Oral Answers to Questions

Will Quince Excerpts

Monday 14th September 2020 Commons Chamber

[Bob Blackman (Harrow East) (Con)]

What steps her Department is taking to ensure that welfare benefits for rent are paid to landlords to prevent rental arrears building up.

[The Parliamentary Under-Secretary of State for Work and Pensions (Will Quince)]

As my hon. Friend knows, alternative payment arrangements are already available to enable housing costs to be paid directly to the landlord. We have listened to feedback, and in May we introduced a new online system for private landlords, so that claimants who struggle with managing their money get the right support promptly. Landlords can now request that a universal credit tenant’s rent is paid directly to them online, rather than by email or post.

[Bob Blackman [V]]

I thank my hon. Friend for his answer. As he will know, it is estimated that 125,000 people are now in rent arrears, with rent not being paid to landlords. Many of those people will be in receipt of either universal credit or housing benefit. What steps can he take to ensure that that rent will be paid to landlords and to prevent spiralling debts that are impossible for people to repay, so that landlords are paid their rent and tenants do not fall into unnecessary rent arrears?

[Will Quince]

I thank my hon. Friend for that question. He is a passionate and knowledgeable advocate on housing issues, and I always listen carefully to his representations. Alternative payment arrangements such as direct payment to landlords can be requested by the tenant, landlord or work coach, but if there is more that we can do, I am happy to explore it. I regularly meet my counterpart at the Ministry of Housing, Communities and Local Government to discuss these issues, and I am happy to meet my hon. Friend.

[Ms Karen Buck (Westminster North) (Lab)]

Direct payments to landlords can help vulnerable tenants, but the issue remains that the design flaws in universal credit leave many tenants at risk. We now know that on average, new claimants of universal credit see a net fall of 40% of their income, one in eight tenants have built up arrears and there is a £440 million gap between what landlords believe they are owed and what tenants have paid. What immediate steps can the Minister take to deal with these structural problems, particularly the waiting period for universal credit, so that when the eviction ban is lifted next week, tenants are not at risk of losing their homes?

[Will Quince]

First, I welcome the hon. Lady to her place. I am afraid that I have to start by disagreeing. It is wrong to attribute a rise in rent arrears solely to universal credit. We know that many tenants are arriving on universal credit with pre-existing rent arrears, which universal credit actually appears to be helping to clear over time. There is no wait for universal credit; people can get an advance immediately. We recognise that this has been a very difficult time for people on low incomes, and that is why we have injected more than £9.3 billion into our welfare system.

[Cat Smith (Lancaster and Fleetwood) (Lab)]

When she plans to publish the findings of her Department’s review of how well the welfare system supports terminally ill people, which was announced in July 2019.

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[Margaret Ferrier (Rutherglen and Hamilton West) (SNP)]

What assessment she has made of the effect of bonuses on the level of payments made to universal credit claimants.

[The Parliamentary Under-Secretary of State for Work and Pensions (Will Quince)]

Bonuses are earnings and are treated in the same way as any other earnings in calculating universal credit awards, reflecting HMRC guidance and ensuring fairness across the working population, many of whom do not claim welfare. UC is more generous than the legacy benefits that it replaces. The Government have already made significant investment to increase universal credit’s generosity by cutting the taper rate to 63% in 2017, with an extra £1.7 billion a year put into work allowances by 2023-24.

[Margaret Ferrier]

My constituent, a key worker in a pharmacy, received a one-off bonus of £120 for her efforts supporting vulnerable people during the coronavirus pandemic. That reward for hard work was eroded when £172.69 was subsequently deducted from her monthly universal credit payments. Does the Minister agree that that is no way to treat people who have stepped up to support us all during these difficult times? Will he consider temporary changes to the work allowances and taper rate to enable key workers to receive these bonuses in full?

[Will Quince]

I want to thank all the key workers across our country who have done so much during the pandemic. Universal credit makes sure that people are always better off in work. Under the legacy benefits system, claimants would not have kept all their bonuses; in fact, in many cases, the legacy withdrawal rate could be as high as 91% for each additional £1 earned, compared with a maximum of 75% under universal credit.

[Tom Hunt (Ipswich) (Con)]

What steps her Department is taking with employers to help ensure as many young people as possible benefit from the Kickstart scheme.

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[Stuart C. McDonald (Cumbernauld, Kilsyth and Kirkintilloch East) (SNP)]

What steps she is taking with the Chancellor of the Exchequer to ensure the adequacy of benefits for claimants.

[The Parliamentary Under-Secretary of State for Work and Pensions (Will Quince)]

The Government introduced a package of welfare measures worth more than £9.3 billion this year, to help those facing the most financial disruption during the pandemic. We introduced a series of measures to support people, including an increase in the universal credit standard allowance for 12 months, worth up to £1,040. Increased local housing allowance rates have put an average of £600 into people’s pockets, and we made statutory sick pay available to employees from day one.

[Stuart C. McDonald]

I thank the Minister for his answer, but ending the £20 universal credit uplift could see food bank use increase by 10%, according to the Trussell Trust, and the Joseph Rowntree Foundation has warned that 16 million people could lose £1,000 a year overnight, plunging 700,000 more people into poverty. Will the Government remove that cliff edge and make the £20 uplift to universal credit permanent?

[Will Quince]

The increase was introduced for an initial period of one year as part of the Government’s measures to assist with the financial consequences of covid-19. It was part of a £9.3 billion increase to the welfare system that ensured that it was able to stand up and support the millions of extra people who needed it. Future decisions on benefit rates will be made at the appropriate fiscal event.

