Social Security

Will Quince Excerpts

Tuesday 9th February 2021 Commons Chamber

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

I beg to move,

That the draft Social Security Benefits Up-rating Order 2021, which was laid before this House on 18 January, be approved.

There is no question but that this has been a challenging time, and the coronavirus outbreak has caused financial hardship and disruption for many across our country. That is why, since the start of the pandemic, we have mobilised our welfare system like never before to provide a comprehensive package of support worth over £7 billion, providing an essential safety net for those who need it.

My Department has risen to the challenge, utilising the speed and agility of the universal credit system to deal with the huge increase in people needing our support. There is little doubt that had we relied on the legacy benefit system, we would have seen queues down the streets outside our jobcentres and long delays, leaving families facing financial disruption without support. Crucially, through our universal credit system, we have managed to pay over 90% of new claimants on time and in full.

That has meant that universal credit and the Government’s investment in the welfare safety net have been there to help catch many of those affected by the pandemic. That has been hugely important for the 3 million more people who have made a benefit claim since March last year. I think it is right once again to publicly thank the thousands of work coaches in jobcentres up and down our country, who have responded at speed and scale to ensure that we have supported people in their hour of need. Now they are working tirelessly to deliver our plan for jobs.

As the House knows, the Chancellor introduced the £20 per week uplift to universal credit and working tax credit as a temporary measure in March 2020 to support those facing the most financial disruption. That additional support increased the universal credit and working tax credit standard allowances by up to £1,040 for a year.

I understand that that subject is the elephant in the room; I know that the House is eager to know about the future of the £20 uplift to universal credit. The uplift sat, and continues to sit, outside today’s annual uprating order and is therefore not directly relevant to today’s proceedings, but I have to say that the Labour party is simply wrong in its use of emotive language that the Government plan to cut universal credit in April. In fact, the only talk of cutting universal credit in April has come from the Opposition parties. I gently say to them that they should be very careful with their use of emotive language and what they say in this House, because scaremongering in this House has real-world consequences, which the Department sees every day in claimant behaviour.

[David Linden (Glasgow East) (SNP)]

The Minister will be aware of the cross-party Select Committee on Work and Pensions report published this morning, which speaks of the need to extend and make permanent the universal credit payment. Does he think that his Conservative colleagues on the Committee who authored that report are scaremongering when they talk about the damage that would happen as a result of not continuing that past April?

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[Will Quince]

I will of course study in detail the report from the Select Committee, chaired by the right hon. Member for East Ham (Stephen Timms), and look closely at the recommendations made, but when there is emotive language about things such as cuts to universal credit in April that are frankly not true, that drives adverse claimant behaviour, which we as a Department see day in, day out. For example, we see people who would be eligible for universal credit delaying their claim, so they claim not at the point at which they are eligible but when their money has run out and they have hit crisis. And for example, there are hundreds of thousands of people on legacy benefits who we know would be better off on universal credit, but they do not make a claim. Why? Because of the scaremongering and scares from the Labour party.

[Stephen Timms (East Ham) (Lab)]

I do not quite understand the point that the Minister is making. As it stands, Government policy is to reduce universal credit by £20 a week from April. Surely it is perfectly legitimate for Members of this House to draw attention to that.

[Will Quince]

I thank the right hon. Gentleman for that intervention, but it was absolutely clear that the uplift of £20 per week was a temporary measure for one year, and we have also been clear that the Chancellor has yet to make a decision and that all options are on the table.

I have said this before, but it is important to stress the point: discussions remain ongoing with Her Majesty’s Treasury and a decision on the future of the £20 universal credit uplift will be taken by the Chancellor of the Exchequer in due course. The Chancellor has been clear that all options are on the table and that he will take into account the assessment of the economic and health situation as the best way to build on the successful support that the Government have put in place and provided for those on low incomes and in need throughout this year, through our plan for jobs and winter support package. My right hon. Friend Chancellor of the Exchequer has an unenviable task—there is no question about that—but I point out to the House that he has a proven track record of stepping up to support the poorest, most vulnerable and most disadvantaged in our country throughout this pandemic. I have no doubt that he will continue to do so. The scaremongering is not helpful.

We must not forget that the more than £7 billion of additional funding to strengthen our welfare safety net was just one part of a much larger package of support measures for individuals, which has dovetailed with DWP-led support. Those measures include the coronavirus job retention scheme; the self-employment income support scheme; increases to the local housing allowance; local council tax assistance; the local welfare assistance scheme; the covid winter grant scheme; the protection for renters; and the support and protection for homeowners. Despite our delivering an unprecedented package of support since March and the crucial support that we continue to roll out through our jobcentre network throughout the country, we know we must continue to maintain the strength of our welfare safety net, particularly to protect those experiencing financial hardship for the months to come.

The Government propose, in the draft order, to spend an extra £2.7 billion in 2021-22 on increasing benefit and pension rates. With this spending we are upholding our commitment to the country’s pensioners by maintaining the triple lock, increasing pensions by 2.5% and therefore spending on pensioner benefits by £2.2 billion; helping the poorest pensioners who rely on pension credit; and ensuring that working-age benefits, including essential support for disabled people and carers, maintain their value in relation to prices by increasing them by 0.5%. That is in addition to the comprehensive support package already in place to support those affected by the pandemic.

