Universal Credit: Delayed Roll-Out
Will Quince Excerpts(4 years, 9 months ago)
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Neil Gray (Airdrie and Shotts) (SNP)
(Urgent Question): To ask the Secretary of State for Work and Pensions to make a statement regarding the delay to the full roll-out of universal credit.
The Parliamentary Under-Secretary of State for Work and Pensions (Will Quince)
The Secretary of State and I informed Parliament yesterday that we had revisited our forecast for universal credit and were extending its completion date to 2024. Our planning for universal credit relies on assumptions about the number of people whose circumstances will change each day, thereby naturally migrating. Our forecasts to date have relied on 50,000 households experiencing a change in circumstances each month. Based on this, we had predicted that the process of natural migration to universal credit would be completed by December 2023.
Information collected on changes to people’s circumstances suggests that natural migration is happening less frequently than we expected. This suggests broad stability in people’s lives and can be attributed to a number of reasons, including the robustness of the labour market. We now estimate that 900,000 fewer households will naturally migrate between now and December 2023 than we had forecast. Given that we expect to manage about 100,000 households to universal credit each month, it necessarily follows that if we are to protect the interests of claimants and move them to universal credit safely it will take a further nine months to complete the implementation of universal credit.
I can assure colleagues that claimants will not lose money from their universal credit award owing to this forecasting change. We will always put the best interests of our claimants first, and as we move into the managed migration phase protecting the vulnerable will be our utmost concern.
Neil Gray
Thank you, Mr Speaker, for granting this urgent question, which I believe is the first to be granted to the SNP under your speakership.
The UK Government still have no respect for the House. They let the BBC announce this delay as part of a news trail for the documentary being aired tonight, without a written ministerial statement—I have not seen one, so can the Minister tell the House where it is?
I feel for the Minister, being forced to stand here today, because I know it was not his decision to withhold that information from colleagues. Where is the Secretary of State? This should have been an oral ministerial statement.
Quotes from the documentary seem to suggest that this decision was taken by a senior official, not the Secretary of State. Has she abandoned decision-making oversight? When did she sanction this decision? Perhaps there was no oral ministerial statement because she found out only last night, like the rest of us—what an absolute shambles.
Universal credit was supposed to have been fully rolled out by 2017. This further delay means that it will have been delayed by a further seven years at a potential cost of £500 million. It highlights how far universal credit is from getting it right, as does the fact that this delay is needed to avoid further hardship to those in receipt of the benefit.
Ministers say, as the Minister said again just now, that the delay is needed because people are scared to go on universal credit. They say it like they are actually surprised. The great irony is that if this Tory Government were to listen and do what expert charities and those actually in receipt of universal credit were saying, these delays would not be needed.
Will the UK Government use this delay productively by making a meaningful investment in universal credit to see it fixed, scrapping the two-child cap and rape clause, ending the debt and poverty-inducing five-week wait and making work pay by fully restoring work allowances?
Finally, will the Minister confirm that this delay means that more people will be part of the natural rather than the managed migration process, which in turn will mean that those recipients will lose out on transitional payments, thus saving the Government more money at the expense of people who actually need it?
Will Quince
I have not yet seen the BBC documentary, and I suspect that the hon. Gentleman has not done so either, because it is due to be aired shortly. However, it is important to stress that officials discussed advice to be sent to Ministers late in 2019, and the final discussions were held with Ministers in 2020. Parliament was then informed. This relates to the back end of the timetable, which concerns people moving to universal credit in 2024-25, so the change was communicated in good time.
The hon. Gentleman referred to cost, and it is important to put that in context. This is additional money that will go into the pockets of our claimants, some of the most vulnerable and disadvantaged in our country. About 900,000 people could now receive transitional protection who would not have been able to receive it through natural migration.
Damian Hinds (East Hampshire) (Con)
I welcome my hon. Friend’s clarification of the need for this reforecasting. May I invite him to restate the Government’s total commitment to a universal credit arrangement that simplifies the system? It means dealing with one Department rather than three, it combines six benefits into one, it helps people to get into work more quickly, and it smooths their transition into work thereafter.
Will Quince
I thank my right hon. Friend for his question, and for all the work that he did in our Department. He is absolutely right: universal credit is a modern, flexible, personalised benefit that reflects the rapidly changing world of work. Conservative Members believe that work should always pay, and that we need a welfare system that helps people into work, supports those who need help, and is fair to everyone who pays for it.
Margaret Greenwood (Wirral West) (Lab)
Yesterday the BBC reported that the Government had decided to delay the roll-out of universal credit until September 2024, adding £500 million to its overall cost. That is hugely embarrassing for the Government: yet again, they have had to delay what is meant to be their flagship social security policy. Last week the Minister told the House that they had managed to process fewer than 80 households since July, as part of what was meant to be a pilot of up to 10,000 households in Harrogate, and that only about 13 of those households had transferred to universal credit. At that rate, it would take the Government more than 380 years to complete their managed migration pilot.
Universal credit was supposed to make work pay, but instead it has caused misery for thousands across the country. It seems from yesterday’s report that senior civil servants think people are too scared to transfer to it. Can the Minister tell us why so many people are scared? Is it because of the five-week wait that is pushing so many families into debt and rent arrears, and making them turn to food banks to survive? Is it because of the two-child limit, which the Child Poverty Action Group has described as
“a policy designed to increase child poverty”?
Is it because of the sanctions regime that has made some of the most vulnerable people in our society destitute? Or is it down to the fact that, according to the Government’s own research, nearly 50% of claimants were not able to make a claim online unassisted?
It is clear that the Government have been forced to delay universal credit yet again because people do not have confidence in the system. Can the Minister tell us what they intend to do with the extra time? Will they get rid of the five-week wait? Will they scrap the two-child limit? Will they call a halt to the sanctions regime that is pushing people into destitution? And will they now apologise to all the people whom they have pushed into hardship through universal credit, and create a social security system that protects people from poverty and treats them with respect?
Will Quince
The hon. Lady says that I should be embarrassed. I will never be embarrassed about putting the most vulnerable and disadvantaged people in our society first, and neither will the Government. She talked about cost. As I have said, this is up to £500 million of additional money that will go into the pockets of our claimants. When she referred to the pilot, she was conflating two very separate issues. She also said that people were scared. Perhaps if members of the Labour party desisted from their scaremongering and spent more time in our jobcentres speaking to work coaches, they would have a better understanding of universal credit and how well it is working.
Stephen McPartland (Stevenage) (Con)
I am certainly no fan of the Department for Work and Pensions and its campaign to improve universal credit, but I do know that this Minister cares about making universal credit work, and this Minister has my full backing to make it work—and I have worked with many Ministers over the last 10 years. Will he tell me clearly, however, whether my constituents will be better off or worse off because of the way in which the migration works?
Will Quince
I thank my hon. Friend for his question and for his kind words. The answer is a categorical yes: his constituents will be better off. Under our forecasting, around 900,000 people will now be eligible for transitional protection, and as a result they will be better off.
Stephen Timms (East Ham) (Lab)
I congratulate the hon. Member for Airdrie and Shotts (Neil Gray) on securing this urgent question. Claimants are extremely reluctant to be moved on to universal credit. It has a dreadful reputation, largely because for the first five weeks that they are on it the only help they can get is a loan. Claimants on universal credit are two and a half times more likely to need a food bank than those on the previous benefits. Will Ministers look urgently at drastically cutting that five-week delay?
Will Quince
First, I congratulate the right hon. Gentleman on his election as Chairman of the Work and Pensions Committee. I take all issues around policy in my Department, in the areas in which I have control, very seriously and I am happy to work with him. Are there improvements that we can make to universal credit? Yes, of course there are, and I look forward to working with him find some of those solutions.
Mr Mark Harper (Forest of Dean) (Con)
Is the Minister as surprised as I am that, when questions about universal credit come up, people have a clear tendency to forget that the legacy benefits system leaves a lot to be desired and traps people in jobs where they cannot work more hours? Universal credit is a massive improvement. Of course there are going to be issues, but I for one am pleased that the Minister is taking this cautiously and carefully. Universal credit helps people to get into work and makes work pay, and he should not be embarrassed about it at all.
Will Quince
I thank my right hon. Friend for his question. The previous system has been described as clunky and confusing, as leading to overpayments and therefore ongoing deductions, as acting as a disincentive to work through cliff edges at 16, 24 and 30 hours, and in some cases as a marginal tax rate of 90p in the pound. Labour was content to have people trapped in a life on benefits. What did that mean for the life chances of people and their children? Under universal credit, it always pays to work and increase your hours.
Ms Angela Eagle (Wallasey) (Lab)
The final delivery of universal credit seems to be even later than a Northern train. It is a demonstration of the incompetence of this Government that they have wrecked the benefits system in this way. When universal credit was rolled out in my constituency as one of the experiments—they never do experiments in their own constituencies—it caused a tenfold increase in food bank usage and huge hardship—[Interruption.] The Minister can pretend all he likes that that did not happen, but I know from my own advice surgery that this benefit causes misery.
Will Quince
Let us instead look at the facts. Universal credit will give claimants an extra £2.1 billion a year, once it has been fully rolled out, compared with the system that it replaces. Around 1 million disabled house- holds will receive an average of around £100 more a month, and 700,000 families will get the extra money that they are entitled to—around £285 a month—under universal credit. Claimants will have access to around £2.4 billion of previously unclaimed benefits—benefits that they did not receive under the legacy benefits system of the previous Labour Government.
Michael Tomlinson (Mid Dorset and North Poole) (Con)
I simply do not understand why Opposition Members are so against this system, which is helping people into work. I have visited my jobcentre in Poole, where work coaches are so positive about the universal credit system because it gives them the tools to get people into work. It is not just Conservative Members who support universal credit; it is also those who have been helped into work by our work coaches.
Will Quince
My hon. Friend is absolutely right, and I thank him for visiting his jobcentre. If more Members across the House did so, they would have a better understanding of the system and of how our work coaches feel about it. They would find that, as my hon. Friend rightly says, it is a valuable tool to help people to get into work and to progress in work. We should all be proud of it.
Hywel Williams (Arfon) (PC)
In a written answer to me, the Secretary of State has conceded:
“As the two-child limit policy was introduced in April 2017 there is insufficient data to assess any impacts of the policy on low income.”
Almost three years on, we still do not have sufficient data to assess the impacts. Will the Secretary of State and the Minister take the opportunity provided by this period of grace that they have granted themselves to get proper statistics on the effect of the two-child rule on people of ethnic and religious backgrounds, and at local authority and parliamentary constituency level?
Will Quince
I am not entirely sure about the correlation between that question and this urgent question but, nevertheless, the hon. Gentleman can write to me, or I would be happy to meet him to discuss the issue further. I cannot guarantee that we will agree, but I will be happy to listen to him to understand the issues he raises.
Rachel Maclean (Redditch) (Con)
When I visited my jobcentre in Redditch, which, contrary to some suggestions from the Opposition, has had full roll-out of universal credit since October 2017, I found work coaches to be incredibly positive about the transformational help being given to their clients. Does the Minister agree that the constant scaremongering and muddling from Opposition Members is the problem? First they want to scrap universal credit, then they want to pause it—who knows what they would do? We need to be on the side of the people, and I am glad that this Government are.
Will Quince
My hon. Friend is quite right. At every single jobcentre that I visit—I visit one every week on average —I get that same feedback, and the one thing that staff would like to change is the reputation. It would be helpful if Opposition Members visited their jobcentres, spoke with work coaches, got that understanding, and desisted with the unhelpful scaremongering.
