Child Maintenance Service

Thérèse Coffey Excerpts
Tuesday 27th February 2024

(1 month ago)

Westminster Hall
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Thérèse Coffey Portrait Dr Thérèse Coffey (Suffolk Coastal) (Con)
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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.

Charles Walker Portrait Sir Charles Walker (in the Chair)
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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

(1 month, 3 weeks ago)

Commons Chamber
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Paul Maynard Portrait Paul Maynard
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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.

Thérèse Coffey Portrait Dr Thérèse Coffey (Suffolk Coastal) (Con)
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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 Portrait Paul Maynard
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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

(1 month, 3 weeks ago)

Westminster Hall
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Thérèse Coffey Portrait Dr Thérèse Coffey (Suffolk Coastal) (Con)
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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

(1 year, 8 months ago)

Commons Chamber
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Stephanie Peacock Portrait Stephanie Peacock (Barnsley East) (Lab)
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17. If she will make an estimate of projected poverty levels in April 2023.

Thérèse Coffey Portrait The Secretary of State for Work and Pensions (Dr Thérèse Coffey)
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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 Portrait Alex Cunningham
- Parliament Live - Hansard - - - Excerpts

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?

Thérèse Coffey Portrait Dr Coffey
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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 Portrait Stephanie Peacock
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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?

Thérèse Coffey Portrait Dr Coffey
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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 Portrait Henry Smith (Crawley) (Con)
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14. How many people have been auto-enrolled in workplace pensions in Crawley constituency since 2012.

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Nick Fletcher Portrait Nick Fletcher (Don Valley) (Con)
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15. What steps she plans to take to support young people into work following the closure of the kickstart scheme.

Thérèse Coffey Portrait The Secretary of State for Work and Pensions (Dr Thérèse Coffey)
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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 Portrait Nick Fletcher
- Parliament Live - Hansard - - - Excerpts

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?

Thérèse Coffey Portrait Dr Coffey
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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.

Robert Neill Portrait Sir Robert Neill (Bromley and Chislehurst) (Con)
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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.

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Rachel Hopkins Portrait Rachel Hopkins (Luton South) (Lab)
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T2. If she will make a statement on her departmental responsibilities.

Thérèse Coffey Portrait The Secretary of State for Work and Pensions (Dr Thérèse Coffey)
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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 Portrait Rachel Hopkins
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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?

Thérèse Coffey Portrait Dr Coffey
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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 Portrait Elliot Colburn (Carshalton and Wallington) (Con)
- Parliament Live - Hansard - - - Excerpts

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?

Thérèse Coffey Portrait Dr Coffey
- Parliament Live - Hansard - -

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 Portrait Jonathan Ashworth (Leicester South) (Lab/Co-op)
- Parliament Live - Hansard - - - Excerpts

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?

Thérèse Coffey Portrait Dr Coffey
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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 Portrait Jonathan Ashworth
- Parliament Live - Hansard - - - Excerpts

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?

Thérèse Coffey Portrait Dr Coffey
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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.

Sheryll Murray Portrait Mrs Sheryll Murray (South East Cornwall) (Con)
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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?

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Kirsty Blackman Portrait Kirsty Blackman (Aberdeen North) (SNP)
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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?

Thérèse Coffey Portrait Dr Coffey
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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.

Edward Leigh Portrait Sir Edward Leigh (Gainsborough) (Con)
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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?

Thérèse Coffey Portrait Dr Coffey
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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 Portrait Ian Byrne (Liverpool, West Derby) (Lab)
- Parliament Live - Hansard - - - Excerpts

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
Thérèse Coffey Portrait The Secretary of State for Work and Pensions (Dr Thérèse Coffey)
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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 Portrait Jonathan Edwards (Carmarthen East and Dinefwr) (Ind)
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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?

Thérèse Coffey Portrait Dr Coffey
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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.

Stephen Timms Portrait Sir Stephen Timms (East Ham) (Lab)
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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?

Thérèse Coffey Portrait Dr Coffey
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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 Portrait Hywel Williams (Arfon) (PC)
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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.

