Oral Answers to Questions

Thérèse Coffey Excerpts

Monday 19th October 2020 Commons Chamber

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

I am grateful to the hon. Gentleman for his question, because he gives me the opportunity to highlight again what we are doing to help people in the sectors worst affected by the covid-19 outbreak. I have worked with my colleagues across government in forming and delivering our £30 billion plan for jobs to increase employment support, protect jobs and create new opportunities. He will be aware of the kickstart scheme, which particularly focuses on young people, but we will continue to help people of all ages to get back into work.

[Chris Elmore]

May I raise the specific issue of the support that is available to single parents when their child has to self-isolate? They are not able to claim statutory sick pay if their child is having to self-isolate at school age. In addition, if they were to apply for universal credit, they would have to restart the process each and every time. I have constituents who have had to self-isolate on multiple occasions because their school-age children have been told they have to stay at home and cannot stay at home on their own. Can the Secretary of State either tell me now, or come back to me on it in writing, what specific support can be directed towards constituents who need that additional support as single parents?

[Dr Coffey]

I will certainly ask the Minister for Disabled People, Health and Work to look into that detailed issue on SSP. If a person is required to self-isolate as a consequence of somebody in their household having symptoms, then, in my view, they should be eligible for SSP. But given that it is such a legal and technical issue, I will ask my hon. Friend to write to the hon. Gentleman specifically.

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

Ending the furlough scheme early is going to put livelihoods at risk, so will the Secretary of State provide an update on her discussions with the Treasury about extending the covid-related increase to universal credit and ensuring that it is expanded to legacy benefits? While she is in those discussions, will she raise extending the furlough scheme and ask that the covid self-isolation grants be tax-exempt, as called for by the Social Security Secretary in Scotland, Shirley-Ann Somerville?

[Dr Coffey]

There are multiple questions there. My right hon. Friend the Chancellor has already responded by introducing the new job support scheme, which he updated for particular sectors, thinking of tier 3 in England, to extend even further the furlough scheme. It is clear that this Government are doing what is needed. In terms of the other things that the hon. Gentleman mentions, he will be aware that I continue to have regular discussions with my Treasury colleagues on the best way that we can help to support people during this pandemic.

[Alison McGovern (Wirral South) (Lab)]

What recent assessment she has made of the effect of the covid-19 outbreak on levels of child poverty.

--- Later in debate ---

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

The 2020-21 universal credit increase was included in a package of welfare measures worth around £9.3 billion this year to help people with the financial consequences of what has happened with the covid-19 pandemic. I continue to work with the Treasury on the best ways to support those receiving benefits. I share the view of my right hon. Friend the Chancellor that we must act in a way that recognises social justice, and that is the motivation of those on the Government Benches.

[Rosie Cooper [V]]

Does the Secretary of State still intend to end the suspension of the minimum income floor for self-employed universal credit claimants, which is due to expire on 13 November?

[Dr Coffey]

That policy is still under review. Clearly, this is a matter of discussion, because the regulations do come to an end. It is important to recognise that we have different measures happening around different parts of the country. We do need to try to take a national approach to the overall policy, but as ever, we trust and empower our work coaches to make the best decisions for the claimants they are helping, usually to help them get back into work.

[Mr Speaker]

I call the Chair of the Select Committee on Work and Pensions, Stephen Timms.

[Stephen Timms]

The Select Committee’s report published today calls for new starter payments to claimants of universal credit to help tide them over the very difficult five-week wait for their first regular benefit payment, and for the £20 a week increase, which the Secretary of State has referred to, to be made permanent. How can it possibly be justified for people claiming jobseeker’s allowance and employment and support allowance to receive £20 a week less than people in identical circumstances who happen to be claiming universal credit?

[Dr Coffey]

On what happened with legacy benefits and universal credit, I think the rationale was set out clearly at the time; in particular, it was also about having a rate that was quite similar to statutory sick pay. We will look carefully at the report that the right hon. Gentleman and his Committee have issued to us today, but I remind him that of course people do not need to wait five weeks for a universal credit payment; they can get a payment within a matter of days, and that payment is then spread over the entire year.

[Owen Thompson (Midlothian) (SNP)]

What recent discussions she has had with the Chancellor of the Exchequer on extending the temporary measures introduced by her Department in response to the covid-19 outbreak.

--- Later in debate ---

[Duncan Baker (North Norfolk) (Con)]

If she will make a statement on her departmental responsibilities.

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

The Government’s new job support scheme being launched next month to protect viable jobs and businesses that are facing lower demand is yet another part of how my Department and the Government are standing ready to try to help people stay in work and to prepare to get back into work. [Interruption.] We will continue to do whatever it takes to make sure we are reaching people of all ages. In particular, I want to make sure that people who may newly be looking for support from the welfare state use the Government-funded help to claim service, administered by Citizens Advice. [Interruption.]

