Oral Answers to Questions

Debate between Thérèse Coffey and Neil Gray

Monday 25th January 2021 Commons Chamber

[Dr Coffey]

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

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

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

[Dr Coffey]

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

[Neil Gray [V]]

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

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

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

[Dr Coffey]

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

Oral Answers to Questions

Debate between Thérèse Coffey and Neil Gray

Monday 30th November 2020 Commons Chamber

[Dr Coffey]

I think I have already answered the hon. Lady. We have not reduced the LHA back to pre-covid arrangements; we decided to make that change a permanent fixture but to freeze it at cash levels, recognising that, as I said, nearly £1 billion had been injected into welfare support. We will continue to work on this issue throughout the country and I am keen to see what we can do on aspects of housing, which is why I am in regular conversation with the Ministry of Housing, Communities and Local Government about how we do things such as bring empty homes back into use as accommodation. I want to make sure that people have as much affordable housing as possible, and the increase to LHA of nearly £1 billion is one way to achieve that.

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

Shortly, Nicola Sturgeon will outline in her conference speech plans to pay families who receive free school meals a £100 grant to help them through winter till the new, game-changing Scottish child payment starts in the new year. The Secretary of State’s Government could have matched the Scottish Government’s anti-poverty ambition at the spending review, but they failed even to make the UC uplift permanent or extend it to legacy benefits. Can she point to anything in the spending review that is there to address poverty?

[Dr Coffey]

The best way to get out of poverty is to get into work. I am very conscious that there are real challenges right now, as we see an increasing number of unemployed people. There are vacancies, but part of the Government’s job is to stimulate interest, which we are doing with a multibillion-pound investment in a variety of schemes, not only to create jobs, with kickstart, but to make sure that people are ready to get back into work. The idea is that we need to try to create confidence within business, and that will be a key part of that. I am sure the hon. Gentleman welcomed the money that came through the Barnett consequentials that will support initiatives that the Scottish Government might wish to undertake.

[Neil Gray]

The Secretary of State talks about jobs, yet just as employment is expected to reach 2.6 million, she plans, shamefully, to cut universal credit. Ahead of the spending review, a petition organised by the Disability Benefits Consortium and signed by 119,000 people was handed in to the Government, calling for the UC uplift to be extended to legacy benefits. Given that living costs have increased dramatically for disabled people during the pandemic, why have the Government not acted? Does that not just summarise perfectly the tale of two Governments: a Scottish Government extending support to those who need it while the UK Government increases disability benefits by a derisory 37p?

[Dr Coffey]

Last week I published the benefit uprating statement, which indicated the inflation rise for benefits, as well as the 2.5% for state pensions. I am conscious that a number of different things are going on with benefit spending—my hon. Friend the Minister for Disabled People, Health and Work just reminded me that benefit spending on people with disabilities is up 5%. I think there is a lack of understanding of what the spending review is: it is not about budgetary measures, which tend to come with major fiscal events. As has been indicated before, the decision to consider the temporary uplift to universal credit will be made in the new year.

Supporting Disadvantaged Families

Debate between Thérèse Coffey and Neil Gray

Monday 9th November 2020 Commons Chamber

[Dr Coffey]

I thank my hon. Friend. We wanted to ensure that this was a comprehensive package, and we said in the debate a couple of weeks ago that we wanted to ensure there was targeted intervention. He is right that, as a Government, we want to make sure that every child can fulfil their potential. I hope he will recognise that the schemes we are announcing today, with the extended funding and extended coverage, are among the most important things we can do to make a difference to a young child’s future life.

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

I thank the Secretary of State for advance sight of the statement. I am just sorry to say that as welcome as some of these measures are, they are just not enough. They will serve only to partially catch up with where Scotland has been for some time. When the Scottish Government introduced their Best Start Foods payment last year—the equivalent of the Healthy Start payment—they had already increased it to £4.25. The Scottish Government have also gone beyond their £70 million food fund commitment and made over £130 million available to tackle food insecurity caused by the pandemic.

On free school meals, I am delighted that the UK Government appear finally to be relenting to the incredible campaign run by Marcus Rashford. The decision today will no doubt be welcomed by the same Scottish Tories who failed to support it only two weeks ago. The UK Government are only starting to give free school meals in the holidays from next year, whereas the Scottish Government committed last month to making £10 million available to extend free school meals into the Christmas holidays and Easter. The need is now. That is why it is so welcome that the new Scottish child payment, described as game-changing by anti-poverty campaigners, opens for applications today, with payments starting early in the new year.

There has been nothing on the two-child cap, nothing on the five-week wait—those advances should be made into grants—and nothing on the temporary uplift to universal credit. In response to the significant campaign led by the Scottish National party, the Joseph Rowntree Foundation, Save the Children and others, which is now supported by the Secretary of State’s predecessors at the DWP and the leader of the Scottish Conservatives, the Treasury has been flirting with extending the much-needed increase to universal credit—and no wonder. Even with the temporary £20 a week extra, the Secretary of State knows that those who are out of work are £1,000 worse off today compared with 2011.

