Annual Households Below Average Income and Separated Families Statistics 2020-21
Thérèse Coffey Excerpts(2 years, 7 months ago)
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The Secretary of State for Work and Pensions (Dr Thérèse Coffey)
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]
Household Support Fund Extension
Thérèse Coffey Excerpts(2 years, 7 months ago)
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The Secretary of State for Work and Pensions (Dr Thérèse Coffey)
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]
Oral Answers to Questions
Thérèse Coffey Excerpts(2 years, 8 months ago)
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Stuart C. McDonald (Cumbernauld, Kilsyth and Kirkintilloch East) (SNP)
The Secretary of State for Work and Pensions (Dr Thérèse Coffey)
Yes, I have.
Stuart C. McDonald
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?
Dr Coffey
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.
Dr Kieran Mullan (Crewe and Nantwich) (Con)
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?
Dr Coffey
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 (Glasgow East) (SNP)
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?
Dr Coffey
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.
Sir Edward Leigh (Gainsborough) (Con)
Richard Burgon (Leeds East) (Lab)
The Secretary of State for Work and Pensions (Dr Thérèse Coffey)
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
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?
Dr Coffey
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 (Edinburgh West) (LD)
Andrew Jones (Harrogate and Knaresborough) (Con)
The Secretary of State for Work and Pensions (Dr Thérèse Coffey)
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
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?
Dr Coffey
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.
Dr Coffey
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
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?
Dr Coffey
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 (Hastings and Rye) (Con)
Mary Kelly Foy (City of Durham) (Lab)
Dr Coffey
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 (Delyn) (Ind)
Barbara Keeley (Worsley and Eccles South) (Lab)
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?
Dr Coffey
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 (Redcar) (Con)
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?
Dr Philippa Whitford (Central Ayrshire) (SNP)
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?
Dr Coffey
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 (Stoke-on-Trent North) (Con)
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?
Scott Benton (Blackpool South) (Con)
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?
Dr Coffey
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 (East Ham) (Lab)
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?
Helen Morgan (North Shropshire) (LD)
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?
Dr Coffey
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 (Rutherglen and Hamilton West) (Ind)
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?
Dr Coffey
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.
Dr Coffey
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.
Mr Speaker
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.
Cost of Living Increases: Pensioners
Thérèse Coffey Excerpts(2 years, 8 months ago)
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Jonathan Ashworth
My hon. Friend is absolutely right. We have so many pensioners in poverty, and many of them are living in inadequate, cold, damp homes that they cannot afford to heat. We know that we have considerable excess deaths every winter due to issues associated with hypothermia and so on, because so many pensioners live in cold, damp homes. Frankly, that costs the NHS more in the long run, so the economics of this are completely self-defeating.
What was the Government’s justification for breaking the triple lock even though pensioner poverty is increasing, as it was before the pandemic? Ministers said that the £5 billion cost was unaffordable. So the Chancellor took £5 billion off pensioners and then a month later, in his Budget, gave away billions in alcohol duty cuts and cuts to the bank levy—literally making it cheaper for the bankers to booze on bubbly on the back of making pensioners poorer. It is a disgrace.
Let us be clear: the reason Ministers are not increasing the pension sufficiently is not that the Government lack the money, but that they lack the political will. That is why older people are now asking whether the Government will break their promise on the triple lock next year too. Last year, Ministers rejected the 8.3% rise and refused even to explore alternative measures of wage growth, but they insisted that that was a one-off and that they would honour the triple lock throughout this Parliament. The Bank of England warns that inflation could reach 8% this year. I asked the Secretary of State at questions earlier whether she would rule out breaking the triple lock for a second year in a row. She did not give that guarantee at the Dispatch Box, so I ask her again: can she confirm that the triple lock will be honoured for the rest of this Parliament? Does she want to answer that? She did not do so at questions earlier.
The Secretary of State for Work and Pensions (Dr Thérèse Coffey)
The right hon. Gentleman asked multiple questions earlier and I answered at least one of them, but the answer is yes, I do make that commitment.
Jonathan Ashworth
I have secured my first U-turn in the role, Madam Deputy Speaker. Does that not just show that we in the Opposition stand up for Britain’s pensioners? I asked the Secretary of State a very simple question earlier—whether she would commit to the triple lock—and she did not say yes. I am pleased that she has now cleared up the muddle she got herself in earlier, but given the other commitments—[Interruption.] The Pensions Minister—the Under-Secretary of State for Work and Pensions, the hon. Member for Hexham (Guy Opperman)—says Ministers have said it repeatedly, but they all stood on a manifesto saying they were going to keep the triple lock. I say to him that his commitment to the triple lock might not be worth the paper it is written on, given that he broke his manifesto commitment.
While I am talking about the Pensions Minister, he told the House in September, in seeking to justify breaking the triple lock, that the Government would
“ensure pensioners’ spending power is preserved and that they are protected from higher costs of living.”
Does any Tory Member really believe that that ministerial promise has remotely been met? Of course it has not.
The Secretary of State for Work and Pensions (Dr Thérèse Coffey)
It is a pleasure to speak in this debate. To be clear, there have been no U-turns. I am sure that the right hon. Member for Leicester South (Jonathan Ashworth) was not intentionally misleading the House when he suggested there was. I am again happy to put on record that the triple lock will be honoured in the future.
The Government have always supported pensioners and will continue to do so, whether through the significant increase in pension rates since we took office in 2010, or the creation of a new, simpler state pension which is better for women and reduces the need to consider top-ups through pension credit. I recognise the No. 1 concern in many people’s minds right now is the rising cost of living and its impact on their household budgets. The unique set of global circumstances that have come together to drive up inflation are largely factors beyond the control of the Government, such as the knock-on effect of covid on the global supply chain and the impact of Putin’s despicable invasion of Ukraine. These items are set out in a letter from the Governor of the Bank of England to the Chancellor, as the Bank of England is charged with achieving the 2% inflation target.
