(3 weeks, 3 days ago)
Commons ChamberMy hon. Friend makes a very important point about learning the lessons from the last time we were in government and lifted more than 600,000 children out of poverty, and looking at similarities and differences, not least that there are more children growing up in poverty in households, whether in the private rented sector or in social housing, and that there are more children growing up poor in a household where somebody works. Getting and creating more good quality jobs, and helping families into those jobs, is absolutely a crucial part of our child poverty plan.
Yet we have a situation where families with more children are impacted by the two-child cap and the benefit cap, and the Government are refusing to get rid of those things. At a stroke, they could lift thousands of children out of poverty and improve, overnight, their life chances. I appreciate the fact that the Government have the child poverty taskforce, but that is not making a difference to these children today, is it?
I am under no illusion about the impact 14 years of the Conservatives and the social security system has had on child poverty. That is why we are determined to take action across government to increase family incomes, drive down costs and, crucially, put in place long-term support, particularly in the early years. We will produce the strategy by spring. I am absolutely sure that every part of the plan will lift more children out of poverty.
(1 month, 3 weeks ago)
Commons ChamberSome 860,000 pensioners in Scotland are set to lose this benefit. The Prime Minister and the Chancellor have chosen to cut the pensioner cost of living payment. They have chosen to cut the winter fuel allowance. They have made the political choice to scrap those payments.
The UK Labour Government are desperate to meet their self-imposed fiscal targets, but make no mistake: this is a political choice. They are trying to meet those targets by balancing the books on the backs of pensioners. Who out there in the real world voted for that?
This is a key test for Anas Sarwar and Labour MPs from Scotland. Anas Sarwar said:
“Read my lips: no austerity under Labour.”
If that is what he believes, the platform he put to the people of Scotland and what Scottish Labour MPs were voted in on, how can they possibly back the Government today? Who is the master of Scottish Labour MPs? Is it the Prime Minister, is it the Labour party, or is it the people who elected them—the people who put them here—who will go cold this winter because of their Government’s decisions?
This is not the change that people voted for. The UK Government are trailing broken promises behind them. They are refusing to scrap the two-child cap. They are refusing to allow pensioners the money to heat their homes this winter. That is not what people in Scotland voted for, and they will be devastated if their Scottish Labour MPs support the Government today.
(6 months ago)
Commons ChamberI thank my right hon. Friend very much indeed for that question and for raising the issue of her constituent. The reassurance I can give her is that we are aiming for the best outcomes. There will be a number of ways in which those best outcomes may be achieved—that is the purpose of the consultation—but it is reasonable to at least explore the issue of whether cash transfer payments are always the right solution, particularly given the growth in mental health conditions we have seen in recent times. The final point I would make is that we are absolutely interested in examples of situations where people have lifelong regressive illnesses from which, unfortunately, they are not going to recover, and to ask whether, under those circumstances, it is right to require them to go through re-assessments.
Following today’s statement, the announcement made a couple of weeks ago and all the proposed changes, people are scared. They are scared because they rely on these payments, which have changed their lives. They have been able to access support that they otherwise would not have been able to get. It is very clear that the announced changes are not being created by disabled people, with disabled people at their heart of the decision-making process. This is a Government consultation and then people are being asked to input into it. It is totally different from the situation in Scotland, where the adult disability payment was created with disabled people in the room talking about the best way to make the payments work and the best way to have assessment processes. Basically, the answer that came back was, “Do not do them anything like the assessment processes for PIP.”
Everybody should have the income to live with dignity, whether or not they are able to work. I am massively concerned by the comments that the Secretary of State and the Prime Minister allegedly made about people with mental health difficulties only facing the “ordinary difficulties of life”. It is very clear that anybody who is able to say that has not suffered from depression, and has not felt that absolute energy-sapping that comes alongside suffering depression or anxiety. These are real conditions. These are real things that people are struggling with. And the lack of the ability to work is just as serious for people with mental health conditions as it can be for people with physical health conditions.
I have a couple of specific questions. In relation to universal credit, it is a gateway benefit. Will the Secretary of State assure us that any changes that might be made to eligibility criteria around universal credit will be fully consulted on and fully discussed, particularly with anybody who administers benefits that are allowed through those gateway benefits?
Has the Secretary of State spoken to the Scottish Government about the creation of the adult disability payment with disabled people in the room, ensuring that at the forefront of every decision is dignity and respect? Those are the two key columns of the Scottish benefits system. The Secretary of State could learn a lot from that approach.
I thank the hon. Lady for her response to my statement. I reassure her that disabled people will be very much involved in the process and the consultation. It will be a 12-week consultation and of course we will take them, their comments and representative organisations extremely seriously.
The hon. Lady’s comment about the importance of recognising that many, many people unfortunately suffer from very serious mental health challenges is extremely well made. I am absolutely determined that whatever conclusions we draw from the consultation, they should lead us to a position where the Government are better able to support people who are in those circumstances.
On whether there will be questions in the consultation on the passporting of PIP into other benefits, the answer is yes. That is something we are most certainly consulting on.
On the Scottish equivalent of PIP—this is, of course, a devolved matter—yes, the Department has been in discussions with the equivalent officials in the civil service and the Scottish Government. We are looking forward to considering, as I know the Scottish Government will be, the independent review of that benefit, which is being conducted at the present time.
(7 months, 2 weeks ago)
Commons ChamberResearch from the Trussell Trust reveals the devastating truth: more than half of people receiving universal credit ran out of food in January and could not afford more, and 2.4 million universal credit claimants have fallen into debt because they could not keep up with essential bills. Will the Secretary of State back the Trussell Trust’s joint campaign with the Joseph Rowntree Foundation, and commit to legislate for an essentials guarantee in universal credit to reduce food bank use and ensure that everyone has a protected minimum amount of support in order to afford life’s essentials—yes or no?