Thérèse Coffey Portrait Dr Coffey
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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 Portrait Marsha De Cordova (Battersea) (Lab)
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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.

Thérèse Coffey Portrait Dr Coffey
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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 Portrait Jonathan Edwards
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Will the Secretary of State give way?

Thérèse Coffey Portrait Dr Coffey
- Hansard - -

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 Portrait Jonathan Edwards
- Hansard - - - Excerpts

Will the Secretary of State give way?

Thérèse Coffey Portrait Dr Coffey
- Hansard - -

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 Portrait Jonathan Ashworth (Leicester South) (Lab/Co-op)
- Parliament Live - Hansard - - - Excerpts

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?

Thérèse Coffey Portrait Dr Coffey
- Hansard - -

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.

Richard Holden Portrait Mr Richard Holden (North West Durham) (Con)
- Parliament Live - Hansard - - - Excerpts

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?

Thérèse Coffey Portrait Dr Coffey
- Hansard - -

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.

Rosie Winterton Portrait Madam Deputy Speaker (Dame Rosie Winterton)
- Hansard - - - Excerpts

I call the shadow Secretary of State, Jonathan Ashworth.

Oral Answers to Questions

Thérèse Coffey Excerpts
Monday 6th June 2022

(1 year, 9 months ago)

Commons Chamber
Read Full debate Read Hansard Text Read Debate Ministerial Extracts
Alex Cunningham Portrait Alex Cunningham (Stockton North) (Lab)
- Parliament Live - Hansard - - - Excerpts

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

Thérèse Coffey Portrait The Secretary of State for Work and Pensions (Dr Thérèse Coffey)
- Parliament Live - Hansard - -

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.

Diana Johnson Portrait Dame Diana Johnson
- Hansard - - - Excerpts

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?

Thérèse Coffey Portrait Dr Coffey
- Parliament Live - Hansard - -

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 Portrait Alex Cunningham
- Parliament Live - Hansard - - - Excerpts

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?

Thérèse Coffey Portrait Dr Coffey
- Parliament Live - Hansard - -

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.

Caroline Dinenage Portrait Dame Caroline Dinenage (Gosport) (Con)
- Hansard - - - Excerpts

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?

Thérèse Coffey Portrait Dr Coffey
- Hansard - -

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 Portrait Liz Twist (Blaydon) (Lab)
- Hansard - - - Excerpts

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

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Kirsten Oswald Portrait Kirsten Oswald (East Renfrewshire) (SNP)
- Hansard - - - Excerpts

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.

Thérèse Coffey Portrait The Secretary of State for Work and Pensions (Dr Thérèse Coffey)
- Hansard - -

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 Portrait Chris Stephens
- Parliament Live - Hansard - - - Excerpts

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?

Thérèse Coffey Portrait Dr Coffey
- Parliament Live - Hansard - -

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 Portrait Kirsten Oswald
- Parliament Live - Hansard - - - Excerpts

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?

Thérèse Coffey Portrait Dr Coffey
- Parliament Live - Hansard - -

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 Portrait Justin Tomlinson (North Swindon) (Con)
- Parliament Live - Hansard - - - Excerpts

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

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Carolyn Harris Portrait Carolyn Harris (Swansea East) (Lab)
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T1. If she will make a statement on her departmental responsibilities.

Thérèse Coffey Portrait The Secretary of State for Work and Pensions (Dr Thérèse Coffey)
- Parliament Live - Hansard - -

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 Portrait Carolyn Harris
- Hansard - - - Excerpts

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?

Thérèse Coffey Portrait Dr Coffey
- Parliament Live - Hansard - -

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.

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Jonathan Ashworth Portrait Jonathan Ashworth (Leicester South) (Lab/Co-op)
- Parliament Live - Hansard - - - Excerpts

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?

Thérèse Coffey Portrait Dr Coffey
- Parliament Live - Hansard - -

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 Portrait Jonathan Ashworth
- Parliament Live - Hansard - - - Excerpts

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?

Thérèse Coffey Portrait Dr Coffey
- Parliament Live - Hansard - -

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 Portrait Stephen Metcalfe (South Basildon and East Thurrock) (Con)
- Parliament Live - Hansard - - - Excerpts

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?