Alison Thewliss (Glasgow Central) (SNP)
My constituent, a mature student with a wife and child, claimed UC and provided all the information that was required. The DWP later announced that it had made an error and asked my constituent to pay back £2,416. He has had to give up his studies, and his family is now in hardship. Does that incompetence not demonstrate why people are so scared to make a UC claim? While the Minister for deep-fried Mars bars is at the Dispatch Box, will he explain why he still has not apologised to me and my colleagues?
Will Quince
I hope you recall, Mr Speaker, that I did make a full, frank and unreserved apology in this Chamber. As for the case that the hon. Lady raises, if she would like to write to me with the details, I will happily look into it. There are strict Treasury rules about errors and deductions, but I will be happy to look at them.
James Cartlidge (South Suffolk) (Con)
Will my hon. Friend confirm that today’s announcement does not change the fundamental course of our policy, which is to move away from a perverse legacy system that incentivised claimants to minimise the number of hours worked to one that incentivises them to maximise their hours and gives them a chance to move away from long-term benefit dependency?
Will Quince
I thank my hon. Friend for that question and for his support for universal credit and, indeed, his local jobcentre. We believe that work should always pay, and we need a welfare system that helps people into work, supports those who need help, and is fair to the taxpayers who pay for it. It is important to stress—my hon. Friend is right about this—that it always pays to work and increase one’s hours under universal credit. That was not the case under the legacy benefit system.
Yvonne Fovargue (Makerfield) (Lab)
Overwhelming evidence from the pilot areas such as Wigan and debt charities such as StepChange shows that the five-week wait is causing further debt problems. Will the Minister use this delay to rescind and reconsider this policy urgently?
Will Quince
I have huge respect for the hon. Lady, and I would be happy to visit her constituency to meet some of the organisations she references. It is important to state that nobody has to wait five weeks for an initial payment, which can be done on day one. It is repayable over 12 months but, as of next year, that will be extended to 16 months. We also have additional measures such as the two-week housing run-on and, as of July this year, a further two-week run-on of other legacy benefits. Are there further improvements that I would like to make? Yes, of course there are. They would all require Treasury approval, but I would be happy to work with hon. Lady to look at them in further detail.
Richard Drax (South Dorset) (Con)
I, too, have visited my jobcentre and its staff universally welcome universal credit—there is no doubt about that—but there have been one or two hiccups. When an employer tends to pay early, say at Christmas, that does tend to muck up the next month’s universal credit payment. Are we trying to resolve that issue?
Will Quince
My hon. Friend asks a pertinent question that was raised by six separate colleagues at oral questions only last week. I am looking closely at this area and intend to organise a roundtable with interested colleagues and officials to explore how we can tackle the issue.
Debbie Abrahams (Oldham East and Saddleworth) (Lab)
I congratulate my hon. Friend the Member for Airdrie and Shotts (Neil Gray) on his urgent question. Policy in Practice analysis shows that disabled people lose an average of £3,000 a year, but they are not the only group to lose money under universal credit. In addition to considering the five-week wait, about which so many of my colleagues have raised issues, will the Minister examine increased support for disabled people? Disabled people and children are being plunged into poverty as a result of this benefit.
Will Quince
I think I have already answered this question. Around 1 million disabled households will receive an average of £100 more per month under universal credit. Importantly, the claimants will have access to around £2.4 billion of previously unclaimed benefits that, for all sorts of reasons, they did not claim under the legacy benefit system.
Andrew Jones (Harrogate and Knaresborough) (Con)
Harrogate and Knaresborough has been a trial area for universal credit since it started, including being the location for the legacy migration. I have therefore followed universal credit for many years and I have spoken with claimants, employers and the team at Harrogate jobcentre who have done a great job. They all report positive feedback. There are obviously some problems, but there were problems with the previous system. Universal credit is helping people to get into work and to make work pay. Will the Minister continue the focus on making work pay?
Will Quince
I thank my hon. Friend for his very helpful question and for his support of universal credit and his local jobcentre. I am full of praise for those staff working in the jobcentre at Harrogate and the work that they are doing on the pilot. That is hugely important work, because it sets the scene and gives us the all important data and learnings we need to move out universal credit at scale and pace.
Janet Daby (Lewisham East) (Lab)
In the last 18 months, a food bank in my constituency has seen an increase of two thirds in people using it. Will the Government accept that more people in the UK—including those in employment—are using food banks than ever before, as a direct result of policies such as universal credit, the five-week wait and the two-child limit?
Will Quince
I do not want anyone in our country to have no choice but to use or visit a food bank. I visit food banks regularly, and I want to get a clear understanding of food insecurity in our country. That is why we have commissioned questions for the Family Resources Survey, which started in April last year. I am also working with food banks and other organisations that tackle food insecurity to better understand the issue. If we better understand the issue, we will know how to tackle it.
David Simmonds (Ruislip, Northwood and Pinner) (Con)
Does my hon. Friend recognise as I do that the opening of the food banks that serve my constituency in 2009 was a response to the deep-seated problems at the height of Labour welfare spending? Does he agree that the feedback from local authority areas where universal credit has been rolled out has been that it is a much more supportive system than the legacy system?
Will Quince
I thank my hon. Friend for that question. He is absolutely right: it is a far better system than the previous legacy benefit system. We know it is working better at helping people to get into jobs and stay in them. Is it any surprise that under this Government the number of people in work is up more than 3.8 million since 2010, and the employment rate is 76.3%, a record high?
Kate Green (Stretford and Urmston) (Lab)
Given this latest delay, which follows endless repeated delays over the last few years, can the Minister assure the House that sufficient investment is being made to maintain the legacy systems, which will now have to last an additional seven and a half years longer than originally envisaged?
Will Quince
I can of course give that commitment, but I stress that this is a change in policy based on forecasts. Forecasts do change, and it is responsible of Ministers to look at them and change policy accordingly. If the forecast changes, I will of course look at it, as will the Secretary of State, and where necessary, act accordingly.
Siobhan Baillie (Stroud) (Con)
We hear a lot from the Opposition, and we certainly did during the election, about scrapping universal credit or sections of it, but I and many people in this Chamber would much rather have a change of forecast than a change to the entire system, and certainly the jobcentres would agree with that. Will the Minister tell us what, if anything, claimants will notice on the ground from the change in forecasts?
Will Quince
I thank my hon. Friend for that question, and I welcome her to her place and indeed to her position on the Select Committee. Most claimants will not notice any difference whatever, other than that an extra 900,000 will be eligible for transitional protection. She raises an important point. The IFS slammed Labour’s pledge to scrap universal credit as uncosted and
“unwise…expensive, disruptive and unnecessary.”
It is important to point out that no Labour Government have ever left office with unemployment lower than when they started.
Chris Stephens (Glasgow South West) (SNP)
The Minister is correct that he apologised to Glasgow MPs, but he told us he would write to us that day and we are still waiting. Delays seem to be an important part of his stewardship.
On the five-week wait and given that we now know from parliamentary answers that the Department receives £50 million a month in repayments from advances, surely that now tells us to scrap the five-week wait and make sure the first payment is not a loan or an advance payment, but a first payment for universal credit.
Will Quince
It is a system based on arrears, not on advances, unlike the legacy benefit system. The hon. Gentleman knows that people are able to access an advance on day one repayable over 12 months. That will extend to 16 months next year and I am looking at whether we can explore options to extend that further. We have made further changes—scrapping the seven-day wait, the additional two-week run-on, the two-week run-on starting in July of legacy benefits—and, where there are further changes we can make, I am of course willing to look at them and act where appropriate.
Peter Aldous (Waveney) (Con)
I commend the Government for delaying the roll-out of universal credit and, indeed, for the changes that they have made to the system over the last four years or so, but may I ask the Minister to give serious consideration to getting rid of the five-week wait, notwithstanding the answer he gave to the hon. Member for Makerfield (Yvonne Fovargue)? In my experience, it is causing very serious challenges for my constituents.
Will Quince
I thank my hon. Friend for his question and the constructive way in which he put it, but I must respectfully disagree with him. There is no five-week wait. People are able to access their advance on day one.
Sarah Olney (Richmond Park) (LD)
Can the Minister tell us whether we can now expect to see an improvement to the kind of delays that many applicants are experiencing in their applications being processed? Will the Minister commit himself to publishing some statistics so that we can see whether the impact of this delay has resulted in an improvement to those kinds of delays?
Will Quince
I am a little confused, because my understanding is that those performance stats are indeed available. The Department has a very good record on payments and payment timeliness. Can we improve? Of course we can, and I meet with officials on at least a weekly basis to discuss that. In many cases, it is down not just to the Department but to how the claimant provides information. We are putting in additional resource, where appropriate, to help people to help themselves to get us that important information that we need to process the claims.
Nigel Mills (Amber Valley) (Con)
Will the Minister confirm that one solution to this would be to get more uptake for the excellent help to claim service through Citizens Advice? Will he confirm that service will be extended so that it is there for the whole period through to the end of the roll-out?
Will Quince
I thank my hon. Friend for that question and for his work on the Select Committee. He is right: help to claim, commissioned via the Department and run by Citizens Advice and Citizens Advice Scotland, is working really well. We are now in detailed discussions in relation to a second year, but I want to go further and in April we will launch a £10 million transitional fund for UC, in particular to support disadvantaged and vulnerable groups. It will also help Members, because organisations in their constituencies will be able to bid for that funding.
Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op)
The Public Accounts Committee is not in the business of scaremongering, but from the very beginning we have raised concerns about the pace and the over-ambitious nature of this policy. Only today, the Minister listed so many changes that have taken place since it was rolled out that it shows there is a problem. In our last session on this issue, we heard from local authorities about the millions of pounds they are having to put aside to help people. With this extra time, will he look at what support he can give local authorities who are having to backfill mistakes by his Department?
Will Quince
Universal credit is an evolving system and it is a relatively new system. I meet with stakeholders and Members from both sides of the House on a regular basis, and where there are improvements that we can make quickly, I will of course look at them and make them. Where there are changes that can take a longer period of time, I can start setting those in train. I would be very happy to meet the hon. Lady and discuss the issue she raises in further detail.
Rob Butler (Aylesbury) (Con)
One of the very first constituency visits I made as a new MP was to Aylesbury jobcentre. Does my hon. Friend agree with me, and with the work coaches and claimants I met there, that universal credit is a much better system than what went before because it positively incentivises people to find a job?
Will Quince
My hon. Friend is right for all the reasons that he points out, but I would go further and say that it is the personal relationship with a work coach that makes it so very different to the legacy benefits system. Work coaches will work with people to help them get work ready, to get into work and then to progress into the job that they want and that suits their family.
Sir Mark Hendrick (Preston) (Lab/Co-op)
My constituency was one of the trials for universal credit, and all we have seen since its introduction is debt, poverty, hunger and homelessness. How is that putting the claimant first?
Will Quince
I do not recognise those statistics, or indeed the correlation. I do not know when the hon. Gentleman last visited his jobcentre, but I would strongly recommend he does so to discuss with work coaches the difference that universal credit is making in his constituency. If he has specific concerns, I invite him to write to me and I will look at them in detail.
Andrew Bowie (West Aberdeenshire and Kincardine) (Con)
Does my hon. Friend agree that if people out there are scared, the blame, at least in part, is with the Opposition parties, whose reckless, irresponsible scaremongering paints a picture wholly at odds with the picture on the ground in jobcentres across the UK?
Will Quince
My hon. Friend raises a good point. When I speak to and visit jobcentres and work coaches, they always tell me that the one thing they want to change is reputation. While Opposition Members continually talk down universal credit and say they would scrap it—against the advice and guidance from organisations such as the IFS and many charities—they are not helping the situation a jot.