The Resolution Foundation highlights that scrapping the two-child limit would be one of the most efficient ways to drive down child poverty rates, and would lift 490,000 children out of poverty overnight. Surely one child growing up in poverty is one child too many. The Secretary of State should reverse course on this, and the Labour party should also commit to scrapping the two-child limit. Does the Secretary of State agree that no child should grow up in poverty, and will he take action to ensure that that stops now?
The hon. Lady raises the same point as her colleague, the hon. Member for Cumbernauld, Kilsyth and Kirkintilloch East (Stuart C. McDonald), about the two-child limit. I will not detain the House by repeating exactly the same answer, other than to agree passionately with her that one child in poverty is one too many, and to say that, although we have further to go, it is important to recognise that we have reduced the number of children in absolute poverty, after housing costs, by 400,000 since 2010.
(1 year ago)
Westminster HallWestminster 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.
This information is provided by Parallel Parliament and does not comprise part of the offical record
Thank you for chairing this debate, Ms McVey. I congratulate the right hon. Member for Norwich North (Chloe Smith) on securing it. I think this is the right time to discuss this issue and to ask the Minister pertinent questions that need answers.
I am not going to do what I often do and talk about how dreadful a job the UK Government are doing, because this is genuinely really good progress. This is a really good report highlighting the issues and making clear what needs to be done to get to a better place. All Governments have more to do in this regard.
Let me take a moment to celebrate the fact that next week will be the eighth anniversary of the passage of the historic British Sign Language (Scotland) Act 2015 by the Scottish Parliament. Our strategy, which ran from 2017 until this year—it is about to be superseded by the next one—contained 70 actions across 10 long-term BSL ambitions.
Before I go into some of the actions we are taking in Scotland, I will take a moment to recognise how unique British Sign Language is. For many people, English is not their first language; BSL is, and those are not people who have come from another country. BSL is an indigenous language throughout these islands. The Scottish Government have continued to promote and support the teaching of BSL, because it is one of Scotland’s vibrant indigenous languages. We have said that we want to make Scotland the best place in the world for a BSL user to live, work and visit, which means that people whose first or preferred language is BSL will be fully involved in daily and public life in Scotland as active, healthy citizens, and will be able to make informed choices about every aspect of their life.
As I said, we have taken 70 different actions. We have not made the progress that we would like on all of them, and there is definitely significantly more to do. As the hon. Member for Nottingham South (Lilian Greenwood) mentioned, we are trying to ensure that the principle of “nothing about us without us” is enshrined in everything we do. When the Scottish social security system replaced the personal independence payment with the adult disability payment, we ensured that people with lived experience were at the table, telling us how they wanted the system improved. We are ensuring that when we consult on the new progress and action plan on British Sign Language, the deaf community will be as involved as possible, making the case for the action and improvement that they want. No Government can make good decisions if they do not have an adequate amount of lived experience informing those decisions.
We took some of our actions during the covid pandemic. For example, our former First Minister, Nicola Sturgeon, said that she
“couldn’t have done my job over the past few years”
without BSL interpreters. She said:
“They were crucial in making sure that we were able to communicate properly and fully the public health messages that were so essential in the country during that time.”
We are also taking action in relation to schools and learning. The hon. Member for Central Suffolk and North Ipswich (Dr Poulter) mentioned the possibility of creating a GCSE in BSL. I am not entirely sure what the equivalent is, but we in Scotland have SCQF qualifications available in British Sign Language at a number of levels. Edinburgh University is looking into introducing a primary teaching degree that includes British Sign Language, to help tackle the decline in the number of teachers who are able to teach in BSL. It is incredibly important that at all levels—whether at pre-school, primary school or secondary school, in the workplace or public life, or even in accessing shops and services—we do everything that we can to ensure that people who use BSL have access to it. We have ensured that all our colleges and universities in Scotland have a BSL plan in place, which is available both in English and in sign language.
We are also ensuring that each of our local authorities —we are not there yet—does what it can to increase access to the services they provide. In 2021, 24 of Scotland’s 32 local authorities taught BSL in primary schools—a total of 113 schools across Scotland. Obviously, we would like BSL to be taught in all 32 local authorities; as part of the action plans, our local authorities are working towards that.
I want to take this opportunity to celebrate this vibrant, dynamic and exciting language that so many of our constituents use, and to make it clear that we all have the same direction of travel. We are all trying to improve access to services, to public life and to information for users of British Sign Language. Any work that the Minister wants to do with Scotland, either to promote good practice on the part of the Government, or to learn from good practice in Scotland, would be wholly welcomed by my Scottish Government ministerial colleagues in Holyrood.
(1 year, 7 months ago)
Commons ChamberI can understand why, when it comes to policies on spending, on tax and on the Budget, we have an ideological divide across this Chamber. I can understand that the Conservatives want to go down a different route to those of us who are left of centre, but I cannot understand the experiential divide that seems to occur. I do not understand how those of us on the Opposition Benches are being approached by constituents who have lost all hope, who have nothing to look forward to and who are looking at their energy bills wondering how they are possibly going to make it through the next few days, let alone through the next few months, yet those on the Government Benches do not seem to be experiencing that. The hon. Member for Thurrock (Jackie Doyle-Price) said that her constituents had not lost all hope. A number of Members seem to be standing up talking about things that do not affect or are not the highest priorities for our constituents.
I have been representing communities and individuals in Aberdeen in an elected role for the past 15 years, and I have never seen such levels of desperation as those we currently face. I have never seen the numbers of people who are contacting our surgery or our office talking about suicide. I have never seen these levels of worry and debt—and I was an MP for Aberdeen when the oil price crashed, when we saw major impacts and job losses in our city.