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Kirsty Blackman Portrait Kirsty Blackman (Aberdeen North) (SNP)
- Parliament Live - Hansard - - - Excerpts

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?

Thérèse Coffey Portrait Dr Coffey
- Parliament Live - Hansard - -

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 Portrait Claire Coutinho (East Surrey) (Con)
- Parliament Live - Hansard - - - Excerpts

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 Portrait Ruth Cadbury (Brentford and Isleworth) (Lab)
- Parliament Live - Hansard - - - Excerpts

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?

Thérèse Coffey Portrait Dr Coffey
- Parliament Live - Hansard - -

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.

David Davis Portrait Mr David Davis (Haltemprice and Howden) (Con)
- Parliament Live - Hansard - - - Excerpts

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?

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Thérèse Coffey Portrait Dr Coffey
- Parliament Live - Hansard - -

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 Portrait Stephen Flynn (Aberdeen South) (SNP)
- Parliament Live - Hansard - - - Excerpts

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.

Lindsay Hoyle Portrait Mr Speaker
- Hansard - - - Excerpts

Order. That is not relevant. Carry on.

Thérèse Coffey Portrait Dr Coffey
- Parliament Live - Hansard - -

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 Portrait Helen Morgan (North Shropshire) (LD)
- Parliament Live - Hansard - - - Excerpts

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?

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Stephen Timms Portrait Sir Stephen Timms (East Ham) (Lab)
- Parliament Live - Hansard - - - Excerpts

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?

Thérèse Coffey Portrait Dr Coffey
- Parliament Live - Hansard - -

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

(1 year, 11 months ago)

Written Statements
Read Full debate Read Hansard Text Read Debate Ministerial Extracts
Thérèse Coffey Portrait The Secretary of State for Work and Pensions (Dr Thérèse Coffey)
- Hansard - -

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]

Household Support Fund Extension

Thérèse Coffey Excerpts
Thursday 31st March 2022

(1 year, 12 months ago)

Written Statements
Read Full debate Read Hansard Text Read Debate Ministerial Extracts
Thérèse Coffey Portrait The Secretary of State for Work and Pensions (Dr Thérèse Coffey)
- Hansard - -

The economy is in recovery, with a record number of people on the payroll, but we recognise inflationary challenges and that people are concerned about pressures on household budgets. That is why we are extending the household support fund to provide cost of living support for households most in need. From April, the Government are providing an additional £500 million to help households with the cost of essentials. This brings the total funding for this support to £1 billion. In England, £421 million will be provided to extend the existing household support fund from 1 April to 30 September inclusive. The allocation for councils is the same as for the previous six months. The devolved Administrations will receive £79 million through the Barnett formula.

The fund will be distributed via upper-tier local authorities. This support will continue to help those who are struggling to afford energy and water bills, food, and other essentials, to prevent the escalation of problems. We know energy bills may be of particular concern to low-income households and so local authorities are being encouraged to focus on supporting households with the cost of energy.

At least a third of the extension funding (£140 million) will be spent on pensioners on low incomes and at least another third (£140 million) will be spent on families with children. This will ensure that the most vulnerable, including those unable to work to boost their income, will continue to receive vital support to help with the costs of household essentials throughout the next six months.

This extension is just one way that we are helping families with the rising cost of living and other global inflationary pressures. The Government have recently announced a three-part plan of support to help households with rising energy bills, worth £9.1 billion in 2022-23. This includes a £200 discount on energy bills this autumn for all domestic electricity customers in Great Britain, to be paid back automatically over the next five years. This also includes a £150 non-repayable rebate in council tax bills for all households in bands A-D in England, as well as a £144 million discretionary fund for local authorities to support households who are in need, regardless of their council tax band.

Likewise, the national living wage will increase to £9.50 an hour this April, providing an extra £1,000 pay for a full-time worker. This has risen every year since it was introduced in 2016. The cuts to the universal credit taper rate and the uplift to the work allowances will also put, on average, an extra £1,000 a year into the pockets of 1.7 million low-income families.

These initiatives, alongside the household support fund extension, will work to help those most in need over the coming months.