Steve McCabe (Birmingham, Selly Oak) (Lab)
If I accept that part of the Minister’s motivation is to protect the interests of those on legacy benefits, will he equally accept that those who are wrongly transferred to universal credit because of erroneous advice from a jobcentre, should have their interests protected by an automatic right to at least have their legacy benefits restored?
Will Quince
The hon. Gentleman raises a pertinent point. I am looking at that very issue. I would be happy to meet him to discuss it further; it does concern me. On his first point, I will always put disadvantaged and vulnerable residents at the forefront of my mind in any decision making that I undertake while in this role.
Stephen Crabb (Preseli Pembrokeshire) (Con)
The Minister is exactly right in the careful, pragmatic approach that he is taking to roll-out; it is what responsible Ministers do. However, may I encourage my hon. Friend to follow his instincts and, in his discussions with the Treasury, make the case for improving universal credit? The truth is that if we are to improve this good policy further, it will require resource.
Will Quince
I thank my right hon. Friend for his helpful question and for all the work that he did while at the Department. He, like me, believes that work should always pay, and that we need a welfare system that helps people into work. My mind is full of ideas on how we can improve universal credit, and if he would like to help me in persuading the Treasury to get behind those, I would very much welcome that.
Stephanie Peacock (Barnsley East) (Lab)
Barnsley food bank gave out over 4,000 food parcels to people in crisis in a year. The Minister appears to be in complete denial. Why will the Government not accept that the increase in food bank use has a direct link to policies such as universal credit, and that it is about time it was scrapped?
Will Quince
I thank the hon. Lady for her question. I could not disagree more, but I do agree with her that I do not want to see anybody feeling that they have no choice but to visit a food bank. I want to better understand this issue, which is why I visit food banks. I meet food bank organisations and other organisations that help to tackle food insecurity. I would be happy to meet the hon. Lady to discuss this further. There is a huge amount of ongoing work.
Steve Double (St Austell and Newquay) (Con)
I very much welcome the approach that the Minister and his predecessors have taken on this issue, keeping universal credit under review and making changes where appropriate, but can he assure me that some things about universal credit will not change—that it will always be a system that is fair to claimants and the taxpayer, and that being in work will always pay?
Will Quince
I can absolutely give my hon. Friend that assurance. Under universal credit, it will always pay to work and it will always pay to do more hours. That is the principle that we stand by, and we will stick by it.
Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)
My constituency was the guinea pig for universal credit, and we had no protection over our transition. By 2024, Inverness will have endured 10 years of chaos, delays and hardship. What will the Minister do to compensate those claimants who have already been through this mill, and will he do something about repaying the £3 million in additional administration costs that Highland Council has incurred in order to operate universal credit?
Will Quince
First, I do not recognise the statistics and figures that the hon. Gentleman raises. I feel that he has a permanent prejudice against universal credit in principle. If he would like to write to me with any statistics or figures that support his claims, I would be happy to look at them.
Neil Coyle (Bermondsey and Old Southwark) (Lab)
The Minister accuses charities of scaremongering, but are not people right to fear the debt, poverty, food bank reliance, homelessness and even survival sex work that universal credit and the five-week wait have been evidenced to create—even seen by the Work and Pensions Committee?
Will Quince
I have worked very closely with the hon. Gentleman on issues such as homelessness. He knows that I share his passion to ensure that our welfare system works, and supports the most vulnerable and disadvantaged in our society. However, it is important to point out that we spend £95 billion a year on benefits for working-age people, so we will continue to reform our welfare system so that it encourages work while supporting those who need help—an approach that is based on the clear evidence that work offers families the best opportunity to get out of poverty.
Zarah Sultana (Coventry South) (Lab)
On Friday I visited Coventry food bank, where demand has shot up in the past few years. I asked the staff why. Their answer was immediate and unequivocal—universal credit. Will the Government finally accept that many more people than ever before, many of whom are in employment, are using food banks as a direct result of universal credit, the five-week wait and the two-child limit?
Will Quince
I thank the hon. Lady for her question but do not accept the anecdotal points that she makes. Governments and Ministers make and take decisions based on evidence. I am building the evidence base within the Department based on the family resource survey and the questions in it in relation to food insecurity, and working with food bank providers—the Trussell Trust being one, but there are around 800 independent food bank providers—to better understand the issues and how we can tackle food insecurity in the round and for good.
Steven Bonnar (Coatbridge, Chryston and Bellshill) (SNP)
This Government need to take a long, hard look at themselves and the pressures they are placing on hard-working, low-income families and individuals. I do not trust the Minister’s pledges. For a hard-working, loving parent, it is absolutely, gut-wrenchingly worrying—which is no doubt beyond the comprehension of many of the privileged folk of this place—to find out that the moneys they are depending on, and entitled to, will not be coming. I do not need to visit a jobcentre to know that; I speak with some authority on the matter, because until my election to this place, I was a universal credit claimant, as a single parent. I ask the Minister to scrap the five-week wait and stop plunging hard-working families and individuals into further debt by making it necessary for them to avail themselves of a loan from the DWP.
Will Quince
I thank the hon. Gentleman for his question. I would suggest very strongly that he should visit his local jobcentre, because he would have a better understanding. [Interruption.]
Peter Grant (Glenrothes) (SNP)
Will the Minister reconsider the ill-advised and, frankly, insulting use of the word “scaremongering”? It is not scaremongering when food banks talk about a massive increase in demand, and when local authorities report huge increases in rent arrears; nor is it scaremongering for local authorities to report having to spend a lot of their scarce resources to make up for the shortfalls of universal credit. If the Minister wants to insult me by accusing me of scare- mongering, that is fair enough; when he insults me for raising the concerns of my constituents, he insults my constituents. Will he apologise for that, and will he reconsider the inflammatory language he has used?
Will Quince
I meet stakeholders in relation to the Department every single week, and I take the concerns and issues they raise very seriously because they are largely based on evidence. When I refer to scaremongering, I refer to the tone and language and rhetoric so often used by Opposition Members.
I did not quite get to answer the question by the hon. Member for Coatbridge, Chryston and Bellshill (Steven Bonnar) and in fairness, I should. He mentioned hard-working people. It is important to stress that income inequality has been falling under this Government in real terms. The national living wage will rise to £8.72 in April, and to £10.50 by 2024. Our tax changes will make a basic rate taxpayer more than £1,200 better off. We have doubled the free childcare available to working parents. We are doing a huge amount to tackle the cost of living and to support working parents.
Mr Barry Sheerman (Huddersfield) (Lab/Co-op)
I think the Minister is quite a fair-minded man, but does he agree that the best policies for our welfare state are evidence-based? That means not just visiting constituencies and looking at jobcentres, but looking at the health sector. Ask GPs; ask the people running our hospitals and healthcare. They will tell us, and him, the real impact on people’s health up and down the country as one of the side effects of this silly, misguided policy.
Will Quince
I meet all sorts of organisations up and down the country, and they often raise some of the issues that the hon. Gentleman raises. Where there are issues with our system that I can make changes to quickly, I look at them, and if they do not have a huge fiscal impact, I will make them. Otherwise, we have to look to fiscal events. However, universal credit is an evolving process. If there are improvements that we can make—and I believe that there are—we should make them. I am looking at those very closely; if the hon. Gentleman has ideas, I would be happy to hear them.
Alan Brown (Kilmarnock and Loudoun) (SNP)
The National Audit Office has said there is no evidence that universal credit gets people into work, and that there is no way of measuring it from the Government’s perspective. The roll-out of universal credit in my constituency has caused council housing rent arrears to double, so that is putting a burden on local rent payers. In November 2018, income assessment period deductions for people getting two pay packets were found to be illegal. The Minister says he has lots of ideas to improve universal credit; can he give us an idea to improve at least one of those aspects?
Will Quince
Let us look at some facts: the number of people in work has increased by more than 3.8 million since 2010; the employment rate is 76.3%, which is a record high; the unemployment rate is 3.8%, having gone down by more than half since 2010; and 80% of the growth in employment since 2010 has been in full-time work. We are very proud of our record, but we are not complacent and our ambition is to go much, much further.
Alex Cunningham (Stockton North) (Lab)
Perhaps if the Tory MPs had my case load, they would recognise the misery and poverty that their policies caused. This week, another constituent contacted me because she had been denied the vital UC cash she needs, as she is paid four-weekly and this last month she received two payments from her employers. When will this anomaly be sorted out and people not be left unable to pay their bills?
Will Quince
I believe I answered this question a little earlier today. I am looking at the issue, and I will invite the hon. Gentleman, along with other colleagues who have an interest in this area, to the Department to raise it with officials. We are looking at solutions. It is not potentially an easy or quick fix, but if we can address this, of course we will.
Jim Shannon (Strangford) (DUP)
I see the delay as a wise step by government to reassess, and I congratulate the Minister on not enforcing a transfer to UC on people, who know it will see them in a five-week freeze. Will he use this delay to introduce a smoother, more workable transition period, to prevent people from getting into debt?
Will Quince
I thank the hon. Gentleman for that question. The important point here is that when we talk about the £500 million cost, we are talking about £500 million that will go into the pockets of claimants up and down the country, including some of the most vulnerable and disadvantaged people in our country, who previously would not have received that transitional protection under the legacy benefits system or in their transfer over under natural migration.
Martin Docherty-Hughes (West Dunbartonshire) (SNP)
Although I would visit jobcentres in my constituency on a more regular basis, it does not help when the Department shuts them, as it did the one in the Vale of Leven. Given a substantial increase in the uptake of support through the two food banks, Food for Thought and West Dunbartonshire Community Foodshare, although we may disagree on the implementation, I hope the Minister takes the opportunity to agree with me that with this extension and additional moneys going into the process there is an opportunity to reflect on what has gone on before, especially for those Members, such as myself, whose constituents do not feel as though they have been treated properly.
Will Quince
We have more than 630 jobcentres up and down our country, so there will be a jobcentre within reach of the hon. Gentleman. He raises a number of points. We are always looking at how we can improve UC, and if he has ideas, he can either write to me or come to see me, because I am very approachable—we could even share a deep fried Mars bar together.
Sir Desmond Swayne (New Forest West) (Con)
No one should agree an embargo with the BBC and expect it to be kept, should they?
Will Quince
It is probably best that I do not comment on this. We had intended to come to this House this week to announce this. Unfortunately, we got this done yesterday via a letter to the Work and Pensions Committee Chair and indeed a “Dear colleague” letter to myself, and I am here today to answer Members’ questions, which I hope has been valuable.
Work and Pensions
Will Quince Excerpts(4 years, 10 months ago)
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Will Quince
I recommend that the hon. Gentleman visits his local jobcentre and speaks to work coaches, because they will tell him about the impact of universal credit. More people are getting into and staying in work. Importantly, we do listen to hon. Members from across the House and to stakeholders within the Department. In addition to the measures I mentioned earlier, we now have a two-week run-on for housing benefit and will have a run-on for other legacy benefits as of October next year.
[Official Report, 27 January 2020, Vol. 670, c. 519.]
Letter of correction from the Parliamentary Under-Secretary of State for Work and Pensions, the hon. Member for Colchester (Will Quince):
An error has been identified in the response I gave to the hon. Member for Airdrie and Shotts (Neil Gray).
The correct response should have been:
Will Quince
I recommend that the hon. Gentleman visits his local jobcentre and speaks to work coaches, because they will tell him about the impact of universal credit. More people are getting into and staying in work. Importantly, we do listen to hon. Members from across the House and to stakeholders within the Department. In addition to the measures I mentioned earlier, we now have a two-week run-on for housing benefit and will have a run-on for other legacy benefits as of July this year.
