Pensions (Special Rules for End of Life) Bill

Thérèse Coffey Excerpts

Report stage
Friday 17th May 2024 Commons Chamber

[Dr Thérèse Coffey (Suffolk Coastal) (Con)]

I beg to move amendment 1, page 1, line 22, leave out from “force” to end of line 23 and insert—

“at the end of the period of four months beginning with the day on which this Act is passed.”

This amendment would bring the provisions of the Bill which extend to England and Wales and Scotland, and section 1(5) which extends to England and Wales and Scotland and Northern Ireland, into force four months after Royal Assent.

[Mr Deputy Speaker (Mr Nigel Evans)]

With this, it will be convenient to discuss the following:

Amendment 4, page 2, line 1, leave out from “force” to end of line 2 and insert—

“at the end of the period of four months beginning with the day on which this Act is passed.”

This amendment would bring the provisions of the Bill which extend only to Northern Ireland into force four months after Royal assent.

Amendment 2, page 2, line 5, leave out subsection (7)

This amendment is consequential on Amendment 1.

Amendment 5, page 2, line 7, leave out subsection (8).

This amendment is consequential on Amendment 4.

Amendment 3, page 2, line 10, leave out subsection (9).

This amendment is consequential on Amendment 1.

Amendment 6, page 2, line 12, leave out subsection (10).

This amendment is consequential on Amendment 4.

[Dr Coffey]

I am grateful to my hon. Friend the Member for Tewkesbury (Mr Robertson) and to the Government and the Department for Work and Pensions. I have tabled these amendments because, as has been seen with other Bills to which we have given Third Reading, they concern the timing of when an Act comes into effect. I am conscious that there are a number of situations where more work needs to be done to get some of the details and guidance, and other elements like that. Regrettably, for a variety of pieces of legislation, waiting for the Secretary of State to create regulations has somewhat delayed the introduction after Royal Assent of the effect of the Act that so many people have worked hard to achieve.

I am not in any way trying to detract from the regulator or from the Department for Work and Pensions, of which I was proud to be the Secretary of State, but I am particularly conscious about the uncertainty of the timing of a general election. Of course there are still procedures that can be done to some extent, but those who have held ministerial office will know some of the challenges that take place in terms of process, procedure, and different Cabinet committees. Put simply—this is why I am grateful to my hon. Friend and to the Government for listening to my concerns—the amendments would remove extra steps of process. That matters because I am keen to see the Bill enacted. I am not seeking in any way to hold it up. I want certainty about making it happen, and I was concerned about the uncertainty of timing. I was careful to check that the amendments would not affect the legislative consent motion that has already passed the Northern Ireland Assembly. If there is any way that they do, I have not been made aware of that—I have been given the opposite assurance.

I am keen to ensure that the United Kingdom moves together. We have two formally separate systems. These are transferred powers—they have always been powers for the Northern Ireland Executive and Assembly to deal with—but I know that the Executive and the Assembly have been keen, particularly in social security matters, for the United Kingdom to proceed in step so that we do not give different treatment to the same things, especially when we all pay the same tax and we all tend to have the same service providers.

After careful consideration, I wanted to ensure that the Bill becomes law in a timely fashion, without the need for further process, and that is why I will be pressing my amendments.

[Mr Laurence Robertson (Tewkesbury) (Con)]

I thank my right hon. Friend the Member for Suffolk Coastal (Dr Coffey) for tabling her amendments and for discussing them with me over the last few days. We have worked to try to ensure that the best outcome is found. She makes the point that when there is a general election coming, albeit that that is an unusual circumstance—one hopes that it will arise only every five years—it throws things into doubt. The last thing we would want is for the Bill to get Royal Assent and then, for some reason—probably the election—not come into force. I understand where she is coming from on that.

I also thank the Minister and the Government for discussing these issues and coming to an agreement to accept the amendments. I am certainly very happy to accept them. There is no need for me to drag proceedings out any further at this point. I thank all concerned for their work.

--- Later in debate ---

[Dr Coffey]

It is a pleasure to support my hon. Friend in this important change. I commend him on the detail in his speech, which he also displayed in the Bill Committee, on which I was happy to serve. The Bill recognises that regulations have moved on. Back in 2022, the Government, with the support of Parliament, made changes to social security benefits to align ourselves with what was happening in the NHS. Plenty of people who get a terminal illness could find that their lifetime may be longer than six or 12 months. The Bill considers particularly where people are diagnosed later, and to accelerate or extend potential benefits.

The national health service considers people to be terminally ill when they estimate that they have around 12 months left to live. That is never an easy message to give, or for people to receive. There seems to be very little medical accuracy in getting the timeline right, but that length of time has been well established in the NHS. That is why this is sensible legislation—to align with how the NHS treats patients, as opposed to the somewhat arbitrary 6 months. The reference to the PPF and the financial assistance scheme available will be welcomed by people right across the country. I am keen to see this legislation pass through the Commons and the Lords at great speed.

Pension Schemes

Thérèse Coffey Excerpts

Thursday 2nd May 2024 Commons Chamber

[Dr Thérèse Coffey (Suffolk Coastal) (Con)]

It is a pleasure to speak in this debate, and I congratulate the right hon. Member for Orkney and Shetland (Mr Carmichael) on securing it and the Backbench Business Committee on granting it.

This is an important matter, no matter what age people are. I appreciate that today we are not talking particularly about state pensions, but I call on those on the shadow Front Bench to please desist from this scaremongering about what may be happening with state pensions. All parties have committed to having the triple lock in their election manifestos, and it has worked well. There has been a big uplift in the state pension since 2010. We worked on that with the Liberal Democrats when we were first in coalition and have continued with it, with a couple of exceptional reasons in the pandemic—once when we used primary legislation to ensure that people could get the triple lock, and again when we recognised the unusual situation with covid earnings. We know that pensioners have welcomed the significant increase in their first state pension payment of this tax year, with most of them seeing that significant uplift in the week just gone.

[Stephen Doughty]

The former Secretary of State says we should not be scaremongering, but there are some serious concerns. Does she accept that the Pensions Regulator report said that the mini-Budget of the former Prime Minister, the right hon. Member for South West Norfolk (Elizabeth Truss), contributed to a £425 billion drop in pension fund assets, which has affected every pensioner and every potential pensioner in this country? Will the former Secretary of State not at least accept some responsibility for that?

[Dr Coffey]

I certainly will not accept responsibility for that. I am conscious of the arrangement with the Pension Regulator, but also the situation that happened with liability-driven investments. The Bank of England saw that as a risk in 2018 and did nothing about it. I come back to the fact that the state pension is well trusted and well regarded, and it is scaremongering to suggest anything otherwise.

I am conscious that today we are talking about private pension schemes. In my short time as Secretary of State for Health and Social Care, what came up time and again—this Government addressed it—was the reduction in the lifetime allowance to about £1 million, which the Conservatives had introduced. I appreciate that for many people, it would be a mountain to climb to get to that kind of pension pot, but for doctors, consultants and some nurses, the lifetime allowance was proving a barrier to them continuing to work within the NHS. A sensible approach was taken, and I am pleased we have done that.

One thing that has been constant is the generous tax elements for private pensions. It is why we have had such a successful industry and why there is a difference between us and many other countries around the world in what comes from the state directly and what comes through private pensions. I recognise that the previous Labour Administration put in place the building blocks for auto-enrolment and the creation of the National Employment Savings Trust, and that was a good thing to do. I am pleased that we started that journey just over a decade ago.

Contrary to the predictions, it was good to see how many young people did not opt out. That is a huge success story, and it is why I share with the Chairman of the Select Committee, the right hon. Member for East Ham (Sir Stephen Timms), a keenness to make sure we get on with the consultation to which he referred. I am sure the Minister will answer that point. I appreciate that there will always be concerns about the possible impact on jobs. I get it, and it may be that we need a two-stage consultation: one stage about age and one considering a lower earnings level. It would be good to get on, because everybody realises that the sooner people start, the more they benefit. That is an important part of why auto-enrolment has been such a success.