The Government remain committed to providing families and pensioners throughout our nation with a helping hand, should they need it. We will do so by once again increasing the levels of benefits for the next financial year. I commend this order to the House.

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[Will Quince]

I begin by thanking all those who have spoken and taken part in the debate, which covered many important topics. Given the time constraints, I will not be able to cover off all the points raised, but as I said in my opening speech—I will just focus on this for one moment—the statutory annual review of benefits does not include a decision on the £20-per-week uplift to universal credit, which was announced by the Chancellor as a temporary measure in March last year. I repeat, because this is important, that the Chancellor has been clear that all options are on the table. He will take into account the assessment of the economic and health situation when considering the best way to build on the successful support that the Government have provided to those on low incomes throughout this year so far.

I make no apology for using the word “scaremongering”. I understand some of the points that Opposition Members made, but there is a big difference between lobbying for additional Government support going forward and using emotive language and politicising an issue. I gently remind the House that it was this Government who introduced the temporary £20-per-week uplift to universal credit; it was not a measure that Opposition parties were calling for. This Government have not flinched throughout this pandemic in supporting the poorest, the lowest paid and the most vulnerable and disadvantaged, and I have no doubt that the Chancellor and the Government will continue to do so.

Members raised concerns about legacy benefits. First, let me say that I appreciate that many people face financial disruption due to the pandemic. That is why the Government put in place an unprecedented package of support, totalling more than £280 billion, to protect jobs, help families and strengthen our welfare safety net. Just to give a bit of the broader context on welfare spending, in 2021 we will spend more than £100 billion on benefits for working-age people. That is £100,000 million—around £1 in every £9 that the Government spend; double our Defence budget. We spend more on family benefits than any other country in the G7, at more than 3% of GDP. We make no apologies that we will continue to reform our welfare system so that it encourages work while supporting those who need help—an approach based on the clear evidence that work offers families the best route out of poverty.

[Stephen Timms]

Does the Minister accept the evidence that disabled people have seen significant cost increases in the course of the pandemic?

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[Will Quince]

I understand the point that the right hon. Gentleman has made. I know that his report goes into some detail on this issue. I gently remind the Chair of the Select Committee that universal credit is about £2 billion more generous than the legacy benefits system it replaced and is part of a broad package of support. Over and above the £20 uplift available for those on universal credit, those in receipt of legacy benefits may be entitled to other measures. It is important that they go on to the gov.uk benefit eligibility checker to check their eligibility before applying, because as the right hon. Gentleman knows, there is no path back to legacy benefits once someone has made a universal credit application. It is important to stress that universal credit is part of that broader package of measures worth more than £280 billion throughout the course of this pandemic. Yes, of course we recognise that people across the country have faced additional costs throughout this pandemic. That is exactly why the Chancellor stepped up with that £280 billion package, including an extra £7 billion in welfare support.

The Opposition spokesman, the hon. Member for Feltham and Heston (Seema Malhotra), said that we should heed the words of those on the frontline. I totally agree and encourage her to visit her local jobcentre at the earliest available opportunity to speak to work coaches, because then she will hear what they think about universal credit and how they believe it has been the tool that not only has enabled us to support an extra 3 million people throughout this pandemic but has allowed them to incentivise, support and empower people into work.

[Seema Malhotra]

I have visited my local jobcentre and keep in close touch with it. I hope that the Minister also listens to what I said about what the Trussell Trust, Citizens Advice and the Child Poverty Action Group have been saying, because that is important, and they will probably want a response from the Minister on those points.

[Will Quince]

I work very closely and meet with all the organisations that the hon. Lady references, but work coaches are an important reference point. They all say without hesitation, when I visit jobcentres across the country, that universal credit is an incredible tool—a powerful tool—to help support and empower people back into work. That is why it is so absurd that the Labour party wants to scrap it.

Several Members raised pension credit and its uptake. I have no doubt that the Pensions Minister will be willing to meet hon. Members to discuss that further, because I know that he has done a considerable amount of work in that area.

The uprating order will ensure that working-age benefits increase in line with inflation, which represents a cash increase of £500 million for working-age benefits. That includes those benefits that contribute towards extra costs arising as a result of disability or a health condition, and pensioner premiums in income-related benefits.

To conclude, I will summarise the benefit increases that the Government are implementing to support those most in need. We are increasing the basic state pension and the new state pension by 2.5%. That will deliver on our manifesto commitment for the state pension triple lock. We are increasing the pension credit standard minimum guarantee in line with the cash increase in the basic state pension to support the poorest pensioners. We are increasing working-age benefits in line with prices; we are increasing the universal credit work allowances so that claimants can earn more before their payments are reduced; and we are increasing benefits to meet additional disability needs and carer benefits in line with prices. I commend the order to the House.

Question put and agreed to.

Resolved,

That the draft Social Security Benefits Up-rating Order 2021, which was laid before this House on 18 January, be approved.

[Madam Deputy Speaker (Dame Eleanor Laing)]

I will suspend the House for three minutes in order that the Chamber can be prepared for the next item of business.