Oral Answers to Questions

Will Quince Excerpts

Monday 19th October 2020 Commons Chamber

[Alison McGovern (Wirral South) (Lab)]

What recent assessment she has made of the effect of the covid-19 outbreak on levels of child poverty.

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

This Government’s unprecedented support package has supported the poorest working households the most, with Her Majesty’s Treasury’s analysis showing that the poorest 10% of working households have seen no income reduction, owing to the fast action taken by this Government in responding to the pandemic, including a £9.3 billion injection into the welfare system.

[Alison McGovern]

The problem with the Minister’s answer is that this crisis is only revealing problems with policies that we knew were there already. Members of this House are against it; members of faith communities are against it; leading charities are against it; and now Marcus Rashford is campaigning against it. So what is the Minister going to do to end the two-child policy for universal credit once and for all?

[Will Quince]

The two-child policy in universal credit is one of fundamental fairness, and it means that those who are in receipt of benefits should be in the same position as those who are not. I am not a particular football fan, but I certainly know Marcus Rashford’s name now, and I congratulate him on his MBE. We welcome the establishment of the taskforce and will carefully consider its recommendations as we approach the spending review.

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

We already know that child poverty rates have been rising across north-west England, and that is before the economic impact of the restrictions consequent upon tier 3. The Chancellor talks about the way that the job support scheme and universal credit protect income, saying that it leaves households with 90% of their income, but many households will get nothing like that, and those who lose their jobs entirely sometimes go on to universal credit at 30% of income. What assessment has the Minister made of the impact of the restrictions on child poverty in the north-west and how that compares with a local furlough scheme that protects all jobs that are at risk?

[Will Quince]

I will look carefully at the points that the hon. Lady raises, but I stress that this Government have implemented an unprecedented support package, including the job retention scheme and the self-employment income support scheme, which has helped families to cope with the financial impact of covid-19. For those most in need, we strengthened the welfare system with an additional £9 billion this year. That is in addition to the around £5 billion increase to benefit rates as part of the 2020-21 uprating, including around £400 million more on children’s benefits.

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

What steps she is taking to support people into work throughout the UK.

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[Mark Jenkinson (Workington) (Con)]

What steps her Department has taken to support an effective transition between legacy benefits and universal credit.

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

My Department continually reviews its processes and the service it provides to claimants using a long-standing test and learn approach. In July, we introduced a two-week run-on of DWP income-related benefits, which is in addition to the existing two-week extension of housing benefit that is already payable to eligible claimants. Claimants who believe they may be better off on universal credit should check their eligibility before applying, as legacy benefits will end when they submit their claim and they will not be able to return to them in the future.

[Jo Gideon]

I thank my hon. Friend for that answer. With difficult times ahead for Stoke-on-Trent families hit by the economic downturn caused by coronavirus, does my hon. Friend agree that it is more important than ever for universal credit to offer any necessary flexibility to ensure people get the support they need to return to work, particularly those affected by local lockdown restrictions?

[Will Quince]

I absolutely agree with my hon. Friend. Universal credit is designed to support people into work. It supports those who need help and is fair to everyone who pays for it. Throughout the pandemic many, sadly, have lost their jobs or seen their incomes reduced. Thankfully, universal credit and the Government’s £9.3 billion investment in the welfare safety net have been there to help catch many of those affected, and that has been vital for the 3 million people who have made a benefit claim since March.

[Mark Jenkinson]

Our plan for jobs will help people get the skills they need at every stage of their lives and delivers on our promise to level up opportunity across the country. Work coaches will play a crucial role in delivering that agenda and helping people back into work, so will my hon. Friend join me in paying tribute to the brilliant work coaches of Workington jobcentre, and commit to increasing the number of work coaches across the jobcentre network?

[Will Quince]

I too pay tribute to the brilliant work coaches in Workington Jobcentre Plus, who I know have done an incredible job in particular around partnership working, and I can point to the Maryport GP surgery outreach work, the youth hub, the sector-based work academy programmes and the virtual mentoring circle by Workington jobcentre. That is brilliant work and, yes, I can absolutely confirm that we are investing £895 million in doubling the number of work coaches and Jobcentre Pluses by March 2021.

