—one of the largest support packages in Europe—which is an average of more than £3,300 for every household in the country. In advance of his statement, I asked the Chancellor for the continuation of Government support for energy bills. I also made the case for families struggling with childcare costs, raising the issue alongside others in Parliament just a week or two ago, so I am really pleased with the plan to extend the 30 hours of free childcare for working parents to cover children from the age of nine months to four years. It is also very welcome that the childcare component of universal credit can now be paid up front.
This package is a truly radical set of changes, and investing in early years education and childcare is a sound economic move. Not only will it bring more parents back into the workplace to help address labour shortages; high-quality early years provision can also be an engine of social mobility, helping children to get the best start in life in order to enable them to realise their potential and succeed in their aspirations. The increase in the rates to be paid to childcare settings for delivering the free entitlement is a crucial part of this endeavour. It has been a key ask of the sector, but what is now proposed is still a very big change and implementation will not be easy, so I will be scrutinising progress carefully as a member of both the all-party parliamentary group for nursery schools, nursery and reception classes, and the APPG on childcare and early education.
I welcome the changes to the pension tax rules, which have been pushing experienced GPs and hospital doctors to cut their hours and retire early, just when we need them most. I have raised that problem with successive Health Secretaries and Chancellors of the Exchequer. The lifetime allowance is, I am afraid, a classic example of where taxes get so high that they deter work and depress economic activity. It is not just about the very high taxes paid if a person hits the lifetime allowance limit; it is also about the uncertainty, which means that doctors have cut their hours even if they have not hit the limit, because they fear reaching it. Both are causing problems with the retention of our hard-working doctors, so I believe that the changes announced by the Chancellor yesterday will play an important part in reducing those NHS waiting times in the way that we all want. I hope that it will also mean that my constituents have faster and better access to GP appointments.
Finally, I want to highlight some areas where further action is needed in relation to Budget matters. Implementation of reforms relating to the regulatory climate for artificial intelligence and the approval of medicines, as announced yesterday, are welcome, but I would like to see a more concerted push to improve regulation to make it more targeted and more agile and to ensure that it keeps up with technological change. This area can play a crucial role in raising productivity, boosting growth and making this country the science super-power that the Prime Minister wants it to be. It is also crucial to raising living standards in the long term.
The taskforce on innovation, growth and regulatory reform set out a blueprint for starting this reform process, and I would ask the Minister to report back on progress in implementation of the taskforce’s recommendations. I welcome the indication by the Chancellor that he will come back with a plan for one of TIGRR’s key proposals —to unlock productive investment from pension funds—but we do need to get on with this. The freedom to make our own choices on regulation and design these rules according to our own national interest is a key benefit from Brexit, and we need to grab the opportunity that it presents.
Lastly, I fully back, of course, the caution shown in this Budget on the public finances. Bearing down on inflation and getting debt under control must be our top priority. But as the economic situation, I hope, continues to improve, I would ask my right hon. Friend the Chancellor to strive to find the room for further pay increases for the public sector and, of course, for wider tax reductions in the longer term.
(1 year, 10 months ago)
Commons ChamberMy right hon. Friend is right. Whether it is cutting the taper rate, managing the AET, looking at in-work progression or focusing on people dropping out of the labour market at 50-plus, and whether it involves single parents such as myself or other people who need help to progress in work, we are focused on work paying. That should always the balance.
A crucial way to help people in the benefits system is to get inflation down, so can I urge the Government to ensure that they deliver the reduction in inflation that we desperately need?
My right hon. Friend is exactly right. We have heard about the cost of living challenge, but this is a global challenge; it is not only for us. We absolutely need to work together so that every family is doing better.
(2 years, 9 months ago)
Commons ChamberThe hon. Gentleman will know that there are 200,000 fewer pensioners in absolute poverty than in 2009-10. Through the triple lock and the work that the coalition Government did and this Conservative Government have done, we have never paid pensioners more. There are also the three matters set out by the Chancellor previously. I spent some of the weekend reading “Scotland’s Future” and I see that the SNP has now abandoned its previous position on the state pension—a question that SNP Members did not want to raise today, I conclude.
Will the Minister ensure that supporting our pensioners remains a top priority across Government? What is he doing personally to ensure that as many pensioners as possible benefit from the Chancellor’s support package on energy prices?
Yes, of course, is the short answer. We are doing a huge amount, particularly on pension credit, which addresses the situation of low-income pensioners. We are working with the BBC, various energy companies, Age UK and many other organisations to get greater take-up of pension credit. It is a cross-departmental initiative to ensure that there is take-up of the various things that are available, as announced by the Chancellor last week.
