Oral Answers to Questions

Thérèse Coffey Excerpts

Monday 30th November 2020 Commons Chamber

[Mohammad Yasin (Bedford) (Lab)]

What recent assessment she has made of the effect of the benefit cap on families with children.

[The Secretary of State for Work and Pensions (Dr Thérèse Coffey)]

The most recent statistics, released last week, show that 140,000 households with children have had their benefit capped. The proportion capped remains low by comparison with the overall universal credit case load. New and existing claimants can benefit from a nine-month grace period when their benefit will not be capped if they have a sustained work history, and exemptions of course also remain in place for vulnerable claimants. Since the introduction of the cap, 190,000 households are no longer capped under such benefits and nearly 80,000 are no longer capped under UC.

[Mohammad Yasin [V]]

The number of households with children receiving universal credit who are subject to the benefit cap in my Bedford and Kempston constituency rose by a staggering 186% between January and May this year, so will the Minister guarantee that the £20 UC uplift will reach the families who need it?

[Dr Coffey]

My understanding is that 460 households with children were subject to the UC cap in the Bedford local authority area. I am conscious that that is a higher number than the hon. Gentleman may wish, but I point out to him that we can also make the effort to encourage people to go for vacancies, so that they can start to earn more money, which at some point triggers a removal of the benefit cap.

[Mr Speaker]

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

[Stephen Timms (East Ham) (Lab)]

The number of households affected by the cap has more than doubled since the start of the pandemic, to 170,000. In addition, 160,000 households will come to the end of their nine-month benefit cap grace period in the coming month. So will the Secretary of State consider extending the grace period, to avoid cutting the benefits of hard-pressed families in the run-up to Christmas?

[Dr Coffey]

The statistics indicate that 140,000 households with children have their benefit capped; my understanding is that overall it is about 3.1% of the UC case load. I am conscious of the fact that the right hon. Gentleman wrote to me last week, in his role as Chairman of the Select Committee, with a variety of questions on the benefit cap. I will respond to him shortly, and I believe that is one of the questions he has asked me to address.

[Seema Malhotra (Feltham and Heston) (Lab/Co-op)]

Some 85% of capped households have families with children, and the Minister revealed last week that more than 160,000 households on UC could see their benefits capped in December, when their grace period comes to an end. Does she feel no shame in plunging families and children into hardship right before Christmas? Children are paying the price for their parents losing their jobs. This is a ticking time bomb and she can stop it—it is her choice: will she scrap the cap?

[Dr Coffey]

The cap has been in an important part of policy in trying to stimulate entrance into work. I am conscious that there are still only about half a million vacancies, compared with a significant number of people unemployed. However, I am sure the hon. Lady will welcome, with me, some of the actions that are possible for some of the most disadvantaged families, particularly those supported by the £170 million covid winter grant, from which I understand her local council will benefit to the tune of about £823,000.

[Shabana Mahmood (Birmingham, Ladywood) (Lab)]

What recent assessment she has made of the effectiveness of the more than minimal test for determining housing benefit payments for supported exempt accommodation.

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[Jack Lopresti (Filton and Bradley Stoke) (Con)]

What steps she is taking with Cabinet colleagues to help vulnerable families with the cost of food and bills in winter 2020-21.

[The Secretary of State for Work and Pensions (Dr Thérèse Coffey)]

Earlier this month, I announced the £170 million covid winter grant scheme to help disadvantaged people, particularly children, through the challenging winter months ahead, with food and essential utility bills over Christmas through to the end of March. The first half of funding for the scheme will reach local authorities in England this week. I am delighted to say that Nottinghamshire has been allocated £2.3 million and South Gloucestershire £569,000.

[Ben Bradley [V]]

Does my right hon. Friend agree that it is hugely important for the most vulnerable children—those whose welfare we know is a source of worry for their teachers when they do not see them for weeks—that we can offer the best possible help in the holidays, with proper structured and face-to-face support for those children and their families such as that offered through our holiday activity clubs?