The fact is that an absolute lack of hope is being offered, and this week’s Budget could have done something to alleviate that. The Government should have gone far further than a freeze on energy prices. They should have been looking at what people’s energy bills were previously and working to reduce them, not simply freezing them. As our leader in Westminster, my hon. Friend the Member for Aberdeen South (Stephen Flynn) said yesterday, the reality for people in Scotland is not that an average household is paying £2,500—in Scotland, it is £3,500. One of the Conservative Members yesterday stood up and talked about the fact that we had had a warm winter. It was -8˚C in Scotland this week in some places. It absolutely has not been a warm winter. People are freezing, unable to afford their energy bills.
If we want to talk about and think about boosting employment, boosting jobs and boosting growth—boosting employment and boosting jobs are two different things—we need to make changes. The UK Government need to make changes in their approach. The first thing they could do, given the amount of in-work poverty, is increase the minimum wage to something that people can actually afford to live on and pay their bills with.
The reality is that that real living wage is going to have to go up, because inflation is going up. We can take the total measure of inflation and look at that, but food prices are going through the roof. The Government and the Bank of England can do what they like to reduce inflation, but no matter by how much mortgages are rising and how much people are squeezed, they will still have to buy pasta, rice and potatoes. They will not be able to stop buying those things. Inflation will continue on the things that matter the most to people, even if we manage to discourage some incredibly rich people from buying yet another fancy sports car—that is brilliant; that will really reduce inflation! That will not reduce the costs for our constituents that are currently spiralling, and it will not reduce the costs where it matters.
We need to see a proper increase in universal credit. We need to see that money that was taken away—the uplift introduced during the pandemic—reinstated. We need to see proper decision making by this Government, not their saying, “Universal credit is broken so we will increase the number of sanctions.” That does not help my constituents who are having to go to food banks or those who are working and having to have their wages topped up by universal credit. It costs the Government money to top up those wages, by the way. We could be in a situation where they increase the national minimum wage to a better level, and then they would get more tax as a result and end up in a situation where fewer people required universal credit. I do not see why that is not a win-win for the UK Government.
To create the jobs and growth that we need to see, one of the biggest things that the UK Government could do is to encourage immigration. Brexit has done what it can to reduce the number of people working in our NHS. People are talking about not being able to get a doctor’s appointment, but that is not because too many people are coming into the country; it is because of the exodus from our NHS as a result of Brexit and the way that the UK Government continue to treat doctors, nurses and anybody who comes here from another country. The Illegal Migration Bill will only add to the hostile environment that has been created.
The changes to post-study work visas will do the same. They create investment in our country, which is wonderful, so reducing them would be a significant problem. We need the Government to rethink immigration. For example, if asylum seekers, many of whom are highly qualified, are escaping desperate circumstances and want to work, were allowed to work, it would help some of our communities where there is a lack of people working.
I am pleased to see the changes that allow NHS doctors to have their pensions, but those changes should have been restricted to NHS workers—not for all doctors in the private sector or people in other roles. All the issues that I have heard from my constituents relate specifically to doctors, and that is the issue that we have raised.
On CCS, I am pleased to hear that something is happening, but the previous version of the Acorn Project was pulled by the Chancellor during a Budget speech 10 years ago. We need investment in the Acorn Project in Peterhead, Aberdeenshire.
(1 year, 11 months ago)
Westminster HallWestminster 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.
This information is provided by Parallel Parliament and does not comprise part of the offical record
I thank you, Sir Christopher, for chairing the debate today. I congratulate my hon. Friend the Member for Airdrie and Shotts (Ms Qaisar) on bringing forward the debate and I thank all hon. Members for taking part.
My hon. Friend made some points about individual organisations in her constituency. I absolutely agree that we should thank those organisations for all the hard work they do, because they are absolutely necessary, but we can do that at the same time as saying they should absolutely not be necessary. It was good to hear about Paul’s Parcels and the work that my colleague is doing to support those organisations and the eradication of poverty in her constituency. I hope that all hon. Members are doing what they can in their constituencies, as well as putting pressure on the UK Government to try and ensure a sufficiency of social security.
Social security is about security; it is about having a secure situation where people can have positive mental health—the hon. Member for Strangford (Jim Shannon) talked about people’s mental health—rather than spending every moment worrying about whether they are going to be able to feed their children tomorrow, next week or next month, and whether they will be able to afford food. We need the social security system to work and provide the safety net that it is supposed to. After a decade of Tory Government, it continues to fail and it is not getting better.
I have less optimism now for the futures of my constituents than I have ever had at any point in this job and in my previous job as a city councillor. In about 15 years in an elected role, I have never seen the levels of hardship that I see coming through the door in my constituency office, on the news and in our communities. This has not happened before.
The problem is that there is no light at the end of the tunnel right now, no matter what the Government have announced in terms of inflationary upgrades, for example. As the hon. Member for Rutherglen and Hamilton West (Margaret Ferrier) mentioned, that is a temporary measure; it is not permanent and does not provide the level of structural reform people need to afford to live. What could be more important than ensuring that kids are fed and warm? There is nothing more important.
Our Scottish Government are now into their second child poverty action plan. We had “Every child, every chance”, which ran from 2018 to 2022; we now have “Best start, bright futures” from ’22 to ’26. These plans are about putting tackling child poverty at the heart of the decision-making processes of the Scottish Government. I do not think it is too much to ask that the UK Government replicate that, and say that they care about eradicating child poverty, and therefore will have a strategy to do that and make it a central aim of their plans.
More fundamental to that, though, would be if the UK Government could even start measuring child poverty, which is part of the issue. Yes, it would be great if they had a strategy to deal with it—that would be absolutely fantastic—but does my hon. Friend agree that it is alarming that the Government do not even measure child poverty? They do not realise the scale of it, other than by measuring it anecdotally, as I am sure the Minister does in his Hexham constituency when people come through the doors at his surgery on a Friday morning.
I agree. The fact that the Government are unwilling to even measure child poverty shows the lack of importance they give to this issue. If they cared as much about it as they should, they should be willing to explain, “This is what the current situation is. This is the measurement. This is how bad it is. This is how many people are suffering and how many children are in poverty in the UK in 2022”—in the UK in 2022! How can we be saying this? The UK Government need to stand up, hold up their hands and say, “This is the current situation and this is how we are going to improve it.”