[HCWS749]

Annual Households Below Average Income and Separated Families Statistics 2020-21

Thérèse Coffey Excerpts
Thursday 31st March 2022

(1 year, 12 months ago)

Written Statements
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Thérèse Coffey Portrait The Secretary of State for Work and Pensions (Dr Thérèse Coffey)
- Hansard - -

The Department for Work and Pensions has today published its annual statistics on incomes and living conditions covering 2020-21, the first year of the pandemic. This includes households below average income (HBAI), which includes statistics on household incomes and a range of low-income indicators for 2020-21, derived from the family resources survey. This consisted of around 10,000 households—half our usual sample size due to moving from face-to-face to telephone interviews in response to the pandemic.

Rigorous quality assurance and weighting of the statistics means we can have confidence in the headline statistics published. However, the impact of the changes to data collection during the pandemic become more evident when the statistics are disaggregated into smaller groups. To ensure these statistics maintain high levels of quality, DWP’s chief statistician has taken the decision that HBAI statistics on smaller sub-groups should not be released this year. The full data, however, will be made available on the UK data archive. As a result of impacts on data quality, the Scottish Government publication “Poverty and Income Inequality in Scotland 2015-18” will not be available this year, and statistics published by the Welsh Government and the Northern Ireland Executive will be released with significant caveats.

The HBAI statistics show that between 2019-20 and 2020-21, the proportion of people below the absolute low income line fell. Before housing costs, there was a decrease of one percentage point to 13% or 8.8 million people. After housing costs, there was a decrease of one percentage point to 17% or 11.1 million people.

Compared to 2009-10, there were 1.2 million fewer people in absolute low income, before housing costs: 200,000 fewer children, 500,000 fewer working age adults and 400,000 fewer pensioners.

Between 2019-20 and 2020-21, median incomes fell. The proportion of people below the relative low income line also fell. Before housing costs, there was a decrease of two percentage points to 16% or 10.5 million people. After housing costs, there was a decrease of two percentage points to 20% or 13.4 million people. This shows how relative poverty is affected by median income and reinforces why the Government’s focus has been on absolute poverty as a better measure of real changes in living standards for the poorest in society, as well as on material deprivation.

This year, the Department has published new statistics for children and working age people that combine material deprivation with HBAI’s statutory absolute low income measure. The statistics show that combined absolute low income and material deprivation among working age people fell three percentage points—reducing from 3.1 million in 2010-11 to 2.2 million in 2019-20. A decade of rising employment will clearly be a contributing factor in this trend. In 2020-21, 5%, or 700,000 children and 5%, or 1.9 million working age people were in combined absolute low income and material deprivation, lower than the numbers of children and working age people in low income alone.

Recognising the new statistics released today, the Department has also announced it will not proceed with developing new statistics using the work of the Social Metrics Commission as a starting point.

The Separated Families publication released alongside HBAI also shows the significant impact that child maintenance payments can have on reducing the number of children living in low income households. Overall, as a result of child maintenance payments from 2018-19 to 2020-21, 80,000 children were moved out of absolute low income before housing costs each year; 140,000 after housing costs.

This is the second year that the Department has collected data on food security. In 2020-21, 93% of households were classed as food secure, up from 92% in 2019-20.

The statistics published today show how the Government’s covid support package of over £400 billion helped support jobs and incomes. We are now easing the current pressures people are facing with the cost of living, taking action to support families worth over £22 billion in 2022-23. This includes a £9.1 billion energy bill rebate package, worth up to £350 each for around 28 million households.

Also, from April, the Government are providing an additional £500 million to help households with the cost of essentials, on top of what we have already provided since October 2021, bringing the total funding for this support to £1 billion. In England, £421 million will be provided to extend the existing household support fund, while the devolved Administrations will receive £79 million through the Barnett formula.

With unemployment back to the low levels we saw before the pandemic and vacancies at record highs, our focus is on helping people to move into and boost incomes through work: for example, through the change to the universal credit taper rate and an increase to the work allowances which means millions of families are on average £1,000 a year better off, the rise to the national living wage from April and increasing the level at which people pay national insurance on their income, saving a typical employee over £330 in the year from July.