Another recent change in legislation is the creation of collective defined contribution schemes. Clearly, there is still some interest in those, and Royal Mail is potentially closest to starting one. We should see what we can do to advocate for that model for many institutions. This is a brave comment to make in this speech, but I wonder whether Parliament should lead by example and see whether the Members of Parliament pension scheme should move to this approach. I am conscious that the taxpayer pays for our contributions through the Government and so on, and we have an uncertain career path by becoming Members of Parliament, but where something is good enough for others and we are creating legislation for it, we should consider leading by example and giving some impetus to that new legislative vehicle. I may not be popular for saying that, and I am conscious of how some of the issues with the McCloud judgment and similar matters led to a two-tier system, which has now been rectified. However, that scheme undoubtedly need not be as complex.

I am pleased about the changes that happened in the Treasury, responding to calls from Departments such as the DWP, which led to an opening up through the Mansion House reforms of the consolidation of funds and aspects of super-funds. What we need from pension investment is good returns so that our pensioners will be prosperous—that is ultimately what this is about—and we need to galvanise what we are doing to ensure that.

I am not one of those people who believes that we will be retiring at 75 or whatever—far from it. There is a rational end to that approach. It will not necessarily take courage but it will require some imagination, co-ordination and collaboration to ensure that we have sustainable pension outcomes for the future. That is where we can start to learn from other countries. When I was in the Department for Work and Pensions, I was interested in what is done in Japan. Dare I say, if I end up doing another PhD in the future, it will probably be on how pensions are part-funded in Japan, recognising its ageing demographics? We should recognise that that is the situation in our country, too. We should not be all doom and gloom about this issue. We need to innovate, but we can also look at what others have done to address it.

There is another really important thing. I started work in 1997 for a company called Mars Inc. where—it was little known to me; I did not realise how beneficial this was—I was on a final salary defined-benefit pension scheme with zero contribution. I did not have to contribute a penny. Over time, that did not stay affordable for Mars. I had not appreciated that benefit—I think to some extent that is why auto-enrolment is so successful—but in that job I learned the importance of making sure that employers are careful with how they manage pensions on behalf of employees and the role of the trustees.

We can think back to Robert Maxwell raiding pensions. I know that Mars sold a business to his company, and that went wrong in terms of the pensions. People may not be aware that pensions are not included as part of the TUPE process—they are specifically excluded, recognising how they could limit sensible company mergers and acquisitions—but I am conscious of how people may not really think about that until much later in life.

To return to the reforms and why they are necessary, the trustee is so important. I had hoped that we would have a “year of the trustee” campaign. Although being a trustee is an interesting role to have—I admit that I have never been one, although I have expressed interest in the past—it means being heavily involved in regulation. That could be overwhelming at times for people who may want to be a trustee because they believe in the people they work with and those who worked there before them, as well as being mindful of the future, but who are not necessarily well versed in all the ins and outs.

I know that the fiduciary duty is really drummed into trustees. For defined-contribution schemes in particular—where, candidly, there is no expectation of what the outcome will be—the hammering home of that fiduciary duty has led to a low-risk approach, which has been very low-cost but with very low returns. That is not what we should want. No wonder people are buying other homes and becoming landlords: they see a fixed asset, which they know they can sell in the future and on which they can make a reasonable expectation, whereas people putting money into their pension pots have no huge sense of what that could buy them in the future. We have changed the laws so that people do not have to put everything into an annuity, but it still is a matter of concern. I am conscious that there have been issues with the pensions dashboard, and I hope that the Money and Pensions Service will solve that. Perhaps the Minister can update us on progress in that regard. It is vital that people start to look at that now, not just as they are about to retire.

What are the benefits of the reforms, and why should there be sufficient professional advice? Those intermediary advisers often get significant fees, but still recommend that people go for gilts and pretty low returns. There is a different way. I hope that the reforms will start to be taken up by the industry, which asked for them, in order to take full advantage and recognise the issues ahead. We need to see the impact of the changes in legislation and the variety of consultations. We made the changes to improve prosperity for pensioners now and in future. I would be keen to hear from the Minister if there is any news on market trends in that regard. The local government pension scheme should lead by example. The Government have put greater demand on local government through levelling up, but is vital that we see that change.

There is a second part of pension schemes that is worth raising. I wonder whether Members know just how many trillions of assets there are in UK pensions alone. The answer is about £3 trillion. Organisations such as Make My Money Matter are trying to encourage people to use their future pension pot to ensure we have a thriving planet. I do not agree with the divestment approach, but it is important that companies invested in the energy of today are invested in the energy of the future. Without the support of pension funds, we will not get that necessary investment.

Pensions are a superpower for the prosperity of people and the planet. I was pleased when we introduced the regulations on disclosure of alignment to the Paris agreement. I would like to go further and encourage the Secretary of State to bring forward similar regulations to apply to nature. Work has already started—the Task Force on Climate-related Financial Disclosures made it happen for carbon. I think we were the first in the world to do that, by the way. We can do the same for nature. The Taskforce for Nature-related Financial Disclosures is a good comparison. The International Sustainability Standards Board is looking at that, and we are close to getting that outcome. I appreciate that the Minister may not have considered that recently and he may not be able to respond, but I encourage him to do that. We only have a certain amount of time, although I hope that as science allows us to live longer, we will claim our pensions for longer, so we want to ensure a prosperous future.

On the superpower element, I praise Nest, which has done a great job. It was set up just over a decade ago, and now manages a huge amount of money. There is even room for it to expand through consolidation, which the Pension Protection Fund could also look at. Nest is leading by example. As a pension firm that is starting to invest in the energy of the future with a substantial proportion of its funds, rather than rely on gilts and similar, Nest should be truly celebrated.

Although fiduciary duty must be the No. 1 priority, let us try to get more trustees to recognise that they are responsible for ensuring that the returns from DC schemes are as good as the benefits for members of defined benefit schemes. We need to release the market and protect people as we have done. Pensions being a superpower is not necessarily the sexiest thing to say in this Chamber, but it is one of the most important decisions that we have made in legislation in recent years. We need to continue that momentum.

Pensions (Special Rules for End of Life) Bill

Thérèse Coffey Excerpts

Committee stage
Wednesday 24th April 2024 Public Bill Committees

[Mr Robertson]

I am grateful to the hon. Lady for raising that point. My understanding is that it is one medical professional. I cannot give her a specific answer, but I understand that it is the person who is in charge of that case for that particular person. I do not know exactly how senior they are. I understand that it is not subject to second opinions or anything like that.

[Dr Thérèse Coffey (Suffolk Coastal) (Con)]

I thank my hon. Friend for allowing me to intervene at this point. I was responsible as Secretary of State for doing quite a lot of this realignment. In essence, the NHS treats and issues certificates on the basis—which brings in other elements—that the end of life is, in its view, 12 months, so it will be a doctor, nurse or similar who does that. This is a simple alignment with how the NHS defines terminal illness in practice.

[Mr Robertson]

I am grateful to my right hon. Friend for providing more information than I have to hand. As far as I can see, that is the right way to go about this. Twelve months probably gives a little more reassurance to the person making that assessment.

Transitional provisions are guidelines that outline how to transition from the old regulations to the new ones, and saving provisions are designed to protect certain rights, privileges, obligations or legal proceedings that are already in place before the new regulations or orders come into effect. That means that subsections (7) and (8) of clause 2 simply allow for the creation of regulations or orders that include special clauses to manage the change from old to new regulations, protecting against any unintended consequences that might arise during the transition.

To return to the Bill—we are getting there—subsection (9) of clause 2 provides that regulations under subsection (4), relating to the Secretary of State for Work and Pensions and with the territorial extent of England, Wales and Scotland, will be made by statutory instrument. That is a form of legislation, as everybody here is aware, that allows a provision of an Act of Parliament to be subsequently brought into force or altered without Parliament having to pass a new Act. Subsection (10) provides that an order made under subsection (5) of clause 2, relating to the Department for Communities in Northern Ireland and with the territorial extent of Northern Ireland, is exercisable by statutory rule—again, a form of legislation that allows for detailed regulations to be created without the need for a new Act of Parliament.