Oral Answers to Questions
Will Quince Excerpts(4 years, 10 months ago)
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Zarah Sultana (Coventry South) (Lab)
The Parliamentary Under-Secretary of State for Work and Pensions (Will Quince)
May I welcome you, Mr Speaker, and the hon. Lady to your respective places? Since 2010, there have been more than 3.8 million more people in work and 730,000 fewer children growing up in workless households. Over three quarters of this employment growth has been in full-time work, which has been proven substantially to reduce the risk of poverty. But it is not enough to have just any job: we want people to be able to progress in the workplace. To do this, we are investing £8 million to develop the evidence about what works to support people to progress.
Zarah Sultana
Just 33 working hours into January this year, FTSE 100 bosses had already earned more than the average worker makes over the entire year. Since the Conservative party came into power, wages have faced their biggest peacetime squeeze since the Napoleonic era, and more than 4 million people are now in work but none the less still in poverty. It should be no surprise that the economy works for the super-rich and fails for everyone else, when the Conservative party is funded by a third of UK billionaires. Given that shameful record, why should my constituents believe a word that this Government say about tackling the scourge of poverty pay?
Will Quince
As far as I am concerned, one person or family in poverty is one too many, and I will work to tackle that while I am in this role. The statistics show that full-time work substantially reduces the chances of poverty. The absolute poverty rate of a child when both their parents work full time is only 4%, compared with 44% when one or both parents are in part-time work. We are supporting people into full-time work where possible by offering, for example, 30 hours of free childcare to parents of three and four-year-olds. The jobcentre in the hon. Lady’s constituency is doing incredible work in this area, and I strongly recommend that she visit.
Neil Gray (Airdrie and Shotts) (SNP)
What impact does the five-week wait for universal credit have on levels of in-work poverty and on poverty overall?
Will Quince
Nobody needs to wait for an initial payment. An emergency or urgent payment of up to 100% of the first indicative award can be made within the first day in many cases. It is interest free and repayable over 12 months, increasing to 16 months as of next year.
Neil Gray
I am unsurprised that the Minister did not know the answer to that question because, in response to a freedom of information request from the Poverty Alliance, the Government said that they did not hold that information. Following on from the National Audit Office saying that there is no evidence that universal credit has any link to increased employment levels, we now know that the Government have done precisely nothing in an area in which MPs, expert charities, the Scottish Government and local authorities are screaming for change. Will this Minister encourage the UK Government to open their tin ears and fix universal credit?
Will Quince
I recommend that the hon. Gentleman visits his local jobcentre and speaks to work coaches, because they will tell him about the impact of universal credit. More people are getting into and staying in work. Importantly, we do listen to hon. Members from across the House and to stakeholders within the Department. In addition to the measures I mentioned earlier, we now have a two-week run-on for housing benefit and will have a run-on for other legacy benefits as of October next year.[Official Report, 30 January 2020, Vol. 670, c. 8MC.]
Mike Amesbury (Weaver Vale) (Lab)
The reality of the so-called jobs miracle is nothing but a mirage for families up and down the country. Two thirds of children living in poverty are in working households, earnings have not even recovered to 2008 levels, and the use of zero-hours contracts went up by 15% last year. Will the Minister have a word with the Prime Minister and get zero-hours contracts kicked into touch once and for all?
Will Quince
Employment has increased by over 3.8 million since 2010; the employment rate is 76.3%; unemployment is at its lowest rate since the ’70s, wage growth is outstripping inflation and wages are increasing at their fastest rate in a decade; and we have around a million fewer workless households and a record low 730,000 children in workless households. That is a record that we should be proud of. The hon. Gentleman talks about zero-hours contracts, but they account for 2.7% of the labour market and work very well for many people.
Suella Braverman (Fareham) (Con)
With average weekly earnings having risen by 3.4% compared with last year, and with the national living wage set to receive its largest cash increase in April, does my hon. Friend agree that the Conservative party and this Conservative Government can rightly claim to be fighting poverty for hard-working Britons?
Will Quince
I thank my hon. Friend for that question. She is absolutely right that real wages have risen for over a year—22 months in a row. Total wages have risen by 3.2%, but we want to go further, which is why the Chancellor announced that the national living wage will rise to £10.50 by 2024 as part of our drive to end low pay.
Stephen Crabb (Preseli Pembrokeshire) (Con)
Trapping families in welfare year after year, which was a key feature of the last Labour Government’s welfare policy, never got anybody out of poverty. Does the Minister agree that the surest foundation on which to build a true anti-poverty strategy is to have an expanding workforce and increasing incentives for people to work?
Will Quince
My right hon. Friend is absolutely right. The Institute for Fiscal Studies slammed Labour’s pledge to scrap universal credit as uncosted and
“unwise…expensive, disruptive and unnecessary.”
We believe that work should always pay. We need a welfare system that helps people into work, supports those who need help and is fair for everyone who pays for it. Let us remember that no Labour Government have ever left office with unemployment lower than when they started.
Andrew Bridgen (North West Leicestershire) (Con)
Can the Minister confirm that this Government’s numerous increases to the personal allowance since 2015-16 have taken a further 1.74 million people out of income tax altogether?
Will Quince
Absolutely. Income inequality has been falling under this Government in real terms, and the national living wage will rise to £8.72 in April and to £10.50 by 2024. My hon. Friend rightly points out that our tax changes have made basic-rate taxpayers over £1,200 better off than in 2010. We have doubled the free childcare available to working parents of three and four-year-olds to 30 hours per week, saving them up to £5,000 per year per child.
Justin Madders (Ellesmere Port and Neston) (Lab)
The Parliamentary Under-Secretary of State for Work and Pensions (Will Quince)
A record 32.9 million people are in work in this country, up by over 3.8 million since 2010. Universal credit has successfully rolled out and is now available in every jobcentre, with a caseload of 2.8 million claimants. We continue to build evidence on the experiences of claimants through our ongoing programme of research and evaluation. The next phase of delivery is to learn how to safely move people across from legacy benefits, which we are doing through our “Move to UC” pilot.
Justin Madders
I have some extra information for the Minister’s research and evaluation. A problem regularly raised in my constituency surgeries is that claimants who receive two payslips in one month find themselves in real difficulty the following month. That is happening far too often for it to be loaded on individuals. Can something be done to alleviate these difficulties?
Will Quince
The hon. Gentleman characteristically asks a very good question. Universal credit is based on real-terms earnings information, so it is a complex problem. We are subject to litigation on this matter, so I cannot go into too much detail, but I would be happy to meet him at a later point to discuss this issue further. I am keen to find a solution.
Margaret Greenwood (Wirral West) (Lab)
The Government pushed through regulations on the managed migration of universal credit pilot only days before the summer recess without giving Members of this House a vote, as promised. In October, the Secretary of State said she was “surprised” by the small number of people who transferred in the pilot. How many claims have now been processed, and how can a pilot of up to 10,000 households possibly give a realistic picture of how transferring more than 2 million people could work?
Will Quince
Universal credit provides a safety net but, importantly, does not trap people in welfare. The hon. Lady is right that we are running a pilot in Harrogate. The numbers are relatively small at the moment: just under 80, with around 13 having moved on to universal credit. [Interruption.] I can see that she is shocked, but it has been rather deliberate. My clear instruction to officials was to take this slow and steady, and to go at the pace the claimant requires. I want us to ensure that we have the information necessary to roll out universal credit without leaving anybody behind. We have to get it right.
Mr Robert Goodwill (Scarborough and Whitby) (Con)
The hon. Member for Ellesmere Port and Neston (Justin Madders) raises an important point. This often occurs at Christmas, when helpful employers want to pay their staff early so they can afford to pay for all the things they need. Can the Minister assure me that the system will be fixed by next Christmas at the latest?
Will Quince
As much as I would love to give my right hon. Friend that assurance, I cannot do so, but I assure him that I am working on it. Universal credit is based on real-time earnings data, so it is a tricky issue. No one loses out over the course of a year—that is an important point—but I understand that it causes budgeting issues for claimants.
Virginia Crosbie (Ynys Môn) (Con)
I thank the Secretary of State for recently visiting staff at the jobcentre in Holyhead on Ynys Môn. Can the Minister please confirm that universal credit will be more generous than the system it replaces?
Will Quince
I thank my hon. Friend for that question, and I welcome her to her place. Compared with the system it replaces, universal credit will, in total, give claimants an extra £2.1 billion a year once fully rolled out. Around 1 million disabled households will receive, on average, around £100 more per month, and 700,000 families will get the extra money to which they are entitled. In short, the answer is yes.
Mike Hill (Hartlepool) (Lab)
Jeff Smith (Manchester, Withington) (Lab)
The Parliamentary Under-Secretary of State for Work and Pensions (Will Quince)
Monthly assessment periods align to the way the majority of employees are paid and also allow UC to be adjusted each month. They scrap the “cliff edges” that blighted the legacy benefits system and mean that if a claimant’s income falls, they will not have to wait several months for a rise in their UC.
Jeff Smith
Salary payments that do not align with assessment periods have caused real problems for my constituents, not only in respect of the actual money that they receive but in respect of cash flow. Why will the Government not follow the recommendation of Unison and the Child Poverty Action Group and allow people to adjust the dates of their assessment period when they are paid very close to the end of the month?
Will Quince
As I have already said in answer to two other colleagues, the amount of universal credit paid to claimants reflects as closely as possible the actual circumstances of a household during each monthly assessment period, so over the course of a year it levels out and people do not lose out. I appreciate, though, that there is a budgeting issue, and I am keen to find a solution.
Yvonne Fovargue (Makerfield) (Lab)
Andy Carter (Warrington South) (Con)
The Parliamentary Under-Secretary of State for Work and Pensions (Will Quince)
The Department is working with a range of organisations to support claimants transitioning to universal credit, building on the success of the Help to Claim scheme, which is delivered by Citizens Advice and has helped more than 180,000 people. From April 2020, a new £10 million transitional fund will provide extra help to the most vulnerable, improving access to welfare and labour market opportunities.
Kevin Hollinrake
If someone is on a four-weekly payment cycle, they will be paid twice in one month every year. That cocks up their universal credit claim as well as their cash flow. Until we fix the system, would a simple solution not be to give an interest-free loan to tide them over that period?
Will Quince
I am getting a strong steer that Members would like me to take a good look at this policy area, and I thank my hon. Friend for his suggestion. As he knows, we are always looking at ways to improve the UC system. 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 am of course willing to look into the issue, though, and am happy to meet my hon. Friend in due course.
Andy Carter
The Minister will know that Warrington was one of the first pilot towns to move to universal credit, back in 2013. Today, the town has record levels of employment. However, problems have been reported to my office: new claimants often have to wait beyond a reasonable timeframe to access help. Will the Minister come to Warrington to work with me to identify changes that will speed up the process for claimants, so that we can help even more people back into work?
Will Quince
I thank my hon. Friend for that question and welcome him to his place. He is a strong local champion, hence his election. I would of course be very happy to visit Warrington.
Nadia Whittome (Nottingham East) (Lab)
Universal credit and transitioning to universal credit are causing real hardship in Nottingham, with more than 26,000 people using food banks for emergency supplies in the past year alone. Will the Minister accompany me to my constituency to see for himself the destitution and desperation caused by his Department’s policies?
Will Quince
I visit constituencies all around the country. Only last week I was in Scotland visiting numerous jobcentres.
Will Quince
SNP Members were certainly notified that I was coming.