[Dr Coffey]

I agree with my hon. Friend and he looks ready and dressed to support a holiday activity fund when the opportunity comes along. Maintaining that important link over the longer holidays can be transformative for children’s health and educational prospects, which is why I was proud to announce earlier this month the £220 million expansion of the programme for the longer school holidays right throughout 2021. This will offer enriching activities such as arts and sports, which will help them to perform better in school, as well as a free nutritious meal while they are there.

[Jack Lopresti]

I welcome the announcement of the additional winter support funding across South Gloucestershire, which will benefit lots of my constituents, but can my right hon. Friend assure me that this additional funding will be spent efficiently by the councils and go to the people who need it?

[Dr Coffey]

My hon. Friend is absolutely right to stress that point. As I have already indicated, his council will receive just over half a million pounds. The grant has come with conditions to ensure that the money is targeted towards the most disadvantaged people, and councils will be expected to report on that. They have a wide range of information to help them, including access to who is on benefits and other elements, to ensure that they reach people who really are disadvantaged at this time of year.

[Patrick Grady (Glasgow North) (SNP)]

What assessment she has made of the implications for her Department’s policies of the spending review 2020.

[Allan Dorans (Ayr, Carrick and Cumnock) (SNP)]

What assessment she has made of the implications for her Department’s policies of the spending review 2020.

[The Secretary of State for Work and Pensions (Dr Thérèse Coffey)]

The further funding for our plan for jobs—particularly the £2.9 billion for the restart programme that is focusing on those at risk of long-term unemployment —as well as ongoing support for our other schemes and work coaches shows our focus on helping people to get back into work. Through Barnett consequentials, £36 million of funding will be available for equivalent measures in Scotland next year. Other elements, such as the record increase in defence spending and the 10-point plan for a green industrial revolution, will help to create new jobs that will positively impact Scotland and the wider UK.

[Patrick Grady]

That will be news to my constituents in Glasgow North, who have had to cope with the closure of their jobcentre. That decision, along with the closure of 200 other jobcentres since 2010, is starting to look a little bit short-sighted. The Chancellor says that he will do everything it takes to support the estimated 2.6 million people who will be unemployed next year, so where exactly are these job coaches going to be based, and will the Government prioritise the places that have already suffered from the closure of local jobcentres?

[Dr Coffey]

I think it is the situation in Glasgow that a number of jobcentres were consolidated into one area. I am a great believer that, instead of necessarily investing money in bricks and mortar, we should invest in the people who will provide that support. In Scotland more broadly, we are aiming to hire over 800 new work coaches; 400 have already been recruited to date, and I know that some of those are in Glasgow.

[Patricia Gibson]

The Chancellor could have made the £20 uplift to universal credit permanent, but instead he has left households deeply concerned as they face the prospect of a cut to this vital lifeline in spring. We in the Scottish National party have pressed UK Ministers on this matter countless times. Will the Secretary of State tell the House whether she discussed extending the universal credit uplift with the Chancellor prior to the spending review, and whether she believes that this extension should have been included?

[Dr Coffey]

The hon. Lady will be aware that the temporary extension of the £20 universal credit uplift was made in line with the fiscal measures made earlier this year. With regard to the benefit uprating, I put that through as that is the normal process that we go through, but, as has been indicated, we will continue to look at this matter again in the new year.

[Allan Dorans [V]]

For the last eight months, around 2 million disabled people and others on legacy benefits have been discriminated against through being excluded from the £20 uplift granted to those receiving universal credit. The Chancellor’s failure to extend the £20 uplift to them is another humiliating insult to the most disadvantaged and vulnerable in our society, and only granting them an additional 37p a week from next April is nothing short of abhorrent. Does the Secretary of State think it is acceptable that people on legacy benefits are now facing a second year without sufficient financial support from this Government?

[Dr Coffey]

Last year we actually increased benefits by inflation, and we have made sure that that has happened again so that there are no cuts in that regard. I am keen to continue to do what we can to encourage people to move across to universal credit. There is only one group of claimants who are effectively barred from doing that, and that will change in January next year. I genuinely want to put across how important it is; by using things such as Help to Claim and getting support directly, people can often see that they will be considerably better off under universal credit.