However, we are taking decisive action to cushion the impact of price rises on people’s pockets, providing £21 billion of support over this year and the next. That is particularly true for people on low and fixed incomes. Help is already on hand through the household support fund, which is still accessible through people’s local council, and we are taking further action on rising household energy bills. The £9 billion energy package announced by the Chancellor last month will benefit the vast majority of households, including pensioners, with a £150 discount on council tax for those living in property bands A to D, or the £144 million discretionary fund that is available through local councils. In addition, the £200 rebate on energy bills this year will help to spread the costs of the expected increase over the next few years. I recognise that that will still need to be repaid.
Alan Brown
Of what the Secretary of State calls the £9 billion package, how much is provided by the Treasury and how much is a loan to consumers that has to be paid back?
Emma Hardy (Kingston upon Hull West and Hessle) (Lab)
Will the Secretary of State give way?
Dr Coffey
No, I will not.
The extra support is on top of a range of existing help for pensioners, including: winter fuel payments, which support over 11 million pensioners’ energy bills and is worth about £2 billion every year; cold weather payments, ensuring pensioners in need keep warm during the colder months; and the warm home discount, which we are extending until 2026, including expanding it to more recipients of pension credit, namely those who receive the savings credit element and live in a home with high energy costs. I am conscious that the warm home discount is a spreading of support towards people in this vulnerable cohort, but nevertheless it is thanks to Government intervention that that is the case. As a result, the number of households benefiting from the warm home discount will increase by almost a third, to 3 million—up from nearly 1 million at the moment—with the vast majority getting their payment automatically with no need to apply. Together, I think that will be welcomed by many people, recognising the extra support that people who are not currently eligible today will receive later this year.
Emma Hardy
I want to raise a point about prepayment meters. A written question to the Department for Business, Energy and Industrial Strategy—admittedly, this Secretary of State represents a different Department—asked how people on prepayment meters would receive the £200 discount, many of whom happen to be pensioners. The answer, given on 25 February, was:
“BEIS will consult in the spring.”
It seems that the Government do not have a plan for how to refund the money to those on prepayment meters, but I hope that the Secretary of State can update us.
Dr Coffey
The hon. Lady asks a valid question. As I have said to the House before, tackling the cost of living and poverty more broadly is shared across Government. Although that may come under our umbrella—recognising our general role in support through the welfare system—my right hon. Friend the Secretary of State for Business, Energy and Industrial Strategy leads particularly on items to do with energy and fuel poverty more broadly. I will ask him to contact her.
That leads me on to pension credit, which has been highlighted as a passport to a range of other benefits, including free TV licences, help with council tax and NHS dental treatment. Together, those are making a real difference, reflecting the Government’s commitment to supporting pensioners and continuing the work of successive Governments since 2010—when the Conservatives took office—to tackle and alleviate pensioner poverty.
The facts speak for themselves. The latest figures show that 200,000 fewer pensioners are in absolute poverty than in 2010, with levels of material deprivation having fallen from 10% to 6%, a record low. It is because of our commitment over that time and policies such as the triple lock that, from next month, the full yearly basic state pension will be more than £2,300 higher in cash terms than it was in 2010. In fact, no Government have paid more to pensioners than we will this year: £105 billion alone through the state pension. When we include all the other pensioner benefits, that rises to £129 billion a year.
Our aim over the two years of the pandemic has been to give fairness to pensioners and taxpayers, recognising what has happened with covid. For 2021-22, we protected the value of the state pension by legislating to secure and increase the state pension by 2.5%, despite a decline in earnings and inflation rising by just 0.5%. Had we not acted, the state pension, by law, would have remained frozen. Again, through the Social Security (Up-rating of Benefits) Act 2021, which Parliament passed last November, we legislated to temporarily suspend the earnings part of the triple lock in 2022-23 for one year. As I outlined at the time, that was in response to exceptional circumstances caused by the distorting effects of the pandemic on the earnings statistics.
Pensions will still rise by 3.1% next month. That reflects the inflation index that has been used consistently for many years, so over the past two years, pensions will have risen by a total of 5.6%. Next year, we will return to implementing the triple lock in the usual way for the remainder of the Parliament. I reinforce that full commitment, and whatever the right hon. Member for Leicester South may suggest—he may be trying to score points on politics, which, as the shadow Secretary of State he is absolutely entitled to do—I want to make sure that he avoids scaremongering.
Alan Brown
I welcome the Secretary of State’s commitment to reinstating the triple lock. Given that the Chancellor said this time that 8% was unaffordable and that that was £30 billion that we could not afford, is she saying that if inflation is at 8% when the Government do the measurement, they suddenly can afford to pay the £30 billion to pensioners?
Dr Coffey
I am not aware of any Minister trying to say to people that we did this because it was unaffordable. As a result of the pandemic, there was a statistical anomaly relating to earnings. We also understand the balance relating to intergenerational fairness, as has been outlined. At the time, however, we very much highlighted the statistical anomaly.
As a result of our actions, I believe that the state pension continues to be a strong foundation from which people can build additional savings for their retirement. We are seeing a thriving private and workplace pensions market, fuelled by the success of automatic enrolment, which transformed pension savings for more than 10.5 million workers. That is creating even firmer foundations for a robust pension system to ensure that not just today’s pensioners, but those of future generations are protected and supported. I know that, as a country, we will continue to build on the progress that we have made over the last 12 years under Conservative Governments, so that in the next 12 years, and in decades to come, pensioners will be able to enjoy a secure and dignified retirement.
We also know that a minority of pensioners choose to stay working beyond the standard retirement age. They do not pay the standard employees’ national insurance on their earnings, even though employers do if they earn above the threshold. As for the NHS and social care levy being introduced through national insurance, it is appropriate for anyone working at all, including pensioners, to contribute, bearing in mind that they will do so only if their earnings are at or above the regular threshold. I believe that will be about £190 a week, which is close to nearly £10,000 in earnings a year.
Peter Gibson (Darlington) (Con)
My right hon. Friend rightly points out that many pensioners are indeed working. What does she have to say about how the announced increase in the living wage to £9.50 will benefit pensioners?
Dr Coffey
Any uplift in the national living wage is welcome to anybody still working. Our normal practice on standard national insurance for employees is that once someone reaches pension age, their take-home pay will be automatically higher than somebody else under the age of retirement, if they are doing the same job on the same salary. However, this levy is important to make sure that we get the funding for the NHS backlogs and for the future stability of the social care system.
