Oral Answers to Questions Debate
Full Debate: Read Full DebateDepartment: Department for Work and Pensions
Thérèse Coffey
Main Page: Thérèse Coffey (Conservative - Suffolk Coastal)Department Debates - View all Thérèse Coffey's debates with the Department for Work and Pensions
(3 years, 1 month ago)
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Robert Halfon (Harlow) (Con)
The Secretary of State for Work and Pensions (Dr Thérèse Coffey)
Ministers are meeting this week to discuss the success of the holiday activity fund, and good progress has been made on the digitalisation of Healthy Start vouchers. We will continue the ministerial meetings on developing support for families and family hubs.
Robert Halfon
I thank my right hon. Friend for her remarkable work on universal credit during the pandemic. With the forthcoming changes to UC, will my right hon. Friend continue to target financial support on families who need it most, and will she work with the Department for Education to use existing funds from the sugar levy to expand breakfast clubs for disadvantaged children? We know that breakfast provision significantly increases educational attainment. Children with free breakfast provision achieved an additional two months’ progress in educational attainment.
Dr Coffey
I am conscious, especially with my right hon. Friend’s leadership of the Select Committee on Education, of how passionately he feels about this particular area. My Department is supporting the Department for Education’s family hubs work, which includes investing up to £24 million to continue our national school breakfast programme over the next two years, and that includes the recently announced additional £20 million investment from the Treasury’s shared outcomes fund.
Karin Smyth (Bristol South) (Lab)
The Secretary of State for Work and Pensions (Dr Thérèse Coffey)
As was announced by the Chancellor at the March Budget, the £20 temporary uplift will come to an end within the next month.
Karl Turner
Time and again, the Government have promised investment into areas such as east Hull, but the Minister knows full well that this savage cut to universal credit will pull £35 million from our local economy and leave families worrying about putting food on the table to feed their kids. Is it not time that the Government matched their rhetoric with actions and cancelled the cut for decent, hard-working people?
Dr Coffey
As the hon. Gentleman will know, at the time of the Budget the uplift was always advocated to be temporary, recognising that the pandemic’s lockdown elements were not over. We did extend it for a further six months, as we did other covid-related support for people. I remind him that when we had Labour’s crisis in the late noughties, that Government did not make any changes to benefits. We are proud that we did so in that temporary time.
Gerald Jones
Last month, I wrote to the Prime Minister with three local food banks, three housing providers and my local citizens advice bureau to highlight the considerable damage that the removal of the £20 uplift would cause. Those organisations and many others in Wales and across the UK are at the forefront of supporting the most vulnerable people in our communities. Does the Secretary of State agree that those organisations are best placed to know the impact of cancelling the uplift? May I ask her to remove the proposal?
Dr Coffey
The hon. Gentleman may not be aware that we have been funding Citizens Advice to assist people in making potential claims for universal credit. To that end, we estimate that about half the people still on legacy benefits would be better off with universal credit and we want to encourage people to consider carefully how they go about that. However, we believe that people progressing in work, as well as getting back into work, is the best way to tackle poverty.
Karin Smyth
The circumstances of this cut are very different from those to which the Secretary of State alluded. In Bristol South, people are not happy about the cut and businesses, which will lose £11 million from the local economy, are not happy with it, either. The Secretary of State should not be happy with the situation. There is time for her to change her mind. Will she do so?
Dr Coffey
The hon. Lady may be aware that more than £400 billion of support has been given more broadly to the UK economy and to people. We are conscious that more than £7 billion was invested in the welfare system to help people during this difficult time. However, as the economy is recovering and employment is growing, we will do more with our work coaches—we have doubled their numbers since a year ago—to ensure that people can get back into work and progress in work.
Chris Grayling (Epsom and Ewell) (Con)
The Secretary of State and indeed the whole Government should take credit for the amount of support they have provided to people on low incomes in the past year during the pandemic. Will she take a further look at the housing element of universal credit? In my constituency, rising rental costs and high house prices have made the private rental sector difficult for people on low incomes. Will she look at how the universal credit housing element operates in areas such as mine, just outside London, which are particularly affected by property and rental prices, and whether changes are needed?
Dr Coffey
I am conscious of my right hon. Friend’s concerns. When we made the uplifts just over a year ago, we put an extra £900 million a year into support for housing costs through the changes we made to the local housing allowance rate. He will know that rental areas go beyond constituency boundaries, but the Under-Secretary of State for Work and Pensions, my hon. Friend the Member for Colchester (Will Quince), who is responsible for welfare delivery, will be happy to discuss what is happening in regard to geographic locations.
