Oral Answers to Questions

Thérèse Coffey Excerpts

Monday 25th January 2021 Commons Chamber

[Patricia Gibson (North Ayrshire and Arran) (SNP)]

What recent assessment she has made of trends in levels of poverty.

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

Tackling poverty and levelling up opportunity will always be a priority for this Government, while using universal credit, which works for the labour market, to encourage people to move into and progress in work. There are several measures of poverty in the annual publication “Households below average income”—which is based on the annual family resources survey—of which absolute poverty before housing costs is the measure on which the Government most focus. Since 2010, 400,000 people have been lifted out of absolute poverty, including 100,000 children, and additionally, the rates of combined material deprivation and low income for children were at their joint lowest, at 11%, in 2018-19.

[Alan Brown [V]]

Child poverty is a disgrace in the UK and it is strongly linked to welfare payments. Quite clearly, more people are going to be pushed into poverty if the Tory Government continue with their planned cut to the £20 uplift in universal credit and the working tax credit. Ministers have ducked this all day, but given that the Government did not vote against the motion last week, they have a duty to honour that motion, so will the Secretary of State confirm what discussions she has had with the Chancellor about retaining the vital £20 uplift?

[Dr Coffey]

I updated the House in November and did say that we would be reviewing this in the new year. That is exactly what we are doing, and I am actively considering with the Chancellor the best way to continue to try to support people who are impacted on strongly by the economic impacts of this pandemic.

[Stephen Flynn [V]]

Between November 2019 and November 2020, the number of universal credit claimants in Aberdeen South had risen by 188.7%, and any move to cut the £20 universal credit uplift would have a catastrophic impact that would ultimately exacerbate poverty levels. So let us try again: can the Secretary of State confirm that she has made personal representations to the Chancellor on maintaining the full £20 uplift, and if so, and he chooses to ignore her, will she resign?

[Dr Coffey]

As often happens, as the hon. Gentleman will know from the Scottish Government Administration, Government Ministers tend to have discussions about policy while they are considering it. It is important, recognising the scale of the support that the Government have given to families, businesses and so on, that we continue to make these important decisions based on evidence in a competent, considered and compassionate way. That is exactly what the Chancellor and I will be doing in our recommendations for the Prime Minister.

[Patricia Gibson [V]]

Unless the universal credit and working tax credit uplift is made permanent, a further 60,000 people in Scotland, including 20,000 children, will be pushed into poverty. If this support is not extended beyond March, and if tackling poverty is a priority for the Secretary of State’s Government, as she says, will she set out what alternative and additional measures her Government intend to bring forward to tackle child poverty, which shamefully still affects 30% of children across the UK?

[Dr Coffey]

I have already set out the approach and discussions that the hon. Lady can be assured I am continuing to have with other Ministers, including the Chancellor. It is fair to say that we are very conscious that one of the ways to try and help people get out of poverty is through the plan for jobs. While I am conscious that there are not lots of jobs at the moment—although we estimate that there are over half a million vacancies—we want to try and make sure that people are ready to take advantage of the opportunities, particularly when we have seen the number of workless households sadly increase.

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

The Secretary of State suggested that her approach to universal credit is evidence-based, yet the Government dismissed the Select Committee on Work and Pensions report on this issue. Then she described anti-poverty measures as a priority, yet removing the universal credit uplift would plunge 200,000 children across the UK into poverty. If the UK Government make the smaller one-off payment that has been suggested, it will provide no security and do nothing to help those who first claim UC after the payment has been made. Alongside the discussions on universal credit, has the Secretary of State suggested to the Chancellor any action to end the discrimination against those on legacy benefits who have seen their support rise by just 1.7% during the pandemic?

[Dr Coffey]

People on legacy benefits can transfer to universal credit, and the final barrier to that is being lifted this Wednesday. I encourage people to consider that move, because we are confident as a Department that the majority of people would be better off. I remind the House that Parliament voted to end both legacy benefits and tax credits and to move to universal credit because it is a welfare system that is agile and incentivises people to work when they can.

[Neil Gray [V]]

So no action on legacy benefits, which means that the active discrimination from the UK Government against sick and disabled people, who disproportionately claim them, will continue. Robert Burns said:

“Whatever mitigates the woes or increases the happiness of others, this is my criterion of goodness; but whatever injures society at large or any individual in it, then this is my measure of iniquity.”

If the uplift to universal credit is not made permanent, the Secretary of State will be presiding over a system that not only discriminates against disabled people but in which out-of-work support falls to its lowest ever level relative to wages, confirming Burns’s definition of iniquity. In that scenario, how in all conscience could she remain in post?