As we help people to keep more pounds in their pockets, these statistics highlight the unprecedented support we provided to protect livelihoods during the pandemic.

[HCWS748]

Oral Answers to Questions

Thérèse Coffey Excerpts
Monday 21st March 2022

(2 years ago)

Commons Chamber
Read Full debate Read Hansard Text Read Debate Ministerial Extracts
Stuart C McDonald Portrait Stuart C. McDonald (Cumbernauld, Kilsyth and Kirkintilloch East) (SNP)
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6. Whether she has had discussions with the Chancellor of the Exchequer ahead of the spring statement on tackling the rise in the cost of living.

Stuart C McDonald Portrait Stuart C. McDonald
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I thank the Secretary of State for that illuminating answer. Jack Monroe was right that this cost of living crisis could be fatal for some, and that is not a term to be used lightly. Has the Secretary of State urged the Chancellor to reverse the £20 universal credit cut and rule it out to legacy claimants, or has she asked to replicate the Scottish Government’s £20 per week child payment? Where is her comprehensive plan to stop our constituents suffering—and by “plan” I do not mean more loans?

Thérèse Coffey Portrait Dr Coffey
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There is a cross-Government effort to tackle the cost of living; that has been ongoing for some time, and was most recently revealed by the Chancellor’s announcement on council tax rebates, but also—[Interruption.] Council tax rebate is not a loan; the hon. Member for Wirral South (Alison McGovern) is misinformed. There is also a phasing of energy bills. [Interruption.] I am afraid the hon. Lady is yet again wrong in her assertion about the council tax rebate. However, moving on, the Chancellor really listened when he moved to make sure that the taper rate was reduced to 55% in the autumn Budget; that is ongoing, and it recognises the principle of universal credit that people will be better off working than not working. It is already delivering that, and I welcome the fact that the Chancellor did that.

Kieran Mullan Portrait Dr Kieran Mullan (Crewe and Nantwich) (Con)
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One thing that would help single-parent families with the cost of living is receiving child maintenance. In fact, research by York University has found that securing child maintenance payments would lift 60% of children living in single-parent households that currently are not receiving them out of poverty. We have made good progress, but I think we can do more, for example by using home curfew to penalise non-payers. What plans does the Department have to move forward with home curfew?

Thérèse Coffey Portrait Dr Coffey
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I agree with my hon. Friend that we should be doing and want to do more on child maintenance. There are a number of reasons why sometimes parents are not so keen on that process. However, that specific power was created in primary legislation, and it is my intention later this year to bring the curfew order into effect. I will be working carefully across Government to make sure that we get the appropriate consultation and clearance for regulations.

David Linden Portrait David Linden (Glasgow East) (SNP)
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The Government speak about their plan for jobs. I think many of us were quite shocked that a plan for jobs meant butchering back-office jobs in the Secretary of State’s own Department; I suspect that she might want to reflect on that. Given that her right hon. Friend the Chancellor of the Exchequer is a multimillionaire who has no idea what it is like to get by on poverty, as many of my constituents and those on these Opposition Benches do, has she suggested that he should follow the Scottish Government’s approach of uprating benefits by 6% with a fixed budget? Is that something she is planning to ask him to do on Wednesday, or is it going to be more of the same from her Department—no action?

Thérèse Coffey Portrait Dr Coffey
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The House has just recently voted through the uprating order, recognising the traditional way in which the inflation index is used. We will continue to strive to get more people working than ever before. We have seen that certainly on payrolls. I am conscious that the surveys on self-employment may differ in that regard. That is why we will keep working in different ways to try to make sure that we try to lift as many people out of poverty as we can, and we will do that the best way we know: through our work coaches.

Edward Leigh Portrait Sir Edward Leigh (Gainsborough) (Con)
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7. What steps her Department is taking to tackle deprivation through its benefits policy.

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Richard Burgon Portrait Richard Burgon (Leeds East) (Lab)
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18. What steps her Department is taking to support people with the increase in the cost of living.