Finally, as I mentioned, clause 3 is simply the short title of the Act, which, if the Bill is passed, will be the Pensions (Special Rules for End of Life) Act 2024. I do hope that it will be passed in this Parliament and that the extended definition of terminal illness—life expectancy of 12 months—will come into force, providing a little bit of ease to individuals who have received the most devastating news. I thank the Committee for its indulgence.

[Dr Coffey]

It is a pleasure to speak in Committee about the Bill, which I strongly support. As I have already pointed out, some of the realignment involved is intended to ensure some simplicity for people at one of the most difficult times of their lives, so that they do not have to go around getting different aspects of treatment or negotiating. We made that good change a few years ago. There have been various bits of legislation along the way—some welfare and pensions legislation is done through regulations and some through primary legislation, so it can seem cumbersome. But this is the right moment to make sure that this part of the support available to people in their difficult last moments is fully aligned.

I would like to say something to the Minister. I am conscious that getting even regulations through Parliament takes time and more effort from officials. I would like him either to confirm that the regulations have already been drafted in anticipation of Royal Assent, so that they can be laid before Parliament straight away, or to say that he will consider simply changing the element in question. I have been encouraging others leading private Members’ Bills through Parliament to change the commencement dates so that they come into force three months after Royal Assent.

I am conscious that the Pensions Regulator and similar organisations might have to address some issues, but they should know that the Bill has the full support of this House—of both Houses, I anticipate. We should not wait for further legislation to be commenced, given that people at the end of their lives would welcome this matter being put to bed straight away.

[The Chair]

If no other Members wish to contribute, I call the Minister.

Child Maintenance Service

Thérèse Coffey Excerpts

Tuesday 27th February 2024 Westminster Hall

[Dr Thérèse Coffey (Suffolk Coastal) (Con)]

It is a pleasure to see you in the Chair, Sir Charles. I congratulate the Chairman of the Work and Pensions Committee, the right hon. Member for East Ham (Sir Stephen Timms), on securing this important debate.

I recognise the importance of the Child Maintenance Service in trying to help children in low-income households. I give credit to Arlene Sugden, the former director of the CMS: she did a tremendous job and made a lot of changes. It is sad to hear that some of the reforms that she brought in might now have slid, but we should recognise that thanks to the CMS, more than £1 billion a year has made its way to the parents who look after the child for the majority of the time.

Several of us will have distressing stories. When parents come to us, they and their child are struggling. It is terrible to see how children are often used as pawns in a dysfunctional or non-existing relationship. That is why I really care about the Child Maintenance Service. In my time in the Department, I worked with my noble Friend Baroness Stedman-Scott to see what we could do to improve the experience for parents. Our priority was to reduce child poverty. With only one parent working, perhaps not full time, extra income from child maintenance was critical to boosting opportunities for the child.

I am conscious that in the majority of situations, whether they involve hiding assets or getting someone else to do a DNA test to avoid being identified as a parent, it is women and children who are affected. Men are also affected, however; I do not want to dismiss that in any way. Some of the most harrowing cases that I have heard have been those in which a father has been left with the children while the mother has been trying to avoid responsibility and, in some instances, lying to my face. Nevertheless, the Department continues to fund the Reducing Parental Conflict programme. The Child Maintenance Service is never seen to take sides between the two parents; it is seen to be on the side of the child. That is a vital approach.

I have already laid out how the issue matters to me. We started a strategy; it is good to see significant elements of that. I was delighted when my hon. Friends the Members for Stroud (Siobhan Baillie) and for Hastings and Rye (Sally-Ann Hart) took legislation through the House on the issue, with the support of the Government. As the right hon. Member for East Ham says, we are still waiting to bring into force these important Acts of Parliament with the important changes that are needed, and we are still waiting for commencement orders. As my hon. Friend the Member for Stroud says, it is vital for section 25 of the Child Maintenance and Other Payments Act 2008 to come into force.

I appreciate that the Minister is very competent, but this matter is not in his brief; he is speaking for my noble Friend Viscount Younger and for the Government more broadly. In July 2022, the Department issued a call for a consultation—not a call for evidence—on enacting section 28 of the 2008 Act, which is about curfew orders. We have still not had a response to that consultation.

By the way, it is perfectly acceptable for a new Secretary of State to come in and change the approach taken by their predecessors and different Prime Ministers. I have no issue with that, but it is important that we hear from the Government what their intentions are. I am not a huge fan of doing lots of pilots. The Government have put forward legislation and Parliament has voted for it, so we should get on with putting it in place. That is one of my key messages. I will take this matter directly to the Minister when I meet him in March, but it could be useful to pre-empt some the questions.

One thing I discovered during our deep dive is that, for people who are not working or are on benefits, there is a “nominal” payment—it is actually quite a significant one for someone who does not really have an income—of £7 a week, to be paid from their benefits to the receiving parent. There are also challenges with universal credit when not everyone is not working, and there may be different elements of income support. One challenge with child maintenance is that those who do not pay everything may end up paying nothing, so over time they end up accruing money to which the child should be entitled. We need to look again at that. We also need to focus a lot more on work coaches getting people into work so that they can start paying for their children.

I will keep to my six minutes, Sir Charles. In essence, we need parents to cough up the cash for their children, and the Child Maintenance Service needs to facilitate that. I am glad that it seems to have dropped the idea that it would potentially do all collect and pay. The state does not need to be involved in every interaction between two parents, but when parents ask it to get involved it must do so to the best of its ability. I look forward to the commencement orders getting under way so we can make sure that children are put first.

[Sir Charles Walker (in the Chair)]

Thank you for being so helpful to the Chair and setting a fine example.

Oral Answers to Questions

Thérèse Coffey Excerpts

Monday 5th February 2024 Commons Chamber

[Paul Maynard]

Where parents have certain categories of taxable income not being captured by the standard child maintenance calculation, they can make a request to the CMS to have the calculation varied. We have consulted on proposals to include more types of taxable income held by His Majesty’s Revenue and Customs in the standard maintenance calculation.

[Dr Thérèse Coffey (Suffolk Coastal) (Con)]

The Department has a number of ways to try to get paying parents to cough up, and we must remember that this is cash for the children. In July 2022, the Government consulted on child maintenance and improving our enforcement powers through the commencement of curfew orders, and we still have not had a response to that consultation. I would be grateful to hear from the Government when they plan to respond, and I remind them of the other powers in place, such as depriving people of the ability to drive or of their passport. This is a simple thing, where people have the money and will not cough up the cash. I think we need to get on with curfew orders.

[Paul Maynard]

My right hon. Friend is quite right that the Government have consulted on the use of curfews, which are complex and interact with numerous Government services. Several enforcement initiatives aimed at improving compliance are currently in train, and we need to get those in place and assess their effects before we can best see how curfews might fit with them. I note her enthusiasm for curfews and might well put her in touch with Viscount Younger of Leckie, the Minister in the Lords, whose policy brief this is, so that he can update her on our latest thinking.

Household Support Fund

Thérèse Coffey Excerpts

Wednesday 31st January 2024 Westminster Hall

[Dr Thérèse Coffey (Suffolk Coastal) (Con)]

It is a pleasure to speak in this debate, and I congratulate the right hon. Member for East Ham (Sir Stephen Timms) on securing it. He will recall the situation that we were faced with in the middle of covid, when covid was continuing for longer than we had initially expected. Recognising the challenges that families and pensioners were facing, it was right that we took that action then. I give credit to the Prime Minister, who was then the Chancellor, for working with me and my Department to establish the household support fund. It was with great pride that I formally announced the fund on 30 September 2021.

The right hon. Gentleman was right to raise local welfare assistance. Indeed, it was the Department for Work and Pensions that handed money to councils—it was not ringfenced, but the Department took a localist approach. That funding was kept in as part of the baseline grant for many years; I think it was not until 2020 that it was removed from the information that was formally published on the transfer, recognising that councils were still being funded on local welfare assistance.