I want to set out a few specific asks, some of which have been made already. As my hon. Friend the Member for Airdrie and Shotts mentioned, 87% of those affected by the benefit cap are families with children. The benefit cap would need to increase by £942 to reverse the loss since 2013. Despite the fact that the Government are looking to increase it, this is only the fourth time that social security payments have risen with inflation in 10 years. If we in Scotland can find an extra £25 a week in order to provide the Scottish child payment, the UK Government, with their far vaster budget and flexibility in dealing with their fiscal situation, can surely afford to do the same. They can afford it, but they choose not to match the payments we are making in Scotland.
There is the issue of the sufficiency of social security. One in four people on social security skipped meals this summer. That was in the summer—before the additional price cap increase on electricity and gas; before the upcoming winter months when people will need to put their heating on; before people had to buy school uniforms for their children when school started again in August or September. That situation is set only to get worse, and the promise of a temporary increase in universal credit will not fix it. There is currently no way out of this. We have no certainty that there is not going to be a cost of living crisis next year. Certainly none of my constituents has that level of certainty.
Let me turn to the issue of debt repayment deductions that are made from universal credit and other benefits. We have a situation where the UK Government can take 25% off the standard allowance to reclaim debts. Sometimes, those debts are caused by overpayments that are no fault of the person, but entirely the fault of poor decision making in the DWP or job centres. To be fair, that does not happen all the time; I am just saying that sometimes it is an issue.
If the UK Government have done an assessment of social security payments and believe them to be sufficient—that people can afford to live on them—how can they justify putting in place a benefit cap or taking 25% off the standard allowance? They are saying, “This is what we believe is sufficient for people to live on, but we are just going to take a quarter of it away.” It does not make any sense. People already cannot afford to live on the social security payments they are receiving. When the amount people are getting each month is reduced because of those reductions or the benefit cap, it is even less sufficient. Again, the conditionality and sanctions in place reduce that basic minimum level of payment that people should be entitled to.
The hon. Lady makes an interesting point. There have been occasions where overpayments have been made to my constituents. The money has to be paid back, and they understand that. Reducing payments by 25% is very unfair. In the past, my staff and I have managed to negotiate a reduction of 10%. That option is more manageable and should be given to the person at an early stage. Does the hon. Lady feel that is the right way forward?
I am glad that the hon. Member has managed that on behalf of his constituents. That is actually not the preferred route that I would take. I would prefer to look at whether people can afford payments rather than coming up with an arbitrary percentage, which is the UK Government’s preferred choice. I would look at affordability. How much are their outgoings and incomings? Can they afford to make the debt repayments? That is what we do, and when organisations like StepChange are managing debt, they look at whether people can afford it.
In my time working for Glasgow Credit Union before I was a politician, one of the things we regularly had to do when determining whether someone was eligible to borrow loans was calculate their debt ratio. Although that is required by the Financial Conduct Authority and imposed on things like credit unions, part of the problem is that the DWP does not routinely look at people’s income and expenditure. Does the hon. Member agree that the Minister should look at a debt ratio when making these decisions?
I absolutely agree. That is the way this should be taken forward, rather than setting an arbitrary percentage—whether it is 25%, 10% or whatever level. It should be done on the basis of affordability, and a debt ratio would be the preferred method; it would make sense.
One thing that I do not think has been mentioned yet is those people with no recourse to public funds. They are not in receipt of social security payments or the vast majority of payments that are available to others. We are seeing the most drastic and extreme levels of poverty experienced by some of those families, particularly refugee and asylum-seeking families. We are seeing children and families who literally cannot afford any food, and I just cannot believe that the UK Government are unwilling to make any change to the system of no recourse to public funds, because what people are going through is horrendous.
The UK Government stand up and say, “Oh well, it’s fine. They can just go home to whatever country they came from.” Generally, people who are here having made an asylum or human rights claim are here because it is worse in the country they came from and because their children are in danger if they go back. In fact, no recourse to public funds sometimes applies to people who are stateless—they have no country to go back to. It is a horrendous situation, and the UK Government need to fix it.
My hon. Friend is making an excellent contribution. On that specific point, I recently visited Manston and saw harrowing scenes of a tent full of families with young children. Those kids should have been playing in nursery; they should have been in a safe area. Instead, they were with dozens of other children in one tent. Does my hon. Friend agree that the wider issue at play is that the UK Government are spending their time othering communities? They are pitting communities against one another—whether they are refugees, working class, gay, lesbian or trans—when in actual fact we should all be uniting and campaigning to get that lot of Conservatives out.
I absolutely agree; I could not have put it better. No matter where they were born, the colour of their skin, their religion, their sexuality or gender identity, those children and families deserve a basic level of human dignity and fairness. That point about dignity, fairness and respect was made earlier. The UK is, in all our names, failing to provide that. It is choosing to make a differentiation between those people who are in slightly different communities and to treat them differently, and it is therefore trying to make that okay.
In Scotland, we are putting wellbeing at the heart of what we do. We are one of the founding members of the Wellbeing Economy Alliance. We are not choosing to levy austerity on the most vulnerable people in our society; we are choosing to provide respect, dignity and fairness. We are choosing to provide as much as we possibly can within our limited budgets. Our five family payments, including the Scottish child payment, can be worth over £10,000 by the time a first child turns six, and £9,700 for subsequent children. That compares to £1,800 for an eligible family’s first child in England and Wales, and under £1,300 for subsequent children. The difference is £8,200, and it highlights the Scottish Government’s major support in the early years for low-income families.
This is an incredibly important debate. We need a social security safety net that works. I would rather our social security system accidently pay the few people who are not eligible—who do not meet the criteria—than miss any one child who should be receiving those security payments and that Government support. The ideological choice that I and the SNP would make is to put dignity, fairness and respect at the heart of the decision-making process. We need to make sure that children are not in poverty, and that our guiding mission and our choices go towards eradicating child poverty.