[Dr Coffey]

Tonight, many people right across the United Kingdom will be celebrating Burns night, recognising the strength of the poet and the prose he delivers. I am afraid that the hon. Gentleman’s comments fail to hit with me right now. The reality is that we have supported the welfare system with an extra £7 billion in the past year. We continue to spend more on benefits and we continue to spend more to try to help people back into work. This is a Government who are on the side of people, recognising the difficult situation that we face. As I have said before, as long as the Opposition keep trashing universal credit it will be no wonder that people do not realise that many of them would be better off moving tomorrow. I would encourage people to look into that.

[Chris Clarkson (Heywood and Middleton) (Con)]

What steps she plans to take to increase the participation of young people in the kickstart scheme as covid-19 lockdown restrictions are eased.

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

Kickstart has got off to a flying start and I am delighted to inform the House that to date 120,000 kickstart jobs have been approved and 2,000 young people have already started. Around 10,000 jobs are available to young people now and I am expecting a further 33,000 or so to be placed fairly soon while we work with employers to finalise the detail of the job offer. We recognise that young people have been greatly impacted by the pandemic, which is why kickstart is such a pivotal part of our plan for jobs to help them secure a stable footing on the career ladder.[Official Report, 4 February 2021, Vol. 688, c. 7MC.]

[Chris Clarkson]

Kickstart is a fantastic programme that has created 120,000 opportunities that will benefit young people in Heywood and Middleton and around the country, but of course the core jobcentre offering will be incredibly important as we move to recovery. What measures are being taken to ensure that that is available to people of all ages around the country?

[Dr Coffey]

My hon. Friend is right. While kickstart is the flagship of our plan for jobs, we are well on track to recruit the extra 13,500 work coaches. Throughout the pandemic and across the country, work coaches have continued to provide support directly and digitally. Helping people to get ready to get back into work is a top priority and that is why other parts of the plan for jobs, including stepping up the number of places on sector-based work academy programmes, boosting job entry targeted support and launching job funding support nationally this month, are how we are helping everybody to try to get back into work.

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

Today, the DWP announced that more than 120,000 kickstart jobs had been created, but the Secretary of State has said that 10,000 placements are available now, and the Financial Times has reported that it is because of the Secretary of State’s delays that the other 33,000 have not yet come on stream. How on earth can it be that fewer than 2,000 young people have started placements to date? This scheme was announced six months ago and over half a million young people are out of work. Is it not the Secretary of State who needs to move up a gear so that we can secure our economy and get our young people into the jobs that they need?

[Dr Coffey]

The hon. Lady is right to ask why only 2,000 people have started. We have had a record number of applications and we have actually created more job placements than the future jobs fund ever achieved. We are trying to turn that into job starts. There are certain things going on where we are trying to roll out those jobs around the country, but I can assure her that this pipeline of jobs, which will take us right through to the end of the year as we are taking on more, is there to try to ensure that we find people the right sort of kickstarter role. We are also making sure that, as well as having covid-secure arrangements, the training wraparound support is high-quality.

[Sir David Amess (Southend West) (Con)]

What steps her Department is taking to help ensure that people with disabilities and health conditions can safely access welfare support during the covid-19 outbreak.

--- Later in debate ---

[Daniel Kawczynski (Shrewsbury and Atcham) (Con)]

What steps her Department is taking to support vulnerable people with essential costs in winter 2020-21.

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

The £170 million covid winter grant scheme is supporting disadvantaged people through the challenging winter months to the end of March with food and utilities. The first wave of funding was given to councils in November. The next tranche of payments is due next month and support for Northern Ireland, Scotland and Wales is already included in the pre-agreed Barnett funding. I have been pleased to see councils go beyond just issuing food vouchers. For example, in Telford and the Wrekin, where a large number of pupils had reportedly been going to school without a warm coat, some of the funding will help ensure that these disadvantaged children are warmly dressed for the cold winter months.

[David Johnston [V]]

I thank my right hon. Friend for that statement. As well as providing those on low incomes with food boxes, the charity SOFEA in my constituency works with utility companies to try to drive down the costs of people’s bills, recognising that food is not their only challenge. I am hugely supportive of the covid winter fund, but does my right hon. Friend agree that what happens to those on low incomes is not just about what the Government do, and that we need all businesses to look at what more they can do to help drive down the cost of living?

[Dr Coffey]

My hon. Friend is absolutely right that all businesses can play a part. I praise those mobile phone and internet companies that have offered low-cost packages to people while they are on benefits. In particular there is the warm home discount scheme where my Department works closely with utility companies on data matching. Nearly 1 million eligible claimants received the £140 discount automatically and did not need to apply.