Let me turn to pension credit. We have heard about the success of the private pensions sector and some of the uplift for people who are still working. It is good for those still saving for their futures, but understandably, the House wants to know what we are doing for the poorest pensioners now. We had a bit of a history lesson about how pension credit was introduced under the Labour Government in 2003, as the right hon. Member for Leicester South said. Let us go back a bit earlier in history: it was only a few years beforehand that the Labour Administration raised pensions by 75p. I think the House will probably recognise that pension credit was introduced directly as a consequence of the impact of what happened with that very modest increase in pensions.
Various funds have been open to pensioners in the past year, including the household support fund, and I encourage people to approach their local council for support.
Stephen Timms
As the Secretary of State knows, about a third of those who are eligible for pension credit do not receive it at the moment. She told us earlier that there is an action plan to improve that. Will she publish that action plan and include in it an ambitious target for increasing the take-up of pension credit?
Dr Coffey
The Chair of the Work and Pensions Committee slightly pre-empts where I am heading with pension credit in my speech.
On the household support fund, within the lifetime of the Government, we have introduced a higher basic state pension so that, increasingly, pensioners are not required to resort to applying for pension credit. However, pension credit, the pension financial safety net, is helping to support those with the lowest retirement incomes. Worth on average over £3,000 a year, some 1.4 million pensioners already claim it, receiving collectively an extra £5 billion in support. As I mentioned, given that pension credit is a passport to other financial help, we want to make sure that everyone who is entitled to it claims it.
Our estimate of pension credit take-up is based on a combination of what information we have on pensioner income and analysis from the family resources survey. That suggests that more people can claim than is the case now, particularly for those eligible for the savings credit element, where we have the lowest take-up. The Minister responsible for pensions, the Under-Secretary of State for Work and Pensions, my hon. Friend the Member for Hexham (Guy Opperman), and my noble Friend the Minister in the Lords—Baroness Stedman-Scott—have been striving to increase take-up. They undertook a big awareness day last year and they are continuing that work. This is the plan, I say to hon. Gentlemen.
We will continue to promote the take-up of pension credit. As has been highlighted, the Minister responsible for pensions, my hon. Friend the Member for Hexham, has raised awareness through local newspapers. We will send 11 million leaflets to pensioners with their annual state pension uprating letter and we will continue to work with the BBC, financial institutions, Age UK and many other organisations to raise awareness. The latest estimates show that uptake is increasing. We know from internal management information that the number of new applications last year is estimated to have been 30% higher than in 2019, so our efforts are working. I hope that this latest effort will also bear fruit.
Rachael Maskell
I chair the all-party parliamentary group for ageing and older people, which has just had an inquiry into the matter. One thing we suggested was that, since a lot of older people visit their GP at some point, GPs should be active in asking their patients whether they are eligible for pension credit. That would help them to claim the benefits that they should be able to attain.
Dr Coffey
The hon. Lady raises a valid point. I know that we have had paid advertising in post offices and in GPs’ waiting areas in the past; doctors often tell us that they do not necessarily like to be attached to benefit claiming and similar matters, but I hear what the hon. Lady says, and my understanding is that we intend to resume that contact. I have also asked the leading pharmacy chains to be involved, because that is often a more regular way in which people get help. We will try different outlets, in addition to those we have tried in the past, to make people more aware of the potential opportunities.
Dr Coffey
The hon. Lady has already made one intervention, and I want to make some progress.
The right hon. Member for Leicester South asked about issues relating to state pension underpayment. I give credit to my hon. Friend the pensions Minister, who has rolled up his sleeves and really got stuck in. We have 500 people working on the state payment exercise, and before the end of the year we are aiming to have up to 1,500 people getting on with it. There will be an update after the fiscal statement; we have always said that we would give updates more or less in line with it, so the right hon. Member for Leicester South will have to be slightly patient. This issue has been going on for some considerable time. There was an element of shambles in previous Administrations, which was not helped by the 2008 reforms. I respect the former Minister Steve Webb, but he did not find this element at all in his five years as pensions Minister—not even when he was going through the whole process of creating a brand-new state pension. We are getting on with this element, which was not discovered until recently, and we will get on with the job and sort it out.
When we say that we are committed to tackling pension poverty, we mean it, and we have the track record to back it up. On Wednesday, it will have been two years since we took unprecedented action to lock down the country to protect lives. We invested in vaccines and subsequently rolled out the biggest and most successful vaccination programme in the history of the NHS, prioritising pensioners. Today, as we start inviting the over-75s to get their spring covid booster, we want to encourage pensioners to consider getting the boost to their income that pension credit could provide. With the wider range of financial and other support that we are providing, we are doing our best to help to ease the current cost of living squeeze.
We must unite as a House to get more pensioners to access the support that is available. While I am conscious that many people will think that there is more to do, we can do it only if all MPs in this House make a commitment to their pensioners—I look forward to their doing so—to continue to provide as much information as possible.
Several hon. Members rose—
Oral Answers to Questions
Thérèse Coffey Excerpts(2 years, 9 months ago)
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Peter Aldous (Waveney) (Con)
The Secretary of State for Work and Pensions (Dr Thérèse Coffey)
I associate myself with your comments, Mr Speaker, on the magnificent service of Her Majesty the Queen.
People can use the Train and Progress scheme to access courses so that they can progress out of low-paid jobs. We are appointing progression champions throughout the country and, from April onwards, will open up access to work coach support to address skills barriers or wider barriers to progression among people who are already in work.
Peter Aldous
I am grateful to my right hon. Friend and constituency neighbour for that answer. In sectors such as offshore wind and nuclear power in Suffolk, either there are skills shortages or new opportunities are emerging. Currently, many people are not able to acquire the skills needed for such jobs because of the rigid and complex universal credit conditionality rules. Will my right hon. Friend agree to a review of universal credit conditionality, as she and I have discussed and in accordance with the new clause that I have tabled to the Skills and Post-16 Education Bill?
Dr Coffey
As my hon. Friend is my neighbour, I am conscious of the opportunities in his constituency thanks to the Government investment, alongside that of private investors, in our progress to net zero. I do not agree with him that we need to reshape student finance in such a way; that is not the purpose of universal credit, and only a limited number of people can undertake that training. I assure him that Train and Progress, which I mentioned, the lifetime skills guarantee and the opening up of access, as well as apprenticeships to get into a sector in the first place, are better ways to make sure that we help people to get on in work.