The hon. Lady has obviously pre-read my speech and the comments that I will make, because my fifth point was going to be about childcare. There are a variety of points, which I will address in their totality; I will then try to deal with the specifics, particularly for those on universal credit.
It is patently obvious that for some parents childcare costs present challenges—at the very least—to entering employment. As the father of a 15-and-a-half-week-old child, I can testify to the bitter experience of that. The Government’s 13 hours of free childcare offer entitles all parents of three to four-year-olds in England to 570 hours of free childcare per year, with many children also entitled to the additional 15 hours of free childcare for 38 weeks per year. In addition to helping parents to manage childcare costs and working patterns, free childcare supports children’s development.
I will deal in particular with universal credit and childcare, in respect of which there is a massive role for Members of Parliament. Bluntly, those on universal credit are entitled to a massive amount of childcare, but the take-up of that offer is not good.
They are entitled to 85% of childcare costs—that is absolutely true—but is the Minister aware that the caps set in 2005 have not been uprated, despite the fact that childcare costs have since increased dramatically? Will he take a look at those numbers?
The Under-Secretary of State for Education, my hon. Friend the Member for East Surrey (Claire Coutinho), and I have had a preliminary meeting. The country wants to try to assist parents who want to go back to work. There is a real desire to address childcare on a long-term basis to ensure that parents who wish to can go back to work.
There are many discussions about all aspects of how we reform, improve and expand childcare in this country. The bit that I control is the ability of somebody on universal credit to access and take childcare. I take the point made by the hon. Member for Airdrie and Shotts and I will go and look at that, but the blunt truth is that the take-up is low. That is the first problem. I am genuinely of the view that there is not sufficient knowledge that individuals on universal credit can claim 85% of their registered childcare costs each month, regardless of the number of hours they work. That is a significant increase on the previous 70% of costs that could be claimed back on legacy benefits.
Parents can claim up to a maximum of £646.35 per month for one child and £1,108.04 per month for two or more children. For families with two or more children, that could be worth over £13,000 a year. I take the hon. Lady’s point on board and will go away and look at that, but that is still £13,000 of subsidised childcare paid for by the state in circumstances. That support is also available to all lone parents and couples who satisfy both the childcare cost and the work conditions to qualify for help with childcare costs.
I am conscious that there is an issue with prepayment of childcare. Various support funds are used up and down the country. In my three-and-a-half week journey of understanding this issue, there seems to be patchy take-up, but I urge all local areas and individual job centres that are assisting parents in this process to ensure that the various support funds available can be provided. It is not a grant, but it is a provision to pay for the childcare deposit. That is definitely happening up and down the country and we should try to encourage and nurture that on an ongoing basis.
I am conscious of time and the desire to deal with a large number of other matters. The autumn statement saw £26 billion in total, as part of further support in 2023-24, to provide around 8 million households on means-tested benefits such as universal credit with payments of up to £900 to help their income stretch further. That is on top of the £37 billion of cost of living support for households in 2022-23. In addition, there are benefits increases in line with September inflation of 10.1%, worth £11 billion, to working-age households and disabled people. There is also the triple lock and support for pensioners.
We will continue to provide support to all households through the energy price guarantee, which caps the price paid for each unit of energy, saving the average UK household £500 next year. For those who require extra support, we are providing an additional £1 billion to help with the cost of household essentials next year, bringing total funding for this support to £2.5 billion since October 2021. In England, that includes an extension to the household support fund backed by £842 million for the 2023-24 financial year. Devolved Administrations will receive £158 million through the Barnett formula. I could go into detail about support for free school meals across England and about the Healthy Start scheme.
I will briefly touch on the funding and powers in Scotland. The hon. Member for Airdrie and Shotts highlighted the extension to the Scottish child payment. The Scotland Act 2016 devolved significant social security and employment support powers to the Scottish Parliament, worth around £3 billion, as well as providing additional powers to create new benefits in areas of devolved responsibility, top up reserved benefits and provide discretionary payments. The UK Government provided the Scottish Government with a record £41 billion per year Barnett-based settlement at the 2021 spending review. That is the largest settlement since devolution. That record settlement provides the Scottish Government with around 25% more funding per person than equivalent UK Government spending in other parts of the UK.
In respect of various other matters, I will endeavour to write to colleagues. To conclude, I welcome today’s debate. I will attempt to work with colleagues on an ongoing basis. It is my job to ensure that there is ongoing support for children through the social security budget that operates throughout the United Kingdom. I commend the hon. Member for Airdrie and Shotts on her first Westminster Hall debate.
(2 years ago)
Commons ChamberI welcome the new ministerial team to their place. I hope to meet the new Secretary of State in early course; it was quite difficult to secure a meeting with some of his predecessors, unfortunately. The new Prime Minister spoke of the difficult decisions that will have to be made, but the real difficult decisions are those being forced on our constituents—people on low incomes struggling to afford the basics, pay their bills, heat their homes or feed their children. Let us not forget the reality of the tragic human cost of over a decade of Tory austerity, which urgently needs to end. Does the Minister agree that uprating benefits in line with inflation is not a difficult decision, but is instead the only moral course of action?
That is not a matter for me, but I would like to reiterate at the Dispatch Box that the Government fully understand the pressures we are all facing. We all have constituents facing these matters, and it is absolutely right that we take that decisive action to support people with their bills. Members are talking as if we are not supporting people, but there is £37 billion of help with the cost of living, including the £400 of non-repayable discounts to eligible households provided by the energy bills support scheme. In addition to the benefits calculator and the cost of living webpage on gov.uk, I would ask people please to reach out to their councils. Members are talking this afternoon as if there is no help, and it is important that our constituents know that that is far from the case.