[Mr Speaker]

Order—apologies, Minister. Let me just say to the hon. Member for Stockton North (Alex Cunningham) that there was not time to call him. There was another Member before him on the call list, so there was not a chance that I could have called him before moving on; I do apologise. If he wants to hang around, I will try to get him into topical questions if he wishes to speak.

[Duncan Baker]

I was pleased to see my right hon. Friend’s announcement that almost 1 million pensioners in receipt of pension credit will be receiving £140 off their energy bills through the warm home discount scheme. My constituency has a very elderly demographic, so that is a great lifeline for so many. Will she confirm that, alongside it, the Government will continue to make winter fuel payments to support our pensioners this winter?

[Dr Coffey]

My hon. Friend is absolutely correct, and I praise him for raising this issue on behalf of the many people he represents. This Government are committed to tackling fuel poverty, particularly among pensioners, and will continue to deliver winter fuel payments this year. I was pleased by the work done by my Department to make sure that those on pension credit, including in your constituency, Mr Speaker, received the £140 from the warm home discount scheme, without lifting a finger.

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

As the Government place millions of people across the country under new covid restrictions, they will be asking many people to undergo significant cuts to their income. Last week, the Prime Minister said that due to the job support scheme and universal credit

“nobody gets less than 93% of their current income.”—[Official Report, 14 October 2020; Vol. 682, c. 368.]

Unfortunately, that is just completely wrong. The reality is that a person employed by a business that the Government are ordering to close could still lose a third of their income, and for an unspecified length of time. Their rent, mortgages and food bills will not be any lower, so how does the Secretary of State expect those people to get by?

[Dr Coffey]

The Government have taken unprecedented action in the design of their new schemes, recognising that some businesses right around the country are still experiencing a loss in demand. As a consequence, we have developed two different schemes, one of which is “a third, a third, a third” in terms of helping people with their cost of living. Where we believe, in conjunction with local leadership, that it is the right thing for certain sectors to be closed in areas, the two-thirds support of wages is important. Of course if people do come under a certain threshold, they may well be eligible for UC, which would help top up their ongoing income during these difficult times.

[Jonathan Reynolds]

Secretary of State, this is important, because it is the barrier to additional restrictions being introduced. As the Government know, people who are eligible for the job support scheme and may be losing only a third of their income are, comparatively, the lucky ones, as people in receipt of UC or jobseeker’s allowance will be left on just a fraction of their current income. With that in mind, I have a straightforward question for her: it is clear that we are not going to be out of this crisis by April next year, so will the Government do the right thing and scrap their plans to cut UC to an even lower amount next April?

[Dr Coffey]

What is different from the regime we had earlier in the year is that then the strong message was very much for people to stay at home and retail was closed, along with a number of different sectors. That is not the case anymore: we have now had to intervene in a much more limited number of sectors, often in conjunction with the local leadership. As a consequence, we will continue to review the best ways to support people through the welfare system, as well as through the plan for jobs and the measures that the Chancellor has introduced.

[Tim Loughton (East Worthing and Shoreham) (Con)]

With forecasts showing that there may be as many as 1 million young people without a job, I urge the Minister to think outside the box. I have long argued that we should use graduates and gap-year students to help some of those pupils who have missed out on schooling to catch up. Can we devise, with the Department for Education, a scheme to pay them a variation of JSA to provide such a service, or at least offer greater flexibility for claimants who volunteer to help in such a way or to take the pressure off other public services?

[Dr Coffey]

One element of the kickstart scheme, a £2 billion investment in the future of our young people, is designed to help people to get on the first rung of the ladder with a proper job. It is a way for those people who have recently left school or university and are at risk of long-term unemployment to get experience and financing, which does not just have to be through private organisations and could be through local government or charitable or other sectors. It is a specific way to ensure that those people get not only a job but the extra training and wraparound support that they need to help them further on in their lives.

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

For some time, the SNP has led the campaign to end the universal credit five-week wait. We think that is best done by the introduction of grants, so we welcome today’s Work and Pensions Committee report. We also agree with the idea of renaming advances as “new claim loans” to make clearer what they actually are. Will the Secretary of State look favourably on the report’s findings and accept its recommendations?

[Dr Coffey]

I will look carefully at the report. Select Committee members will know that I have spoken to them on previous occasions, as have other Ministers, to explain that advances are a way to spread the payment of universal credit over a year—in fact, in future it will be over two years, if that is how long people want to spread that initial support—and it is not our intention in any way to introduce a grant at the beginning. The grant is there in the benefits—that is exactly what they are there to do—so I do not see how we will be responding positively to the Committee’s report in that regard.

[Owen Thompson (Midlothian) (SNP)]

  Applications for the new self-isolation payment are to be launched last week, but there is a real risk that some people may not apply for the £500 because of tax concerns. Scotland’s Cabinet Secretary for Social Security and Older People has written to the Chancellor calling for an income tax exemption for the payments, similar to the exemption for the test and trace support payment scheme in England. Will the Secretary of State urge the Chancellor to exempt the new self-isolation payments from tax?