Alison McGovern (Wirral South) (Lab)
I similarly associate myself and all my colleagues with your remarks before questions, Mr Speaker.
The Government know that, as the hon. Member for Waveney (Peter Aldous) suggests, there is a problem with progression out of low pay, because they commissioned the Ruby McGregor-Smith review, which reported in July last year. In January this year, the Under-Secretary of State for Work and Pensions, the hon. Member for Mid Sussex (Mims Davies), told me that the Government would publish their response “shortly”. Meanwhile, kickstart has failed to deliver and, as the journalist Ed Conway pointed out this afternoon, in the past year the average house has earned more than the average 18 to 29-year-old in this country. That is a disgrace. Will the Secretary of State announce today when she will at last publish the Government’s response to the Ruby McGregor-Smith review of low pay? Will she say how the Government propose to make progress on two key issues that the review identified: public transport and childcare?
Dr Coffey
I reject the hon. Lady’s assertion that kickstart is not working. More than 130,000 young people have now had access to a proper job in which they have gained employability skills, so it has been an effective response. At the same time, she will be aware that there are more people in work on payroll than there were before the pandemic. People are making good progress in that regard.
The review is important. I will be candid and say that I am the person who has held it up, because I want to make sure we have got all the questions answered as best we can. Meanwhile, we continue to work across Government on some of the hurdles that people are trying to get over, such as childcare and similar issues. I hope that the response will be published shortly.
Carolyn Harris (Swansea East) (Lab)
Robert Halfon (Harlow) (Con)
The Secretary of State for Work and Pensions (Dr Thérèse Coffey)
I met the Secretary of State for Education in January to discuss shared priorities on a wide variety of issues, including vulnerable children.
Robert Halfon
My right hon. Friend will be aware that our Education Committee is doing an inquiry into the educational outcomes and opportunities of children in care. We know that 41% of care leavers aged 19 to 21 are not in education, employment or training. I welcome the Government’s bursary scheme, but a care leaver over the age of 21 is eligible to receive the bursary for apprenticeships only if they are in education, employment or training. Will my right hon. Friend look into the policy and work with colleagues across Government to see what more can be done to support the 59% of care leavers not eligible for this support?
Dr Coffey
I welcome my right hon. Friend’s passion for this particular group of people looking to find work. This is really a matter for the Secretary of State for Education, but the information I have been provided is that all care leavers aged up to 25 who take up an apprenticeship are considered to be in education or training and therefore would be eligible for the bursary.
Dave Doogan (Angus) (SNP)
From April, the Scottish Government are doubling the Scottish child payment to £20 a week a child. The Scottish child payment, together with the Best Start grant and Best Start Foods, will provide a package of financial support worth £8,400 by the time eligible families’ first child turns six. None of this support is available anywhere else in the UK. Have the UK Government considered matching the level of support that the SNP Scottish Government are offering to families with children in Scotland?
Dr Coffey
I do not think we have undertaken that assessment. Of course, a benefit of being part of the United Kingdom is the subsequent extra money per head that is given through the Barnett formula, and the Scottish Government can decide what to do with that. I am sure they will be carefully costing their independence things, or that sort of financial support will simply not be there.
John Lamont (Berwickshire, Roxburgh and Selkirk) (Con)
John Penrose (Weston-super-Mare) (Con)
The Secretary of State for Work and Pensions (Dr Thérèse Coffey)
We often hear in this House about honourable colleagues going into their jobcentres and seeing the marvellous work of work coaches, and we see that by the number of people getting back into work. However, we want to constantly improve the performance of our work coaches in terms of outcomes for people and we will continue to do that.
John Penrose
I completely agree that good work coaches can level up opportunities by breaking glass ceilings that hold people back, but inevitably some will be better than others, as we have seen in schools and other public services. If we publish those findings, every jobseeker and their MP will want to know how their local service compares and how it might be improved, so will my right hon. Friend meet me to discuss this as outlined in my recently published work, “Poverty Trapped”?
Dr Coffey
I do not agree with my hon. Friend’s suggestion about the external assessment. I have asked one of my team to look into his report and I am sure we can arrange a suitable meeting, but I want to assure him that all new work coaches are undertaking a level 4 City & Guilds qualification in service delivery.
Margaret Ferrier (Rutherglen and Hamilton West) (Ind)
The DWP is looking to cut thousands of fixed-term contract work coaches at EO level from jobcentres but reportedly will retain almost all staff at the lower-paid AO grade. Have the Government considered how this will impact on lower-grade staff in terms of workload and stress and how those losing their jobs will afford their living costs until they can secure a new role?
Dr Coffey
The hon. Lady will recognise that this is an operational matter, but she is incorrect; I am conscious that she may have been given that information separately. Last week the permanent secretary outlined the start of the process potentially for people on fixed-term contracts. We need to make sure we have the work coaches in the right parts of the country where they are most needed for both current claimants and anticipated future demand.
Huw Merriman (Bexhill and Battle) (Con)
Mike Kane (Wythenshawe and Sale East) (Lab)
The Secretary of State for Work and Pensions (Dr Thérèse Coffey)
I am pleased that we have launched Way to Work to help job-ready people get into jobs as quickly as possible. The new approach is focused in particular on bringing many more employers directly into the jobcentre so that we can accelerate the process from application to interview and job offer. In essence, given the number of vacancies right now—particularly in economically important sectors—it is important that we take the ABC approach: any job leads to a better job, which leads to a career.
Dr Coffey
The hon. Member and I are both practising Catholics, and I am conscious of the point he is making. However, I am also conscious that the benefit cap takes into account the amount of benefits available to a family compared with median income. It is important that we keep that approach, recognising in particular that the cap can be lifted when people earn, I think, about £605 a month.
Jason McCartney (Colne Valley) (Con)
Jonathan Ashworth (Leicester South) (Lab/Co-op)
Mr Speaker, may I associate myself with your remarks and thanks directed at Her Majesty the Queen?