(2 years, 3 months ago)
Commons ChamberThe UK Government recently rejected the Work and Pensions Committee report’s recommendation to
“extend Child Benefit to all British children irrespective of their parents’ immigration status.”
People with no recourse to public funds do not qualify for the additional cost of living payments. Children are literally starving and suffering malnutrition because of this cruel policy. Does the Secretary of State believe that this is acceptable in the 21st century?
The hon. Lady refers to the fact that people without recourse to public funds are not eligible for benefits. When people arrive, I accept that they are not going to be eligible for child benefit. Any family in a state of difficulty can apply to the Home Office for a review of that status; it is for them to do so. At the same time, as I think we confirmed to the Select Committee when we discussed the matter at the hearing last week, it is for local councils to design the way they do the household support fund. It may be possible for people without recourse to public funds to apply to their local authority.
(2 years, 3 months ago)
Commons ChamberIt is a pleasure to follow my good friend, the Chair of the Work and Pensions Committee, the right hon. Member for East Ham (Sir Stephen Timms), and it is a pleasure to be a member of that Committee in holding the Government to account. I of course refer to my entry in the Register of Members’ Financial Interests, particularly my role as chair of the PCS parliamentary group, as I will have some things to say about the office closures issue.
I want to start with the Secretary of State’s appearance at the Work and Pensions Committee last week, when she said that, on Thursday, she was going to meet her officials to discuss a second remedial order on bereavement support benefits for cohabiting couples. This is a very important issue, and we have had many great campaigners, including my Glasgow South West constituent Ailsa MacKenzie, who has been in the vanguard of pushing this issue. I hope the Minister will update the House on that issue, because it affects many thousands of people. The quicker we get the remedial order laid down, the quicker people can start receiving those bereavement support payments, which will no doubt help them deal with the cost of living crisis.
Let me touch on what I think lies at the heart of the problems in the Department for Work and Pensions: the start of the claim, the five-week wait and the deductions that come with that. The Minister responded to a written question from me, and the figures are becoming increasingly alarming. Ever since, I have periodically tabled such questions, and the number of deductions and the amount deducted have increased over the past 18 months. A total of £11 million a month is now being taken off claimants as a result of deductions. In my view, that has become a poverty tax.
For example, figures show that in February this year, 189,000 households in Scotland—an increase of 9,000 in just three months—had an average of £60 deducted from their social security payments. That is mainly to pay back the loans issued by the Department to cover the five-week wait at the beginning of a new claim, but some of it is due to overpayments, which include the Department’s errors. I hope the Department will look at that issue, because there is already case law when it comes to pay. By law, if there has been a mistake and someone has been overpaid, the employer cannot take that back. I suggest that if the Department has made a genuine error, it should not be deducting payments from future claims. I hope the Government will look at that, because a number of organisations have said that a deduction should not be made if the Department for Work and Pensions is to blame.
Does my hon. Friend share my concern about the lack of reassurance regarding top-up payments, as announced by the Chancellor last week? We may end up in the same situation, because if DWP accidentally gives that money to someone, it might try to claw it back, putting people in an even worse state of poverty than they are in already.
I share that concern, and I hope the Department will respond positively to the concerns that hon. Members, including my hon. Friend the Member for Aberdeen North (Kirsty Blackman), have raised.
On departmental error, taking £60 a month from people who require state support can be the difference between whether they can buy food or not, or whether they can heat their homes. I am sometimes a bit concerned about the phrase “heat or eat”, because some people will now not be able to do either. That is the desperate situation that far too many people face across these islands, particularly with the cost of living being so high.
On the one-off payments, the Department appears to have conceded the point that grants are better than loans. I welcome that, but I hope it will now look seriously at the report by the Work and Pensions Committee about the five-week wait and introduce a non-repayable grant—a starter payment, as we call it—within two weeks of the claim. That would stop people getting into debt as a result of deductions, and I suggest that it would save money on administration, compared with paying people after five weeks and then deducting £60 a month from them. It seems a false economy to insist on continuing the five-week wait, and then going back and deducting money from people’s claims.
A good friend of mine, Andrew Forsey, director of the charity Feeding Britain, which is involved with Threehills community supermarket in Glasgow South West, recently said:
“Last year, figures like these prompted the DWP to lower the cap on deductions and double the length of time people had to repay those upfront loans. What these latest figures show is that there remains a lot more work to be done, to bring these deductions down still further, if people are to have the money they need each month to put food on the table.”
The Chair of the Work and Pensions Committee mentioned no recourse to public funds, and I agree with what he said. I hope the Department will look seriously, once again, at the Committee’s report that recommends extending child benefit to all children, irrespective of their parents’ immigration status. The right hon. Gentleman laid that out well, and, as someone who represents a city that has signed up to the Home Office’s asylum seeker dispersal scheme, I know this is a very real issue. In areas where asylum seekers have become refugees, it was certainly an issue during covid. I hope the Department will go back and look at that.
We need more resources to go into ensuring that those who are entitled to pension credit receive it. It is reckoned that between 65% and 70% of people who are entitled to pension credit receive it. I would like the Department to do more work on that, and I would like more resources to go into working with pensioners’ groups and various third-sector organisations to ensure that those who are entitled to pension credit get it. It seems to be a very real issue, and some of the statistics from the independent charity Age UK about the amount of unpaid claims for pension credit suggest that the figure is far too high; it is in the millions. Frankly, that pension credit could do a lot of good for pensioners who are dealing with increasing food and fuel costs.
Finally, let me raise my concern about office closures by the Department for Work and Pensions; I know that you also have a constituency interest in this subject, Madam Deputy Speaker. We have Government offices in areas of high economic deprivation, and the Department is one of the largest employers in some constituencies, but it wants to close those offices. That will not just impact on people employed by the Department, although of course it will do that, but have a wider effect on the economy. Many small businesses round and about those offices rely on custom from people who work in the Department, and I refer the Minister to my hon. Friend the Member for Glasgow North East (Anne McLaughlin), who has done a survey on this issue in relation to the proposed closure of the Springburn office.