[Ms Karen Buck (Westminster North) (Lab)]

The Secretary of State announced that the local housing allowance would again be frozen in cash terms in 2021, having only moved out of the previous freeze in March. That means, as the Office for Budget Responsibility has pointed out, that LHA rates will fall back below the 30th percentile. The Government have cut local housing allowance consistently since 2010-11, including freezing it from 2016 to this year. Will the Secretary of State tell us what estimate the Department has made of the effect on children in poverty of pushing the LHA back below the 30th percentile?

[Dr Coffey]

The decision made last year was to increase to the 30th percentile in cash terms—that is around £1 billion of welfare support that has been added. On consideration, we felt it was right to continue the cash freeze as we recognise that around the country we are seeing rents potentially going down, although I recognise that in some places they may continue to rise. Overall, people have certainty in the amount of cash that they have. It is certainly not going back but about making sure that this is a permanent change and was not just a temporary one.

[Ms Buck]

The fact is that the number of children in poverty in the private rented sector rose by half a million between 2010 and 2019, so whatever uplift has been put in over the past year is in that context and we will see more children plunged into poverty as a result. Will the Secretary of State tell us exactly what steps she will take to ensure that more children do not fall into poverty as a result of the re-freezing of housing allowances?

[Dr Coffey]

I think I have already answered the hon. Lady. We have not reduced the LHA back to pre-covid arrangements; we decided to make that change a permanent fixture but to freeze it at cash levels, recognising that, as I said, nearly £1 billion had been injected into welfare support. We will continue to work on this issue throughout the country and I am keen to see what we can do on aspects of housing, which is why I am in regular conversation with the Ministry of Housing, Communities and Local Government about how we do things such as bring empty homes back into use as accommodation. I want to make sure that people have as much affordable housing as possible, and the increase to LHA of nearly £1 billion is one way to achieve that.

[Neil Gray (Airdrie and Shotts) (SNP) [V]]

Shortly, Nicola Sturgeon will outline in her conference speech plans to pay families who receive free school meals a £100 grant to help them through winter till the new, game-changing Scottish child payment starts in the new year. The Secretary of State’s Government could have matched the Scottish Government’s anti-poverty ambition at the spending review, but they failed even to make the UC uplift permanent or extend it to legacy benefits. Can she point to anything in the spending review that is there to address poverty?

[Dr Coffey]

The best way to get out of poverty is to get into work. I am very conscious that there are real challenges right now, as we see an increasing number of unemployed people. There are vacancies, but part of the Government’s job is to stimulate interest, which we are doing with a multibillion-pound investment in a variety of schemes, not only to create jobs, with kickstart, but to make sure that people are ready to get back into work. The idea is that we need to try to create confidence within business, and that will be a key part of that. I am sure the hon. Gentleman welcomed the money that came through the Barnett consequentials that will support initiatives that the Scottish Government might wish to undertake.

[Neil Gray]

The Secretary of State talks about jobs, yet just as employment is expected to reach 2.6 million, she plans, shamefully, to cut universal credit. Ahead of the spending review, a petition organised by the Disability Benefits Consortium and signed by 119,000 people was handed in to the Government, calling for the UC uplift to be extended to legacy benefits. Given that living costs have increased dramatically for disabled people during the pandemic, why have the Government not acted? Does that not just summarise perfectly the tale of two Governments: a Scottish Government extending support to those who need it while the UK Government increases disability benefits by a derisory 37p?

[Dr Coffey]

Last week I published the benefit uprating statement, which indicated the inflation rise for benefits, as well as the 2.5% for state pensions. I am conscious that a number of different things are going on with benefit spending—my hon. Friend the Minister for Disabled People, Health and Work just reminded me that benefit spending on people with disabilities is up 5%. I think there is a lack of understanding of what the spending review is: it is not about budgetary measures, which tend to come with major fiscal events. As has been indicated before, the decision to consider the temporary uplift to universal credit will be made in the new year.

[Margaret Greenwood (Wirral West) (Lab)]

What assessment she has made of the effectiveness of statutory sick pay during the covid-19 outbreak.

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[Christian Wakeford (Bury South) (Con)]

What steps she is taking through the Plan for Jobs 2020 to help people of all ages back into work.