I read in the newspapers at the weekend that the Secretary of State is considering resigning over the Prime Minister’s rule breaking and partying. Before she heads for the exit door, given that 550,000 children are destitute, half a million children do not have a suitable bed to sleep in and she has cut universal credit by £1,000, why is she pushing through real-terms cuts to support that mean 10 million households will lose £290? How many more children will be in poverty as a result?
Dr Coffey
Mr Speaker, I want to assure you, the right hon. Gentleman and the House that I am fully behind our Prime Minister as he gets on with the job. Not only has he got Brexit done, but we are getting more people on to the payroll and achieving all the other things voted for by the British public in 2019. What I will say to the right hon. Gentleman is that I do not recognise some of the numbers he used. However, I am conscious of what we will be voting on later. I am also conscious that elements were based on the fact that it was a temporary uplift to universal credit, recognising the impact of what was happening early on, as people new to the benefit system were able to get a similar amount as people on statutory—[Interruption.]
Mr Speaker
Order. Can I just remind Members that topicals are meant to be short and punchy? We cannot have long statements, because there is a whole list of Members I still have to get in. That is why I am trying to cough: to speed you up a little—nothing else, nothing personal.
Jonathan Ashworth
The shadow whipping operation will be pleased that the karaoke queen is standing by the party and the Prime Minister. The right hon. Lady talks about getting people into work. Earlier today, the pensions Minister, the Under-Secretary of State for Work and Pensions, the hon. Member for Hexham (Guy Opperman) said that pensioner poverty has gone down. However, the Joseph Rowntree Foundation report shows that pensioner poverty is increasing. Why is she today pushing through real-terms cuts to the pension credit and the basic state pension, which will result in more pensioners in poverty?
Mr Richard Holden (North West Durham) (Con)
David Linden (Glasgow East) (SNP)
We know the benefits regime is counterproductive and punitive. In 2016, the National Audit Office told the Department for Work and Pensions to carry out its own research into benefit sanctions. The Department is now refusing to release that research, despite promises to Committees of both Houses, because it was
“unable to assess the deterrent effect”.
Why is the Secretary of State ruthlessly pushing ahead with the renewed sanctions regime if almost six years later it still cannot find any evidence that they work?
Caroline Ansell (Eastbourne) (Con)
Richard Burgon (Leeds East) (Lab)
Dr Coffey
I am very sorry for the family of the individual to whom the hon. Gentleman refers. It is the role of the coroners to undertake appropriate investigations. I am surprised, and am sorry to hear, that the letter has not gone back. It is not my intention to meet them, recognising the ongoing work that we continue to do to try and provide service to such people.
Mrs Maria Miller (Basingstoke) (Con)
Afghan refugees in north Hampshire have been supported through the hard work of many organisations, including our local jobcentre. Many of those refugees now want to get back into employment. What specific support is my hon. Friend giving to that group?
Stuart C. McDonald (Cumbernauld, Kilsyth and Kirkintilloch East) (SNP)
Dr Coffey
As the hon. Gentleman will be aware, it is for the Home Office to make that decision, and of course, people who are in that situation can apply to the Home Office for it to be changed. It is a fundamental principle that if people are coming into the country, we want people to be able to support themselves, rather than rely on extra support to which they knew they would not be entitled.
Ruth Edwards (Rushcliffe) (Con)
Jobcentre staff across the country are doing excellent work getting people back into jobs, but a team in the east midlands led by my constituent Nicola Brindley are also doing fantastic work on top of their day jobs to spot jobcentre users who are victims of domestic abuse, and connect them to the help they need. The scheme is called J9; it is named after a lady called Janine Mundy, who was murdered by her former husband. Will the Minister join me in thanking Nicola Brindley and her amazing team of volunteers, and will she come to Nottingham to meet with the J9 team and learn more about the incredible work they do?
Taiwo Owatemi (Coventry North West) (Lab)
Ian Levy (Blyth Valley) (Con)
I recently hosted the first ever jobs fair in Blyth Valley. It was an amazing success, with more than 50 local businesses taking part. Will my hon. Friend join me in thanking the Port of Blyth, the DWP and all the local firms that made it possible?
Amy Callaghan (East Dunbartonshire) (SNP)
In July 2020, I met my constituent Stacey Conlin—not at a constituency surgery, but in the physically disabled rehabilitation unit at the Queen Elizabeth University Hospital in Glasgow. We recovered from our strokes alongside each other, and I got to hear her story.
Too many people like Stacey have survived catastrophic life events only to be let down by this Government’s woeful welfare system—unable to work and unable to pay for basic necessities that many of us take for granted. Will the Secretary of State commit to revisiting the current levels of universal credit so that stroke survivors such as Stacey can fully live their lives instead of barely getting by?
Dr Coffey
I am very conscious of the important work that the hon. Lady has delivered, including the status that was addressed for her, and I am conscious that my hon. Friend the Member for Hexham (Guy Opperman) and I have also undertaken such elements in the national scheme. I am more than happy to find out about the specific example that the hon. Lady refers to, but I know that generally we are trying to make sure that this is the right approach and that people have that access to work.
Work and Pensions
Thérèse Coffey Excerpts(2 years, 10 months ago)
Ministerial CorrectionsRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Margaret Ferrier
A free university-level education is a monumental benefit of living in Scotland. What discussions has the Secretary of State had with her colleagues in the Department for Education about the benefits of making higher levels of education accessible and the impact that would have on the employability of young people?
Dr Coffey
I am conscious that the hon. Lady thinks that just because there is a free course, those people who are most disadvantaged in her country will take advantage of it. In fact, that has not been the case; we see far more people in England from less privileged backgrounds getting into university and benefiting from that. It is important that we have a balanced approach, recognising the importance of level 3, 4 and 5 apprenticeships in particular and the fact that, once they have graduated, those people will be better off financially, except compared with those in Russell Group universities, within 10 years.
[Official Report, 13 December 2021, Vol. 705, c. 778.]
Letter of correction from the Secretary of State for Work and Pensions:
Errors have been identified in my response to the hon. Member for Rutherglen and Hamilton West (Margaret Ferrier).
The correct information should have been:
Dr Coffey
It is important that we have a balanced approach, recognising the importance of level 4 and 5 apprenticeships in particular and the fact that, once they have graduated, those people will be in a similar position financially to those who have graduated from university within five years.