[Mr Speaker]

We now head to Lewisham and the shadow Minister.

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

The £20-a-week uplift to universal credit has been a lifeline for many during the pandemic, yet this vital extra support continues to be denied to legacy benefit claimants, many of whom are disabled. I raised this with Ministers in the Chamber on 11 May, again on 29 June and yet again on 14 September, each time getting a non-answer. To date, the uplift could have given legacy benefit claimants £600 of extra support. Minister, can we please have a straight answer today: will anything be done to rectify this?

[Will Quince]

The hon. Lady is right is that she has asked this question on three occasions, and she has had three answers. The legacy benefits were increased by 1.7% in April 2020, following the Government’s announcement to end the benefit freeze. It has always been the case that claimants on legacy benefits can make a claim for universal credit if they believe that they will be better off. There are special arrangements for those in receipt of the severe disability premium, who will be able to make a new claim to UC from January 2021. But it is important—I stress this—that claimants should check their eligibility before applying to universal credit as legacy benefits will end when they submit their claim and they will not be able to return to them in the future.

[Kim Johnson (Liverpool, Riverside) (Lab)]

What assessment she has made of the effectiveness of resuming (a) benefits sanctions and (b) welfare conditionality during increased levels of unemployment as a result of the covid-19 outbreak.

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[Peter Aldous (Waveney) (Con)]

If she will extend the suspension of benefit deductions for the recovery of universal credit and legacy benefit overpayments during the covid-19 outbreak.

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

There are currently no plans to extend the suspension of benefit deductions. Action to restart deductions commenced on 6 July and should be completed by mid-November. We recognise that there will be some people who may be experiencing financial difficulty, and anyone unable to afford the rate of recovery proposed is encouraged to contact the Department.

[Peter Aldous]

I am grateful to the Minister for that reply. These suspensions have provided a lifeline to many vulnerable people over the last six months. Unfortunately, there is at present no reason to believe that we will be in a better position in April 2021 than we were in April 2020, thus I urge my hon. Friend to consider extending the suspensions and working with local authorities to put in place fair local support arrangements that will operate in conjunction with the national welfare system and complement the Chancellor’s initiatives to get people back to work.

[Will Quince]

It is right that those claimants who owe the Department money are able to resume payments to reduce their debt. We continue to apply a flexible approach to recovery and endeavour to recover without causing undue financial hardship. Anyone unable to afford the rate of recovery proposed is encouraged to contact the Department so that an affordable rate of repayment can be negotiated. In May, we will be launching the breathing space scheme to help to prevent problem debt and provide support to people who fall into that problem debt.

[Tom Randall (Gedling) (Con)]

What steps her Department is taking to ensure people of all ages have access to the job market.

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[Alan Brown (Kilmarnock and Loudoun) (SNP)]

What assessment she has made of the effectiveness of universal credit in reducing levels of poverty.

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

The latest statistics from 2018-19 show that the rates and numbers of people in absolute poverty were lower than in 2010. Since those statistics were published, we have injected a further £9.3 billion into our welfare system, including an increase to universal credit of up to £1,040 for this financial year.

[Alan Brown]

The reality is that that is not enough. Thanks to the efforts of the Scottish Government to mitigate the worst impacts of austerity, Scotland has the lowest child poverty rates, but the impact of UK Government policies means that 4,600 children in my constituency are estimated to be living in poverty, which is absolutely shameful. Will the Minister listen to the calls of the End Child Poverty coalition and the likes of Macmillan Cancer Support and pledge to keep the £20 a week universal credit uplift to avoid putting more families and children into poverty?

[Will Quince]

One child in poverty is one child too many. We at the Department are continuing to work with Her Majesty’s Treasury and other Government Departments to monitor the evolving economic and labour market situation and identify the most effective ways to help people to stay in or close to work, both now and in future. It is important to stress that Her Majesty’s Treasury published a distributional analysis that assessed the impact of covid-19 on incomes compared with the incomes of working households in May 2020. That analysis showed that the Government’s interventions have supported the poorest households the most.

[Rob Butler (Aylesbury) (Con)]

What steps she is taking to help people with disabilities into employment.

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[Mr David Davis (Haltemprice and Howden) (Con)]

What steps she has taken to support the welfare of people ineligible for the Government’s economic support packages during the covid-19 outbreak.