[The Secretary of State for Work and Pensions (Dr Thérèse Coffey)]

Our plan for jobs includes a range of targeted measures to help claimants of all ages. Our job entry targeted support scheme—JETS—will help over 250,000 people of all ages who are unemployed for three months to re-engage with the labour market. Young people at Bury jobcentre are currently receiving support from a specialist work coach, offering tailored support, and linking with local authorities to establish a virtual youth hub, Bury works.

[Christian Wakeford]

Mr Speaker, I hope you were able to enjoy a happy Lancashire Day, although in a covid-secure manner.

Can I thank my right hon. Friend for the work she is doing on getting young people back into work with programmes such as kickstart, and can I ask my right hon. Friend to advise what work is being done to help get those over 50 back into work also?

[Dr Coffey]

There is a wide range of programmes where people can consider potential changes of career. That could be through SWAPs—sector-based work academy programmes, JETS, which is specifically targeted at older people, or kickstart, which tends to be focused on younger people. It is important to recognise that there is a wide range of opportunities with which our work coaches will be trying to help people at this difficult time in their lives, but there are wider schemes that people can consider. I am particularly excited by the Department for Education proposals on things such as Teach Last, because I think there is a lot of talent that could be used to help the next generation too.

[Robert Halfon (Harlow) (Con)]

What assessment she has made of the effect of the covid-19 outbreak on levels of unemployment.

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[Steve McCabe (Birmingham, Selly Oak) (Lab)]

If she will make a statement on her departmental responsibilities.

[The Secretary of State for Work and Pensions (Dr Thérèse Coffey)]

Last week I announced the outcome of my annual uprating review. It delivers on our manifesto commitment for the pensions triple lock, thus providing financial peace of mind for pensioners across the UK. The basic and new state pension will be increased by 2.5% as that is the highest of the increases—inflation, earnings or 2.5%—and it means that from April 2021 the yearly basic state pension will be worth around £2,050 more in cash terms than in 2010.

[Steve McCabe]

With Birmingham set for an extended period in tier 3, does the Secretary of State have any plans to revisit the plight of pregnant mothers who are eligible for universal credit but ineligible for statutory maternity pay and therefore at a considerable financial disadvantage?

[Dr Coffey]

Of course, being in tier 3 has been put forward by the Government, and I am very conscious of the efforts that were being made right across Birmingham and other areas of the west midlands to get out of that tier. As regards matters such as statutory maternity pay, a lot of these things continue to be under consideration, but I will consider the points the hon. Gentleman has made.

[Damien Moore (Southport) (Con)]

Last week many of my Southport constituents warmly welcomed the creation of 250,000 green-collar jobs, but may I ask my right hon. Friend to outline what more her Department is doing to encourage environmentally sustainable investments by pension funds?

[Dr Coffey]

My hon. Friend rightly draws attention to this important point. As a result of actions by this Government the UK is the first major economy to put climate risk and disclosure into statute for pension schemes, leading the way on this issue, having already legislated for net zero by 2050 and introduced ESG—environment, social and governance—legislation through 2018 amendments to the occupational pension schemes investment regulations. I genuinely look forward to when we manage to complete the Pension Schemes Bill to bring all that into effect.

[Jonathan Reynolds (Stalybridge and Hyde) (Lab/Co-op)]

Last week the Chancellor described the scale of the unemployment crisis in the UK when he said that we could be facing 2.6 million people out of work next year. The Government’s major announcement to tackle that was the restart programme, but analysis of the spending review document shows that restart will not get up to scale until 2022, a full year after unemployment has peaked, so what will the Government be doing next year, as unemployment peaks, to help people get through the crisis?

[Dr Coffey]

The hon. Gentleman is right to draw attention to our plan for jobs. He will be aware that there are a number of schemes already under way, including kickstart, JETS and the sector-based work academy programme. It will take a little time to contract for the long-term unemployment programme, but I assure him that, compared with the last financial crisis just over a decade ago under the Labour Government, we have acted far more quickly in getting these employment contracts in place, because we need to make sure that people do what they can to try to remain connected to the labour market.

[Jonathan Reynolds]

I am grateful to the Secretary of State for that answer, but last week the Chancellor said that this is the biggest economic crisis for 300 years, and he is right, so I cannot understand how those same spending review documents show the Government cutting universal credit next April—a £1,000-a-year cut, taken from 6 million families just when they need it most. No Government since the great depression have cut unemployment benefits during a crisis, so how can the biggest economic crisis for 300 years be the time to do so?