State Pension Age Review
Thérèse Coffey Excerpts(2 years, 11 months ago)
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The Secretary of State for Work and Pensions (Dr Thérèse Coffey)
My Department is launching the second Government review of state pension age, which must be published by May 2023, under section 27 of the Pensions Act 2014.
As the number of people over state pension age increases, due to a growing population and people on average living longer, we need to make sure that our decisions on how to manage the costs of state pension provide fairness to both taxpayers and pensioners and that it continues to provide the foundation for retirement planning and financial security.
In line with the legislative requirements to review whether the rules about pensionable age remain appropriate, this review will consider a wide range of evidence from every part of the United Kingdom. It will explore the implications of the latest life expectancy data, including evidence on healthy life expectancy disparities, to provide a balanced appraisal of the costs and options to make sure our decisions on state pension age are robust and transparent. The review will also consider how we best support an ageing population and their opportunities to work.
In line with the statutory framework, I am also commissioning two independent reports to contribute to the evidence-base that will inform this review. I will be commissioning the Government Actuary to provide a report analysing the latest life expectancy projections. I am also commissioning Baroness Neville-Rolfe DBE CMG to provide a report which considers the metrics we use for analysis when setting state pension age. Baroness Neville-Rolfe DBE CMG has a recognised wealth of senior level experience from a career in business and the public sector, including serving as a company director, working in the UK and internationally as well as being a pension scheme trustee in a FTSE 100 company. I welcome an external consideration of this issue. I have also asked Baroness Neville-Rolfe DBE CMG to consider the views of other experts and stakeholders. I attach the terms of reference for Baroness Neville-Rolfe’s report to this statement, which will also be made available today on the www.gov.uk website.
The attachment can be viewed online at: http://www.parliament.uk/business/publications/written-questions-answers-statements/written-statement/Commons/2021-12-14/HCWS480/
[HCWS480]
Oral Answers to Questions
Thérèse Coffey Excerpts(2 years, 11 months ago)
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Mary Glindon (North Tyneside) (Lab)
The Secretary of State for Work and Pensions (Dr Thérèse Coffey)
The uplift to universal credit was a temporary measure, so we have not completed an impact assessment on its withdrawal.
Layla Moran
Charities warned that the cut to universal credit would risk 100,000 people falling into homelessness, yet the Government ploughed on with it. Added to that is the freeze to housing benefits, with the result that more families cannot afford their rent and risk losing the roof over their head, and the fact that the Government have yet to repeal the Vagrancy Act 1824, meaning that the very same people who are being made homeless could then become criminalised. Can the Secretary of State tell us how many people she expects to fall into homelessness, and what the Government are going to do about it?
Dr Coffey
We have provided £140 million of discretionary housing payments to councils, specifically to target that element. We boosted the local housing allowance in the covid Budget of 2020, and we have kept it at that rate. As the Under-Secretary of State for Work and Pensions, my hon. Friend the Member for Macclesfield (David Rutley), has just said, there has been a significant investment of about £2.5 billion in both increasing the work allowance and reducing the taper rate. My work coaches across the country are helping people to get into work day in, day out.
Helen Hayes
Many of my constituents have caring responsibilities and can only work part time, often at low wages. Does the Secretary of State recognise that families in this situation will generally lose more from the £20 a week cut to the standard allowance than they could ever hope to gain from the reduced taper? What does she have to say to those families?
Dr Coffey
I respect that people undertake care, and I am conscious that they often choose to do it in partnership with their local authority. We want to make sure that people take advantage of the increase in the national minimum wage, which will be coming in from April 2022, and of the changes that make it worthwhile for people to work extra hours and progress in work, which will be a big focus of what we do in 2022 and beyond.
Tonia Antoniazzi
Although the recent changes to the taper rate and the work allowance are welcome, they simply do not go far enough. The Resolution Foundation’s analysis found that huge increases in the cost of living will wipe out any gains. Even with these changes, three quarters of families on UC will still be worse off than if they had kept the £20 uplift to the standard allowance. Does the Secretary of State now see that the countless organisations, and even former Tory Work and Pensions Ministers, who argued for the uplift to be made permanent were actually right?
Dr Coffey
I am conscious of what the hon. Lady says, and I am sure she welcomes the £25 million of the £0.5 billion spent on the household support fund over this winter. I am also conscious that we want to make sure people will be better off working than not—that was the big change and the big announcement in the Budget. I am conscious that, right now, right across the country there are more people seeking work than ever before. More people are on payrolls than ever before and companies across the country are looking for workers, so we will be doing our best to help people who have not been working to get into work. We will also be responding to in-work progression early in the new year.
Mary Glindon
A survey by Christians Against Poverty found that 67% of its service users will struggle to pay for essentials in the coming months, with 35% already falling behind with bills and 27% now further into debt. What message does the Secretary of State have for these hard-pressed people in the season of good will?
Dr Coffey
I am sure the hon. Lady will welcome the £1.6 million that has been given to her local council specifically for targeted support through the household support fund. I am sure she will be as keen as I am to ensure that people seeking work in her constituency get the benefit of the extra work coach support. We have invested in that right across the country and we will continue to do so.
John Lamont (Berwickshire, Roxburgh and Selkirk) (Con)
Bill Esterson (Sefton Central) (Lab)
The Secretary of State for Work and Pensions (Dr Thérèse Coffey)
Our plan for jobs is working. Since April 2020, over 1.9 million people have moved into work from the universal credit intensive work search group. We have done that by supporting thousands of people through programmes such as kickstart, restart and sector-based work academy programmes—SWAPs—to get back into work, with over 110,000 young people being supported through kickstart alone. There are over 200,000 kickstart jobs still waiting to be filled in the final months of the programme.
Bill Esterson
Earlier, the Under-Secretary of State for Work and Pensions, the hon. Member for Mid Sussex (Mims Davies), referred to the shortage of HGV drivers, and retailers report fivefold delays in the delivery of products, including wine and spirits, so I am wondering whether the Secretary of State’s scheme is helping to address the shortage of drivers in the run-up to Christmas. How many lorry drivers have started work as a result of her Department’s employment schemes?