I am conscious that covid was a challenging time. In particular, we wanted to make sure we went to the upper-tier unitary authorities that had statutory responsibility for children and adults. We made sure the funding was ringfenced, and we also imposed reporting conditions to ensure the money went either directly into people’s hands or to agencies that could make a difference.

I am conscious that quite a lot of councils resorted to vouchers for funding, but I commend Telford and Wrekin Council, and others like it, for thinking ahead. Instead of just handing out vouchers, the council identified the children who were struggling at home and started buying coats for people—they considered the long term. I would have loved to have seen more innovation in some of the ways the money was spent—whether that concerned bed poverty or similar issues—so that the local elements could be identified. It was important to increase funding for pensioners too; they did not have any opportunity to increase their economic income and were struggling.

I hear what councils are saying, and I do think the Government should extend the household support fund—whatever they may choose to call it in the future. We should challenge councils more to work with, for example, community foundations, whereby significant tax relief is given to local philanthropists to make the money go further. At the same time, we still have the holiday activities and food programme. That was established in October 2021 and was deliberately targeted at young children who were receiving free school meals. Those are the sorts of initiatives in which I am proud to have played a part. I urge the Minister to look further at how we can make the most of the money we distribute.

Oral Answers to Questions

Thérèse Coffey Excerpts

Monday 11th July 2022 Commons Chamber

[Stephanie Peacock (Barnsley East) (Lab)]

17. If she will make an estimate of projected poverty levels in April 2023.

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

It is not usual to project poverty levels in terms of statistics—[Interruption.] Does someone want to join in? [Interruption.] I just cannot hear. Somebody is talking. Projecting poverty levels is not something we normally do. However, the latest official statistics show that in 2021, some 8 million people were in poverty in absolute low-income before housing costs, which was a fall on the previous year. I am very conscious of the challenge of the cost of living right now, which is why we are providing a £15 billion support package targeted at the most in need, but I am proud of the fact that we are getting more and more people into work—over half a million in just the past five months. We know that for most people, the best way to get out of poverty is to get into work.

[Alex Cunningham]

Even using the Government’s preferred measure of absolute child poverty, the proportion of children living in absolute poverty rose in every north-east local authority area between 2014-15 and 2019-20, and continued to rise in the first year of the pandemic. In Stockton, that figure is up by 7.1 percentage points; in Hartlepool, it is up by 7.2; in Darlington, it is up by 7.9; in Redcar, it is up by 9.4; and in Middlesbrough, it is up by a colossal 13.9 percentage points. Those are not just numbers: they represent thousands of children. Can the Minister tell the House which of the Tory leadership candidates will be content to see children in places such as Stockton go hungry, and which of them will take action to ensure they do not?

[Dr Coffey]

I would be grateful if the hon. Gentleman would give me the specific source of his statistics, because I believe that statistically, child poverty has actually fallen, something of which Government Members are proud. Nevertheless, he will be pleased by the fact that people have opportunities and are getting into work. That is what we will continue to do, because we know that children in workless households are undoubtedly more likely to be in poverty. That is why we continue to focus on getting their parents into work.

[Stephanie Peacock]

One in three children in Barnsley are living in poverty. My constituent cares for his disabled eight-year-old son. He recently started a part-time job to supplement his income, but after working just two hours’ overtime, he had a whole month of carer’s allowance deducted. The Secretary of State has just said that the best route out of poverty is to get into work, so can she explain why those who receive carer’s allowance are penalised for doing just that?

[Dr Coffey]

I expect that the hon. Lady’s constituent is receiving the caring element of universal credit, rather than carer’s allowance specifically, which is a slightly separate approach. Universal credit is a dynamic benefit. It reflects the fact that when a person is working more, they receive less support from other taxpayers, and—just as happened at the beginning of the covid pandemic—when taxpayers are working less, they immediately started receiving more. That is the success of universal credit, and we will continue to encourage people to get into work.

[Henry Smith (Crawley) (Con)]

14. How many people have been auto-enrolled in workplace pensions in Crawley constituency since 2012.

--- Later in debate ---

[Nick Fletcher (Don Valley) (Con)]

15. What steps she plans to take to support young people into work following the closure of the kickstart scheme.

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

Following the success of kickstart, which has seen over 163,000 jobs started by young people, with approximately 30,000 still on that scheme, the DWP youth offer remains in place to support those who still need help. That includes youth hubs, which bring together partner organisations and the DWP in local communities to provide employment and skills support.

[Nick Fletcher]

I have spoken with many young people since becoming an MP. They believe that waiting and fighting for their dream job is the right thing to do. Does the Secretary of State agree with me that our young people should take opportunities that arise which will get them earning while still applying for their dream job, as that will not jeopardise their chances but will, most probably, do exactly the opposite?

[Dr Coffey]

As ever, my hon. Friend talks common sense. It is really important that people realise that the heart of our Way to Work campaign is ABC—any job, better job, career. We know that having a job already allows people to build a lot of skills so they can progress, perhaps in the job of their dreams. Through support such as the DWP youth offer, work coaches will continue to help unemployed young people move into a range of roles. The skills and work experience that people can gain from a job will help them to progress.

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

16. If she will make an assessment of the impact of the universal credit minimum income floor on performers and creative workers with unpredictable and fluctuating earnings.

--- Later in debate ---

[Rachel Hopkins (Luton South) (Lab)]

T2. If she will make a statement on her departmental responsibilities.

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

At this moment, I am delighted to have a team who are making sure that the wheels of government keep turning. That is particularly true given that we are the biggest delivery Department in Whitehall, on which so many vulnerable people rely.

It is certainly my focus to deliver help for households. As the Minister of State, Department for Work and Pensions, my hon. Friend the Member for Norwich North (Chloe Smith) pointed out, we will be sending out the first instalment of the £650 cost of living payments, starting from this Thursday.

We are also building on our successful Way to Work scheme, having smashed our ambition to get half a million people into a job in just five months, thanks to help from my hon. Friend the Member for Mid Sussex (Mims Davies). Dare I say, Mr Speaker, that that is way to go for Way to Work!

We are now putting more focus on those further from the labour market who are economically inactive or most at risk of inactivity, whether through the lifetime MOT offer or the £1.3 billion-worth of employment support for disabled people. That will help to grow the economy and ensure that more people are on the path to prosperity and prospects through work.

[Rachel Hopkins]

Many of my Luton South constituents are struggling to make ends meet. In fact, across the east of England, 50% of Citizens Advice debt clients are in a negative budget, with their monthly expenditure on essentials exceeding their income; that is up 12% from the same period in 2019. Does the Secretary of State still think that it is a good idea for the Government to raise taxes this year, when the UK is the only G7 country to do so?

[Dr Coffey]

The hon. Lady will be aware of the £37 billion package that is going to households, £15 billion of which is being deployed this year. People will already have received some elements of that through council tax support, and I have outlined the cost of living payment support. I could add to that the lifting of the national living wage to £9.50 an hour and the reduction in the taper rate to 55% for people who are working and on universal credit. We are targeting support at the most challenged low-income households, and we will continue to do that. Meanwhile, we will continue to try to do what we can to grow the economy to help households, so that we can tackle inflation overall.

[Elliot Colburn (Carshalton and Wallington) (Con)]

T3. Will my right hon. Friend outline how, thanks to the work incentives built into universal credit, some 11,600 Carshalton and Wallington residents—in working households, which is welcome—will receive a cost of living payment in the coming days, and will she set out what she is doing to ensure that even more people from Carshalton and Wallington can get into work?

[Dr Coffey]

My hon. Friend continues to be a champion for his constituents. He will be aware of aspects of the Way to Work campaign that are different from how they were in the past. Far more job fairs are happening, bringing employers into jobcentres for interviews. That enables us to make quicker decisions, find out what is going wrong in the process and support people so that they can more quickly get the pay packet that they cherish.