[Dr Coffey]

As the hon. Gentleman knows, the Government introduced a raft of temporary measures to support those hardest hit, including the furlough scheme, the self-employment income support scheme and the £20 UC uplift. The Chancellor has confirmed the UC uplift until March ’21, and it is right that we wait for more clarity on the national economic and social picture before assessing the best way to support low-income families moving forward. That is exactly what I put in the written ministerial statement last week.

[Mark Jenkinson (Workington) (Con)]

The Government’s investment in work coaches is hugely welcome. I have seen for myself what an important role they play in helping people into new roles and careers in Workington. Will the Minister join me in encouraging people across the country to consider joining the DWP as a work coach?

[Stuart C. McDonald (Cumbernauld, Kilsyth and Kirkintilloch East) (SNP)]

Fixing the low uptake of pension credit could lift 450,000 pensioners out of poverty and save taxpayers £4 billion of NHS and social care costs. Unlike the Scottish Government, the UK Government have no legal obligation to produce a take-up plan, but they have a moral obligation to act, so can we see a proper, published and ambitious take-up plan and targets, please?

[Dr Coffey]

We want to make sure that all eligible pensioners claim the pension credit to which they are rightly entitled, and we want to encourage people to either call the free claim line—0800 999 1234—or go online to gov.uk/pension-credit. We did a considerable amount of advertising earlier in the year to encourage that, and of course the BBC has, in effect, done some free advertising, recognising that those people who have pension credit will also get a free TV licence.

[Mark Menzies (Fylde) (Con) [V]]

What steps will my hon. Friend take to ensure that the Department works with job coaches and jobcentres to help people find new employment over the coming months?

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[Bell Ribeiro-Addy (Streatham) (Lab)]

Eighty-two-year-old Monica Philip emigrated to the UK as part of the Windrush generation and worked for 37 years as a civil servant. She now lives on a UK state pension of just £74.11p a week because she returned to Antigua to care for her ailing mother. Pensioners such as Monica came to the UK at the invitation of the British Government, but they are now being penalised for returning to their country of birth, sometimes not through their own choice. Will the Secretary of State review the unfair policy that sees half a million UK state pensioners denied annual increases to their UK state pension?

[Dr Coffey]

The situation that happens with aspects of pensions is quite complicated and often these are reciprocal arrangements, so that is where such things as aggregation may well happen, but that does rely on those agreements being in place. That has been the policy on pensions for longer than any of us in this House have been alive, I expect, and it continues to be honoured. I am conscious of what the hon. Member says, but there may well be other elements of support that the constituent to whom she refers may be entitled.

[Mike Hill (Hartlepool) (Lab)]

Some sources predict that 2.6 million people could be unemployed by next year. Five years on from universal credit being piloted in my constituency of Hartlepool, it still has teething problems. Can the Minister assure the House that the system will cope, should claimant numbers rise significantly?

[Rob Roberts (Delyn) (Con)]

T15. Further to the Secretary of State’s previous answer, take-up of pension credit remains low, which is a particular challenge in my Delyn constituency, which has a much higher proportion of over-65s than average. Will she commit to meeting me to discuss how we can use places such as the BBC and other Government agencies to enhance the take-up of this important benefit?

[Dr Coffey]

I know that the Pensions Minister—the Under-Secretary of State for Work and Pensions, my hon. Friend the Member for Hexham (Guy Opperman)—will be delighted to meet my hon. Friend and to look at this matter. We take this absolutely seriously, in terms of wanting people to get the benefits to which they are entitled, and I am sure that he, as a very diligent local MP, will be able to use every lever that he has to improve the prospects of his constituents.

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

The £170 million winter support package recently announced by my right hon. Friend will be a lifeline for families hardest hit by covid-19 in Stoke-on-Trent North, Kidsgrove and Talke, so will she ensure that community groups like the pop-up pantry in Chell and the Salvation Armies in Smallthorne, Kidsgrove and Tunstall get the support they need in order to support the most vulnerable in my community?