Dr Coffey
I think it is worth explaining to the hon. Gentleman that a couple of different schemes are ongoing. Our principal role is to help people who are not working to get into jobs. We partner with people such as the Mayor of West Midlands, but also with specific programmes in the east midlands. More significant work is being done by my right hon. Friend the Secretary of State for Education, where we have bootcamps working and people are actually getting into jobs. A really important part of what we can do through SWAPs is getting people into new careers that they had never thought about.
Selaine Saxby (North Devon) (Con)
The Secretary of State for Work and Pensions (Dr Thérèse Coffey)
Thanks to our taper rate cut and the increased work allowances announced by my right hon. Friend the Chancellor, almost 2 million households will now benefit from a cash boost worth £1,000 a year on average. Thanks to diligent work by my officials, we have brought this change in a week earlier than planned, so that up to 500,000 more working people can get that extra boost before Christmas. We are also delivering today a less welcome early Christmas present to criminals who target our benefits system and steal from taxpayers, with a £500 million cash injection to root out fraudulent benefit claims and stop scammers. Finally and importantly, very much at the top of my mind today is the booster programme and the acceleration scheme. I am very pleased that our jobs army is going to become part of the jabs army, as DWP civil servants right across the country join the Government’s effort to get as many people boosted as possible.
Selaine Saxby
My right hon. Friend has already touched on the impact that the recent changes in the taper rate and work allowances will have on claimants’ net income, but will she expand on this? Also, will she consider a major advertising campaign to highlight that now is an excellent time to be in work?
Dr Coffey
My hon. Friend, who is of course on the Select Committee, is very wise in her suggestions. That is exactly the sort of communications that we will be doing in the coming months. This is particularly of interest for people on working tax credits, where we know that the cliff edges, which my hon. Friend the Member for Lincoln (Karl MᶜCartney) mentioned, can be a real barrier to people working extra hours. Those sorts of communications programmes will be released as we continue to try to help more people into work and to progress in work as well.
Mr Speaker
I welcome the shadow Secretary of State to his new position.
Jonathan Ashworth (Leicester South) (Lab/Co-op)
Thank you very much, Mr Speaker. May I ask the Secretary of State about Christmas? My question is not what her latest recommendation is should I find myself under the mistletoe, or indeed whether she hosted karaoke Christmas parties in lockdown in her office, but a very simple one: how many children will go hungry this Christmas?
Dr Coffey
I want to put on the record that no karaoke parties were hosted by me during lockdown; the last time I did karaoke with the right hon. Gentleman was a couple of years ago. I am conscious that he has raised a very serious point about children this Christmas, and that is why we have been working relentlessly on making sure that people can get into work and progress in work, but have also set aside half a billion pounds for the household support fund, half of which is entirely ringfenced for families with children.
Jonathan Ashworth
I fear the Secretary of State’s answer betrays poverty of ambition. The last Labour Government lifted 1 million children out of poverty, and we did not need footballers to run campaigns on child hunger. With universal credit still being cut for many families, prices going up in the shops, heating bills going up and taxes going up because this lot voted for them, can she guarantee that in 2022 child poverty and the shame of destitution will not also be going up?
Dr Coffey
I forgot to welcome the former shadow Secretary of State for Health to his new position. The right hon. Gentleman should reflect on the fact that his party opposed extra funding for the NHS through the health and social care levy, which we voted for. The different elements of trying to get people into work are key to lifting many more children out of child poverty. We should also flag up the £1 billion of child maintenance we have collected in the last year; we will keep doubling down on that to ensure deadbeat dads pay for their kids and help to lift their children out of poverty.
Kevin Hollinrake (Thirsk and Malton) (Con)
Duncan Baker (North Norfolk) (Con)
Dr Coffey
My hon. Friend is right to point out the opportunities for people on legacy benefits. They may be better off on UC, but if not, they should wait for the managed migration programme, where they will have transitional protection. It is also important to note that benefits calculators are readily available online, and the Department funds Citizens Advice and Citizens Advice Scotland for the help to claim programme. I am sure such organisations can give individual support. We will be resuming our plan to move to UC in 2022.
Kim Leadbeater (Batley and Spen) (Lab)
Dr Coffey
Far from it. I recognise the hon. Lady is trying to stand up for her constituents, but she should also recognise the significant increases in benefits that have been provided, whether that is for people of pensionable age—about £129 billion—or the increase in financial support to people with disabilities. She should recognise that we will continue to strive at local level through our jobcentres and Jobcentre Plus, and through our automation of things such as the warm home discount, so that people do not even have to go looking for that sort of energy support, and the household support fund, from which many of her constituents will benefit.
Sir David Evennett (Bexleyheath and Crayford) (Con)
Dame Diana Johnson (Kingston upon Hull North) (Lab)
Dr Coffey
The right hon. Lady is right to consider the vulnerable people in her constituency. We looked at some of the policy choices we were making, published in our response to “Health is Everyone’s Business”, in which aspects of sick pay were considered, but there was a change in ministerial appointments near that time. We continue our discussions, and I am confident that we will continue to try to make progress on this element, but it is important to say that those who are required by law to stay at home are still eligible for a Test and Trace payment, administered through the Department of Health and Social Care.
Simon Hoare (North Dorset) (Con)
The announcement made last week by my right hon. Friend regarding historical institutional abuse will have been greeted very warmly by those people who were abused in Northern Ireland but now live in Great Britain. On behalf of the Select Committee, which did a lot of work in this area, may I thank her for listening to our representations, making this important policy change and ensuring that there is equity and fairness in this important area of financial support and redress?
Dr Coffey
I thank my hon. Friend. He will be aware that in the original primary legislation, which allowed for disregard, only Northern Ireland specifically was considered, so I am very pleased to have brought that disregard forward. At the same time, we wanted to take a consistent approach, so I am pleased that we will be applying the same disregards to the forthcoming payments being made by the Scottish Government and through, I think, Islington and Lambeth Councils. I commend him and his Committee Members for their pursuit of the matter.
Margaret Ferrier (Rutherglen and Hamilton West) (Ind)
A free university-level education is a monumental benefit of living in Scotland. What discussions has the Secretary of State had with her colleagues in the Department for Education about the benefits of making higher levels of education accessible and the impact that would have on the employability of young people?