[Daniel Kawczynski]

Does my right hon. Friend agree that, by providing funding to support families with children of all ages, including pre-school children, the covid winter grant scheme will give local authorities the flexibility they need to ensure that no child goes hungry this winter?

[Dr Coffey]

I completely agree with my hon. Friend. The terms of the condition of the grants to councils were clear that they needed to reach out to support children of all ages who are disadvantaged. Councils have the ties and the knowledge that make them well placed to identify that. I commend Shropshire County Council, which has received £850,000 over the scheme, for drawing on this information to target its support to help children of all ages, including pre-schoolers and care leavers who are exactly the groups that I hoped would also benefit from the support.

[Matt Rodda (Reading East) (Lab)]

Too many pensioners face a harsh and challenging winter. Deep concerns about the high rates of coronavirus have been made worse by the effects of the severe weather and isolation from the usual networks of support. Will the Secretary of State reassure the House that the Government will take urgent action both to raise take-up of pension credit for those most in need and to take other steps to protect pensioners? The Government have dithered for too long, and they need to set out a comprehensive package of support for our vulnerable pensioners.

[Dr Coffey]

I welcome the hon. Gentleman to his place and congratulate him on his new role. On supporting pensioners, I genuinely believe that the Government have gone a very long way with the triple lock. We continue to see that boost with the basic state pension. He may not be aware of the extensive advertising in GP surgeries, post offices and similar that took place in 2020 to encourage people to take up the pension credit. We will continue to consider how that can be improved.

[Mr Richard Holden (North West Durham) (Con)]

What progress her Department is making on the roll-out of universal credit to eligible (a) claimants and (b) people on legacy benefits during the covid-19 outbreak.

--- Later in debate ---

[Chi Onwurah (Newcastle upon Tyne Central) (Lab) [V]]

If she will make a statement on her departmental responsibilities.

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

Our kickstart scheme is putting the future of young people front and centre of our plan for jobs. I have already shared with the House that over 120,000 kickstart roles have now been approved, and we want to turn those into job starts. In addition to making it simpler for employers by removing the 30-vacancy threshold for direct applications, as was set out earlier, employers who cannot currently access kickstart at all—for example, sole traders with no pay-as-you-earn systems—can now join up through the gateway-plus model that is currently provided by the Federation of Small Businesses and Adecco joint venture. It is an exciting phase as we move up a gear.[Official Report, 4 February 2021, Vol. 688, c. 8MC.]

[Chi Onwurah]

This weekend, Newcastle United fans food bank launched a virtual bucket so that fans can donate small sums online on matchdays to help to meet the massive increase in demand from hungry families. Will the Secretary of State congratulate the food bank organisers on their hard work and ingenuity, and explain to them why she will not cancel the cut to universal credit that will force many of the 16,000 claimants in Newcastle further into destitution, increasing debt, food poverty and demand for the food bank?

[Dr Coffey]

Of course I congratulate the organisation through the football club to which the hon. Lady refers: it is of great worthiness to undertake that. She will be aware of the support that has been ongoing and also the additional £170 million winter grant from which Newcastle City Council will be benefiting in order to help to make sure that no child goes hungry and every child stays warm this winter.

[Stephen McPartland (Stevenage) (Con) [V]]

The impact of the pandemic has been particularly acute in certain sectors, forcing many people with years of experience to rethink their careers. How does the Government’s plan for jobs help people who are now looking for new jobs that are going to require new skills?

[Dr Coffey]

We have provided an unprecedented economic support package to protect and create jobs through the pandemic. For people who need to change careers, our sector-based work academy programmes—SWAPs—offer training, work experience and a guaranteed job interview to get those people ready to start a job, allowing them to learn the skills that employers in that particular industry look for. Alongside that, our flexible support fund has been boosted by an extra £150 million so that work coaches can help to support individuals facing redundancy through retraining and overcoming barriers to work.

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

As we have heard, last week this House voted that the Government should not proceed with the £1,000 cut to universal credit set to take place in April. That position is now supported by 280 MPs, more than 60 charities and campaign groups, and the majority of the British public. I have listened to the Government today, as ever, but, as it stands, that cut is formally written into official Treasury documents, and the Prime Minister has indicated that he thinks the cut should happen, but last week the Under-Secretary, the hon. Member for Colchester (Will Quince), said that it was too early to make the decision. Will the Secretary of State clarify what is Government policy on reducing universal credit in April, what criteria will affect the decision, and who in Government will ultimately make that decision?

