Oral Answers to Questions

Will Quince Excerpts

Monday 1st July 2019 Commons Chamber

[Emma Dent Coad (Kensington) (Lab)]

3. What recent assessment her Department has made of trends in the level of child poverty.

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

Tackling poverty will always be a priority for this Government, and I take these numbers extremely seriously. In the latest low income statistics, child poverty increased in three of the four measures. The evidence shows that work is the best route out of poverty, and there are 667,000 fewer children in workless households compared with 2010.

[Emma Dent Coad]

Summer holidays are fast approaching, and far too many families will be struggling to feed their children. The Childhood Trust states that two thirds of London children living in poverty—that will be 2,000 in Kensington—could go hungry without access to charitable donations. While the Mayor’s Fund for London supports hungry children across the capital, what is the Minister doing, long term, to tackle the causes of child poverty, including in-work poverty?

[Will Quince]

As I have said, the latest statistics show that full-time work substantially reduces the chance of poverty. The absolute poverty rate of a child where both parents work full-time is only 4% compared with 44% where one or more parents are in part-time work. We are supporting people into full-time work where possible—for example, by offering 30 hours of free childcare to parents of three and four-year-olds. Over three quarters of the growth in employment since 2010 has been in full-time work.

[Mr Philip Hollobone (Kettering) (Con)]

In our country in 2019, what proportion of children live in poverty?

[Will Quince]

Without knowing the exact figure, it is too many. My role within the Department, and the role of the Department itself, is to address that. My hon. Friend will know too well that the best route out of poverty is work. That is why our focus is on universal credit. Universal credit is working in terms of getting more people into work, and more people are staying in work.

[Chris Bryant (Rhondda) (Lab)]

The best way out of poverty is probably properly paid work. The real problem for many of my constituents and their children is the fact that they have very low levels of savings, so when somebody loses their job, perhaps because a company closes, the real danger is that when they go on to universal credit they have to wait for five weeks for a payment and have nothing to fall back on. I really do beg the Government to reconsider the issue of the five weeks. The worst possible thing of all is saying, “You can borrow some money”, because suddenly a family ends up in debt, and that is when the children end up not having food unless it comes from a food bank.

[Will Quince]

I recognise the passion with which the hon. Gentleman raises his point, but, in terms of the five-week wait, nobody has to wait for their first payment of universal credit, as 100% of their indicative advance is available on day one. It is interest-free, repayable over 12 months—and, as the Secretary of State has said, that will in future be moving to 16 months. That is available and about 60% of people are currently taking it up.

[Mike Amesbury (Weaver Vale) (Lab)]

Given that the majority of families affected by the two-child limit are working, why did the Department for Work and Pensions make the following statement in response to the recent report by the Child Poverty Action Group and the Church of England:

“This policy helps to ensure fairness by asking parents receiving benefits to face the same financial choices as those in work”?

Could the Minister clear up this confusion for the House?

[Will Quince]

The policy to provide support for a maximum of two children helps to ensure fairness by asking parents receiving benefits to face the same financial choices as those in work. Safeguards are in place and we have made changes this year to make the policy fairer. Tackling poverty remains a priority. We are spending over £95 billion a year on welfare and providing free school meals to more than 1 million children.

[Mary Robinson (Cheadle) (Con)]

4. What steps her Department is taking to help people with disabilities into work.

--- Later in debate ---

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

There are a range of reasons why people make use of food banks. The key for the DWP is to ensure that welfare claimants are able to access funds in a timely manner. That is why advances are available, so that no one has to wait five weeks for their first universal credit payment.

[Diana Johnson]

Even before universal credit was rolled out in Hull, the use of the Hull food bank was very high because we have widescale in-work poverty, and a third of the children in Hull are living in poverty. The Trussell Trust has said that nearly half of all food bank referrals are due to a delay in benefits being paid when universal credit is rolled out, which happened in Hull before Christmas. Does the Minister now accept that, and what is he going to do about it?

[Will Quince]

I thank the hon. Lady for her question. We continue to provide a strong safety net through the welfare system for those who need extra support and, as I have said, people use food banks for many and varied reasons. We review research carried out by organisations, including the Trussell Trust, to add to our understanding of food bank use. I intend to work far more closely with the Trussell Trust and other food bank providers, including other stakeholders in this area. I want food bank providers and jobcentres to work far more closely together so that we can better understand the issues and then put in place the interventions to make the situation better.

[Mr Jim Cunningham (Coventry South) (Lab)]

A few weeks ago, I and a colleague of mine visited a major food bank in Coventry. One of the lessons we learned from the food bank in Coventry—it has nine outlets throughout Coventry and Warwickshire—is that universal credit is forcing people to use food banks. What is the Minister going to do to sort out the problem that people have who are forced to use food banks? Surely we should have another look at universal credit and abolish it, because it is not working.