(3 years, 10 months ago)
Commons ChamberI am not sure which specific payments the hon. Gentleman is referring to. I have highlighted, as has the Under-Secretary of State for Work and Pensions, my hon. Friend the Member for Colchester (Will Quince), the warm home discount scheme. There are other winter grant schemes, which have specific criteria. If the hon. Gentleman would like to contact one of the Ministers in the Department directly, I am sure that we can look into that casework for him.
We are providing £15 million for local authorities to make discretionary payments to people not eligible for the self-employment income support scheme. The DWP has temporarily relaxed the minimum income floor for self-employed UC claimants affected by covid-19. The self-employed have also benefited from other parts of our support package, such as increased local housing allowance. However, I urge anyone who thinks they may need further support to check the benefits calculator on gov.uk.
(4 years, 8 months ago)
Commons ChamberWomen were 41% of those taking up the new enterprise allowance recently, moving from table-top to large businesses. That is brilliant news and it is very encouraging. The hon. Gentleman will be delighted to hear that I was in north Wales to see about pop-up businesses, with many women involved in trying to move from ideas into successful businesses. We are redesigning this at the moment. I would be very happy to meet and hear from him.
I thank my right hon. Friend for raising this issue. I know that other Members across the Chamber will have met constituents around this issue, as indeed I did on Friday. There are over 5 million people who are self-employed at the moment, with a huge amount of people coming into this area, which we are trying to boost, as I mentioned earlier. I am sure that as we go into the Budget, the new Chancellor will be listening to her very carefully.
(5 years, 11 months ago)
General CommitteesIt is a particular pleasure to serve under your chairmanship, Sir Edward. I know all colleagues will be delighted, five days before Christmas, to be here discussing these draft regulations. They were originally laid before both Houses on 31 October. They enable the Government to make minor and technical changes to domestic legislation, to reflect that the UK will no longer be a member state of the European Union after exit day.
Before I move on to the details of the draft regulations, it may be useful if I provide some context. British domestic legislation contains various references to EU law and to the UK as a member state of the European Union, which will no longer be the case once the UK exits the European Union. It also includes a provision that allows the Secretary of State to implement reciprocal agreements.
The social security legislation that applies in Northern Ireland broadly mirrors that in Great Britain. We are making regulations that make analogous amendments to the corresponding Northern Ireland legislation. The Department for Communities in Northern Ireland has agreed the text of the draft regulations. The text follows the recommended approach of the EU exit statutory instruments policy handbook to make separate Northern Ireland statutory instruments that create a separate “transferable” body of Northern Ireland legislation made at Westminster in the absence of a functioning Northern Ireland Assembly.
I would be interested to hear the Minister expand on the constitutional position. Obviously, the Government have been very clear that they are not moving to direct rule, but we are proposing to legislate on social security matters for Northern Ireland, which is normally a devolved matter. Could he explain exactly how this fits into the overall picture of the current status of the Stormont institutions and the efforts to restore devolution?
My right hon. Friend raises an important point, and she is right: the UK Government remain committed to restoring devolution in Northern Ireland. That is particularly important in the context of EU exit, where we want devolved Ministers to take the necessary actions to prepare Northern Ireland for exit. Those actions include ensuring that the necessary legislative corrections are made to ensure that the Northern Ireland statute book is ready for exit from day one, consistent with the action being taken at Westminster and the other devolved legislatures. That is why what is being done today is part of helping to keep a separate body of Northern Ireland law intact for when a functioning Executive and Assembly return.
The draft regulations are made using powers in the European Union (Withdrawal) Act 2018 to fix legal inoperabilities and other deficiencies in retained EU law that will arise on exit. That will ensure that the converted law continues to operate effectively after the UK’s exit and to allow consequential changes to be made. The approach to the amendments is in line with the policy and legal intent of the EU (Withdrawal) Act.
Broadly speaking, we are using these draft regulations to make two types of changes. First, where the UK is referred to as a member state of the EU, an amendment will be made to reflect the UK’s new status as a state independent of the EU. Secondly, we extend the scope of section 179 of the Social Security Administration Act 1992, to allow us to implement a social security agreement with a supranational organisation such as the EU. The ability to implement an international agreement with a supranational organisation such as the EU was not necessary as an EU member state. It is necessary that we make those consequential changes to our legislation, to reflect the UK’s position as independent of the EU and to allow us to implement fully any agreement in domestic law. The Northern Ireland regulations mirror the amendments, for Northern Ireland legislation.