[Jonathan Ashworth (Leicester South) (Lab/Co-op)]

As we have heard, it is expected that the energy price cap will rise by £450 more than was anticipated when the Government announced their cost of living package. A typical household will face energy bills of £3,250; that is more than a third of the value of the state pension. How on earth does the Secretary of State expect pensioners and families to cope this winter?

[Dr Coffey]

I think the right hon. Gentleman is referring to an external analyst’s prediction of what might happen with energy prices. Nevertheless, the Government have responded. We deliberately made sure that our cost of living payment package came out when Ofgem made its announcement, and that is why we tailored the cost of living payment support to help households. We will make sure that support for household energy costs goes to every single household in the country, in addition to our comprehensive package. My right hon. Friend the Secretary of State for Business, Energy and Industrial Strategy leads on fuel poverty. I am conscious that in making decisions, he will consider the vulnerable the most, as all of us in the Government do.

[Jonathan Ashworth]

I appreciate that the Secretary of State may not be in her place come this October—who knows?—but she is currently in a Cabinet with a Chancellor and a Foreign Secretary, and she shares the Government Benches with a whole host of colleagues, who have made £30 billion to £40 billion-worth of unfunded tax cut commitments. Is not the truth that those tax cuts can be paid for only by further cuts to the state pension, further cuts to universal credit and further cuts to disability benefit, and that the reality is that the next Tory Prime Minister will make the cost of living crisis even worse?

[Dr Coffey]

Far from it; as has been shown yet again, this Conservative Government have stepped up to deal with the cost of living challenge, just as we did through covid, and we will continue to do so. That is why we will be spending £37 billion on this. As for support going forward, I am conscious that people who are running to be leader of the Conservative party and the future Prime Minister want, quite rightly, to make sure that we have an active, growing economy. I will leave them to be judged on their policies. I am the Secretary of State for Work and Pensions, and we are going ahead with the additional payments, starting this week. Many households will be looking forward to them, and I am pleased that we are able to deliver them.

[Mrs Sheryll Murray (South East Cornwall) (Con)]

T6. I frequently get complaints from people in the agriculture sector that they cannot get the workers they need from the UK jobs market. What more can the Department do, perhaps working with educational facilities such as Duchy College in Cornwall, to get jobseekers into these important roles?

--- Later in debate ---

[Kirsty Blackman (Aberdeen North) (SNP)]

The UK Government recently rejected the Work and Pensions Committee report’s recommendation to

“extend Child Benefit to all British children irrespective of their parents’ immigration status.”

People with no recourse to public funds do not qualify for the additional cost of living payments. Children are literally starving and suffering malnutrition because of this cruel policy. Does the Secretary of State believe that this is acceptable in the 21st century?

[Dr Coffey]

The hon. Lady refers to the fact that people without recourse to public funds are not eligible for benefits. When people arrive, I accept that they are not going to be eligible for child benefit. Any family in a state of difficulty can apply to the Home Office for a review of that status; it is for them to do so. At the same time, as I think we confirmed to the Select Committee when we discussed the matter at the hearing last week, it is for local councils to design the way they do the household support fund. It may be possible for people without recourse to public funds to apply to their local authority.

[Sir Edward Leigh (Gainsborough) (Con)]

Will the Secretary of State confirm that support for the welfare state depends on a kind of social contract where people realise that those who are pensioners or out of work should be helped because they have paid their taxes? How is support for the welfare state improved when 60,000 people a year are pouring across the channel, paying illegal smugglers—these are not the poorest of the poor—and being kept on social security, maybe for 10 years, without ever being deported? By the way, what does it cost?

[Dr Coffey]

I am conscious that through the help—the visa schemes—being put forward for Ukrainian citizens and for Afghan resettlement, there is access to public funds. My right hon. Friend will be aware that people who arrive in the country illegally are given a payment via the Home Office, I think, of a very small amount of money to pay for the day-to-day, but they are not eligible directly for benefits.

[Ian Byrne (Liverpool, West Derby) (Lab)]

T4. One in five pensioners in the UK is living in poverty, 1.3 million retirees are undernourished and 25,000 people die each year because of cold weather. The situation is dire and is getting worse and worse by the day. What discussions will the Secretary of State have with her new colleague the Chancellor to reverse the cruel Government cuts to the state pension and provide the 5,360 women in Liverpool, West Derby who are affected by the changes to the women’s state pension age with the full restitution that they fully deserve?

Social Security (Additional Payments) Bill

Thérèse Coffey Excerpts

2nd reading
Wednesday 22nd June 2022 Commons Chamber

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

I beg to move, That the Bill be now read a Second time.

The cost of living challenge facing many families right now is being driven by forces beyond their control. The aftershocks of covid on global supply chains, and Putin’s invasion of Ukraine, have caused a hike in prices and a spike in bills, particularly for energy costs. As a result, household budgets are being stretched further than at any time in recent memory, so just as we did during covid, the Government are stepping up at this challenging time to help families who are feeling the strain. It is because we got the big calls right that we have the fiscal firepower to take decisive and direct action to help millions of people across the country.

Although we have always been clear that the Government cannot cover every situation or solve every problem, we are providing financial support to every household to help relieve some of the pressures that people are under, and to help them cut costs across their household expenditure. Approximately four in five households—all those living in band A to band D homes—are receiving a £150 discount on their council tax, with millions already benefitting from the money landing in their bank accounts, and all households that are domestic energy customers will get £400 towards their energy bills this autumn, in the form of a grant with nothing to repay. We are, however, principally targeting help at those who need it most, helping ease the squeeze for those on low and fixed incomes, who we know spend a higher than average proportion of their income on energy.

[Jonathan Edwards (Carmarthen East and Dinefwr) (Ind)]

There is an issue with people who live in park homes—I have a few sites in my constituency—because the energy rebate does not make it through to them. Are the Government looking at innovative ways of addressing the issues faced by those individuals and households?

[Dr Coffey]

My understanding is that the Secretary of State for Business, Energy and Industrial Strategy, my right hon. Friend the Member for Spelthorne (Kwasi Kwarteng), is aware of that particular channel. I am led to believe that a solution is being developed so that people will benefit from that cost even if they do not receive the money directly, because a lot of park home owners do not pay their energy bills directly. I know that my right hon. Friend is aware.

Returning to what we are doing to help people, we are providing a direct cost of living payment of £650—split into two payments of £326 and £324—to over 8 million families who already get help through means-tested benefits. This includes people on universal credit, income-based jobseeker’s allowance, income-related employment and support allowance, income support, working tax credit, child tax credit and pension credit—both guarantee and savings credit recipients. On top of that, we are providing a £150 payment for approximately 6 million people with disabilities who are on qualifying benefits, and giving 8 million pensioner households an additional £300 alongside their winter fuel payment. Combined, that is extra support of at least £1,200 this year for the majority of households that are least able to absorb rising costs, which takes our total support package to £37 billion.

[Sir Stephen Timms (East Ham) (Lab)]

I just want to check one point. At the moment, about 150,000 working-age people who receive universal credit have their benefits limited by the benefit cap. Am I right to say that these additional payments are not constrained at all by the level of the benefit cap?

[Dr Coffey]

Yes, that is the case. I was planning to cover that later. For the record, I will still make that point.

Our household support fund administered through local authorities in England and the money given to devolved Administrations are further avenues for people to seek help with the cost of essentials. From October, the Government are adding an additional £500 million to the fund, extending support through the winter. That equates to an additional £421 million in England and £79 million for the devolved Administrations, and that will take total funding for this UK-wide household support to £1.5 billion.

[Hywel Williams (Arfon) (PC)]

One group of people who receive universal credit and are in some difficulty are those who lose some of their universal credit because they received a universal credit advance for the first five weeks. Some 92,000 households in that situation in Wales are getting about £60 a month less, and that comes to a total of about £5 million being denied to them. I hope that the Secretary of State is prepared to reconsider her position on that. Obviously, that is not in the Bill, so she has taken a decision in the short term, but I press her to reconsider.