The Department seems to want to take out far too many of the 91,000 jobs that the Government want to cut. The Department responsible for employment and helping people get into work really should not be laying off its own workers and throwing people into unemployment; that would send completely the wrong message and make no sense whatsoever. I will leave it there, Madam Deputy Speaker, and I hope—indeed, I am sure—that I will get a positive response from the Minister to all the points I have raised.
I thank the right hon. Member for East Ham (Sir Stephen Timms) and the Backbench Business Committee for granting this estimates day debate on DWP spending on cost of living measures. It is an important topic for every MP in this place, because DWP matters make up a proportion of our constituency casework, and people come to us at a time of need.
The real elephant in the room is this: the Government talk about spending to help people deal with the cost of living crisis, but we have to acknowledge that they have put some people into the positions in which they find themselves. It is all well and good providing a £650 payment to those on benefits and £300 to pensioners—I welcome that—but many of those receiving those payments have been pushed into crisis as a result of Government policies that have pulled the rug out from under them.
The Government refused to uplift legacy benefits alongside universal credit in the response to the pandemic, as the right hon. Member for East Ham pointed out. The Government told us that it was too complex to do, but given that they seem to have given it very limited consideration, we conclude that that is a political decision. We know that it affected disabled people the most because the High Court said so. Of course, disabled people and the organisations who support them did not need to be told that. They knew that disabled people were disproportionately more likely to be shielding, and as a result relying on expensive services, such as food deliveries.
The reality is that it is generally more expensive to be disabled. When I think about the cost of living crisis and, in particular, the rise in energy costs, I think about disabled people in my constituency and elsewhere who are running electrical equipment, and who need to have the heating on at times of the day when people who do not have a disability and who are mobile do not. As a result, this crisis is hitting them more acutely than others.
On the additional costs faced by disabled people, does the hon. Lady share my concern about the additional costs associated with specialist diets? For those with a gluten-free diet, for example, prices have increased significantly in excess of inflation.
Yes, I entirely agree. I recommend to anybody who has not read it last Sunday’s article in The Sunday Times about food banks. The journalist took the time to eat a diet of what is provided in the emergency packages. It is not particularly healthy, but it is food, and I am hugely grateful that it is there. I co-chair the all-party parliamentary group on ending the need for food banks, and I am hugely grateful for the work that food banks do, but trying to meet specialist needs and requirements is very difficult for a charity run by volunteers. We should ensure that people have what they need to meet their medical requirements.
I am sure that many Members will refer to this, but the refusal to keep the universal credit uplift has taken away £20 a week from people who were already struggling. No taper, and no additional grants, will make up for that. When the Chancellor introduced the uplift, he said it was to reinforce the safety net. To some extent, that worked. In research by the Trussell Trust, the secretariat for the APPG, 70% of people said the increase in universal credit made it easier for them to afford essentials. Very quickly—this is my last point on the APPG—our call for evidence on the different responses to the need for food closes on 8 July, so if anybody would like to contribute evidence, we would love to hear from them.
The decision to remove the universal credit uplift at the end of lockdown restrictions, when the economy reopened and there was an expectation that people could take on more work, revealed the Government’s true thinking. It was an implicit acknowledgement that it is impossible to live on the current rate of universal credit, and that that would become abundantly clear to voters who started claiming benefits for the first time during the pandemic. The Government’s taking away the uplift clearly shows that they think that poverty payments are acceptable for those who rely on universal credit in the long term, either because they do low-paid but vital work such as caring, or because they cannot work full time for any other reason—there are many other reasons, as we all know from our case loads. I would like to know why the Government think that a reinforced safety net is needed for some people in our society, but not others.
I want to mention, as others have, unpaid carers, who are another left-behind group. Carer’s allowance is £69.70 per week. We do not accept jobs that pay less than £2 per hour, so why do we think it is acceptable to ask unpaid carers to accept that? Earlier, when my hon. Friend the Member for Twickenham (Munira Wilson) spoke in support of her ten-minute rule Bill on kinship care, she talked about the instinct to want to help a family member in need. No matter how much we love our family, anyone who has ever been a carer will tell you that it is work. As a society, we rely on that good will, so we must support our unpaid carers. They are the backbone of our society. Where people can and want to work, they should be supported to do so. Members have mentioned no recourse to public funds, but the other side of the coin is that we do not allow people claiming asylum to work and contribute. We give them neither support nor the opportunity to support themselves.
With its earnings cap of £132, the carer’s allowance policy seems designed to keep carers in poverty. We have been waiting for two years for a report from the Government on the effect that carer’s allowance has on people’s ability to work. I hope the Minister can update the House on when we will receive that report, and will explain how Members are supposed to scrutinise Government policy properly when we do not receive the reports that would enable us to scrutinise them. I am pleased that while we are waiting for the report, there are practical steps we can take to support our unpaid carers with work and into work, and with managing their caring responsibilities. I am delighted to be bringing forward a private Member’s Bill this Session to give unpaid carers the right to take additional leave, which would help them to balance their caring and working commitments. It does not go as far as I would like, but I believe it would be the first stand-alone piece of legislation giving employment rights to carers. It would help millions of people. One thing that the Government have been trumpeting is the current low rates of unemployment, but they are not talking about the increasing numbers of economically inactive people. I argue that some of those will be carers who are unable to combine work with caring responsibilities. I hope that my Bill will give them the opportunity to do that, but—this is a big but—it is only part of the picture of supporting unpaid carers into work. I hope that the DWP will do other things to play its part.
I will briefly turn to two pensions issues, the first of which is a specific constituency matter. My constituent is being denied her full state pension because of a gap in her national insurance record. The gap exists because she worked in intelligence for the armed forces a number of years ago. When she became pregnant, she was immediately discharged from the Army, but she could not return home to Scotland because of the sensitive nature of her work. The gap is purely caused by the pregnancy discrimination that she experienced at the hands of the state. She is being told that, rather than paying her the small extra amount that she would be entitled to each year, the Government would arguably rather give it to lawyers and have us go to court. I really hope that the Government can recognise that she has experienced an injustice. I urge the Minister to meet me so that we can find a way forward for my constituent, who was serving her country.