Thérèse Coffey Portrait The Secretary of State for Work and Pensions (Dr Thérèse Coffey)
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The Government are providing support worth over £21 billion across this financial year and the next to help families with the cost of living. Through the Department for Work and Pensions, that includes cutting the universal credit taper rate and increasing work allowances.

Richard Burgon Portrait Richard Burgon
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Most benefits and the state pension will rise by just 3% in April, but inflation could be over 8%, so that is a real-terms cut of 5% for people who are already having to choose between eating and heating. Given that, how on earth does the Secretary of State think it acceptable to target the incomes of the poorest in our society like this? Will she commit today to action so that nobody’s benefits are cut during the deepest cost of living crisis in decades?

Thérèse Coffey Portrait Dr Coffey
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The Under-Secretary of State for Work and Pensions, my hon. Friend the Member for Macclesfield (David Rutley), has set out the inflation index that has been used consistently since 1987 in consideration of the inflation rate. I am very conscious that the House voted for the uprating order recently—apart from the hon. Gentleman, along with a handful of others. If his vote had been successful, benefits would not have risen at all.

Christine Jardine Portrait Christine Jardine (Edinburgh West) (LD)
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23. What steps her Department is taking to tackle levels of poverty among pensioners.

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Andrew Jones Portrait Andrew Jones (Harrogate and Knaresborough) (Con)
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T3. If she will make a statement on her departmental responsibilities.

Thérèse Coffey Portrait The Secretary of State for Work and Pensions (Dr Thérèse Coffey)
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Our Homes for Ukraine scheme was formally opened for applications on Friday, with more than 150,000 Britons registering their interest. Ukrainian evacuees coming to this country are able to access DWP benefits, support and services from day one, and jobcentres will be helping people to find and move into employment, with assistance from an assigned work coach. Extra support will be available through our flexible support fund. We are also ensuring that the household benefit entitlements of those who have stepped up to sponsor a Ukrainian individual or family will not be affected as a result. As the public open their hearts and homes, we are ensuring that the right support is available to provide security, stability and safety in their hour of need.

Andrew Jones Portrait Andrew Jones
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The excellent team at my local Jobcentre Plus have briefed my office that they have placed 163 young people in Harrogate in work through the Government’s kickstart programme. Will the Secretary of State ensure that the new Way to Work scheme builds on that, especially in sectors where we are seeing workforce shortages, such as social care?

Thérèse Coffey Portrait Dr Coffey
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My hon. Friend is right to praise the young people in his constituency who have started their careers thanks to kickstart. Way to Work will build on our success in bringing employers and claimants together in jobcentres so that we can try to fill local vacancies, and will ensure that when candidates do not succeed in getting job interviews, they receive the feedback much more quickly. We will continue to try to directly address the barriers to entering roles in social care through job fairs and informed campaigns.

Lindsay Hoyle Portrait Mr Speaker
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I call the shadow Secretary of State, Jonathan Ashworth.

Thérèse Coffey Portrait Dr Coffey
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We still have the household support fund, which is available for people to apply to, to get extra support from their local council. I encourage people who are struggling right now to make that approach to their council as quickly as possible.

Jonathan Ashworth Portrait Jonathan Ashworth
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People are struggling right now, and the Secretary of State is about to cut benefits to the tune of £500 for 9 million households. That is a choice that she has made. She has also made a choice by breaking her promise on the triple lock and cutting the basic state pension in real terms by £388 this year, according to The Daily Telegraph. Her justification for that was that the increase in earnings was at 8%. The Bank of England estimates that inflation will hit 8%. Can she rule out breaking the triple lock again this year?

Thérèse Coffey Portrait Dr Coffey
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As was explained at the time of the emergency legislation, the increase in earnings was a statistical anomaly due to the impacts of covid. That is why the Opposition supported the Bill right through this House on its very first day—

Thérèse Coffey Portrait Dr Coffey
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I said the Opposition; the SNP might be the second Opposition party. The Labour Opposition did support the Bill until it came back from the Lords. There was a lot of support at the time, recognising the statistical anomaly.