Paul Maynard (Blackpool North and Cleveleys) (Con)
As much as politicians on both sides of this place obsess about the headline rate of universal credit, will the Secretary of State also look at whether universal credit is going as far as it can in meeting rising pressures on the cost of living? In particular, there is the interaction between the energy cap for those with general electricity bills and that for those on prepayment meters, for whom the cap works in a different fashion, which means that people who are often on the lowest incomes pay far more.
Dr Coffey
My hon. Friend is right to raise that issue. The warm home discount is administered through the Department for Business, Energy and Industrial Strategy in conjunction with the energy companies, although the DWP does, in effect, facilitate the automatic claiming of that for a number of benefit claimants. I will share his concerns about the potential mismatch with prepayment customers with the relevant Minister, who I hope will respond to him directly.
Jonathan Gullis (Stoke-on-Trent North) (Con)
Does my right hon. Friend agree that our economy is beginning to show signs of recovery, with unemployment down and record high job vacancies? In Stoke-on-Trent North, Kidsgrove and Talke, Steelite International, a global ceramics manufacturer, has a jobs fair for more than 100 vacancies. Does she agree that that is the way to help people on universal credit into work and get them out of poverty?
Dr Coffey
My hon. Friend is absolutely right. Today, the Government have announced the infrastructure programme, with a mixture of public and private sector investment of £650 billion over the next 10 years. We believe that will generate 425,000 jobs in the next four years, and these will be well-paid jobs. Between my Department and the Department for Education, we will be trying to make sure that as many people are as upskilled as possible to take advantage of the higher wages of the jobs being created.
Ms Karen Buck (Westminster North) (Lab)
Research by the Joseph Rowntree Foundation indicates that nearly four out of every five families with children are receiving universal credit or working tax credit, rising to 45% or more of families with children in the north-east, Yorkshire and the Humber, and the west midlands. Can the Secretary of State share her Department’s assessment, which we heard about at the end of last week, of how these families are expected to manage the income shock of losing £1,000 a year due to the impending cut?
Dr Coffey
It may surprise the hon. Lady to know that more than half of recipients of universal credit are actually households without children. We are conscious that this support had a widespread impact when we had the impact of the pandemic. However, what the hon. Lady will know about is that in the last year, collectively across Government, we have injected several hundred million pounds specifically to help people with children with the difficulties of some of the financial challenges they have. However, now that the jobs market is well and truly open, we will be doing whatever we can to help people get into work, and get into better-paid work as well.
Ms Buck
It is not clear from that answer whether the Secretary of State has actually undertaken any form of assessment of the income shock. However, it is not only about the impact on individuals’ and families’ incomes; it is also about the wider economic consequences. According to the Resolution Foundation, a quarter of all households in the north-east will lose £1,000 a year from the cut, which will strip millions of pounds from the economies of some of the poorest communities in the country. Has her Department carried out an assessment of what the economic impact will be of the cut coming into effect in just a few weeks’ time?
Dr Coffey
My understanding is that, as we always knew the uplift was going to be temporary, an impact assessment was not undertaken because we knew it would be for a limited time.
David Linden (Glasgow East) (SNP)
People were already struggling to get by after an eye-watering £37 billion of Tory cuts to social security between 2010 and 2019, and they now face the biggest overnight cut to the basic rate of social security since the foundation of the modern welfare state 70 years ago. Given that the Secretary of State is her Department’s voice around the Cabinet table, can she confirm with a simple yes or no whether she is and has been lobbying the Treasury to stop these cuts?
Dr Coffey
As the Chancellor set out in the Budget, when we had the discussion of what we are doing, it was about continuing to extend the support beyond the time of the lockdown that happened in step 4. I am conscious that we have increased the number of work coaches in jobcentres in Scotland to help people back into work, and into better-paid work as well.
Jacob Young (Redcar) (Con)
Can the Secretary of State outline how much extending the temporary uplift would cost and what measures she could think of to pay for it?
Dr Coffey
The estimated cost for a year of the extension of universal credit is about £5 billion. As my right hon. Friend the Chancellor has set out, and we have updated the plan for jobs today, we want to invest in people to make sure that they can not only get into work, but get into better-paid work as well. That is why with a variety of levers, such as the lifetime skills guarantee, and all the work we are doing for people out of work at the moment, including the sector-based work academy programme, alongside some of our other programmes, we have a really good record of getting people into well-paid work, and that is where our focus has to be.
Stephen Timms (East Ham) (Lab)
Single parents who are in work told the Work and Pensions Committee last week how hard they are going to find it to sustain the £87 a month fall in their income that this cut will deliver. One witness told us that he is going to have to skip meals to make sure that his children do not have to. Surely social security must be better than that.