Will the Secretary of State put it on the record today that she expects the temporary uplift to universal credit to be made permanent and, so that there is no longer the unfairness of sick and disabled people on legacy benefits not getting the same, will she finally commit to extending the uplift to legacy benefits?

[Dr Coffey]

I am not sure whether the hon. Gentleman welcomed these measures or not. He will see that the Barnett consequentials will feed through to the Scottish Government. I do not think the Scottish Government provided support over half-term, but I am conscious that future support is part of their legacy already.

In terms of moving forward, I remind the hon. Gentleman of aspects such as the fact that advances are actual grants to people—they are just the phasing of universal credit payments over the year, and soon to be over two years if that is what claimants want. As a consequence, we need to make sure that we continue to manage, with our customers, to make sure that they are financially resilient. We will continue to try to support them in that endeavour.

In terms of recognition, as I say, I am sure that the Scottish Government will take full advantage of the money they receive as part of that £16 billion between the three devolved Administrations and make sure that they use it best and ensure that no child in Scotland goes without warmth and food this winter.

Oral Answers to Questions

Debate between Thérèse Coffey and Neil Gray

Monday 19th October 2020 Commons Chamber

[Dr Coffey]

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

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

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

[Dr Coffey]

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

--- Later in debate ---

[Dr Coffey]

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

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

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

[Dr Coffey]

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

Pension Schemes Bill [Lords]

Debate between Thérèse Coffey and Neil Gray

2nd reading & 2nd reading: House of Commons & Money resolution & Money resolution: House of Commons & Programme motion & Programme motion: House of Commons
Wednesday 7th October 2020 Commons Chamber

[Dr Coffey]

The Bill will require the pension schemes to provide all the data that they have available, so that it can be brought together to provide that information. I am conscious that this is further data, which may take a little time to come together, but this has been worked on for some time and we have made careful progress with the industry to get to this point. If my hon. Friend has any more detailed questions, my excellent Pensions Minister, the Under-Secretary of State for Work and Pensions, my hon. Friend the Member for Hexham (Guy Opperman), will be able to pursue this either in later interventions or in Committee.

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

We welcome this part of the Bill in particular. We support informing savers about their savings landscape, but one concern we have is that the amendment in the Lords that allows for the public dashboard to be bedded in for a year before commercial dashboards come in could be removed in Committee. Can the Secretary of State confirm now that she has no intention of watering that down? If that were to happen, it would be met with the vigorous opposition from the Opposition.

[Dr Coffey]

Our aim is to empower consumers through dashboards and the Government believe that they are best served through multiple dashboards. Of course we have listened carefully to the concerns expressed in the other House as well as in this place. We are still on Second Reading, and I think it is fair to say that we will be considering the contributions carefully and that any matters that may need to be looked into further can be considered in Committee.

--- Later in debate ---

[Dr Coffey]

I know that the right hon. Gentleman and his Select Committee are looking at this matter carefully, and I appreciate that he has been in discussions with my hon. Friend the Under-Secretary of State for Work and Pensions, who I believe wrote to the right hon. Gentleman yesterday. It is certainly an issue on which we want to continue to work to identify circumstances that could raise red flags, and legislate to enable trustees to act when they appear. The powers in the clause are broad enough to cover some of the scenarios about which the right hon. Gentleman is concerned.

[Neil Gray]

I welcome the intervention from the Chair of the Select Committee. During the passage of the Financial Guidance and Claims Act 2018, the SNP tabled a number of relevant amendments that may well have covered some of these problems, which are a hangover from pension freedoms. Would the Secretary of State and the Minister be willing to look at some of those amendments again in Committee to make sure that some of those issues, particularly in respect of advice and guidance, are tied up?

Kickstart Scheme

Debate between Thérèse Coffey and Neil Gray

Thursday 3rd September 2020 Commons Chamber

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

We welcome any intervention that can protect jobs and secure the future of young people across these isles. The most effective intervention would, of course, be to extend the furlough scheme. I have three clear questions to ask in the time I have. First, why have the UK Government failed to respond to Scottish Government correspondence asking to work together on the implementation of the kickstart scheme, which is for Scotland, England and Wales? The Scottish Government have introduced a £60 million youth guarantee, which will guarantee every young person an opportunity for education, a job or training, backed by additional funding for apprenticeships and the new job start payment.

Secondly, why have the UK Government set as a minimum to qualify for the kickstart scheme that employers need to take on 30 new employees? Adding the bureaucracy set out yesterday will not help small businesses or young people in Airdrie and Shotts, and there is deep concern from the Federation of Small Businesses about this being a barrier, so why is there a 30-job minimum? Finally, will kickstart participants be paid the real living wage? I understand that they will not —why not?