[Will Quince]

I am sorry to hear the hon. Gentleman’s example. If I get a chance to visit his local food bank, I will certainly do so, but I have to stress that no claimant needs to wait more than five weeks to receive their first regular universal credit payment. We have listened to feedback on how we can support our claimants and made improvements, such as extending advances, removing waiting days and introducing housing benefit run-on. I will continue to work with the Trussell Trust and others to improve our system in any way we can.

[Heidi Allen (South Cambridgeshire) (Ind)]

I am afraid to say to the Minister that the advance payment is missing the point. The biggest driver of people going to food banks is the five-week wait. Because of the benefit freeze, the basic amount people have to live on, particularly the very vulnerable, is not enough. We cannot then expect them to live on less by taking away their advance payment, which is a debt. There is a simple way to deal with this. Some 60% of claimants are already taking advance payment, which tells us they cannot wait. The money is already going out of the DWP’s door. Make it a grant. It should not be repayable for the most vulnerable people in society.

[Will Quince]

I respect the hon. Lady’s knowledge in this area on the Select Committee, but I would say that advances are not loans from a separate fund; they are the claimant’s benefit paid early, which is then recovered over an agreed period. So they are in place to ensure that those in genuine need are able to receive financial support and are not reliant on illegal or high-cost lenders. But if a claimant considers they are facing financial hardship because of the amount that is being deducted from their universal credit award, they can ask the Department to consider reducing their deductions. As of October this year, the maximum deduction goes down from 40% to 30%.

[Mr Bob Seely (Isle of Wight) (Con)]

6. What steps her Department is taking to increase working people’s incomes through universal credit.

--- Later in debate ---

[Vicky Foxcroft (Lewisham, Deptford) (Lab)]

7. What recent assessment her Department has made of the adequacy of levels of local housing allowance.

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

Welfare reforms were designed to ensure a fair balance between public spending and supporting vulnerable people to meet their housing costs. LHA rates are not intended to meet all rents in all areas. However, the Secretary of State and I have committed to end the freeze to LHA in March 2020.

[Vicky Foxcroft]

Local housing allowance is supposed to cover the lowest 30% of market rents, but research by Shelter found that that is not possible in 97% of England. For example, in south-east London, local housing allowance will cover only the bottom 10% of rents. We have a housing crisis across the country and local housing allowance is not fit for purpose. Does the Minister agree that it must be raised to reflect the true cost of renting?

[Will Quince]

I thank the hon. Lady for her question. As I said, LHA rates are not intended to meet all rents in all areas. Housing benefit claimants have to make the same decisions about where to live as people who do not receive benefit. In 2019-20, targeted affordability funding has been used to increase over 80% of rates in London. Nevertheless, we recognise that this is an issue. The Secretary of State and I are alive to it and we are looking at several options ahead of a spending review bid.

[James Gray (North Wiltshire) (Con)]

Does the Minister recognise that recent changes to the tax treatment of the private rented sector, particularly the buy-to-let sector, will mean an increase in rents across the board? That will have a very real read-across to the local housing allowance. Will he give some assessment of what allowance he will make for that increase?

[Will Quince]

That is, of course, a question for the Treasury. Any rise or potential rise in LHA rates has to go hand in hand with addressing supply. I urge my hon. Friend to address that issue with my counterparts in the Ministry of Housing, Communities and Local Government, and, indeed, the Chancellor and Chief Secretary to the Treasury.

[Dr David Drew (Stroud) (Lab/Co-op)]

I welcome what the Minister said the other day about reviewing how local housing allowance areas need to be redefined. Does he accept that, because Stroud is in the same area as Gloucester, we are now losing a significant number of people from the private sector because they cannot afford to top up? Will he therefore look at this as a matter of urgency?

[Will Quince]

I thank the hon. Gentleman for his question. He is right that the broad market rental areas have some anomalies. I have officials looking into this. It is a huge and complex piece of work, given that there are approximately 900 of those areas. It is therefore not something that can be done quickly, but I recognise the issue and I am working on it.

[Joanna Cherry (Edinburgh South West) (SNP)]

8. What recent assessment she has made of the level of pensioner poverty in the UK.

--- Later in debate ---

[Nic Dakin (Scunthorpe) (Lab)]

20. What steps she is taking to support vulnerable people who apply for universal credit.

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

Universal credit ensures that support goes to those who need it most by simplifying the previously complicated legacy system, allowing 700,000 more people to receive approximately £2.4 billion in unclaimed benefits. Since 1 April this year, the Citizens Advice and Citizens Advice Scotland Help to Claim service has been in place, providing free, confidential and impartial support to help people, including those who are vulnerable, to make a universal credit claim.

