Oral Answers to Questions

Thérèse Coffey Excerpts

Monday 8th November 2021 Commons Chamber

[Greg Smith (Buckingham) (Con)]

1. What steps she is taking to ensure that the household support fund helps the most vulnerable during winter 2021-22.

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

We have made £500 million available across the UK to support vulnerable households this winter. It really is for local authorities, which are closer to their communities, to use the funding to support those with needs for food, utilities and wider essentials. They are best placed to design schemes that support those most in need locally.

[Greg Smith]

The £500 million household support fund is extremely welcome and my local council is busy ensuring that support reaches those who need it through their excellent Helping Hand scheme. Will my right hon. Friend join me in congratulating Buckinghamshire Council on ensuring that a comprehensive package is available for those who are sadly unable to put food on the table or heat their homes, and will she set out what more can be done to ensure that those in such distressing circumstances know that local authorities have the resources and should be the first port of call?

[Dr Coffey]

My hon. Friend is right to praise Buckinghamshire Council, which was allocated £2.4 million from the fund. It is fair to say that local authorities delivering the household support fund have access to elements relating to health visitors, social workers and housing departments, and access to the benefits system through the Searchlight portal, to identify people who may need help at this time and are most in need. Of course, people should turn to their councils for that support, and they should be warmly welcomed.

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

According to the Resolution Foundation, the combined effect of the removal of the £20 universal credit uplift and the Budget measures means that 3.6 million households on universal credit—three quarters of the total—will still be worse off this winter. These measures take £3 billion out of support for the poorest, so how far does the Secretary of State estimate that the £500 million household support fund, which is equivalent to just one sixth of the amount that has been removed, will reduce the level of hardship for people this winter?

[Dr Coffey]

The hon. Lady will recognise that some of the announcements made in the Budget recently will, I expect, provide some direct support for people working or, indeed, encourage people into work. However, the £500 million, being a targeted fund, will be a great support, with people identified by local councils that know who to target in this regard. It is also fair to say, as has been said many times, that the uplift was temporary, recognising the situation that we are in, and candidly, it was far more generous than ever happened—or rather, never happened—when we had the 2009-10 financial crisis.

[Mr Steve Baker (Wycombe) (Con)]

Like my hon. Friend the Member for Buckingham (Greg Smith), I pay tribute to Buckinghamshire Council for all that it has done with the Helping Hand scheme. Does the Secretary of State agree that in a place such as High Wycombe, where riches and poverty are often found so close together, it is imperative that we equip councils to provide local people with the local help that they need?

[Dr Coffey]

I strongly agree. That is why we are working through local authorities, which understand their communities well, without there being blanket schemes. It is important that that is reflected around the country, including in places such as High Wycombe.

[Alison Thewliss (Glasgow Central) (SNP)]

2. What steps her Department is taking to tackle delays in payment of the state pension.

--- Later in debate ---

[Claire Coutinho (East Surrey) (Con)]

5. What assessment she has made of the resilience of the universal credit system during the covid-19 outbreak.

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

The universal credit system stood up to the challenge of the pandemic, which meant that people received vital financial support at their time of need. On one day alone we received just over 100,000 new claims, 10 times the average. The old system would not have coped with the unprecedented pressure that we have seen over the past 18 months, and that is yet another reason why universal credit is working.

[Claire Coutinho]

During the pandemic, the universal credit system proved not only its resilience but its agility in providing people with the emergency support that they needed. Now that the Government are rightly focusing on getting people back into work, could my right hon. Friend set out the timetable for the very welcome changes that she has made to the universal credit taper rate and to work allowances?

[Dr Coffey]

I was not the only person to cheer loudly when the Chancellor announced to the House that we were increasing work allowances and reducing the taper rate to 55% no later than 1 December. I am pleased to inform my hon. Friend that the latest information I have is that we intend to try to bring that in from 24 November, which means that an extra 500,000 claimants will benefit, even more than might have been predicted just a couple of weeks ago.

[Mr Toby Perkins (Chesterfield) (Lab)]

The Department for Work and Pensions makes substantial efforts to assure itself that people who are on universal credit and not in work are entitled to that payment, either because of the disabilities that they have or because they have made every possible effort to find work. On that basis, why would the Government reassure themselves that it is okay to plunge those people into poverty, when they have done everything that the Government have asked them to do in terms of trying to find work? Why not just reintroduce that £20 payment?

[Dr Coffey]

The £20 uplift was a temporary measure reflecting the nature of what happened in the pandemic, and the greatest financial impact was on those who had gone from having earnings to having no earnings at all. We have doubled the number of work coaches and we are striving to help people to get into work, because we know that that is the best way to get on in life. I am sure the hon. Gentleman will welcome the change that happened in the Budget, which shows, perhaps even quicker than initially predicted, that work genuinely pays.

[Andrew Jones (Harrogate and Knaresborough) (Con)]

My right hon. Friend is aware that Harrogate has been the location for the pilot work on the managed migration from legacy benefits. Is she able to update the House on how that is going? Before the pandemic, it was going very well indeed. Is she now in a position to recommence the pilot, or to move on to the next stage of the migration?