Dr Coffey
I hope the right hon. Gentleman will direct that person to go and have a chat with the work coach. I do not know the status of that individual, exactly what paid employment they are in right now or their situation with childcare, but I remind him that 85% of the cost of childcare can be claimed by people on universal credit. One of the directions we want to encourage individuals to go in is to go and talk to their work coaches so that we can help them get on in life and be more prosperous.
Dr Luke Evans (Bosworth) (Con)
Karin Smyth (Bristol South) (Lab)
The Secretary of State for Work and Pensions (Dr Thérèse Coffey)
This summer, we launched our national disability strategy, setting out more than 100 practical actions and a long-term vision for reform that will make a real difference to disabled people’s everyday lives. Our strategy sets out the actions, ambition and accountability in helping disabled people to overcome the remaining hurdles. We will publish annual reports setting out progress and further actions, and the Minister for Disabled People, Health and Work will chair cross-Government meetings to hold our ministerial disability champions to account for delivery across Departments.
Just as you praised a recent sporting achievement, Mr Speaker, I would like to pay tribute—fresh from the Paralympics GB homecoming yesterday and the celebration on the Terrace just now—to all our amazing Paralympians. I was able to cheer them on in Tokyo and talk to them about aspects of the national disability strategy and the daily barriers that they face. In addition to praising Emma’s remarkable success in winning her championship, I say well done to Alfie Hewett and Gordon Reid, who won the gold medal at the Paralympics for wheelchair tennis doubles. They flew straight to the USA, and I am pleased to say that on the same night they also won the grand slam. Those are fantastic sporting achievements—well done to them.
Karin Smyth
I join the Secretary of State in those comments; it was a pleasure to bump into some of those athletes and Ms Balding this morning in Westminster Hall. It was lovely to see them here—well done.
The latest figures show that 50% of personal independence payment mandatory reconsiderations result in a change of award. This is causing huge stress and anxiety to vulnerable people in Bristol South and additional work for advice agencies. What sanctions have been applied to the private companies that are wrongly assessing the applicants?
The Secretary of State for Work and Pensions (Dr Thérèse Coffey)
I am conscious of what the hon. Lady has said. Over the past couple of years, we have tried to improve the decision-making stages along the way. One of those important elements involves mandatory reconsiderations, and how we take what we have learnt into the initial decision making, which is still done by DWP civil servants on the advice of assessors. We have further plans, as set out in our Green Paper, which we published before the summer recess, and I am sure that the hon. Lady will take a close interest in that progress.
Chris Green (Bolton West) (Con)
Dr Coffey
My hon. Friend is right to praise his local jobcentres. One thing we have done as part of the plan for jobs is increase the number of work coaches, and indeed the number of jobcentres, thus demonstrating to people—particularly those who have been out of work already but are coming off furlough—that we are ready to support them so that they can get back into work as quickly as possible.
Jonathan Reynolds (Stalybridge and Hyde) (Lab/Co-op)
This morning, during her television appearance, the Secretary of State said that a person could make up for the Government’s £20 a week cut in universal credit by working just two extra hours a week. I am sure she is aware by now that she got that completely wrong: the taper rate would of course remove a proportion of those additional earnings, so the net earnings for those extra two hours would be far less than £20. May I therefore ask her if she now knows how many more hours a single parent working full time would have to work to make up for the money the Government is cutting?
Dr Coffey
Every single universal credit payment depends on the individual, so I cannot articulate that, but it is fair to say that a number of different levers appear when people work more hours, and that includes the lifting of the benefit cap. There are a number of ways in which people can earn more and keep more of their money when they are working more hours.
Jonathan Reynolds
The figure is 10 extra hours a week, so the cut would force that person to work 50 hours a week in total to get what he or she is receiving now. That is why I have said that reducing the taper rate will be our absolute priority in our replacement for universal credit, but it is also why we oppose the cut. It is why six former Conservative Secretaries of State for Work and Pensions oppose the cut. It is why every Labour Mayor, and even Conservative Mayors such as Andy Street, have spoken out against it. It is why the Government’s own analysis, leaked last week, says that the cut will be “catastrophic”.
This is a Government who half the time do not know what they are doing, and the rest of the time they just do not care. Is not the truth that the only way to get the Government to see sense will be the House of Commons voting to defeat them this Wednesday?
Dr Coffey
I do not know the basis of the hon. Gentleman’s calculation and his suggestion, but what I do know is that the Labour Government did nothing to help people in the midst of the financial crisis of 2008, whereas we have injected more than an extra £7.5 billion. We recognised the need for the temporary uplift, particularly for those who were newly unemployed and coming on to benefit for the first time. That is why we made the temporary uplift similar to that of the minimum paid through statutory sick pay. We will continue to do what we have been doing: investing in our plan for jobs, helping people back into work and helping them to make progress in work.