[Dr Coffey]

The hon. Gentleman is incorrect in saying that money is denied to people. The whole point of receiving an advance is that there is phasing and, instead of receiving 12 payments in a typical calendar year, 13 payments are made. We extended that recently so that people can choose whether to have 25 payments over 24 months. It is not a case of people being denied.

The Social Security (Additional Payments) Bill before the House is a short Bill of 11 clauses that gives us the powers necessary to administer payments to families on means-tested and disability benefits. As one-off new benefit payments, they will be delivered by the UK Government to eligible households right across the United Kingdom in England, Wales, Scotland and Northern Ireland. The timing of such payments will vary, starting with the first payment of £326 for DWP means-tested benefit claimants from 14 July. The second payment will arrive in the autumn for those eligible. Those on tax credits who do not receive DWP means-tested benefits will get each instalment later to avoid duplicate payments.

People not eligible in time for the first £326 payment because they were not getting a qualifying benefit in the month before the announcement may get the second £324 payment if they have a qualifying entitlement to a benefit in the month before the next eligibility date. We have deliberately not included the next eligibility date in the Bill to try not to change claimant behaviour. Instead, there is the power to set a date through regulations.

Those on qualifying disability benefits will get their £150 as a single payment from September. Where eligibility for any of these cost of living payments is found retrospectively—for example, someone who had applied for personal independence payment but not yet been awarded it—people will still receive that disability cost of living payment; it will just be at a later date.

[Marsha De Cordova (Battersea) (Lab)]

In opening, the Secretary of State alluded to the fact that 6 million disabled people would qualify for the additional disability support payment of £150. Does she acknowledge that some disabled people—particularly those in receipt of disability living allowance, PIP or attendance allowance—who no longer qualify for the warm home discount since her Government changed the rules, will lose out? In effect, they have taken away £150 through the warm home discount, and the additional £150 really does not do anything to meet the extra costs for people who have already lost out.

[Dr Coffey]

The warm home discount is not relevant to the Bill, but I understand the point. It is the policy of my right hon. Friend the Secretary of State for Business, Energy and Industrial Strategy, but I do not know that the intention was—[Interruption.] I am trying to answer the hon. Lady’s question. My understanding of the policy rationale is that because PIP is not means-tested—it is not income-based—a decision on warm home discount eligibility was made to include many more households on the basis of income rather than PIP eligibility. I am sure that she will welcome the fact that we have included £150 in this legislation.

These one-off tax repayments do not count towards the benefit cap and will not affect existing benefit awards. They will provide a budget boost for millions of the lowest-income households right across the United Kingdom.

[Jonathan Edwards]

Will the Secretary of State give way?

[Dr Coffey]

No, I will not.

This Government have supported and continue to support those most in need. I am proud of our record of lifting people out of poverty.

Anyone listening to Opposition parties could be forgiven for thinking that poverty was going up. The fact is that in 2021 there were 1.2 million fewer people in absolute poverty, before housing costs, than when we came into government in 2010. Between 2019-20 and 2020-21, every measure of poverty, whether absolute or relative, saw a reduction in poverty. In terms of statistics, on absolute poverty, our preferred measure, the number of working-age people in poverty is down by 100,000, the number of children in poverty is down by 200,000, and pensioner poverty is down by 200,000.

We know from the latest available data that for most families the best way out of poverty is through work.

[Jonathan Edwards]

Will the Secretary of State give way?

[Dr Coffey]

I will not take any further interventions from the hon. Gentleman, because he has already intervened. I am sure that if he wants to contribute to this debate he will have put in to speak.

In 2019-20, children in households where all adults were in work were about six times less likely to be in absolute poverty than children in a household where nobody works. That is why our economic priority during the pandemic was to protect, support and create jobs through the furlough scheme and the many other measures we took as part of our plan for jobs.

[Jonathan Ashworth (Leicester South) (Lab/Co-op)]

The Secretary of State will of course know that her figures on absolute poverty and relative poverty are disputed by the various stakeholders who work in this field. One of the issues that is concerning people with regard to poverty is the failure to uprate benefits this year along the lines of this year’s levels of inflation. She has rightly said that pensions and benefits such as disability benefits and universal credit—and, hopefully, the minimum income guarantee and pension credit—will rise in line with inflation this September. She is coming under some pressure on that now. Can she give us a guarantee that she will not resile from that position?

[Dr Coffey]

The right hon. Gentleman may not be aware that I cannot make any declaration about the rises in benefits; I can only point to our policy in terms of, for example, the triple lock for pensioners. That is because I am required by law to undertake a review of the benefits once a year and I have not yet done so. I am sure that he will judge us on past performance, especially in following the regular legislation.

The unemployment rate is now below the low level we saw before the pandemic—close to the lowest since 1974—and we have more people on payrolls than ever before, but we are not resting on our laurels, particularly with a record number of vacancies in the labour market. We want people to get into work and to boost their incomes, which is why we launched the Way to Work scheme, quickly connecting claimants with employers looking to fill vacancies. Having turbo-charged jobcentres into super, almost dating, agencies in the way that they match people looking for work to people offering work, I am confident that we will achieve our target to move half a million people into jobs by the end of the month. There are hundreds of thousands more people benefiting from a pay packet, along with the prospect of a better job tomorrow and a future career.

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

Will the Secretary of State confirm that the payments in this Bill, to almost 25,000 of my constituents, are on top of the support that has already been put in place, with the £1,000 that families will benefit from through the taper rate, the living wage rise and the £330 that most of those in work will get through raising the national insurance threshold, meaning that tens of thousands of people in North West Durham will be better off as a result of these changes and showing that we are providing support now, just like we did during the pandemic, during the cost of living issues due to international factors such as Russia’s invasion of Ukraine?

[Dr Coffey]

My hon. Friend is right to point out the additional measures. I do not know exactly how many people in his constituency will be affected, but I rely on his excellent local knowledge as a great constituency MP. Absolutely—I am setting out additional measures to those that he has outlined.

The Bill will deliver one-off additional payments responding to the challenges faced by people in every part of our country over the coming months. I thank the usual channels and the House more broadly for agreeing that it can make its necessary progress today. Its provisions are intentionally straightforward and will enable a straightforward approach for claimants, with no complicated forms, no bureaucracy and nobody having to make an additional claim, as payments will automatically go into people’s bank accounts.

The actions in the Bill will boost the budgets of millions of stretched families in every part of the United Kingdom, helping them through the cost of living challenge. I commend it to the House.

[Madam Deputy Speaker (Dame Rosie Winterton)]

I call the shadow Secretary of State, Jonathan Ashworth.

Oral Answers to Questions

Thérèse Coffey Excerpts

Monday 6th June 2022 Commons Chamber

[Alex Cunningham (Stockton North) (Lab)]

20. What assessment she has made of the effect of inflation on households in receipt of social security benefits.

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

The right hon. Member for Kingston upon Hull North (Dame Diana Johnson) will be aware that, in recognition of the cost of living challenge, we have announced a new £15 billion support package that is targeted at those who are most in need, bringing the total cost of living support to £37 billion. The extra support should cover every household, but is particularly targeted at helping more than 8 million households in receipt of means-tested benefits. The household support fund, which is delivered through councils, is another way that constituents can access help.

[Dame Diana Johnson]

I must say to the Secretary of State that the £20 cut to universal credit seems even meaner now. Even the package of measures that she mentioned is not stopping what the Trussell Trust has announced: an increasing number of people turning up to get food parcels. In my own constituency, Unity in Community and St John’s church, Bransholme, are seeing soaring demand for food packages while their stocks are diminishing. I know that Ministers are occupied with party games today, but when will the Secretary of State get a grip of these benefits and set them at a level that means that people can pay for their everyday essentials?

[Dr Coffey]

The Government have always been clear that getting into work and getting on in work is an important way to lift people’s prosperity. That is why we lifted the national living wage from April; why last December we quickly put in place a change in the taper rate so that people keep more of what they earn, while still getting support and benefits; and why we have stepped in with a substantial package of support to help people with this particular challenge of global inflation—caused not only by supply chain challenges after covid, but by Putin’s invasion of Ukraine, which has done a lot to damage to energy costs.