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

During the pandemic, several economic support measures have been announced by the Chancellor, including supporting the retention of 9.6 million jobs through the furlough scheme. Additionally, 2.2 million individuals have claimed £5.6 billion under the second self-employment income support scheme grant announced by the Chancellor as part of his winter economic plan. The Department has spent £9.3 billion on additional support, including the increase of the universal credit standard allowance by £20 a week. Together, those measures provide a safety net for almost everyone who needs it, but eligibility for the different support packages is set out clearly on gov.uk.

[Mr Davis [V]]

Small businesses account for about 13 million people employed, which is about 60% of the workforce, and many of them are in trouble. When I spoke this weekend to ForgottenLtd, which represents people who are not in receipt of benefit, it told me that its latest survey showed that 70% of its members receive no benefit whatsoever. Do the Government intend to do something about that? If so, will the Minister meet me to discuss the criteria for improvement?

[Will Quince]

I know that my right hon. Friend has campaigned hard on the subject. The question may be better directed at the Chancellor of the Exchequer or Ministers from Her Majesty’s Treasury, as I know he has also done.

Universal credit is an in-work and out-of-work benefit. It is also available for those who are self-employed. As the Secretary of State set out in her letter to the Work and Pensions Committee last month, we plan to proceed with the reinstatement of the minimum income floor, and claimants will be contacted as it is reinstated for them. Notwithstanding my right hon. Friend’s point, more than £13 billion of support has already been provided for more than 2.6 million self-employed individuals through the first two stages of the self-employment income support scheme and the scheme has now been extended.

[Sarah Jones (Croydon Central) (Lab)]

What steps her Department is taking to review the effectiveness of benefit fraud investigations.

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

The Department does not take benefit fraud lightly, and we are committed to using the full range of powers and penalties at our disposal. As part of our response to covid-19, we have established our integrated risk and intelligence service to prevent high-risk claims from going into payment. Our investigations have successfully led us to correct and suspend serious and organised claims fraud in large numbers, and we continue to review our processes and to anticipate new attacks, which will make it even harder for people to defraud the taxpayer in the future.

[Sarah Jones]

A constituent of mine, a mother of three children, recently had her universal credit and housing benefit stopped for over two months because of a fraudulent claim made in her name. She was completely innocent, but she and her young family suffered significant financial hardship. We know that benefit fraud, in universal credit in particular, is increasing, and I know of several other MPs who have had similar cases. What will the Government do to stop innocent families suffering for months just because this Government are failing to detect and investigate fraud?

[Will Quince]

I would be very happy to meet the hon. Lady to receive more details about that individual case, but first let me apologise, because that should not have happened. In effect, Ministers had to make decisions about the redeployment of staff in order to process the unprecedented number of claims, which went up from 2.2 million to 5.7 million claims. That meant deploying staff away from counter-fraud and into the processing of claims, but I am pleased to say that that has now changed and more staff are going back into fraud. We have to take fraud incredibly seriously, because it is individuals such as the hon. Lady’s constituent who are often the target of serious organised crime.

[Emma Hardy (Kingston upon Hull West and Hessle) (Lab)]

What recent assessment she has made of trends in the level of employment.

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[Kerry McCarthy (Bristol East) (Lab)]

I hope next month to introduce a ten-minute rule Bill on the regulation of supported housing. I am particularly motivated by concern that unscrupulous landlords are moving into the sector so that they can take advantage of higher housing benefit rates. There is obviously an overlap with universal credit, so I wondered whether the Secretary of State has had any conversations with her colleagues in the Ministry of Housing, Communities and Local Government about the fact that we badly need to regulate the sector because too many people are being exploited.

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

The hon. Lady is absolutely right—this issue is a concern for me and has been for some time. I am working closely with my counterpart at MHCLG and would be delighted to meet the hon. Lady to discuss progress.

[Laura Farris (Newbury) (Con)]

The kickstart scheme has been enthusiastically taken up by employers in West Berkshire, but of course it is time limited and comes with no guarantees. What steps is my right hon. Friend the Secretary of State taking to ensure that kickstarter placements lead to permanent employment, either with the placement employer or in the same sector?