[Dr Coffey]

The hon. Member may not be clear on the elements of the scheme, so I encourage him to read the written ministerial statement, the “Dear colleague” letter and what is on gov.uk. It is not a case that an employer has to come forward with a minimum of 30 placements over the lifetime of the scheme. That is if they want direct access to the DWP and a direct relationship, which is completely different from what happened under the future jobs fund. Small businesses can go through intermediaries, and that is why we have those links.

In terms of working with the Scottish Government, I am very conscious, and it is right, that the Scottish Government should be doing elements of this. Scotland has the highest unemployment rate in the UK, so it is no surprise that they are trying to fix that. It is important that we have the scheme consistently across Great Britain. In Northern Ireland, this is entirely devolved, but we will be working closely with it. It is important that we have a national framework and local delivery, and I am pleased that our jobcentres in Scotland are already on the case.

Covid-19: DWP Update

Debate between Thérèse Coffey and Neil Gray

Monday 4th May 2020 Commons Chamber

[Dr Coffey]

My hon. Friend is right to speak up for the people he represents, and especially small business owners, who have set up their companies in particular ways—I am sure that they were well advised by accountants at the time on the optimal way to do that. It is fair to say that the self-employed income support scheme is expected to cover 95% of people who receive the majority of their income from self-employment, but if not, I recommend that those other people look online at their potential eligibility for universal credit. We have removed the minimum income floor—an assumed level of income in universal credit for self-employed people—so that should no longer be considered when trying to calculate the benefits for which they may be eligible.

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

I thank the Secretary of State for advance sight of her statement. I wish to put on record my thanks to the DWP staff, who are continuing to work hard to deliver social security benefits as quickly as possible in very difficult circumstances, but the circumstances have been made more difficult by the decisions of the UK Government, who have introduced bureaucratic support schemes instead of a far simpler universal basic payment with a longer view towards universal basic income. Millions have been forced on to still inadequate universal credit, and despite DWP staff being moved to cope with the UC demand, over 200,000 people had their UC claim paid late, according to the UK Government’s best estimate. Because DWP staff have been moved to help process UC claims, MPs and other advice organisations are not getting casework inquiries answered in the normal way, which is also causing unfair hardship.

On the last day that I contributed in this House—18 March—before lockdown, I said that people needed help in hours, not days, yet the people applying for universal credit in that week will have only just received their first payment a few days ago. The British Government must finally stop the five-week wait. They claimed that they cannot solve it by making the advance payment system a grant rather than a loan because of vulnerability to fraud, so why not make the advance a grant when the applicant is confirmed as eligible for universal credit? I would appreciate proper consideration of that proposal. Airdrie food bank in my constituency has reported a 47% increase in demand for its services since the onset of covid-19. That should focus minds.

The Prime Minister said that nobody would get left behind, so why has there not been an uplift in legacy benefits, such as employment and support allowance, as there has been to universal credit? Finally, will the Government scrap the immoral, poverty-inducing two-child limit, the bedroom tax and the benefit cap, and will they uprate all benefits to make up for the years of cuts that came through the benefit freeze? 1.7% just does not come close.

[Dr Coffey]

I thank the hon. Gentleman for his questions. In terms of bureaucratic schemes, the Government have worked at pace to introduce brand new schemes in order to protect people right across the country. We have seen the success of the job retention scheme. The self-employed scheme is under way. Significant flexibility has been put into that system to help people who may not have had three years of earnings to give them time to submit their latest tax return promptly to get support.

There is a variety of analysis on universal basic income. The latest report I saw estimated it would cost over £400 billion a year. It is not targeted at the poorest in society and is not an appropriate way for us to try to distribute money. Instead, our schemes are focused on making sure that the poorest do get help.

On DWP staff being moved from department to department, we have made sure that we are monitoring performance and where there are increases in how long it takes to process certain kinds of payments I have made it clear to my officials that we then need to move people back. We are in the key peak of payments this week, with the largest uptake of applications, and I am confident that we will get through that with at least 90%, if not an even higher rate, of people getting their payments on time.

I have already answered the question about why the legacy benefits have not increased. On the question about making an advance a grant, that comes back to the principle that getting an advance effectively means people have 13 payments in a year instead of 12 to cover the annual allocation to which people are entitled. Nearly 700,000 people have received an advance, while nearly 1.8 million people have applied for universal credit and those others have not sought to have an advance. So it would not be fair to the other new claimants if one group of people got more money than they did simply because they had applied for an advance.

On the increasing use of food banks, extensive work is going on across Government. The Under-Secretary of State for Work and Pensions, my hon. Friend the Member for Colchester (Will Quince), is involved in a taskforce on helping vulnerable people. I am conscious of the increase in food bank usage and the Under-Secretary of State for Environment, Food and Rural Affairs, my hon. Friend the Member for Banbury (Victoria Prentis), and my right hon. Friend the Secretary of State for Environment, Food and Rural Affairs are doing excellent work in making sure we can work with them to ensure food can get to the most vulnerable people in society. While recognising the increase in food bank usage, I point out that we have had a sixfold increase in the number of people claiming UC and we are making sure we get our money to them.