Sally-Ann Hart Portrait Sally-Ann Hart (Hastings and Rye) (Con)
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T4. The jobs of the future, especially in the green industries, require technical skills, and investing in people to improve their technical skills is vital to the Government’s levelling-up agenda, which is particularly important in beautiful Hastings and Rye. What steps is my hon. Friend taking to increase the technical skills levels of people who are already in work?

Mary Kelly Foy Portrait Mary Kelly Foy (City of Durham) (Lab)
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T5. It is welcome that the Government have proposed reforms to the Child Maintenance Service following the recent National Audit Office report highlighting the failures in that organisation. Will the reforms address the issues with self-employed fee-paying parents hiding their income, as well as the concerns around previously unco-operative parents being moved off collect and pay after minimal evidence of compliance?

Thérèse Coffey Portrait Dr Coffey
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The hon. Lady raises an important point. All parents automatically go into the direct payment process. I am working with my noble Friend Baroness Stedman-Scott, the Minister who has direct responsibility for this portfolio, to see what more we can do to accelerate reform if people are clearly not being compliant and not paying. Meanwhile, our financial investigations unit will investigate where people are hiding money and, if necessary, take them to court to ensure that the money gets paid.

Rob Roberts Portrait Rob Roberts (Delyn) (Ind)
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T6. I would like to thank our local DWP officials and work coaches for their efforts to help more people in Delyn into work in the past few months. Some parts of my constituency remain among the most deprived in Wales. Does the Minister agree that improved transport infrastructure is key to ensuring that people can get to jobs? I appreciate that she is not a Minister in the Department for Transport, but will she in principle support my campaign to have a train station reinstated to serve Holywell and Greenfield, to help people to access more jobs and level up their communities?

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Barbara Keeley Portrait Barbara Keeley (Worsley and Eccles South) (Lab)
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For many people with disabilities, switching off essential equipment to reduce energy costs is not an option. Extra power is needed to run equipment on which they absolutely rely—to power ventilators, to charge electric wheelchairs or to run a stairlift. When I asked the Prime Minister about this recently, he said that the Government would be looking at ways to abate these costs, so what are the Government doing to support people with disabilities who now face unmanageable energy bills?

Thérèse Coffey Portrait Dr Coffey
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Throughout questions my hon. Friends have been setting out the different types of support available for energy bills. I am conscious of what the hon. Lady refers to, and all I can say is that we will continue to look at opportunities to help people, but I encourage her constituents to access support via the local council’s household support fund.

Jacob Young Portrait Jacob Young (Redcar) (Con)
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Last week was a nervous moment as we read the news that Stockton’s DWP offices are closing and that 380 staff would be relocated. It is now being reported that those jobs could simply be moved down the road to Middlesbrough. Will the Minister assure me that the Department is looking to keep as many of those jobs as possible in Teesside and that it is working with local leaders to see if there is any suitable usable space in the area so that Teesside does not lose any of those jobs?

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Philippa Whitford Portrait Dr Philippa Whitford (Central Ayrshire) (SNP)
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A recent report by Rethink Mental Illness has highlighted that the Department for Work and Pensions is not carrying out investigations of claimants who have suffered significant or serious harm, including a mental health crisis, self-harm and even attempted suicide. We are talking about the cost of living crisis and we know what that is going to drive people to, so will the Department instigate independent reviews of people who have suffered in the claims process so that they can make it more humane and supportive?

Thérèse Coffey Portrait Dr Coffey
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The hon. Lady raises an important point. I am confident that my Department and officials will undertake their duties carefully and considerately. I am conscious that there will be times when things go wrong and that sometimes the Department will be brought into local investigations, usually by social services. It is important that we respond to that, as well as to the ongoing lessons that we learn from broader themes that we investigate through the Serious Case Panel.

Jonathan Gullis Portrait Jonathan Gullis (Stoke-on-Trent North) (Con)
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I thank the Minister for the phone call last week about the DWP closure and the potential for more than 200 job losses in Stoke-on-Trent—she rightly understands the concern of local residents. Although it is totally irresponsible of the Public and Commercial Services Union to brief before local employees were spoken to, it is vital that we make sure we retain these types of jobs in Stoke-on-Trent, where we know that the average salary is below the weekly average of the rest of the UK and that unemployment is higher than the UK average. What can she do to keep as many of those jobs in the city and work with the local authority to find a new hub within Stoke-on-Trent?