[Peter Aldous]

I acknowledge the work that the Minister and the Secretary of State have done to improve universal credit, though concern remains that the five-week wait for the first payment is presenting a serious challenge to many people. To address this, will he accept the recommendation of the Bright Blue think-tank for one-off, up-front helping hand payments?

[Will Quince]

Those moving to universal credit will get more than 25% of their award through two weeks of additional housing benefit and, as of next year, jobseeker’s allowance, employment and support allowance and income support. Advances are available to cover the interim period, but we recognise the concerns about the payments in arrears and would welcome further ideas.

[Nigel Huddleston]

Vulnerable universal credit claimants often need to travel, sometimes long distances, to regular hospital appointments. What can the Minister do to help give these people the financial security they need to attend those regular and important appointments?

[Will Quince]

Universal credit claimants may be able to claim a refund for the cost of travelling to a hospital for treatment through the NHS healthcare travel costs scheme. To claim travel costs, claimants should take travel receipts, as well as their appointment letter or card and proof they are receiving a qualifying benefit, to a nominated cashiers office, which will be located in the hospital or clinic that treats the claimant. I should advise my hon. Friend that costs can be claimed back up to three months after an appointment.

[Nic Dakin]

The requirement for explicit consent built into universal credit makes it difficult for organisations such as Macmillan to support claimants as they did those on legacy benefits. When will the Government meet their commitment to review this requirement with the Social Security Advisory Committee, how will they engage stakeholders and when do they expect to report their findings?

[Will Quince]

The hon. Gentleman raises a very good point—it concerns me too. We have agreed to work collaboratively with the Social Security Advisory Committee to consider how current practices could be enhanced, and to publish a report on our joint conclusions.

[Janet Daby (Lewisham East) (Lab)]

A constituent of mine, Claudette, lives with her son, who is disabled, in private rented accommodation. She is in receipt of universal credit, but she did not receive her April rent payment, and the Department is refusing to investigate. Prior to that and ever since, universal credit has covered her rent. Will the Minister meet me to review this case, as my constituent fears eviction?

[Will Quince]

I thank the hon. Lady for raising that individual issue. I would like her to raise Claudette’s case with me. My door is always open, as I know are those of other Ministers in the Department, and of course I would be delighted to meet her.

[Ruth George (High Peak) (Lab)]

At the last oral questions, I raised the case of single parent Alicia in my constituency, who had seen fraudsters claim universal credit for her. The Minister promised to investigate but still has not. In the meantime, we have seen hundreds more cases across Greater Manchester, including that of my constituent Sarah, who has now, in spite of reporting the fraud, been asked to attend an interview under caution and been further victimised by the Department. Will the Secretary of State please make sure that victims of fraud and crime are not further victimised by her Department?

[Will Quince]

We take fraud incredibly seriously, and I believe that the matter in question is being investigated. If the hon. Lady has further cases, she can refer them to me or the Minister for Employment, and we will look at them very carefully.

[Margaret Greenwood (Wirral West) (Lab)]

The pilot of the Government’s ill-conceived managed migration of universal credit is meant to start this month, but the Government have been very slow in coming forward with details. Is this because the level of payment to severely disabled people who lost out when they transferred to universal credit was found to be unlawful by the High Court?

[Will Quince]

The Minister for Disabled People, Health and Work has been very clear on this. We are still considering it and will come back to the House in due course.

[Margaret Greenwood]

The Government have repeatedly responded to criticisms of social security cuts—and have done so today—by claiming that they are targeting those who need support the most. How does that accord with spending nearly £200,000 on legal battles with severely disabled people and single mothers who have lost out under universal credit?

[Will Quince]

Let me gently point out to the hon. Lady that we are spending more than £6 billion a year on the main disability benefits.

[Jamie Stone (Caithness, Sutherland and Easter Ross) (LD)]

13. What steps her Department is taking to support claimants whose mobility awards were (a) reduced and (b) stopped when they moved from disability living allowance to personal independence payment.

--- Later in debate ---

[Gillian Keegan (Chichester) (Con)]

Can my hon. Friend tell me whether poverty has risen or fallen since 2010?

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

I thank my hon. Friend for that question. The Government remain committed to tackling poverty so that we can make a lasting difference to long-term outcomes. I am pleased to say that the Government have lifted 400,000 people out of absolute poverty since 2010, and income inequality has fallen.

[Mr Jim Cunningham (Coventry South) (Lab)]

T9. Have the Government come to a view on Philip Alston’s report on poverty in the UK?