Oral Answers to Questions

Will Quince Excerpts

Monday 7th October 2019 Commons Chamber

[Mr Tanmanjeet Singh Dhesi (Slough) (Lab)]

5. What recent assessment her Department has made of trends in the level of in-work poverty.

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

Since 2010, there are over 3.7 million more people in work and 730,000 fewer children growing up in workless households. About three quarters of employment growth has been in full-time work, which has been proven to substantially reduce the risk of poverty. But it is not enough to have any job; we want people to have good jobs.

[Mr Dhesi]

With regard to in-work poverty, 20% of people in relative poverty in 2016-17 were single people without children and 11% were couples without children. The Government have done absolutely nothing to reverse cuts to work allowances for people without children who do not have a disability. What action is the Minister going to take to tackle in-work poverty among those people?

[Will Quince]

I totally disagree with the hon. Gentleman’s comments. We are committed to helping lone parents into a job that fits around their caring responsibilities. There are now more than 1.2 million lone parents in work. To support parents into work, the Government spend £6 billion on childcare each and every year.

[Harriett Baldwin (West Worcestershire) (Con)]

Has the Minister read the report from the Resolution Foundation that stated:

“Low pay is falling for the first time in four decades”

and that women were the biggest beneficiaries? It pointed out that since the national living wage was introduced in 2016 the percentage of employees on low pay has fallen from 20.7% to 17.1% last year.

[Will Quince]

I thank my hon. Friend for raising that matter. I have not seen the report, so I will go away and dig it out. We have invested £8 million to develop the evidence on what works to support people to progress in work, including enhancing our operational capability to support claimants to make good decisions on job switching.

[Chris Bryant (Rhondda) (Lab)]

The thing is, it is really difficult for many families in my constituency on the minimum wage, as they may have to travel quite substantial distances to be able to work, while having to meet family responsibilities at the same time. They end up not being able to do enough hours to make the whole package add up at the end of the week. How are the Government going to make sure that such families have a chance to provide for themselves? That is all they are trying to do.

[Will Quince]

The statistics show that full-time work reduces substantially the chances of poverty. The absolute poverty rate for children where both parents work full-time is only 4%, compared with 44% where one or more parents are in work, so we need to support more people into work, and we are doing so, for example, by offering 30 hours of free childcare to parents of three and four-year-olds. The national living wage is £8.21, increasing to £10.50 by 2024, and we have taken millions out of paying tax altogether.

[Eddie Hughes (Walsall North) (Con)]

6. What recent steps the Government have taken to help young people into employment.

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[Jack Lopresti (Filton and Bradley Stoke) (Con)]

8. What steps her Department is taking to ensure that universal credit claimants who receive two regular wage payments in the same review period are not penalised.

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

Universal credit takes earnings into account in a way that is fair and transparent. The amount of universal credit paid reflects as closely as possible the actual circumstances of a household during each monthly assessment period, including any earnings reported by the employer during the assessment period, regardless of when they were paid.

[Jack Lopresti]

Does my hon. Friend have any plans to introduce a mechanism to universal credit that allows claimants to move their review date?

[Will Quince]

As I said, monthly assessment periods align with the way that the majority of employees are paid and allow universal credit to be adjusted each month, which means that, if a claimant’s income falls, they will not have to wait several months for a rise in their UC. We have produced guidance to help to ensure that claimants, staff and representatives are aware of the importance of reporting accurate dates and the impact on payment cycles. I am conscious that my hon. Friend has written to me. I would be happy to meet him and my hon. Friend the Member for Thirsk and Malton (Kevin Hollinrake), who also raised that issue.

[Carol Monaghan (Glasgow North West) (SNP)]

I have been contacted by a number of constituents who have received unexpected pay—for example, holiday pay—during the assessment period. Because that pay is unexpected, it impacts on the amount of universal credit that they are awarded. What work is the Minister doing to ensure that unexpected pay, like holiday pay, will not severely impact their award?

[Will Quince]

As I have said, the amount of UC paid to claimants reflects as closely as possible the actual circumstances of a household during each monthly assessment period, and those periods align to the way that the majority of employees are paid. I recognise the issue. I have said that I am happy to meet two other colleagues, and I would be happy to also meet the hon. Lady.

[Mr Robert Goodwill (Scarborough and Whitby) (Con)]

I raised this issue with the Secretary of State’s predecessor in the run-up to Christmas last year because many enlightened employers will pay their staff early in December so they can afford Christmas. She told me it was fixed. However, I was phoned last week on my 24-hour helpline by a constituent who, because her partner was paid on the 28th of the month the previous month and on the 27th of the month subsequently, it appeared—to the computer at least—that they had had a 100% pay rise, and her benefit was cut to £11. Can we fix this, particularly before Christmas this year?

[Will Quince]

The simple answer to my right hon. Friend is yes, I am looking at ways in which we can do this. It is important to put this in context: UC replaces the outdated and complex benefits system, which too often stifled people’s potential, creating cliff edges at 16, 24 and 30 hours and punitive effective tax rates, of over 90% for some, punishing people for doing the right thing. UC seeks to take earnings into account in a way that is fair and transparent, and we want to preserve this simplicity as far as is possible.