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Scott Benton Portrait Scott Benton (Blackpool South) (Con)
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Blackpool South has one of the highest unemployment rates in the entire nation, but there are more than 1,000 job vacancies in the local area. Despite that, many local businesses tell me that they struggle to recruit, as often they have few applicants for local roles and some of those who attend job interviews often do everything they can not to get the job. What steps are the Government taking to ensure that those who are able to work do not continue to refuse reasonable offers of employment?

Thérèse Coffey Portrait Dr Coffey
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I was in my hon. Friend’s constituency on Thursday night and Friday morning, and was at the jobs fair held at the Pleasure Beach, which was a great success, as has already been referred to. It is important that we continue to have that relationship with claimants through the intensive work search regime. They are expected to look for work and take work that is available that they are capable of doing. We will continue not only to enforce that regime but to bring employers and claimants together to try to make sure that those interviews are successful and we get people into work, because that will always be the best way of getting out of poverty.

Stephen Timms Portrait Stephen Timms (East Ham) (Lab)
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The Minister referred earlier to the modest reported percentage increase in take-up of pension credit. Does he recognise that that increase is a consequence of the removal of mixed-age pensioner couples from eligibility for pension credit, rather than of any actual increase in take-up? Is it not high time that the Department set an ambitious take-up target and published an action plan to deliver it?

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Helen Morgan Portrait Helen Morgan (North Shropshire) (LD)
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Countless pensioners across my constituency have been forced to make the heartbreaking choice between heating and eating. They were told all their lives that if they worked hard enough then, when their time came to retire, we would take care of them. However, it is evident from those contacting me that that is no longer the case.

As the Secretary of State and the Pensions Minister have already outlined, the Government provide a range of benefits to older people in a whole host of areas, including housing, NHS dental treatment and transport costs. Those things can go a long way to helping with the cost of living crisis, but many such benefits go unclaimed each year. What steps is the Secretary of State taking to ensure that older people are aware of and able to access the benefits for which they are eligible?

Thérèse Coffey Portrait Dr Coffey
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My hon. Friend the Pensions Minister has already set out the huge number of ways that we are trying to increase awareness. I think it is accurate to say, from internal management information, that we have seen a 30% increase in people applying, so we are encouraging take-up. The lowest proportion of pensioners taking up such things are those with an income above the basic state pension who are still entitled to savings credit, and we need to work harder on that. Just getting a few pennies from the state can unlock hundreds of pounds for their costs.

Margaret Ferrier Portrait Margaret Ferrier (Rutherglen and Hamilton West) (Ind)
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With the DWP urging benefits claimants to apply for various top-up funds to help with the mounting cost of living crisis, what steps is the Secretary of State taking to increase awareness of the warm home discount scheme and to maximise take-up in my constituency?

Thérèse Coffey Portrait Dr Coffey
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Mr Speaker, having got through all the questions in record time today, you are keeping us beyond 3.30 pm, which is very generous of you—[Laughter.] Perhaps we are being rewarded for our efficacy.

The hon. Lady has been working with my hon. Friend the Pensions Minister on a Bill that will hopefully succeed in the upper House, and she will know that we are working through several avenues to try to increase take-up. The warm home discount will be going up later this year, and we estimate that the number of people who will qualify for the increase in the discount will go up by a third.

Lindsay Hoyle Portrait Mr Speaker
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Would anyone like to ask a topical question? [Laughter.]

Thérèse Coffey Portrait Dr Coffey
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No one is sanctioning anybody here today. I was just pointing out how efficient this ministerial team is, which reflects the effective work that we do on the behalf of claimants across the country. I do like the hon. Gentleman’s shoes, and I am sure others would claim that title as well.

Lindsay Hoyle Portrait Mr Speaker
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Before we come to the urgent question, I remind Members that they should be careful not to identify the child at the centre of this case. That includes being cautious about mentioning information that might help others to establish their identity. I call Bell Ribeiro-Addy.