[Sarah Champion (Rotherham) (Lab)]

What assessment she has made of the potential effect on universal credit claims of the end of covid-19 income support schemes.

[The Parliamentary Under-Secretary of State for Work and Pensions (Will Quince)]

Since mid-March we have received more than 3 million claims for universal credit, ensuring that people have a welfare safety net in their time of need. I am proud that more than 90% of new eligible claimants were paid in full and on time, proving that universal credit can stand up to the challenge. The Government’s support for people and businesses is not ending, and we are now focused on delivering our plan for jobs. I hope that the hon. Lady will support that plan, particularly the new £2 billion kickstart scheme that will create hundreds of thousands of new, fully subsidised jobs for young people across our country.

[Sarah Champion [V]]

I appreciate the Minister’s response, but with coronavirus support schemes being wound down and the Government seemingly unwilling to contemplate their extension, what actual steps is the Minister taking to ensure that towns such as Rotherham are not faced with a generation of mass unemployment, empty shops and closed factories as a result of the pandemic?

[Will Quince]

The hon. Lady is right to say that the coronavirus job retention scheme has been a huge success—it has protected up to 10 million jobs—but it is important to point out that support for furloughed employees does not end in October. In the Chancellor’s summer statement, he announced the new job retention bonus, which will pay employers £1,000 for every employee still in post by the end of January. For those who, sadly, are made redundant or lose their jobs, Jobcentre Plus stands ready to assist up and down the country.

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

What steps her Department is taking to promote employment opportunities as covid-19 lockdown restrictions are eased.

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[Stephen Timms (East Ham) (Lab)]

The National Audit Office told the Work and Pensions Committee two weeks ago that the “sophisticated” analysis of the Trussell Trust has established an association between universal credit roll-out on the one hand and rising food bank demand on the other. Association is not the same as causation, so what plans do the Government have to commission research, as the National Audit Office recommends, into the impact of universal credit on food bank demand?

[The Parliamentary Under-Secretary of State for Work and Pensions (Will Quince)]

I thank the Chairman of the Select Committee for his question. As he knows, I gave evidence to the Committee recently on this very matter. I have worked closely with food bank providers—the Trussell Trust and others—over the course of the pandemic to ensure that our support has got to those who need it quickly. We continue to better understand the reasons for food insecurity. That is why we have put additional questions in the family resources survey. We keep all policies under review, and of course we listen to the findings of reports such as that of the Trussell Trust.

[Mrs Pauline Latham (Mid Derbyshire) (Con)]

The impact of covid is felt unevenly across different roles and sectors. With more being done online, digital access has never been more important. What measures is the Department taking to help people facing the greatest barriers to employment access job search and other online services to help them find jobs?

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[Helen Hayes (Dulwich and West Norwood) (Lab)]

I spoke yesterday with the manager of Brixton and Norwood food bank, who told me it had delivered as many parcels in the five-month period from April to August as they would normally deliver in a year—an extraordinary effort from a dedicated team of staff and volunteers for which our whole community is deeply grateful. However, they are very worried about the planned withdrawal of the £20 uplift in universal credit at the end of March, which would result in thousands more families across the country being unable to make ends meet indefinitely. Will the Secretary of State act now and confirm that the uplift will continue, or will she expect food banks up and down the country to scale up their efforts even further after March to continue to backfill for the Government’s failure to stop food poverty?

[Will Quince]

I thank the hon. Lady for her question. The Department has an ongoing positive relationship with a range of food bank providers. It has regularly engaged with them throughout the coronavirus pandemic and will continue to do so. We quickly introduced welfare changes worth an additional £9.3 billion, and worked closely with other Government Departments on the cross-Government taskforce on food and other essential supplies. Further to my earlier answer, the hon. Lady will have to wait for future fiscal events where benefit rates are set.

[Andrew Jones (Harrogate and Knaresborough) (Con)]

Harrogate was one of the first areas to see a full pilot for universal credit, and we are the location for the legacy benefits managed migration trial. The pandemic has led to an increase in claim numbers, but the team performance really has risen to the challenge. Will the Minister tell me how he ensures that not just the operational capacity of our jobcentres is maintained, but that best practice is shared so that everybody works at the pace of the best?

[Will Quince]

My hon. Friend rightly pays tribute to the incredible team at Harrogate Jobcentre Plus. As he knows, we have seen a surge of over 3 million claims since mid-March, and I agree that UC has stood up to the challenge, with payment timeliness remaining high at over 90%. We will continue to closely monitor our services across the country and will continue to keep staff numbers under review. As he also knows, we have committed to doubling the number of work coaches.

[Mr Virendra Sharma (Ealing, Southall) (Lab) [V]]

This afternoon, I am meeting carers from across my constituency. They are concerned about their financial position. Will the Secretary of State commit to raising the attendance allowance until it matches universal credit payments?

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[Robert Halfon (Harlow) (Con)]

I recognise that the national living wage has increased, but will my right hon Friend ensure that the full rise in the national living wage, to two thirds of median earnings by 2024, goes ahead as planned?

[Will Quince]

My right hon. Friend is a passionate advocate for hard-working people. He tempts me to set Treasury policy, which I fear the Chancellor of the Exchequer would not take kindly to, but I urge him to make representations to Her Majesty’s Treasury instead.

[Tim Farron (Westmorland and Lonsdale) (LD)]

There are 4,500 people in my constituency in south Cumbria and 3 million across the country who have been excluded from any covid-specific support over the last six months—those who have recently become self-employed, directors of small limited companies and people who were new starters in March. After six long, desperate months, will the Minister support a compensation package for those people?