[Dr Coffey]

My hon. Friend is right to point out that we undertook some pilot work in Harrogate on the managed migration element of moving everybody to universal credit. I am pleased to say that there was a considerable amount of learnings from that time in Harrogate, and we have also learned a lot during the pandemic. As such, I am not envisaging a need for the pilot to be resumed in Harrogate, but it has informed our plan, which is still in preparation, on resuming the managed move to universal credit.

[Deidre Brock (Edinburgh North and Leith) (SNP)]

6. What steps her Department is taking to help ensure that disabled people are supported in work.

--- Later in debate ---

[Deidre Brock (Edinburgh North and Leith) (SNP)]

T1. If she will make a statement on her departmental responsibilities.

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

Since the last Work and Pensions oral questions, I am pleased to welcome the Minister of State, Department for Work and Pensions, my hon. Friend the Member for Norwich North (Chloe Smith), and the Under-Secretary of State for Work and Pensions, my hon. Friend the Member for Macclesfield (David Rutley) to join our ministerial team. I congratulate the Under-Secretary of State for Education, my hon. Friend the Member for Colchester (Will Quince) on moving to his new role, looking after childcare. I also thank my hon. Friend the Member for North Swindon (Justin Tomlinson) for the great work that he did during his time in the Department; he should be proud of his achievements, including the changes to accessibility of benefits for those with terminal illness, and the national disability strategy.

Last week I was in Glasgow for COP26. I know you were also there at the weekend, Mr Speaker, to have discussions at that important climate conference. I was meeting my international counterparts and leading industry figures to discuss how to unlock the global superpower of pension funds to help us to achieve net zero. The UK is already leading the way. We need to mobilise climate finance, but together—with the resolve and readiness of countries and companies to act—the commitment that we secured in Glasgow will deliver prosperity and protection for people and the planet.

[Deidre Brock]

My constituent contacted the Department for Work and Pensions several times after her universal credit stopped at the end of July because she had reached state pension age, but she received no response. Three months later, I wrote to the DWP on the matter and received a letter on the same day, admitting the error, immediately depositing the outstanding amount and beginning the pension payments that my constituent was due. I listened to the excuses of the Under-Secretary of State for Work and Pensions, the hon. Member for Hexham (Guy Opperman), on this earlier, but I still cannot understand how it could have happened. Will the Secretary of State apologise to my constituent for the very great anxiety that she has suffered because of the DWP’s blunders?

[Dr Coffey]

The hon. Member just shows her effectiveness as a Member of Parliament in responding to her constituent and taking the issue up with us. If there are specific details that she would like to go into, I think the Under-Secretary of State for Work and Pensions, my hon. Friend the Member for Hexham (Guy Opperman), will be more than happy to respond. It is right to say that universal credit is not paid to people who are of pension age, but I flag to her some of the issues addressed by my hon. Friend earlier when considering the backlog in paying out pensions.

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

May I add my welcome to the new Ministers on the Front Bench today?

In the year before the pandemic, 380,000 sanctions were handed out by the DWP to the British people. Of course, there must be rules in any system, but since the Conservatives came to power in 2010, there has been a heavy focus on punitive sanctions, often for minor infractions, yet when the Home Secretary breaks the ministerial code by bullying, she gets off scot-free; when the Electoral Commission tries to investigate the Prime Minister’s flat refurbishment, it gets its wings clipped; and last week, when Mr Owen Paterson broke the rules on paid advocacy, this Government tried to do away with the rules all together. These are not one-offs. This is a pattern of behaviour. Does the Secretary of State appreciate that many people are comparing how the DWP operates with how the Conservative party behaves, and are asking, “Why is there one rule for the Government and another for everybody else?”?

[Dr Coffey]

Well, what can I say? The interests of the British public are best served when the Conservative party is in power and in government. We are seeing a rise in employment. We are seeing a universal credit benefit system that is more generous than the legacy system that was there. We are finally removing a lot of the thresholds that actually prevented people from working more than 16 hours per week. I am proud of not only our policies but our civil servants in delivering an excellent record in trying to make sure that money gets to the people who deserve it the most.

[Jonathan Reynolds]

People simply want to know that everyone in this country is playing by the same rules, and I think that is reasonable.

Let me turn to another crisis of the Government’s own making—the problems in the labour market we have seen over the past few months that left the pumps dry and the shelves sparse. As we left the single market it was obvious which sectors would be most disrupted: transport, logistics, and social care and the NHS. Regardless of how people voted, we have to make this work, which it clearly does not at the moment because of Government incompetence. This Government often claim they have a plan for jobs, but surely any credible plan would have tackled these shortages head on and got unemployed people the skills the economy needs to keep Britain moving. So, very simply, why was there no plan in place to prevent these problems?