[Dr Coffey]

As has been explained several times to the House today, and previously by my hon. Friend the Member for Colchester (Will Quince), the Government introduced a raft of temporary measures to support those most impacted by the covid pandemic. The hon. Member is aware of the statement I made to the House, where I said that the situation would be reviewed in the new year, and that is exactly what I am doing. I am working closely with my right hon. Friend the Chancellor as we consider the options on how best to support people through the pandemic.

[Jonathan Reynolds]

I put it to the Secretary of State that she must give clarity to the millions of families this cut will affect. If she wished, she could give that reassurance now. I also ask for clarity on reports that the Chancellor is planning on giving a one-off payment to universal credit claimants, ignoring those on other benefits, and leaving the hundreds of thousands of likely new claimants expected this year with lower levels of support. Does the Secretary of State agree that it would be not only unfair, but a very poor use of public money to pay a lump sum to people on universal credit now, while cutting unemployment support to its lowest level for 20 years, just as unemployment is set to peak?

[Dr Coffey]

I can only more or less repeat what I said before. My right hon. Friend the Chancellor and I are actively working on proposals on how we can continue to make sure that we support people most badly affected by the pandemic. This is part of the discussions that are still ongoing, and I can assure the House that we are actively considering it and hope to make an announcement when we can, in order to give that certainty, as the hon. Member points out, to a number of people.

[Robert Largan (High Peak) (Con) [V]]

I have often talked about my ambition for High Peak to be the capital for tackling climate change. I welcome the Government’s commitment to protecting our environment, including the big increase in funding for the restoration of High Peak’s moorlands. We all have a part to play in tackling climate change, and with trillions in assets available to them, can I ask the Secretary of State what steps the Government are taking to ensure that pension funds make more environmentally sustainable investments in future?

[Dr Coffey]

My hon. Friend is right to highlight the key role that pension scheme assets can play in tackling climate change. The UK is already leading the way on this issue, thanks to actions taken by the Government, but particularly by my hon. Friend the Member for Hexham (Guy Opperman), the excellent Minister for Pensions. In 2018, we introduced key environmental, social and corporate governance legislation for occupational pension scheme investments, and we have gone further with the pension scheme legislation that is currently awaiting Royal Assent. It makes the UK the first major economy to put assessing climate risk and disclosure into statute for pension schemes, a point that we will continue to reinforce as we run up to hosting COP26, and we encourage other countries to do likewise.

[Mike Hill (Hartlepool) (Lab) [V]]

According to TUC polling, two fifths or 40% of workers say they will have to go into debt or into arrears on their bills if their income drops to £96 per week, which is the equivalent level of statutory sick pay. What steps is the Department taking to ensure that SSP is set at a level that does not require people to take on extra debts or avoid paying bills?

[Mr David Davis (Haltemprice and Howden) (Con) [V]]

  Over a year ago, one of my constituents had her complaint accepted for investigation by the independent case examiner. Today, she is still waiting for that investigation to start. She is a single parent and is now without universal credit or tax credits for her children. This kind of hardship is often the situation for those taking their cases to the independent case examiner, and the delay is not uncommon. The average time between a complaint being accepted by the examiner and an outcome being provided is a year and a half. That is completely unacceptable, so can the Secretary of State urgently look into the operation of the case examiner and drastically reduce waiting times and ensure that complainants are properly supported throughout the complaints process?

[Dr Coffey]

My right hon. Friend raises an important issue. Within the last year, we have reviewed parts of the complaints process. I am also conscious that my noble Friend Baroness Stedman-Scott, who leads on this, has arranged for more resources to go into the independent case examiner. It would be helpful if my right hon. Friend could share with me or with the noble Baroness the precise details, so that we can investigate what has happened.

[Peter Grant (Glenrothes) (SNP) [V]]

Most of my constituency has hardly seen temperatures above freezing since before the turn of the year. Pensioners in around 200 other parts of the United Kingdom are now getting the cold weather payments they are entitled to, but because of rules set out by the Department, thousands of pensioners in my constituency do not qualify for a single penny. Could the Secretary of State explain how that is fair?

[Dr Coffey]

I 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.

[Theresa Villiers (Chipping Barnet) (Con)]

The Government’s emergency income support schemes have helped millions of people, but unfortunately there are gaps in support. Will the Government look again at how to help PAYE freelancers, the newly self-employed, directors of limited companies, and particularly women for whom periods of maternity leave have made it even more difficult to come within these covid emergency schemes? They need help; they are suffering real hardship.