On a much broader injustice, the WASPI—Women Against State Pension Inequality Campaign—women are still waiting to receive the money that has been denied them. As time ticks by, many will die before they receive what they deserve. Do the Government want that legacy—3.8 million women left to die, with far too many of them in poverty exacerbated by the cost of living? The ombudsman might still be reaching its conclusions on compensation, but it would be a huge comfort for the WASPI women to know that the Government plan to follow its recommendations. Will the Minister join me today in pledging to follow the ombudsman’s recommendations, when they are made, and to provide compensation to women who missed out because of Government error?
We could talk about lots in this estimates debate and Members have referred to other issues that I would want to raise. In conclusion, however, we are feeling the impact of the cost of living crisis more acutely in the UK. It is incumbent on the Government to stand up and help constituents, including those claiming benefits or who interact with the DWP, however they do so.
It is a pleasure to take part in this estimates day debate. I do love estimates day; it is wonderful every time that this rolls around—I am not being sarcastic, I promise.
I will talk briefly about the shortcomings of the estimates process. We are discussing the DWP estimate today—which involves spending of £240 billion—under, I think, Standing Orders 53 and 54, which were written before I was born. We are unable to table meaningful amendments in relation to £240 billion of spending because of the way in which the Standing Orders are written. That is shocking. Has anyone here ever tried to explain the Budget process to people outside the House? Have they ever tried to explain the fact that we have to stand here and discuss hundreds of billions of pounds of expenditure without any meaningful way to amend that? It is absolutely ridiculous, flawed and deeply inadequate.
The DWP’s objectives in the main estimates book are, first,
“Maximising employment and in-work progression”;
secondly,
“Improving people’s quality of life”;
and thirdly,
“Delivering excellent services for citizens and taxpayers”.
Those are the Department’s aims for the next year. I suggest that the Government have failed and continue to fail in what they are doing. I make it clear that that is not, for a second, the fault of DWP staff, who are working incredibly hard to make the social security additional payments.
Is it not ironic that the DWP says in the main estimates book that it wants to maximise employment when it is threatening its staff with redundancy?
It is, and it is ironic that the DWP is asking staff to step up and deal with its creaking, unfortunate, flawed computer system. It is asking them to do all this additional work to make that happen while failing to make the investment where it should be making it, in the computer system and in the people. I am also seeing a reduction in DWP office staff in Aberdeen. I very much hope that the Government change their mind about the direction in which they are going.
We have heard from Members across these Benches about the issues affecting people’s quality of life as a result of the DWP’s failures and the failures of the Government’s policies. Loads of people have mentioned the safety net. The whole point of a safety net is that it catches people. The point is not to make the holes as big as possible so that as many people as possible fall through. I would rather have a social security system like the one that we are building in Scotland; a social security system that ensures that everybody is caught by the safety net, so that everybody gets what they are entitled to and people do not accidentally fall through. This Government’s policy seems to be to give social security payments to as few people as they possibly can and to try very hard to set the bar as high as possible so that people cannot meet the requirements.
We have heard about the Scottish social security system and its openness compared with the DWP’s system, where the report on food banks and the equalities impact assessment were buried. Audit Scotland recently audited the Scottish social security system. It said:
“The Scottish Government has continued to successfully deliver new and complex social security benefits in challenging circumstances. This is a significant achievement. There is a conscious focus on the needs of service users, building on the principles of dignity, fairness, and respect. People are positive about their experiences of engaging with Social Security Scotland.”
How different that is from the views that we are hearing down here, from what is in our inboxes, from the absolute intransigence and the issues that people face every day when simply trying to get what they are entitled to.
The social security uprating fails to get anything close to inflationary levels this year. We have seen an increase, but it is nothing close to the level of inflation. In fact, the £650 payment that the Chancellor announced does not even cover the £1,000 that was taken off people last year—never mind going any way to cover the increase in the cost of living. The Chancellor, the Minister and the Secretary of State have repeatedly said, “But people are getting more, with the £650, than they would have if we had uprated benefits”. We are asking them to do both. We are asking them to adequately uprate the benefits and backdate that to April as well as to make the additional payments. Only then can we get to a situation that is close to helping with the cost of living.
This is a tale of two Governments. We can see that another country is possible. We can see the failings, with the bedroom tax, the benefit cap and the two-child policy being carried on with. We have heard a lot about no recourse to public funds. When we discussed the Social Security (Additional Payments) Bill last week, I mentioned that children were literally starving and I was scoffed at by Government Members. If we look at reports, we see that junior doctors talk about children presenting with rickets because of the level of malnutrition, because they have no recourse to public funds, because they have been sanctioned, or because they otherwise cannot afford to eat a healthy diet. Comments have been made about the lack of variety and the lack of healthiness in the diets provided by food banks, which try incredibly hard but just cannot meet the requirements. In addition, they cannot provide food for people who cannot afford electricity. If people cannot afford electricity to boil something in a pan, it is difficult for them to cook adequately.
In the main estimates book, the Government talk about providing £5.6 billion—that is the initial spend—under the Social Security (Additional Payments) Bill. However, they mention providing £37 billion for increases in the cost of living. That £37 billion is made up of additional payments, as the Chancellor has stated, but can the Minister confirm that he is including things in it like the freeze on alcohol duty? It cannot be said that the freeze on alcohol duty relates to improving the cost of living for people who cannot afford to eat.
I am pleased to have been able to talk about the DWP estimates today. What is happening is woefully, woefully inadequate. Our constituents are coming to us and we just cannot provide them with the hope that they need and want, because the Conservatives are digging their heels in and refusing to offer adequate support.