[Dr Coffey]

Very evidently, the plan for jobs is working. We are seeing more people on the payrolls than was happening pre-pandemic. I hear what the hon. Gentleman says about some of the skills that may be required. I am conscious that many people who campaigned vigorously to stay in the European Union are still trying to use the excuse of leaving the European Union for why certain sectors are still under-supplied. The reality is that nearly 6 million people registered for the EU settlement scheme and they have an entitlement to live in this country if they so wish. I think there are some aspects of covid that are perhaps hindering people in coming back into the UK who are considering a return to their native countries. Let me say very clearly that we are working on this right across Government. We have the Prime Minister’s lifetime skills guarantee. We are encouraging people to consider swapping sectors, as is happening with aspects such as SWAPs—sector-based work academy programmes—for people who are unemployed. There are also the bootcamps for skills and the incentives to take on apprentices that have given been to employers right across the country. I can honestly assure the hon. Gentleman that the plan for jobs is certainly working.

[Selaine Saxby (North Devon) (Con)]

T4. North Devon still sees twice the number of jobseekers as pre-pandemic, yet employers across my constituency are desperate for staff of all skill levels. What steps is my right hon. Friend taking to match jobseekers with vacancies?

--- Later in debate ---

[David Linden (Glasgow East) (SNP)]

The British Government’s statutory minimum wage is not a real living wage; in fact, it is a sham. It does not meet the minimum income needed for an acceptable living standard, and the differing rates for young people, including in the Secretary of State’s constituency, are wholly unjust and discriminatory. What action will she take to ensure that all workers, regardless of age, get a real living wage, as set by the Living Wage Foundation in April, that actually reflects the rising cost of living, and not the sham supported by this British Government that Scotland did not vote for?

[Dr Coffey]

We have a separate body that already makes recommendations. It is called the Low Pay Commission, and the differential in wages is out there. The hon. Member can cite whatever campaigning body he likes; we have seen a huge increase in the national living wage, and that is to be welcomed right across the country as we head towards the national living wage being 66% of median earnings.

[Rob Roberts (Delyn) (Ind)]

T6. Almost exactly a year ago, I had the privilege of serving on the Bill Committee for the Pension Schemes Act 2021, which was widely appreciated by the industry as being an outstanding piece of legislation. One of the best parts of that Bill was pensions dashboards, which enable people to better understand and impact on their pension savings. Can my hon. Friend in a short time give an update on the implementation of pensions dashboards and undertake to write to members of the Committee with a more detailed response?

--- Later in debate ---

[Dr Coffey]

We have been working consistently to try to ensure that for people who receive benefits, for which immigration status is required, we exhaust all avenues to encourage them to apply to the EU settlement scheme to maintain that benefit entitlement. I am pleased to say that the vast majority of people have done so, and we will keep working to try to ensure that, whether people have received letters, UC journal messages, invitations to come to face-to-face appointments, or supportive officers have been sent round to help them with the process, we are taking every action possible to try to ensure they do so. I encourage hon. Members to ensure that people know they must apply for EUSS status so that they continue to be eligible for the benefits.

[Kirsten Oswald (East Renfrewshire) (SNP)]

Like other Members, I welcome the modest reduction in the universal credit taper rate, but it does not come close to compensating for the effect of the £20 a week cut to universal credit, to say nothing of the national insurance hike, rising inflation and soaring energy prices. In a written answer to me in September, the Minister for welfare delivery, the hon. Member for Macclesfield (David Rutley) confirmed that prior to cutting universal credit, the Department had not assessed the effect of the cut or the increase in energy costs on child poverty. Will the Secretary of State act now to correct that omission and conduct and publish an up-to-date assessment of how the cut to universal credit and the rising cost of living will impact on child poverty?

[Dr Coffey]

Given that it was a temporary uplift, recognising the effect of aspects of the pandemic on people new to benefits, no impact assessment was undertaken. With the removal of the temporary uplift, therefore, no impact assessment has been undertaken either.

[Bob Blackman (Harrow East) (Con)]

The cut to the taper rate from 63% to 55% was clearly a vital measure to support people on low incomes. What consideration has my right hon. Friend given to lowering the taper rate further so that we can ensure that people who go to work continue to work and benefit as a result?

[Dr Coffey]

I congratulate my hon. Friend on championing the announcement of the reduction of the taper rate from 63% to 55%. He may be aware that that was the original design of the universal credit system. The Chancellor agreed with me and the Prime Minister that, in trying to ensure that work pays, it was the right moment to do it. It recognises the labour market opportunities and makes sure that people are better off working. With my right hon. Friend the Chancellor having already provided for costs of about £2.5 billion annually, I am not convinced that we will seek to change the taper rate further; instead, we will be seeking to ensure that all the current job vacancies are taken up so that work really does pay.

[Andrew Gwynne (Denton and Reddish) (Lab)]

In answering an earlier question about 1950s women, the Under-Secretary of State for Work and Pensions, the hon. Member for Hexham (Guy Opperman), referred to the High Court but not the Parliamentary and Health Service Ombudsman’s report. Given that the report explicitly urged the Government not to drag their feet and to proactively co-operate with the next stages of the investigation, will he assure me that he will break the habit of a lifetime and do just that?