[Dr Coffey]

Tax matters are a matter for the Chancellor.

[Kerry McCarthy (Bristol East) (Lab)]

I hope next month to introduce a ten-minute rule Bill on the regulation of supported housing. I am particularly motivated by concern that unscrupulous landlords are moving into the sector so that they can take advantage of higher housing benefit rates. There is obviously an overlap with universal credit, so I wondered whether the Secretary of State has had any conversations with her colleagues in the Ministry of Housing, Communities and Local Government about the fact that we badly need to regulate the sector because too many people are being exploited.

[Laura Farris (Newbury) (Con)]

The kickstart scheme has been enthusiastically taken up by employers in West Berkshire, but of course it is time limited and comes with no guarantees. What steps is my right hon. Friend the Secretary of State taking to ensure that kickstarter placements lead to permanent employment, either with the placement employer or in the same sector?

[Dr Coffey]

My hon. Friend is right to point out that the kickstart placements are six-month-long jobs, but the skills that people will learn and the experience they will gain will put them in good stead to secure future employment. We are investing in our young people in recognition of this difficult time, but of course if they do not secure a permanent job at the end of that time—although the placements may be a gateway to apprenticeships and similar—we will continue to support them until they find a job.

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

The Knaresborough Connectors community group and Knaresborough chamber of trade are working together to build a scheme to enable participation in the kickstart scheme for smaller businesses in the area. It is good work and I am keen to help it. Will my right hon. Friend the Secretary of State be encouraging the Department to work with local community organisations to ensure that all areas, urban and rural, and all businesses, small and large, can access the benefits of kickstart?

--- Later in debate ---

[Sir Robert Neill (Bromley and Chislehurst) (Con)]

  A number of my constituents are receiving letters out of the blue saying that the Child Maintenance Service is writing off unpaid payments as part of a review of historical debt. Will my right hon. Friend tell me the basis for the review, what the criteria are for the cases, how many are involved, and by what means personal advance notice of the changes is being given to the people concerned?

[Dr Coffey]

My understanding is that the policy relates to people who have had child maintenance arrangements for a very long time. There comes a point when there is an element of understanding the different debts. My hon. Friend will be aware that, in a way, this is a very odd arrangement, with the state effectively becoming the arbiter between two parents. The only people who lose are the children. That is why I encourage everybody who has a responsibility towards their children—currently 111,000 children are owed £187 million by parents who refuse to pay up—to get on and do the right thing by them. We should not end up having to rely on the state to arbitrate between two parents.[Official Report, 16 November 2020, Vol. 684, c. 2MC.]

[Matt Western (Warwick and Leamington) (Lab)]

  Like many schools across the country, a school in my constituency has had to close with less than 24 hours’ notice, leaving working parents having to care for their children at home. What discussions have Ministers had with their colleagues in Health and Education to see whether the £500 self-isolation payment can be extended to those working parents?

[Dr Coffey]

The £500 self-isolation payment administered by local councils was devised to achieve compliance with public health guidance. That is why the Department of Health and Social Care is leading on the matter. I am conscious that there may be local arrangements that need to be addressed. Often, the best way to tackle those is through the Ministry of Housing, Communities and Local Government, which has local funds that have been topped up by this Government to help with local welfare issues.

[Selaine Saxby (North Devon) (Con) [V]]

Will my right hon. Friend join me in thanking the exceptional team at Jobcentre Plus in Barnstaple for their work to support the vastly increased number of people in North Devon looking for work at this time? I extend an invitation to her to come to my constituency to thank them at first hand.

[Dr Coffey]

My hon. Friend is right to praise hard-working DWP staff at her local Jobcentre Plus and across the network. The team in Barnstaple have worked with the National Careers Service to help with interview technique and build transferable skills among people who become unemployed, and great work is already under way at the North Devon youth support hub in Bideford and Barnstaple. I look forward to visiting the south-west. As she knows, the DWP jobcentre is a covid-secure environment and I look forward to joining her there in due course.

[Jamie Stone (Caithness, Sutherland and Easter Ross) (LD) [V]]

I, too, am greatly concerned about the ability of the Child Maintenance Service to deliver results. I wonder whether the Minister would be kind enough to meet me to discuss a constituent who has been unable to collect an unbelievable amount of arrears over the past decade, estimated at £30,000.

[Dr Coffey]

My noble Friend Baroness Stedman-Scott is the Minister responsible for the Child Maintenance Service. She is more than happy to meet colleagues who are having particular difficulties with paying parents who are refusing to cough up.

[Jeff Smith (Manchester, Withington) (Lab)]

  My constituent Joseph made a claim for industrial injuries disablement benefit in January. His assessment, along with all the other new assessments, was postponed because of covid, so he is living with the extra costs that come with having an industrial disease, but he does not have the extra benefits he needs. Can the Secretary of State please urgently resume IIDB assessments?