[Tom Brake (Carshalton and Wallington) (LD)]

9. What steps she is taking to reduce the time taken for universal credit claimants to receive their first payment.

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[Stephen Morgan (Portsmouth South) (Lab)]

16. 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)]

This Government take child poverty extremely seriously. The evidence shows that work is the best route out of poverty and that there are 730,000 fewer children in workless households compared with 2010, but there is more to do—one child in poverty is one too many—and this is a key priority for me and the Secretary of State. I will continue to work with colleagues from across the House, other Government Departments and stakeholders to identify and tackle the root causes of poverty.

[Stephen Morgan]

Children are not getting the nutrition that they need on the 170 days a year when they are not at school. Local authorities and devolved Governments are tackling this issue head on; why are this Government not doing so?

[Will Quince]

This is probably a question for the Department for Education, but we are supporting more than 1 million children with free school meals, investing up to £26 million in school breakfast clubs and providing approximately 2.3 million four to six-year-olds with a portion of fresh fruit or vegetables each day at school. Through the Healthy Start programme, hundreds of thousands of low-income families benefit from vouchers that can be redeemed against fruit, vegetables, milk and infant formula.

[Stephen Timms (East Ham) (Lab)]

Child poverty is being driven up by the five-week delay during which people have to wait before they receive universal credit. Will the hon. Gentleman confirm that what Ministers refer to as an advance is in fact a loan that has to be repaid by claimants, and will he commit to scrapping the five-week delay?

[Will Quince]

I think that this one has been answered several times already, but advance payments of up to 100% are available from day one of a universal credit claim and budgeting support is available for anyone who needs extra help. The repayment time for the advances has been extended to 12 months and will be further extended to 16 months from October 2021.

[Mr Speaker]

There was a discernible world-weariness in the Minister’s reference to this question having been answered several times already. I simply remind those observing our proceedings that repetition is not a novel phenomenon in the House of Commons. It never has been, and I doubt that things are going to change very much.

[Margaret Greenwood (Wirral West) (Lab)]

An article in The BMJ shows that researchers have highlighted a possible link between an increase in the number of babies who die before their first birthday and child poverty. They estimate that there were an additional 570 excess deaths between 2014 and 2017, with 172 attributable to an increase in child poverty, so will the Minister scrap the two-child limit and the benefit cap, which are driving up child poverty?

[Will Quince]

I humbly suggest that few Members in the Chamber have raised child and infant mortality more than I have. I take the issue incredibly seriously and I have read that report. No one in government wants to see poverty rising. Wages have outpaced inflation for 18 months, and there are more people in work than ever before. We know that children in households in which no one works are about five times more likely to be in poverty than those in households in which all adults work. Our welfare reforms are incentivising work and supporting working families.

[Grahame Morris (Easington) (Lab)]

T1. If she will make a statement on her departmental responsibilities.

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[Peter Grant (Glenrothes) (SNP)]

T4. This morning, at the start of Challenge Poverty week, the Joseph Rowntree Foundation published a report entitled “Poverty in Scotland 2019”, which looks into some of the reasons why poverty levels in Scotland are not quite as bad as those in the rest of the United Kingdom. One of the major factors that it identifies is the much greater availability of affordable housing, and, in particular, the impact of nearly 20 years of council house building, and the fact that the Scottish Government have built 87,000 affordable houses since 2007. Does the Minister agree that, while he may claim that work is the best way out of poverty, unaffordable housing is a sure-fire way into poverty? Will the UK Government learn the lessons of what is happening in Scotland, and make social and council housing something to be celebrated instead of something to be demonised?

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

I do agree with the hon. Gentleman that secure and stable accommodation is one route out of poverty. It will come as no surprise to him that I raise this issue regularly with my counterpart at the Ministry for Housing, Communities and Local Government. I have been pushing the Ministry to consider providing more affordable homes, and homes for social rent, as one of its policy initiatives.

[Michael Tomlinson (Mid Dorset and North Poole) (Con)]

As chairman of the all-party parliamentary group for youth employment, I warmly welcome the Minister’s announcement about additional support for our young people. Can he confirm that mentoring will be an important part of that, given that it has been proved that it will help, in particular, those furthest from the labour market and the most vulnerable into work?

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[Rachael Maskell (York Central) (Lab/Co-op)]

T5. Childcare in York can cost more than £1,000 a month, and those on universal credit are being asked to pay that amount upfront. What is the Secretary of State doing to ensure that providers have the resources that they need and claimants are not having to pay?

[Will Quince]

Childcare provision is far more generous under universal credit than it was under the legacy benefits system. Another recent change is that the flexible support fund can now be used to pay deposits or first month’s payments.

[Mr Speaker]

I call Toby Perkins. [Interruption.] I did not call a Conservative Member because I know that the hon. Member for Chesterfield (Toby Perkins) is normally paying the closest possible attention, and none of the hon. Members sitting on the Government Benches wished to contribute to the proceedings. I therefore alighted on the oratorical opportunities offered by the hon. Gentleman.