If I get the opportunity, I would very much like to visit the hon. Lady’s constituency. It is important to say that, once fully rolled out, universal credit will give claimants an additional £2.1 billion a year. It is a more generous system and I would be happy to work with her and her jobcentre to see how it is working with her constituents.
Janet Daby (Lewisham East) (Lab)
In 2013, I set up a food bank with various community leaders, not only because of the poverty and deprivation that existed, but because, at that time, there was the impending prospect of universal credit. Do the Government see food banks as a long-lasting feature for those of our population who happen to be dependent on universal credit?
Will Quince
I do not want anyone to feel that they have no choice but to visit a food bank. What is really important for me is understanding the drivers of food bank use. I work very closely with the Trussell Trust and independent food bank providers. Representatives of the Trussell Trust, whom I regularly meet, tell me some of the issues involved, and we are looking at addressing them. Also important for me is understanding food insecurity, as it is the key to tackling the root causes of the problem. We have also put a question on the family resource survey, which launched in April.
Mr Philip Hollobone (Kettering) (Con)
Stephen Timms (East Ham) (Lab)
The Parliamentary Under-Secretary of State for Work and Pensions (Will Quince)
As I said earlier, no one has to wait five weeks for their first payment. People are able to get their initial payment on day one, repayable over 12 months—16 months as of next year. We have the two-week roll-on of housing benefit and a further two-week roll-on of additional benefits starting next year. I am considering other measures we might take, all of which will require Treasury approval, but I am happy to meet the right hon. Gentleman to discuss any ideas he has.
Stephen Crabb (Preseli Pembrokeshire) (Con)
Chi Onwurah (Newcastle upon Tyne Central) (Lab)
Greggs in Newcastle has, as we know, given its workers a £300 bonus to share in its success as a company. Does the Secretary of State agree that that is the right thing for employers to do? Does she see why so many of the employees who are on universal credit will lose so much of that bonus because it is treated as a monthly income rather than an annual income, which is what it is?
Will Quince
It is a one-off payment, so, in effect, it is treated as income as it would be for tax purposes. Over the course of a year it would of course balance out. It is important to stress that under the legacy benefits system it would have attracted a marginal tax rate of 91% maximum as opposed to only 75% under universal credit.
Mr Toby Perkins (Chesterfield) (Lab)
The Secretary of State’s answer to my earlier question about homeless people’s universal credit payments going to their landlords missed the point completely. Many people who are homeless have alcohol or drug abuse issues. Giving the money to them directly is not solving the problem; it needs to go to the landlord. Rather than saying that it is a choice for them, that choice should, in many cases, be made for them.
Mr Speaker
The protocol is that all Members—whether they are Ministers, shadow Ministers or Back Benchers —who are carrying out political business in those constituencies should inform the MP that they are going there. I think it is wrong to break that protocol. I do frown upon it. It is not good practice, and it is a practice that I do not want to see happening again. In fairness, I am going to allow the Minister to come back on this, but we certainly know my position.
Will Quince
Further to that point of order, Mr Speaker. I have now checked with departmental officials and I apologise unreservedly that such notification was not given. I think that the hon. Members know me well enough to know that such notification would have been given. In fact, they would have been very welcome to join me on those visits, which were very interesting and very informative. When I return, I will certainly be giving notification and inviting them along.
Local Housing Allowance
Will Quince Excerpts(4 years, 10 months ago)
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The Parliamentary Under-Secretary of State for Work and Pensions (Will Quince)
I am announcing that from April 2020 Local Housing Allowance (LHA) rates will be increased in line with the Consumer Price Index (CPI), ending the freeze to the local housing allowance and delivering on the manifesto commitment to end the benefit freeze.
The Rent Officers Orders for Housing Benefit and Universal Credit, which provide for the increase, will be laid in the House later today and a corresponding provision will implement the changes for Northern Ireland
This increase will mean the majority of people in receipt of housing support in the private rented sector will see their housing support increase, on average benefiting by around £10 per month.
This Government continue to spend around £95 billion a year on working age benefits, including around £23 billion to help people with their housing costs.
Ending the freeze to LHA rates ensures we are continuing to support the most vulnerable in society. And, as announced at the spending round in September 2019 there will be an additional £40 million in discretionary housing payments for 2020-21, to help affordability in the private rented sector.
My Department will continue to work with colleagues across Government on housing, including working closely with MHCLG to find ways to reduce homelessness and meet the cost of living in rented accommodation through good housing supply and a welfare system that supports the vulnerable.
[HCWS29]
Child Poverty in Scotland
Will Quince Excerpts(5 years ago)
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Westminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
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The Parliamentary Under-Secretary of State for Work and Pensions (Will Quince)
It is a pleasure to serve under your chairmanship, Sir David. I congratulate the hon. Member for Coatbridge, Chryston and Bellshill (Hugh Gaffney) on securing this important debate. There is no doubt that he is a passionate campaigner on this issue, and he knows me well enough to know that I share his passion for tackling poverty in all its forms.
The hon. Gentleman said that there are too many children living in poverty. I agree entirely—in my view, one child in poverty is one child too many. It is absolutely a priority for me, as it is for this Government. As he will know, I have not been in this role for very long—and, who knows, in six weeks’ time I may not be a Member of Parliament, let alone a Work and Pensions Minister—but I stress that I have made this a priority from day one in the Department, and I have been looking at all sorts of options that we could take up to tackle child poverty.
Hon. Members across this Chamber will recognise that very few of the figures that cross my desk end with an “m”; they end with a “bn”. They tend to be very expensive measures indeed, requiring a fiscal event, but I hope that hon. Members will rest assured, knowing me as they do, that I have been exploring those options and making submissions to the Treasury accordingly.
A number of issues have been raised, and I am conscious that, as always with these debates, we have very little time to address them in the level of detail and granularity that I would like. However, I stress to colleagues that—subject to my being back here in six weeks’ time—as I have always said, my door is always open and I am happy to discuss these matters with a group or on an individual basis. The hon. Member for Coatbridge, Chryston and Bellshill raised topics including in-work poverty, universal credit, food insecurity and food banks, housing and temporary accommodation, and homelessness; I will try to address as many of those issues as possible in a very short period of time.
On the question of housing, I kindly ask the hon. Member for Coatbridge, Chryston and Bellshill to make representations elsewhere. Although I have responsibility for the housing benefit budget, which is some £23.5 billion—with regard to his representations to me, he is largely pushing against an open door when he raises the need for more affordable housing and homes for social rent—I encourage him and hon. Members across the House to make such representations to the Ministry of Housing, Communities and Local Government and to the Treasury, because in my view secure and stable housing plays an important part in tackling poverty at its root.
We also heard powerful contributions from the hon. Members for Motherwell and Wishaw (Marion Fellows), for North Ayrshire and Arran (Patricia Gibson) and for Strangford (Jim Shannon), whom I have huge respect for and have worked with on a number of other issues. I take their representations very seriously indeed. I do not agree with every point that they made—they would be surprised if I did—but I thank them for the constructive nature of their contributions.
As the hon. Member for Coatbridge, Chryston and Bellshill said, we all have the same objective: to tackle child poverty and wider poverty at its root causes. We do not want to see any children in poverty. We have different ideas about the journey and how to get there but, ultimately, we all want the same thing. I am absolutely determined to work as closely as I can with the Scottish Government, working hand in hand where we can and learning from each other about the different measures that we try, to ensure that we have the best approach to truly tackling child poverty. I will talk about that a little bit.
Delivering a sustainable, long-term solution to all forms of poverty remains a priority for me and the Government. Our welfare reforms are driven by our firm conviction that the benefits system must work with the tax system and the labour market to support employment and higher pay, so that everyone has the chance to succeed and to share in the benefits of a strong economy. Supporting employment is also key to ensuring better long-term outcomes for disadvantaged children, because we know that children in working households do better at every stage of their education.
We are proud, as a Government, of the progress that we have made. We now have a near record-breaking labour market, with more than 3.6 million more people in work across the UK compared with 2010. The unemployment rate has more than halved since 2010.
Marion Fellows
I understand the improvements in employment, but child poverty is not improved if people cannot make a decent living even when they are employed. Does the Minister agree?
Will Quince
I will talk about in-work poverty, because that issue was raised. We take child poverty extremely seriously. I raise the additional 3.6 million people in work—around 1,000 per day since the Government came into office in 2010—because of the clear evidence that children in working households are not only less likely to grow up in poverty but have significantly better life chances.
To give the hon. Member for Motherwell and Wishaw the statistics, a child living in a household where every adult is working is around five times less likely to be in relative poverty than a child in a household where nobody works, and children growing up in workless families are almost twice as likely as children in working families to fail at all stages of their education. It is important to note that 44,000 fewer children are in workless households in Scotland compared with 2010, and that child poverty in Scotland remained the same or decreased across all four main measures in the three years to 2017-18, compared with the three years to 2009-10.
It is important to stress that the Government believe that tackling poverty requires an approach that goes beyond providing a financial safety net through the Department for Work and Pensions. That requires a collective approach that addresses the root causes of poverty and disadvantage to improve long-term outcomes for children and families, which is why we have taken wider cross-Government action to support and to make a lasting difference to the lives of the most vulnerable, who often face complex employment barriers. That is people whose ability to work is, for example, frustrated by issues such as a disrupted education, a history of offending, mental health issues, or drug and alcohol abuse. That is why our jobcentre work coaches work with external partners to offer individualised, specialist support to help some of the most vulnerable people in our society to turn their lives around.
Dr Whitford
I do not think anyone would argue with the Government’s going beyond mere income, but the problem is that income is still part of poverty, and therefore taking other action instead of dealing with a lack of income simply does not solve the problem.
Will Quince
It is not the case that we have just pushed people into low-paid and insecure, part-time work—I do not know whether that is the point the hon. Lady is making. However, it is important to stress that around three quarters of the growth in employment since 2010 has been in full-time work. We know, because I shared the statistics, that being in full-time work substantially reduces the risk of being in poverty. There is only around a 7% chance of a child being in relative poverty if both parents work full time, compared with 66% for two-parent families with only part-time work.
Several hon. Members raised universal credit, which I do not think I have time to touch on in the detail I would like. However, universal credit supports full-time work through smooth incentives to increase hours, a general expectation that lone parents and partners should work—unless caring for young children or a disabled person—and generous childcare subsidies. It is important to note that we have also gone much further to support working families than previous Governments.
Patricia Gibson
I thank the Minister for giving way; I know he is short of time. He touched on universal credit. Will he commit to looking at the five-week wait and people having to take out loans, which pushes them further and deeper into persistent poverty? People’s ability to repay them is not considered, and families and children suffer tremendously as a result. Will he commit to taking that up with the Secretary of State for Work and Pensions?
Will Quince
I look closely at all elements within my portfolio. Universal credit is probably the largest element of my portfolio, newly added in the most recent reshuffle. On the first assessment period, it is important to stress that it is not a loan but an advance of the first indicative award, and it is interest-free and repayable over a 12-month period. We are already going further, because that will go up to 16 months, and I am exploring ways in which we could potentially increase that further. At present, around 60% of people take that up. The issue the hon. Lady raises is often raised with me by a number of the stakeholders and organisations that the Department works closely with. I am looking at it, of course, but fundamentally we can have a system based either on advances or on arrears.