[Alex Cunningham]

As well as being impacted by the soaring cost of living, two thirds of the near 50,000 children in the Tees valley and families on universal credit are affected by the punitive impact of deductions. That is because most of them are paying back the Department for Work and Pensions advance that is needed to survive the five-week wait for their first universal credit payment. Will the Secretary of State accept that every pound clawed back is a pound not available for families to spend on food and other essential costs? Will she change this cruel policy now, and make a real difference to children and families already living in poverty?

[Dr Coffey]

The hon. Gentleman forgets that the advance is there to spread the payment that people are entitled to over a year into 13 payments. We have also enabled people in effect to have that payment spread over two years, with 25 payments. It is about a phasing of how we put into families’ pockets the benefits to which they are entitled, and nothing else.

[Dame Caroline Dinenage (Gosport) (Con)]

Among those worst impacted by the cost of living rising is the army of unpaid carers who do so much not only to support their friends and loved ones but to ease the pressure on the NHS. I know that my right hon. Friend understands and appreciates that. This is Carers Week; what thought has she given to increasing unpaid carers allowance to support them and reflect their hard work, sacrifice and need?

[Dr Coffey]

The whole House would unite with my hon. Friend in thanking carers, and I am sure we all have lived experiences as well. I think it is fair to say that carers allowance is not intended to be a replacement salary or anything like that; it is a contribution, and a modest contribution, I accept. As with all benefits, we consider the uplift annually, and I will continue to do so.

[Liz Twist (Blaydon) (Lab)]

5. What assessment she has made of the effectiveness of the delivery of support to low-income households with the cost of living.

--- Later in debate ---

[Kirsten Oswald (East Renfrewshire) (SNP)]

15. What discussions she has had with Cabinet colleagues on steps to tackle in-work poverty in the context of the rise in the cost of living.

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

This Government have taken decisive action to make work pay, giving 1.7 million families an extra £1,000 per year, on average, through changes to the universal credit taper, work allowances, and increasing the national living wage to £9.50 an hour. Some extra support is coming in through the packages we have already mentioned today. It is also important to make the House aware that we extend help to people already on universal credit who are working to see what we can do to help them to progress in work and to take up other opportunities, such as making sure that they know about things like childcare support.

[Chris Stephens]

So grants rather than loans are the solution after all. Evidence from Feeding Britain and Good Food Scotland shows, for example, that people who work in a supermarket cannot afford to shop there, with fridges being switched off and lightbulbs being removed at home, and more pawning, borrowing and reliance on credit. Now that the principle is that grants are preferable to loans, will the Secretary of State apply the same principle to universal credit advance payments, as argued for by the Work and Pensions Committee?

[Dr Coffey]

This is the second time I have discussed this particular topic today. People can choose to get an extra payment of universal credit earlier, and then we spread that over the entire year, so, in effect, they get 13 payments instead of 12. That is what the advance is about. A number of people who move across from legacy benefits get some run-ons of different benefits to try to help with the cash transition when they are used to getting cash on that more regular basis. We will continue to make sure, though, that our top priority is to help people to get into work and to progress in work.

[Kirsten Oswald]

Having a child is one of the tipping points that can plunge families into poverty. Each year, thousands of claimants are excluded from statutory maternity pay by arbitrary rules that disadvantage people in low-paid and insecure employment. These claimants are forced to rely on maternity allowance, which is offset against any universal credit they receive, leaving them thousands of pounds worse off than those on statutory maternity pay. When will the UK Government tackle this manifest injustice rooted in their policies?

[Dr Coffey]

The two benefits are completely different, recognising the situations that people find themselves in, so they will be treated differently. The hon. Lady should of course be aware that this was challenged in court and the court did not go with the person who challenged it, recognising that they are completely different benefits.

[Justin Tomlinson (North Swindon) (Con)]

13. What progress the Government have made on increasing the number of disabled people in work by 1 million between 2017 and 2027.

--- Later in debate ---

[Carolyn Harris (Swansea East) (Lab)]

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

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

What a marvellous weekend the country enjoyed. I am grateful to everybody who was doing that, including my civil servants who were working over the jubilee weekend, as we are working hard to make sure that we can deliver the cost of living payments to people next month. I continue to congratulate not only them but work coaches up and down the land who are helping people to get into work. I am pleased to say that we had a record number of claimants getting into work in March, and we had more than 100,000 in April as well, so we are well on our way to achieving our ambition of half a million extra people. I referred to the cost of living payments that we intend to deploy, and in the next couple of weeks, on 15 June, we will have our pension credit day of action. I encourage all Members of Parliament to make their constituents aware of that opportunity to claim benefits.

[Carolyn Harris]

Everyone Deserves a Christmas is a Swansea project that supports struggling families to enjoy a few treats at Christmas. It starts taking referrals in November, but this year, worried families are already requesting hampers, because they are struggling to pay their bills and feed their kids now. What hope can the Government give to struggling yet working families that they will be able to provide for their children’s needs as the cost of living crisis deepens?

[Dr Coffey]

The poverty statistics—admittedly, they are statistics rather than individual experiences; I accept that—show that, where both parents are working full time, fewer than 3% of people are effectively in poverty. I want to extend the help that we can give through our local jobcentres to help that particular family to perhaps extend their work or get on in work. It will be those measures, as well as the extra cost of living payments that we are making, that will help people with the challenges they face now.

--- Later in debate ---

[Jonathan Ashworth (Leicester South) (Lab/Co-op)]

I join the Secretary of State in congratulating all those who worked over the weekend, and in saying that it was a fabulous platinum jubilee weekend. May I congratulate her on her sung prayer that she shared on Twitter yesterday, which shows that it is not just at karaoke where her singing excels?

Work should be the best defence from the rising cost of living, yet millions in work are in poverty. The numbers in overall employment are down by 500,000 since before the pandemic, and there are 3 million people on out-of-work benefits not looking for work. Sheffield Hallam University estimates that about 800,000 of those people on out-of-work benefits, often in places such as Wakefield, could be helped back into work with the right support and a plan. The Secretary of State promised to help the economically inactive find work. Why is she failing?

[Dr Coffey]

Well, I do not have the voice of an angel, and nor do I claim to have the pathway to heaven in this regard, but I am very conscious of the people of Wakefield, as I am of those right across the country. On people who are economically inactive, I have been consistent in saying that my priority is those who are currently on benefits and receiving financial support. They will always be my top priority, but I am working across Government to see what we can do, particularly working with employers, to ensure that the economically inactive come back into the workplace.

[Jonathan Ashworth]

The number on out-of-work benefits has increased by 1 million since the pandemic. We have the highest level of worklessness due to ill health for 20 years. Increasing numbers of over-50s are leaving the labour market who might stay in it if there was flexible work. More parents are leaving the labour market because they cannot afford childcare. And this is at a time of 1.3 million vacancies. We need to increase the supply of workers to get inflation down, so why does the Secretary of State not have a plan to deliver that?

[Dr Coffey]

There clearly is a plan. That is why there are actually more people on payroll than prior to the pandemic. I am very conscious of the challenges for the self-employed, and also that some people have currently chosen to leave the labour market. That is what we are working on across Government, as well as with the activity on childcare. We will continue to make sure that it is in everybody’s interests to work, because they will be better off in work than not working, unless they cannot work.

[Stephen Metcalfe (South Basildon and East Thurrock) (Con)]

T3. I congratulate the Minister on his campaign to increase the uptake of pension credit, which is a vital way of ensuring that our most vulnerable pensioner households get everything they are entitled to. Although more than 2,000 people in my constituency are already claiming pension credit, following recent announcements on cost of living support, where does my hon. Friend suggest that people look to check whether they are getting everything they are entitled to?

--- Later in debate ---

[Kirsty Blackman (Aberdeen North) (SNP)]

People across the UK are dying younger as a result of UK Government austerity. A new Glasgow University and Glasgow Centre for Population Health report has found:

“Austerity is highly likely to be the most substantial causal contributor to the stalled mortality trends seen in Scotland and across the UK”.