Dr Coffey
I am conscious that the hon. Lady thinks that just because there is a free course, those people who are most disadvantaged in her country will take advantage of it. In fact, that has not been the case; we see far more people in England from less privileged backgrounds getting into university and benefiting from that. It is important that we have a balanced approach, recognising the importance of level 3, 4 and 5 apprenticeships in particular and the fact that, once they have graduated, those people will be better off financially, except compared with those in Russell Group universities, within 10 years.
Peter Dowd (Bootle) (Lab)
This time last year, the Canadian Government asked the UK Government to enter into talks to bring about pension parity for pensioners like Royal Navy veteran Alan Wren, who was forced to work until he was 78 years of age because his pension had been frozen in Canada. The Government refused to enter into those discussions. What does the Secretary of State say to veterans such as Alan and the 492,000 other pensioners who are trapped on meagre state pensions, all because they live in the wrong country? In Alan’s case, the country is a commonwealth and NATO partner and ally.
Ms Anum Qaisar (Airdrie and Shotts) (SNP)
In an earlier answer, the Secretary of State mentioned that she has not sung karaoke for a number of years, but I seem to recall she was singing, “I’m having the time of my life” just a few months ago, the night before the universal credit uplift was removed. On that point, I recently visited a Trussell Trust foodbank in my constituency, where staff and volunteers raised serious concerns that the reduction in universal credit will push more and more families into poverty. Will the Department concede that the cut to the uplift will mean that more households will become reliant on foodbanks?
Dr Coffey
The hon. Lady should be aware that there was a temporary uplift, reflecting what was happening with the covid pandemic, which was extended. I am sure she will appreciate the change in the taper rate and the work allowance. Jobcentres will be helping her constituents to get into work. If I may, I will just put on record my thanks to people involved in a variety of ways, whether in foodbanks, food recycling or similar, because it is important that we all continue to work in our local communities to support our constituents.
Mr Barry Sheerman (Huddersfield) (Lab/Co-op)
Mr Speaker, is it in order for me to mention the B word in this Chamber? If it is okay, I want to say Blair—Tony Blair. Has the Secretary of State seen his remark that if we want to give real skills to people, it is FE colleges that are the key to skills? Tony Blair’s idea is that we upgrade the profile of all FE colleges to polytechnics and that we put the resources in to accompany that? What does she think of Blair’s ideas?
Dr Coffey
What I noticed was that when the hon. Gentleman referred to Tony Blair there was silence on the Labour Benches. What I will say is that we are absolutely committed to the lifetime skills guarantee. We are levelling up across the country and making sure that relevant courses get people into work. I am really pleased that we are united in recognising that that is the most important thing our Department can achieve.
Statutory Review of Benefit and Pension Rates: 2022-23
Thérèse Coffey Excerpts(2 years, 12 months ago)
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The Secretary of State for Work and Pensions (Dr Thérèse Coffey)
I have concluded my statutory annual review of benefit and state pension rates. The new rates will apply in the tax year 2022-23 and come into effect on 11 April 2022.
The consumer prices index (CPI) for the relevant reference period (the year to September 2021) was 3.1%, and I can confirm that benefits will increase in line with that. This is consistent with the use of this index since 2011. The weekly earnings limit in carer’s allowance will also be increased by 3.1%.
In line with the Social Security (Up-rating of Benefits) Act 2021, state pension rates will rise in line with CPI of 3.1%.
I also confirm that the local housing allowance rates for 2022-23 will be maintained at the elevated cash rates agreed for 2020-21. The Office for Budget Responsibility made this assumption too in its expenditure forecast.
All of these matters are transferred in Northern Ireland, and corresponding provision will be made there.
Some benefits are devolved to the Scottish Parliament, but there are benefits that are still temporarily being delivered by DWP on behalf of the Scottish Ministers under agency agreements; these will rise with CPI of 3.1%. The Scottish Government will need to bring forward corresponding uprating legislation in the Scottish Parliament.
I will place the full list of proposed benefit and pension rates for 2022-23 in the Libraries of both Houses.
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International Labour Organisation Convention 190
Thérèse Coffey Excerpts(3 years ago)
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The Secretary of State for Work and Pensions (Dr Thérèse Coffey)
I would like to inform the House that, today, the Government will lay the text of a Convention of the International Labour Organisation, the Violence and Harassment Convention, in the form of a Command Paper in both Houses together with an explanatory memorandum stating the Government’s proposal that the UK should ratify it. If no objections are raised in the next 21 sitting days, the Government will move to draw up the UK’s Instrument of Ratification. The convention will come into force 12 months after the instrument of ratification is deposited with the International Labour Organisation.
This is the first international treaty to recognise the right of everyone to a world of work free from violence and harassment. This convention, along with its supplementing recommendation (No. 206), sets out a common framework for action to prevent and address violence and harassment in the world of work. It is a broad instrument, affording comprehensive protections to a broad range of individuals, including those most vulnerable to violence and harassment at work, in relation to a wide range of work environments and activities.
The Government already have the legal framework in place to meet the requirements of the convention, including civil and criminal law provisions, as well as occupational health and safety law.
Following our response to the sexual harassment in the workplace consultation, published earlier this year, the Government will also be introducing a new proactive duty requiring employers to take steps to prevent their employees from experiencing sexual harassment and introducing explicit protections for employees from harassment by third parties, for example customers or clients. These measures will not only strengthen protections for those affected by harassment at work but will also motivate employers to make improvements to workplace practices and culture.
The Government will not waver in our defence of the rights of women and girls to live free from violence and abuse. The UK will continue to protect and promote the safety and rights of women and girls overseas, and call for all member states to remain committed to international conventions, including by ratifying the International Labour Organisation Violence and Harassment Convention as a means of promoting its aims globally.
It has taken time to get to this point. The UK played a leadership role in the two-year negotiations on the content of the convention, building on our already strong position on violence against women and girls. Following this we consulted the devolved administrations and our social partners, all of whom are in full support of ratification.
Ratifying this convention is the right course of action and I hope it reassures the Houses of the Government’s commitment to tackling violence and harassment in the world of work.
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