We now also have a two-week roll-on of housing benefit for those moving on to universal credit, and as of 2021 that will include a two-week run-on of income support, jobseeker’s allowance and employment support allowance. This month we are reducing the maximum level of deductions from 40% to 30%. We are listening and we do make changes, but those changes can only be made within fiscal events. Of course, as I mentioned at the beginning, it will come as no surprise to the hon. Member for North Ayrshire and Arran to hear that I am looking at a number of measures ahead of the next fiscal event to improve universal credit, because we do listen to Members from across the House and to the stakeholders that feed into the Department.
I am conscious of the time, and I want the hon. Member for Coatbridge, Chryston and Bellshill to have an opportunity to wind up the debate, so I will conclude. I reaffirm our view that the long-term approach that we are taking is the right one if we are to deliver lasting change. However, we are not complacent; this is an area of real focus for me and the Department. The Government believe that work provides economic independence, pride in having a job and improved wellbeing. I look forward to continuing to work with colleagues from across the House, the Scottish Government and other devolved Administrations and charities to tackle poverty in all its forms.
Oral Answers to Questions
Will Quince Excerpts(5 years, 1 month ago)
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Mr Tanmanjeet Singh Dhesi (Slough) (Lab)
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)
Jack Lopresti (Filton and Bradley Stoke) (Con)
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)
Stephen Morgan (Portsmouth South) (Lab)
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)
Peter Grant (Glenrothes) (SNP)
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?
Rachael Maskell (York Central) (Lab/Co-op)
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.
Child Poverty: Leicester
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The Parliamentary Under-Secretary of State for Work and Pensions (Will Quince)
It is a pleasure to serve under your chairmanship, Mrs Moon.
I thank the hon. Member for Leicester West (Liz Kendall) for securing this debate, and for her very passionate and compelling speech on this issue. I am conscious of the fact that we probably do not have enough time in this short debate to cover this important subject in the detail that both she and I would like, but I will stress that my door is always open and she is very welcome to come and see me to discuss this matter or any other matter at any other time—and that offer extends to all other hon. Members across the House. In the somewhat limited time available, I will do my best to answer as many of the points that have been raised as possible.
Tackling poverty will always be a priority for this Government. I have been in this role for just over five months, and my key priorities have been tackling poverty and the support we can give to vulnerable groups. I am pleased that poverty in the east midlands, whether on an absolute or relative basis, or before or after housing costs, is lower for all individuals and children than in 2010. However, the hon. Lady knows me well enough to know that I consider one child in poverty to be one child too many. I will continue to work with hon. Members on both sides of the House to identify and tackle the root causes of poverty and with counterparts in other Government Departments to ensure that our efforts to tackle poverty, particularly child poverty, are joined up.
Our ambitious welfare reforms are driven by a firm conviction that the benefit system must work with the tax system and the labour market, so it supports people into employment and higher pay. That is the only way to deliver a sustainable long-term solution to poverty. It is also the best way to give everyone the chance to succeed and share in the benefits of a strong economy.
Tackling poverty and disadvantage is not, however, something that the Government can do alone. The hon. Lady is passionate about the issue and I welcome the innovative partnership approach taken by Feeding Leicester. I understand that she was disappointed that the bid of Leicester City Council and Feeding Leicester to be part of the holiday activities and food programme this summer was not successful.
I am sure that the hon. Lady appreciates that we had a huge amount of interest in being part of the programme but have only a limited amount of money. Barnardo’s, which works in the east midlands, put together a strong bid—the highest scoring in the region, and it covered Leicestershire county, as she pointed out. Although it did not specifically include the city of Leicester, it operated in some parts of her constituency.
We will continue to build our understanding of how free provision can be co-ordinated, which will provide valuable information about what support works for the sector. The hon. Lady’s contribution is noted, however, and I will make sure that her words are shared with my counterpart in the Department for Education. I praise the excellent partnership work taking place between the Leicester JobCentre Pluses and Leicester City Council in support of care leavers in particular, which ensures that they move smoothly on to universal credit and supports them into work, including through bespoke civil service internships, which are truly excellent.
I try to get out of the Department as much as I can. In the most recent recess, I spent four days travelling around the midlands and the north-east. I visited several organisations that work in close partnership with our JobCentre Pluses. I am absolutely clear that I want to encourage more co-location and collaboration between our jobcentres, their staff and those organisations. Such coalitions of local organisations, including charities, community groups, local authorities, social enterprises and others, show us what can be achieved when we all come together to take joint action to help to eliminate hunger and its root causes in our communities.
The Government believe that tackling poverty requires a collaborative approach that goes beyond providing a financial safety net through the Department for Work and Pensions and addresses the root causes of poverty and disadvantage to improve long-term outcomes for children and families. That is why we have taken wider cross-Government action to support and make a lasting difference to the lives of the most vulnerable—people whose ability to work is frustrated by issues such as a disrupted education or a history of offending, mental ill- health or drug and alcohol abuse—who often face complex employment barriers. It is also why our jobcentre work coaches work with external partners to offer individualised specialist support to help some of the most vulnerable people in our society to turn their lives around.
The Government, and certainly I, take the issue of child poverty extremely seriously. The evidence shows that work is the best route out of poverty. There are 730,000 more children in working households compared with 2010. Not only are those children less likely to grow up in poverty, but they have significantly better life chances. The data is clear that a child living in a household where every adult is working is about five times less likely to be in relative poverty than a child in a household where nobody works. Children growing up in a workless family are almost twice as likely as children in working families to fail at all stages of their education.
The hon. Member for Leicester West mentioned Brexit. I am conscious of the fact that she is passionate about the issue and has spoken about it many times. The Government have been clear that leaving the EU with a deal is absolutely their preferred option. However, as a responsible Government, we continue to plan for a range of exit scenarios, including a no-deal. As part of the process, we continue to monitor the effects of EU exit on the economy. Rates and benefits continue to be reviewed in line with the relevant legislation for uprating. The Government have rightly put in place contingency plans for a range of exit scenarios. These contingencies ensure that the Department for Work and Pensions can continue to provide our vital services, and that individuals will continue to be able to access DWP benefits and services on the same basis as they do now.
The hon. Lady raised a number of other points—housing, food banks and universal credit in particular. I will touch on all of those, but I have to talk about this Government’s employment record, which is vital to our success in helping people out of poverty. We are rightly proud of it. There are now over 3.7 million more people in work compared with 2010, and unemployment is at its lowest rate since the 1970s, having fallen by more than half since 2010.
The hon. Lady raised the issue of in-work poverty. It is important to point out that around three quarters of the growth in employment since 2010 has been in full-time work. As the evidence shows, that substantially reduces the risk of poverty. Full-time work in particular dramatically reduces the risk of being in poverty. There is only a 7% chance of a child being in relative poverty if both parents are working full time, compared with 66% for two-parent families with only part-time work. The absolute poverty rate of a child where both parents work full time is only 4% compared with 44% where one or more parent is in part-time work.
The hon. Lady mentioned universal credit. Universal credit supports full-time work through smooth incentives to increase hours and a general expectation that lone parents and partners should work if not caring for young children or a disabled person. It also offers generous childcare subsidies. The Joseph Rowntree Foundation has also reported that universal credit is likely to help out of poverty an extra 300,000 members of working families, the majority of whom will include someone who works part time. Over three-quarters of the growth in employment since 2010 has been in full-time work.
The hon. Lady also rightly mentioned support for working families. We have taken a range of broader steps to help families keep more of what they earn, including the delivery of another rise in the national living wage to £8.21, an increase in a full-time worker’s annual pay of over £2,750 since its introduction. This has delivered the fastest pay rise for the lowest earners in 20 years. The hon. Lady rightly referenced the recent speech made on 30 September by the Chancellor of the Exchequer, saying that the minimum wage would rise to £10.50 within five years.
That is not all. Tax changes have made basic rate taxpayers over £1,200 better off since April, compared with 2010. The most recent changes mean that a single person on the national minimum wage is now—from April—taking home over £13,700 after income tax and national insurance. That is £4,500 more than in 2009-10.
Considering universal credit more broadly, as rightly raised by the hon. Lady, we know that there is more to do to support working people. But we have already gone much further than previous Governments. In his statement, the Chancellor of the Exchequer set out our ambition to “end low pay across the UK.” Universal credit is at the heart of our reforms. It works alongside other policies introduced by this Government to promote full-time employment as a way out of poverty towards financial independence. We know that universal credit is working. It is getting more people into work, and more people are staying in work. It supports those who need it while providing a springboard into work, with every extra hour worked being rewarded, and each claimant receiving tailor-made support from a work coach.
There are lots of areas that I did not manage to cover in detail, and I would be delighted to meet the hon. Lady to do so. She touched on food banks. I will, of course, raise the issue referenced by her in her speech in relation to food banks and Brexit with the Chancellor of the Duchy of Lancaster.
I will speak with the Trussell Trust, as I do regularly, and other food bank providers, to hear their thoughts on the issue.
On the point that the hon. Lady raised about universal credit and the five-week wait, I stress that, on day one, people are able to get a full advance payment of up to 100% of their indicative award. That is repayable over 12 months, interest-free. That is an important point.
The hon. Lady touched on housing, which is probably one of the biggest issues that we face as a country. We have an issue with providing enough low-cost, affordable homes for social rent. I am working very closely with my counterparts at the Ministry of Housing, Communities and Local Government to ensure that housing for social rent, and in particular affordable housing, is firmly on its agenda. The Government have a firm commitment to delivering on house building, but when we look at our housing benefit bill and the number of people who are waiting for social housing we must not forget the importance of ensuring that we build sufficient social housing. Changes have been made that support the further building of social housing, but, yes, we absolutely need to do more.
In conclusion, I reaffirm our view that our long-term approach is the right one if we are to deliver lasting change and tackle poverty in all its forms. This Government believe that work provides economic independence, pride in having a job, and improved wellbeing. We want to empower people to move into work by giving them the opportunities that they need to make the most of their life, and to improve the life chances of their children. It is that belief, based on clear evidence about the value of work, that will drive us as we continue to reform our welfare system, so that it better supports working people, while continuing to support those most in need.
Question put and agreed to.
Local Housing Allowance and Homelessness
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The Parliamentary Under-Secretary of State for Work and Pensions (Will Quince)
It is a pleasure to serve under your chairmanship, Mr Bailey. I, too, thank the hon. Member for Ealing, Southall (Mr Sharma) for securing this important debate, and colleagues from across the House for sharing compelling accounts.
I have been in post for only three months. It will come as no surprise to Members that both housing and, in particular, tackling homelessness and rough sleeping are passions of mine, as I have co-chaired the all-party parliamentary group on ending homelessness. I will start by saying that I get it, and I share Members’ passion for fixing it and getting it right. I work very closely with stakeholders in the field, including Crisis, St Mungo’s, Shelter and many others. Even in just the past three months, I have met with most of them and have been on several visits to see and experience the lived experience of some of those they support.
I recognise the issue, which, although I accept it is largely now nationwide, is particularly acute in certain parts of the country where there is very high demand and limited supply. I am also aware that too many people have to top up their housing from their benefits, which are designed for the cost of living. We have to put that right. I am determined to address it, and I am working very closely with the Secretary of State, who has been hugely supportive of the moves that I have made in this area.
Currently, there are no plans to extend or maintain the benefits freeze after March 2020, but specific decisions on how to uprate local housing allowance from April 2020 will form part of the discussions in support of fiscal events later this year. I will address as many points raised as possible, but I am conscious that we have a relatively limited amount of time, and that a number of them are more appropriate for a Ministry of Housing, Communities and Local Government colleague. I will certainly raise those points with my counterparts, subject to my still being in post tomorrow or the day after.