Will the Secretary of State acknowledge the tragic human cost of the cruel Westminster austerity agenda and urge the UK Government to change course?

[Dr Coffey]

I am afraid I just do not recognise the situation that the hon. Member mentions, and I do not know the basis of the academic report. What I do know is that we are getting more people into work. I do not know the status of health in Glasgow specifically, but I do know that it is part of the levelling-up mission of this Government to ensure that we reduce health inequality. In particular, I encourage her to continue to work with her public health authority to ensure that people are well prepared to go into work, but can also stay in work through occupational health services.

[Claire Coutinho (East Surrey) (Con)]

T4. Many of my poorest households in East Surrey will be anxious about their energy bills and about what our cost of living package will mean for them. Now that we have had the Ofgem forecast, will the Minister confirm that the expected average increase in energy bills this year will be about £1,200 and that our package of support for anyone on means-tested benefits will mean that they receive £1,200?

[Ruth Cadbury (Brentford and Isleworth) (Lab)]

T5.   My constituent is a paramedic and was on the frontline throughout the pandemic. He told me how much he was struggling with the cost of living crisis and how he feels cheated out of the household dream that if people worked hard, they could enjoy a good quality of life. He speaks for millions of NHS staff and many others. Does the Minister still think it was a good idea to raise taxes for working people this year?

[Dr Coffey]

As the hon. Lady knows, the levy that was introduced is there to support the NHS, particularly in tackling backlogs, but also to support adult social care, and I am sure her constituent could benefit from the outcomes of both. The hon. Lady should also be aware that next month the threshold for national insurance will rise, which will mean that 70% of working households will see a cut in the amount they pay in tax and national insurance.

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

T8. This year Government receipts are at a record high, and billions of pounds have rightly been announced in cost of living support. However, for those most in need—people on means-tested benefits—the support is somewhere between £1,000 and £1,200, which is roughly what they lost when the £20 universal credit uplift was withdrawn. The Joseph Rowntree Foundation has said that withdrawing the uplift would put half a million people into poverty. Citizens Advice has estimated that it has caused 2.3 million people to fall into debt. Times were tough during the covid crisis, but they are going to get tougher this year, so will the Minister look at the £20 that has been taken from universal credit, with a view to returning it by the time of the financial statement in the autumn?

--- Later in debate ---

[Dr Coffey]

We are working with a number of employers in a number of ways to try to help them fill their vacancies. We learnt a lot from the kickstart scheme, such as bringing employers into jobcentres to undertake interviews. We are also working with employers on the descriptions they put into job requirements and what is really needed to fill a job. I am conscious that there are lots of vacancies—it is a fortunate position in which the UK finds itself—and we are working hard to ensure that people get and stay in those jobs.

[Stephen Flynn (Aberdeen South) (SNP)]

In Scotland, in the last year alone some 15,000 people were sanctioned by the Secretary of State. Given that she is such a stickler for rules, surely she will show the same resolve this evening and place a sanction on her party leader.

[Mr Speaker]

Order. That is not relevant. Carry on.

[Dr Coffey]

Mr Speaker, I was going to say that when we share taxpayers’ money with people looking for work, it is important that they honour their side of the bargain. When they do not, there often have to be consequences. That is not something that we seek to do—we try to work with people—but it is really important that people do their bit of the bargain when they look for work.

[Helen Morgan (North Shropshire) (LD)]

I am troubled by the number of constituents who have recently come to me because either they have been overpaid in error by the DWP or they are struggling to receive their first payment because of administrative difficulties, when they are already really struggling. What steps is the Department taking to ensure that errors and disputes can be resolved satisfactorily and in a timely way so that those repayments will not push them over the edge and into poverty?

--- Later in debate ---

[Sir Stephen Timms (East Ham) (Lab)]

The household support fund now accounts for billions in public spending. What information is the Department collecting about how that fund is being used, who is benefiting from it, what their circumstances are and how much support they receive? What plans does the Department have to publish that information?

[Dr Coffey]

We issue funding based on grant conditions. We undertake a very light-touch approach with councils to make sure that they satisfy those conditions. We do not collect extensive information, but it is important that we allow councils to get on. They are close to the community, so they are well placed to make sure that that discretionary funding can go to the right people.

Completing the Move to Universal Credit by 2024

Thérèse Coffey Excerpts

Monday 25th April 2022 Written Statements

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

In 2012, Parliament voted to end legacy benefits and replace them with a single modern benefit system, universal credit. The UC system stood up to the challenges of the pandemic and ensured that support was provided for a significant number of new claimants with varying needs across the country. As the rest of Government and society returns to business as usual, it is appropriate to resume the process to complete the move to UC by 2024.



There are around 2.6 million households receiving legacy benefits and tax credits who need to move across to UC. The natural migration process, where claimants experience a change in circumstances and consequently move to UC, has largely continued throughout the last two years. The voluntary migration process has also been available throughout. We are taking steps to increase people’s awareness of the fact that they could be better off financially if they were receiving universal credit, including through the publication of our document “Completing the Move to Universal Credit” today on www.gov.uk. I will place copies in the Libraries of both Houses.



In that document, we set out our analysis which estimates that 1.4 million (55%) of those on legacy benefits or tax credits would receive a higher entitlement on UC than on legacy benefits and would benefit from moving voluntarily, rather than waiting for a managed migration. This is particularly the case for tax credit claimants, with our analysis estimating that around two thirds of them would benefit. That is why we have included information on UC in this year’s renewal forms for current tax credit recipients. It is important for current recipients to satisfy themselves that they would be better off on UC using independent benefit calculators before moving voluntarily, as once the claim is made recipients cannot revert to tax credits or legacy benefits, nor receive any transitional protection payments. More information is included in the document.



For those claimants who do not choose to move and have not migrated naturally, we will manage their migration to UC. Parliament committed to providing transitional financial protection to those who are moved on to UC through the managed migration process. While many households will be better off financially on UC, for those with a lower calculated award in UC than in their legacy benefits, transitional protection will be provided for eligible households. This means they will see no difference in their entitlement at the point they are moved to UC, provided there is no change in their circumstances during the migration process.



Before the pandemic, the Department had started testing processes for managed migration in a pilot based in Harrogate. In 2020, the pilot was stopped to handle the significant increase in new claims for UC resulting from the pandemic. During this pilot there was proactive engagement with 80 people, 38 of whom were moved to UC. Thirty-five claimants were better off and only three people required transitional protection. The remainder of moves were not completed before the pilot was stopped. This pilot only involved claimants that the Department had an existing relationship with. No claimants on working tax credits were approached directly to commence a move to UC.



The pilot provided valuable insights. First, while claimants will likely look for support from organisations they already know, such as a local authority, we are no longer assuming that all engagement needs to be managed by that organisation. Secondly, claimants can and will move autonomously, but some may need more support, particularly on digital access. The pandemic reinforced the importance of claimants being able to manage their own claims online and the strength of this system. Thirdly, claimants can successfully choose a date for their claim, factoring in other income and expenditure points during the month. Finally, the pilot allowed the Department to understand the processes and tools required to complete a managed move, such as those needed to calculate transitional protection.

As I have said to the House previously, we are not resuming the Harrogate pilot. We have learned from that experience and our wider experience over the last two years. As we complete the move to UC, I am absolutely committed to making this a responsible and safe transition. Next month, we will be starting a multi-site approach across the country with a small number of claimants—approximately 500 initially—being brought into the mandatory migration process. We will continue to develop our processes and systems to scale the migration process and complete by 2024.



We are resuming under existing regulations, although I intend to bring forward to Parliament amendments to the UC transitional provisions regulations, following their consideration by the Social Security Advisory Committee.



Universal credit is a dynamic welfare system fit for the 21st century. As part of our levelling-up agenda to support the British public, we will continue to help people into work and to progress in work, taking advantage of the recent reduction in the taper rate and boost to work allowances.

[HCWS780]