Jacob Young (Redcar) (Con)
I commend my right hon. Friend the Secretary of State and her Department for their success in doubling the number of work coaches to 27,000 in just a few short months. Does she agree that thanks to that boost more jobseekers will get the personalised support they need?
Dr Coffey
My hon. Friend is so right; it has been a successful recruitment programme. We wanted to reintroduce the face-to-face interventions because we know that that direct intervention through our work coaches is the best way to help people identify roles that they are suitable for and consider the skills involved—they might want to change career. That is how we can guide them on our various jobs programmes and make sure they can start earning again.
Sarah Owen (Luton North) (Lab)
Dr Coffey
The hon. Lady is wrong to suggest that our Government have not supported the people of Luton throughout this difficult time. The furlough scheme was unique; it was not introduced when many hundreds of thousands of people were made redundant after Labour’s financial crisis. We stepped in, putting more than £400 billion into Government spending overall to support the country during this time. I am conscious of that fact that some people will be concerned about the impact on aviation travel, which is why we have invested in various job schemes, including encouraging people to switch sectors, recognising that the skills they have are transferable.
Chris Stephens (Glasgow South West) (SNP)
Will the Secretary of State tell us what work is being undertaken to prevent future maladministration in the communication of major policy changes? I am thinking about not only 1950s-born women, but, as we heard at the Select Committee last week, the many claimants who are still to be told of the imminent cut to UC. Is the ombudsman going to be kept very busy because of the structural failings of this Department?
Dr Coffey
Communications have already been issued to every UC claimant, through the journal messages, and further communications are continuing to go out.
Tony Lloyd (Rochdale) (Lab)
In my constituency, some 5,000 families with children—possibly more than 10,000 children—are dependent on UC. Can the Secretary of State guarantee that when the benefit is reduced by that £20 a week not one of those children will suffer as a result? Can she look me in the eye and promise that that is the case?
Dr Coffey
Every family has a different situation and I encourage any of the hon. Gentleman’s constituents who are concerned to approach their jobcentre. We are very conscious that where both parents are actively working, rather than one parent being economically inactive, that will bring more revenue into the household budget. That is one thing we need to do to try to make sure that as many people are economically active as possible, for not only their own prosperity, but the prosperity of the nation.
Anum Qaisar-Javed (Airdrie and Shotts) (SNP)
Many constituents have emailed me to outline their concern that the planned removal of the £20 uplift will have a significant impact on their family and children. How does the Department expect families to survive Tory cuts to UC coupled with a national insurance hike?
Dr Coffey
The national insurance levy increase is there to tackle a long-standing issue and will be spread between businesses and employees. In fact, the top 15% of earners will pay roughly half the future levy revenues. We are conscious that the universal credit uplift was temporary and we will be doing what we can to help more people not only to get back into work but to progress in work.
Dame Diana Johnson (Kingston upon Hull North) (Lab)
My local economy is already struggling, with £12.6 million to be taken out by the universal credit cut. The Secretary of State said that no economic impact assessment had been carried out so far, but will she look again and consider doing one? The cuts are going to affect the most disadvantaged parts of our country, and that does not fit with the Government’s so-called levelling-up agenda.
Dr Coffey
Just today, the Prime Minister and the Chancellor have announced £650 billion of investment in infrastructure over the next decade. The right hon. Lady will be aware of the industries in her constituency, where there has been huge support from the Government to bring green jobs to her part of the world, and I am conscious of the other benefits that she and colleagues may see in respect of freeports. All that is putting into effect our aim: we want to help people not only to get back into work but to progress in work, with higher-skilled jobs that bring higher pay.
Peter Grant (Glenrothes) (SNP)
This morning, the Secretary of State claimed to know exactly how many extra hours a universal credit claimant would have to work to make up the £20 by which the benefit is to be cut; this afternoon, she admitted to the House that she had no idea of the answer to that self-same question. That must mean that her comment to the BBC this morning was at best wildly misleading and recklessly irresponsible. Will she apologise for that inadvertent but serious error?
Dr Coffey
I was not misleading the House in any way in any of my statements made so far, and I ask the hon. Gentleman to withdraw.
Patrick Grady (Glasgow North) (SNP)
Why are lifetime individual savings accounts counted as capital in the calculation of universal credit entitlement? They are designed not to be touched until the saver reaches 60 or is buying a house, so why are people like my constituent being hit by penalty charges because the DWP is forcing them to withdraw from a lifetime ISA early?
Dr Coffey
Since universal credit was introduced, there has always been a capital recognition, recognising when people have resources that they can draw on to support themselves rather than drawing on the resources of other taxpayers. That is the principle of why capital is included when people want support for their other living expenses.