Reform to housing support was a central part of the Government’s plan to create a welfare system that supports the most vulnerable and is fair to taxpayers. To help to ensure a balance between those two elements, LHA rates are not intended to meet rents in all areas. The intention behind the welfare reform programme is that the same considerations and choices faced by people not in receipt of benefits should also be faced by those claiming benefits. The LHA policy is designed to achieve that.
Liam Byrne
It was not so long ago that, at about 2 am or 3 am, I met a man who goes by the name of “Ginge”. He sleeps in the Barclays bank lobby at Colmore Row, and has schizophrenia and bipolar disorder. Is he supposed to find the money to cover the entire rent of a home that he could move into?
Will Quince
The right hon. Gentleman refers to rough sleeping. Often people lump homelessness and rough sleeping together, but there is a huge difference between them. The Government are taking considerable action on rough sleeping. I will happily meet him, or arrange for the Housing and Homelessness Minister to do so, in order to discuss it in more detail. I know that he cares hugely about this issue, and contributes to debates on it. I share his passion. The Government are taking significant action, but he is right that we must look at LHA rates. I hope I made it clear at the outset that I am doing that with the Secretary of State, and ahead of the next fiscal event we are looking very closely at what more we can do.
Between 2000 and 2010, housing benefit expenditure rose by more than half in real terms, reaching £25 billion in today’s prices. Left unreformed, by 2014-15 housing benefit would have reached £29 billion. That was clearly not sustainable. The measure to freeze local housing allowance rates for four years from April 2016 built on reforms introduced in the previous Parliament, which saved £6 billion in total by 2015-16. Savings from freezing LHA are estimated to be around £655 million for Great Britain over the four-year period of the measure. Our reforms are part of our wider goal to move people from welfare and into work.
We recognise that some places have seen higher increases in rents than others, and have made provision to help people further in those areas, as the hon. Member for Westminster North (Ms Buck) mentioned. We have used a proportion of the savings from the freeze to reduce the gap between frozen LHA rates and the 30th percentile reference rent in the areas of greatest rental growth. Initially, 30% of the savings from the freeze were used for targeted affordability funding, but we invested an additional £125 million in that funding for the final two years of the freeze. That was based on 50% of the savings rather than 30%.
Anneliese Dodds
Has the Department conducted any kind of cost-benefit analysis of the measure’s overall impact? In practice, it is leading to additional health and education costs, and to huge impacts on families that have to be sucked up by already strapped local authorities. Has there been any kind of 360° review of the measure’s overall impact across Government, including local government, and not just on the benefits bill?
Will Quince
I have been a Minister for only three months and I keep all the policies in my remit at the Department under very close review. I regularly meet and have conversations with key stakeholders in policy areas such as this, to ensure that we are aware where policies are and are not working, and that we are alive to the issues. It will not come as a surprise to the hon. Lady that stakeholders in this area have flagged LHA rates as an issue. That is why we are looking at it very closely indeed.
The additional funding enabled us to increase 213 LHA rates—there are 960 rates in total—by 3% last year. This year, a total of £210 million has been made available: the highest amount of targeted affordability funding since its introduction in 2014. That has enabled us to increase 361 LHA rates by 3%. As a result, it is estimated that 500,000 households this year will benefit from an increase of around £250 a year.
In addition to that targeted affordability funding, the Government have provided more than £1 billion in discretionary housing payments to local authorities since 2011, which the hon. Member for Westminster North referred to. Discretionary housing payments allow local authorities to protect the most vulnerable claimants and support households affected by different welfare reforms, including the freeze to the LHA.
Will Quince
Not necessarily. They have been available since 2011, and more than £1 billion has been made available to local authorities. Quite intentionally, we allow local authorities discretion on how it is used, and they use that money and use it well. There is an underspend in a number of local authorities, but it is a tool used by many local authorities to prevent homelessness. Where individuals or families are at risk of homelessness, local authorities will use DHPs to protect tenancies.
The hon. Member for Stroud (Dr Drew) has raised the point about broad rental market areas a few times; I note his concerns about the broad rental market area boundaries in Stroud and the wider area. As with all policies, we keep that under review, and I am looking at this very closely. I hope the hon. Gentleman will appreciate that any reform of the policy would be a significant and complex undertaking, given that there are 192 broad market rental areas across England, Scotland and Wales. We should be aware that any changes to the BMRAs and their boundaries are likely to create both winners and losers, so I have to give very careful consideration to the potential impact.
The hon. Gentleman also raised a point about “No DSS”—landlords not renting to those in receipt of benefits. The Prime Minister and No. 10 have taken that issue very seriously. I attended a recent roundtable with a number of stakeholders and we are working very closely with the Residential Landlords Association. Part of the issue is mortgage lenders and insurers. More and more mortgage lenders are now reducing or removing their restrictions on renting to those in the receipt of benefits—Metro Bank is the most recent addition to that list. There are a few still to go, and we still have to tackle the insurance market, as some insurance policies still do not allow people who buy to let to rent to those in receipt of benefits. We are looking at that area closely and are working with key stakeholders, because we very much want to fix this—to break the myth and challenge the ignorant belief that those in receipt of benefits are riskier tenants than those who are not, because it is absolutely untrue.
The hon. Member for Ealing, Southall also raised temporary accommodation. With other Government Departments, we are working to assess what more can be done to address the number of people in temporary accommodation. Time spent in temporary accommodation means that people are getting help and ensures that no family is without a roof over their heads. The Government have targeted funding streams focused on reducing the number of households in temporary accommodation as part of our £1.2 billion spending plan.
Liam Byrne
While the Minister is being constructive and generous, and before he finishes, could he undertake to try to secure an explanation as to why the £211 million promised to the West Midlands Combined Authority when it was set up has not yet been paid over? Could he do that before the reshuffle?
Will Quince
The right hon. Gentleman tempts me down a road that is wholly outside my remit. That is a question for the Ministry of Housing, Communities and Local Government and my counterpart or the Housing Minister in that Department. The right hon. Gentleman knows that he has tools in his arsenal—he can write to that Minister or secure an Adjournment debate, or he could catch the Minister around the Estate later on to ask that question. If I see him, I will raise it, but I think the right hon. Gentleman might be able to find his own salvation by raising it personally with the relevant Minister.
Andrew Selous
Can I take the Minister back to the point about mortgage lenders and difficulties in lending to people on benefits? Will his officials have a look at what has happened in France recently? My understanding is that, certainly in previous years, the French Government set up a system for people on benefits and low incomes to get on the housing ladder in association with a number of French banks. We should study that to see if there are any lessons for us in the UK. Would he undertake to ask his officials to have a look at that system?
Will Quince
I thank my hon. Friend for that intervention; I was not aware of that scheme and will certainly look at it—it sounds very interesting. Subject to being in post in 24 or 48 hours, I will certainly commit to looking at that and to coming back to him with my thoughts.
Numerous Members, including the hon. Members for Ealing, Southall, and for Westminster North, my hon. Friend the Member for South West Bedfordshire (Andrew Selous) and the hon. Member for Argyll and Bute (Brendan O'Hara), all raised the issue of housing for social rent. This is also an area that I am hugely passionate about. Local housing allowance rates and debates such as this are only half of the story. We must look at how we can increase the supply of housing that is affordable to people on low incomes to create a more sustainable system over the longer term.
I am keen to continue my work with colleagues in MHCLG to support them in looking at how we can increase the supply of housing for social and affordable rent and what more my Department might be able to do to achieve that. I urge my hon. Friends and hon. Members—not that I am supposed to—to address the issue of housing supply with my counterparts in MHCLG and to lobby accordingly. It is a hugely important issue. I share the thoughts of my hon. Friend the Member for South West Bedfordshire when he says that at the heart of the route for tackling poverty, improving health outcomes and improving educational attainment and employability is a secure and stable home, and that is something that we should prioritise.
Alex Cunningham
It is going to take some time to build the houses required. In the meantime, we need the local housing allowance to be properly addressed. The evidence has shown that it is inadequate, yet in some areas there is an underspend. What is the Minister going to do to review that and to transfer the money to where there is a greater need?
Will Quince
I made it clear at the beginning that this is an area that I am looking at very closely. We are committed to providing a strong safety net for those who need it and that is why we continue to spend more than £95 billion a year on welfare benefits for people of working age. There are no current plans to extend or maintain the benefits freeze after March 2020. As I said at the beginning, specific decisions on how to uprate the local housing allowance rates from April 2020 will form part of the discussions in support of fiscal events later this year.
Child Maintenance Service
Will Quince Excerpts(5 years, 4 months ago)
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The Parliamentary Under-Secretary of State for Work and Pensions (Will Quince)
It is a pleasure to serve under your chairmanship for the first time—and hopefully not the last, Sir Edward. I congratulate the hon. Member for Linlithgow and East Falkirk (Martyn Day) on securing this important debate on the Child Maintenance Service. I also thank hon. Members from both sides of the House for their contributions, which have been passionate, compelling and based largely on constituency cases. I know that, at the heart of it, everyone is driven by doing the right thing by the children involved.
I have met several hon. Members present to talk through some of the issues that their constituents have raised about the service. I have committed to making sure that we get things right first time. I also had the opportunity to hear directly from single parents during a recent visit to Gingerbread, where I heard at first hand about some of the important issues that they face.
Many points have been raised, so we have a lot to get through in a limited time. I stress that I hold regular surgery sessions, as many hon. Members present know, and I am happy to take offline any of the questions that I cannot cover in my response. I stress that I have been in post for just three months, and I would urge hon. Members across the Chamber not to underestimate my determination, while in this role, to improve the service.
I will start by setting out the Government’s approach. My Department is currently delivering a new child maintenance system, run by the Child Maintenance Service, which is designed to specifically address the shortcomings of the CSA.
Stephanie Peacock (Barnsley East) (Lab)
My constituent understood that his case with the Child Support Agency was closed on agreement in 2003, and there had been no attempt to collect any moneys for the past 16 years. It is only as part of this closure programme that my constituent has been contacted and asked to pay £30,000. Does the Minister share my concern that there has been such a big gap and no attempt to collect the money? There is also conflicting guidance implying that some CSA arrears incurred before July 2006 can be statute-barred. Will the Minister clarify that and meet me to discuss the matter further?
Will Quince
My door is always open to colleagues from both sides of the House, and I would be happy to meet the hon. Lady to discuss that particular case in detail.
I mentioned the shortcomings of the CSA, which did not provide the right support to parents and was expensive to run. We have learned from mistakes of the past: where the previous system often drove a wedge between parents by taking away their responsibility and choice, the new system encourages collaboration at every stage. We know that a constructive, co-operative relationship between separated parents has a direct positive impact on child outcomes such as health, emotional wellbeing and academic attainment—a point made by my hon. Friend the Member for Henley (John Howell). That is why, wherever possible, we support separated mothers and fathers to work together in the interests of their children and set up their own family-based maintenance arrangements.
Private family-based arrangements allow families to create flexible arrangements that work for their individual circumstances. Such flexible arrangements can include sharing of care, agreements over who will pay for essentials and treats, and financial transfers. They can change as the children grow and can help children to experience having both their parents take an active role in their lives.
We recognise that, post separation, the majority of parents want to continue to do the right thing for their children. We want to ensure that as many families as possible have an effective arrangement for maintenance in place; for those who are unable to make a private arrangement, the Child Maintenance Service provides the support of a statutory scheme. The Child Maintenance Service delivers a simplified statutory system with increased levels of automation, which allows cases to be processed much more quickly and with higher levels of accuracy than was achieved under previous schemes.
The CMS provides an effective, efficient service, to be used as a last resort where parents are unwilling to meet their responsibility to financially support their children voluntarily. This means that cases in the statutory service tend to be more difficult and relationships between the parents in these cases are often fraught and conflicted. While we continue to use all the tools at our disposal to maintain compliance and recover arrears, it is sadly inevitable that some arrears will accrue, as some parents go to great lengths to avoid their responsibilities. That is not acceptable and we are taking action to tackle it. Last November, this House approved regulations tackling a number of issues—closing down loopholes, introducing tough new sanctions for those who evade their responsibilities, and dealing with the historic arrears that built up under the Child Support Agency.
The hon. Member for Linlithgow and East Falkirk and my hon. Friend the Member for Stirling (Stephen Kerr) raised questions about the CMS’s performance. The Child Maintenance Service is performing well. The most recent statistics show that 94% of new applications were cleared within 12 weeks and 79% of change of circumstances actions were cleared within 28 days. We are seeing unprecedentedly high levels of compliance, with 67% of parents due to pay child maintenance through the collect and pay service having paid some maintenance in the quarter ending March 2019, up from 60% one year earlier.
Although the case load on the service has been growing steadily since it opened in 2012, the number of complaints and appeals received still represents less than 1% of that case load. We have continued to refine our processes to maximise compliance and debt recovery. Debt as a proportion of all maintenance arranged by the service has fallen since the launch of the 2012 scheme, from 17% in March 2015 to 11% in March 2019.
A number of colleagues, in particular my hon. Friend the Member for Stirling and the hon. Member for Motherwell and Wishaw (Marion Fellows), rightly mentioned customer service. The focus so far has largely been on tackling arrears and on recovery of debt, but my clear steer to officials is that I want the focus to be on customer services. We know that more than 80% of calls are answered, although I still think the 20% that are not is too many, and I want them answered in a timely fashion. My focus, while I remain in this role, will be on customer service.
A number of hon. Members raised the issue of enforcement, and we are taking far more action in that regard. We now have several court-based powers, including the use of enforcement agents, otherwise known as bailiffs, to seize goods, forcing the sale of the paying parent’s property. Approximately 7,100 paying parents in England and Wales are currently being pursued by civil enforcement agents for unpaid maintenance following a referral by the CMS.
Hon. Members also mentioned that the service can apply to have the paying parent sanctioned—by being committed to prison or disqualified from driving, for example. In addition to that, in regulations in November last year we launched the ability to disqualify non-compliant parents from holding a UK passport, which we believe will act as a strong deterrent. The service initiated 900 sanctions in the quarter ending March 2019 as a last resort against non-compliant paying parents.
The hon. Member for Strangford (Jim Shannon) raised the question of complex earners. We are aware of a small number of parents whose maintenance liability is inconsistent with their financial resources. Some choose to support themselves via a complex arrangement of assets rather than taking a salary. We are taking action to address that.
Parents can request a variation so that most forms of taxable income can be taken into account in the maintenance calculation, which will make it harder for individuals to avoid their responsibilities by minimising the amount of child maintenance they pay. The new powers that we introduced last year allow us to target complex earners via a calculation of notional income based on assets. In addition to the gross annual income provided by Her Majesty’s Revenue and Customs, we can capture income derived from property, savings and investments, including dividends, and other miscellaneous income. We also have the Financial Investigation Unit, which can investigate those parents who declare suspicious earnings or, where appropriate, refer to HMRC for tax fraud.
The FIU was first introduced in 2014, and since 2017 we have tripled the number of staff in that unit. It will look at any case where the receiving parent raises a concern over income and provides basic evidence to support it. I should stress that around 60% of FIU cases show no evidence of suppression of income. Nevertheless, it is an important part of the service. The hon. Gentleman also referred to the self-employed, which I suppose is similar to the situation of complex earners. We have new powers, enabling us to do deep-dive exercises and get to the bottom of cases where individuals are trying to suppress or disguise income. Perhaps I will meet him separately to go through that in a little more detail.
My hon. Friend the Member for Henley raised a number of points about the accuracy of CMS assessments. The accuracy of maintenance assessments has significantly improved; our annual client fund account shows that it is at 99%. Furthermore, the National Audit Office has not qualified CMS accounts for the past two years, which represents a significant improvement.
The hon. Members for Ellesmere Port and Neston (Justin Madders) and for Motherwell and Wishaw brought up the 25% threshold. I understand the concerns that they have raised. The point of the 25% threshold is to ensure that maintenance calculations are relatively stable, so both clients know what to expect in terms of payments. It also ensures that both parents are able to budget with certainty and provide ongoing maintenance for the child. I have met with the hon. Member for Motherwell and Wishaw to discuss this, and it is important to stress that most people’s income does not change to that degree over the course of one year.
My hon. Friend the Member for East Renfrewshire (Paul Masterton) and the hon. Member for Ellesmere Port and Neston—
Sir Edward Leigh (in the Chair)
Order. Could the Minister allow time for the mover to sum up the debate?
Will Quince
I am sorry, Sir Edward. I am conscious that I have not been able to cover many of the issues raised, but I hope hon. Members can see that the latest statistics show that the reformed Child Maintenance System is already making a big difference to the lives of separated families. We are seeing progressive improvements to the efficiency of the service. Our priority remains ensuring that this service is fit for purpose and, while I am in post, I will continue to ensure that it is.
Response to Opposition Day Debate: Inequality and Social Mobility
Will Quince Excerpts(5 years, 4 months ago)
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The Parliamentary Under-Secretary of State for Work and Pensions (Will Quince)
Following the recent Opposition day debate on 12 June, I am setting out the approach this Government are taking to tackling inequality and improving social mobility.
This Government are leading the way in creating opportunity so every person growing up in Britain has the chance to build a bright future for themselves and their families—no matter what their background. Employment has risen in every UK region under this Government, as wages outstrip inflation, the gap between disadvantaged pupils and their peers has narrowed since 2011 and the proportion of 16 and 17-year-olds in education or apprenticeships is at its highest ever—that is social mobility in action.
Our record on employment is vital to our approach, and one of which we are rightly proud. There are now over 3.6 million more people in work compared with 2010. Unemployment is at its lowest rate since the 1970s having fallen by more than half since 2010. This is not just a London or a south-east success story—over 60% of the employment growth since 2010 has occurred in other parts of the UK. We are working across Government and with businesses to ensure everyone has the chance to gain the skills and high quality jobs they need to compete in a dynamic, global market place.
Around three-quarters of the growth in employment since 2010 has been in full-time work, which we know substantially reduces the risk of poverty. Wages have consistently outpaced inflation for 15 months—in fact they are growing at their fastest rate for a decade. The growth in employment rates has overwhelmingly benefited the poorest 20% of households, and household income inequality is also lower than it was in 2010.
Behind these statistics are people whose mental health and wellbeing are improved by moving into work and having the dignity and security that it brings. There are 930,000 more disabled people in work today compared with five years ago, and 667,000 more children in working households compared with 2010. We know that children in households where all adults work are about five times less likely to be in relative poverty than a child in a household where nobody works.
We also know that children growing up in workless families are almost twice as likely as children in working families to fail at all stages of their education. Since 2011 we have narrowed the attainment gap between disadvantaged pupils and their peers by around 13% at key stage 2, and 9.5% at key stage 4. We are supporting pupils to thrive at every stage, that is why we introduced 15 hours of free childcare for disadvantaged two-year-olds on top of the 15 hours’ free childcare offer for all three and four-year olds.
We are investing in our world-class education system; core funding for schools and high needs has risen from almost £41 billion in 2017-18 to £43.5 billion this year. We are investing £72 million through our opportunity areas programme in 12 places in the country with weak social mobility and up to £24 million through our Opportunity North East programme, tackling the specific issues that are holding back young people in the North East. Through both these programmes we will improve educational outcomes for children and young people working in partnership with local partners. We have set a 10-year ambition to boost children’s early reading and communication skills. We are transforming technical education with investment of an extra half a billion pounds per year once T-levels are fully rolled out. Disadvantaged 18-year-olds are now entering full-time higher education at record rates, and we are providing coaching for young jobseekers to put them on track to succeed.
Supporting people on low income to progress in work is also key to our success in tackling inequality. Universal credit removes the structural disincentives to move into work and to work more hours that were a part of the legacy benefits it replaces. The Joseph Rowntree Foundation has reported that universal credit is likely to help an extra 300,000 members of working families out of poverty, the majority of which include someone who works part-time. We want to build a clearer picture of how and why people progress in work, and what we can do to support them as they do that. We have started discussions with the Trades Union Congress and the Confederation of British Industry on how we can do this. We are going further with two national pilots on in-work progression; one will train work coaches to help those in work to decide when and how to switch jobs, to achieve that ambitious step up. The other will boost our capability for working with local businesses, by creating jobcentre specialists who encourage local employers to support progression and good-quality flexible working.
Childcare costs can affect parents’ decisions to take up paid work, increase their working hours, or remain in paid work. To overcome this barrier to employment we increased the level of support for childcare costs from 70% in legacy benefits, to 85% within universal credit. This is in addition to providing a significant package of childcare support to parents and carers, including our 30 hours offer for working parents of three and four-year-olds which has rolled out successfully, benefiting around 600,000 children in the first two years of delivery and introducing tax-free childcare worth up to £2,000 a year per child.
Our national living wage, which is among the highest in the world, is expected to benefit over 1.7 million people; and, with the increase to £8.21 from April this year, has increased a full-time worker’s annual pay by over £2,750 since 2016. We have taken action to reduce income inequality through the tax system too. Our tax changes will make basic rate taxpayers over £1,200 better off from April, compared with 2010. Taken together, the most recent changes mean that a single person on the national living wage has, from April, taken home over £13,700 a year—£4,500 more than in 2009-10.
It is absolutely right that we continue to support those who need it and our welfare safety net remains one of the strongest in the world. This year we will spend over £95 billion on benefits for people of working age; and £52.7 billion to support disabled people and those with health conditions. In total, welfare spending in this financial year will be over £220 billion.
We recognise that there is more to do to tackle poverty; and we have taken action to increase the incomes of the poorest in society. In the last Budget we announced a £4.5 billion cash boost that will make a huge difference to the lives of working families and provide extra support for people moving onto UC. In particular, we have put an extra £1.7 billion a year into work allowances, increasing the amount that hard-working families can earn before the taper is applied. That is an extra £630 a year for 2.4 million families.
It is vital that we have evidence on the effects of poverty in order to tackle it, and in the run-up to the spending review we will examine what more can be done to address poverty, particularly child poverty, and to support social mobility. We are working with the Social Metrics Commission and other experts in the field to develop new experimental statistics to measure poverty, which will be published in 2020 and, in the long run, could help us to target support more effectively.
The welfare system is not just about providing financial support. The most vulnerable in our society often face complex barriers to employment which can prevent them from moving on with their lives. So we are taking wider action to address barriers specific to different groups and ensure that universal credit works for all those with complex needs.
By supporting care leavers through their difficult transition into adulthood with a series of safeguards and easements, work coaches can have a real impact on a young person’s life chances. And around 135 prison work coaches based in resettlement prisons across Great Britain help prisoners gain employment on release, supporting with benefit claims pre-release.
We have a proud record when it comes to supporting victims of domestic abuse. Work search requirements can be suspended for up to six months under universal credit to enable them to stabilise their lives. By the end of the summer, we will have a domestic abuse and homelessness advocate in every jobcentre in England, who can build work coach capability in these areas, and make important links with organisations in the community.
In conclusion, work provides economic independence, pride in having a job and improved wellbeing. Through record employment, investment in early years, education, and other public services, this Government are taking long-term steps to tackle poverty. It is the right approach and the only sustainable one.
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