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The Minister for Employment (Guy Opperman)
Well, it is the word of the day so far. It is a pleasure to serve under your chairmanship, Mr Paisley. It is an honour to respond to this debate secured by the hon. Member for East Dunbartonshire (Amy Callaghan). We are in Brain Tumour Awareness Month; I know she did not suffer a tumour as such, but as a fellow recoverer from neurosurgery, I join her in celebrating the month. We say many thanks to Headway and the Stroke Association, which have done great work supporting her, and I put on the record my thanks to the Brain Tumour Charity, the National Brain Appeal and Brain Tumour Research, which have done great work supporting me, and to Neil Kitchen, who, with a very small chainsaw on my head, performed the operation that kept me alive after I collapsed in Central Lobby in 2011.
I congratulate the hon. Lady on securing this debate on an important issue, which I want to try to address in some detail. I accept the dubious honour of being the warm-up man for the Chancellor tomorrow, and there were many and varied pitches to him. I note those by the hon. Members for Rutherglen and Hamilton West (Margaret Ferrier), for East Dunbartonshire, for Strangford (Jim Shannon)—I will come on to his points on childcare—and for Livingston (Hannah Bardell), and by the shadow Ministers, the hon. Members for Glasgow East (David Linden) and for Wirral South (Alison McGovern).
The hon. Member for Livingston made the good point that we should celebrate single parents. I utterly endorse that. In this moment of personal reflection, I put on the record my thanks to my mum. When my parents split up, she brought me and my brother up alone. She is presently disabled, just out of hospital and very unwell. She worked for MI6 when not many women were entitled to do that. I will be getting her into trouble for revealing that piece of information, but I think she is safe from any retribution from the security services.
Without a shadow of a doubt, we need to celebrate and support those who have the honour and distinction of ploughing a lonely furrow in trying to ensure that upbringing is done in the most appropriate way possible, to the best of their ability, in circumstances not necessarily of their own choosing. We all understand it is complicated.
There are a number of points I need to address, but I want to start with the overarching point, which is the degree of support that the Government have provided over the last couple of years and will provide on an ongoing basis. I think that it contextualises the individual benefits and support that already exist. Clearly, we have to take in mind the Chancellor’s autumn statement, which reflected our commitment to support families across the UK, setting out a series of measures on top of the £37 billion announced in May 2022. About 8 million households on means-tested benefits such as universal credit will receive payments of up to £900, and obviously state pensions and benefits will increase by 10.1%, increasing expenditure on social security and benefit pension rates by £22 billion for 2023-24.
It is fair to note that we have never spent as much as we spend on the welfare system in this country; we are spending record levels.
David Linden
Politicians always like to twist statistics, but if we compare what we spend as a proportion of average earnings, is it not the case that we are pretty much back to the days of Lloyd George in terms of our spending on social security?
Guy Opperman
I manifestly disagree with the hon. Gentleman. I do not have my Lloyd George statistics to hand, but given that the welfare spend in the times of Lloyd George was effectively minimal and that we are now spending £245 billion through the welfare system in 2023, including £108 billion on people of working age, record sums on the state pension and record sums on the disabled, I suspect that the House of Commons Library would be delighted to correct the hon. Gentleman on the error of his Lloyd Georgian ways. Of course, were I to be mistaken, I would be delighted to be corrected by the Library.
I was not expecting the hon. Gentleman to rely on Lloyd George in support of the Scottish National party cause. I noted with interest and curiosity his description of his three colleagues who are running for the SNP leadership as dreary—or of the process as being dreary. I could not possibly comment. I am sure that they will be able replacements for Nicola Sturgeon. The statistics and the polls show that independence is a whole lot less likely than it was three months ago, but I am sure that the winner will turn things around in a heartbeat.
Amy Callaghan
I think the Minister might want to correct the record on support for independence—we are in a much better place than we were just a couple of weeks ago—and get back to the subject of single-parent families.
Ian Paisley (in the Chair)
Order. The debate is on single-parent families, not independence or the candidates for leader of the Scottish National party.
Guy Opperman
I utterly endorse that very strong steer. I have no intention of correcting any record because I stand by the statistics.
On spending, there is also the energy price guarantee, which will be extended until the end of March 2024; a typical household bill will be around £3,000 per year as a result of that support. For those needing extra support, we will be providing an additional £1 billion to help with the cost of household essentials this year, bringing total support to £2.5 billion since October 2021. There is also an extension of the household support fund backed by £842 million for 2023-24, and devolved Administrations receive funding that totals £158 million through the Barnett formula.
Much was said about childcare, and I want to address it in a bit of detail. While there is, of course, intense speculation about what may or may not happen tomorrow, it is relevant to make the point that, since 2010, we have taken a system of almost non-existent childcare in this country to a substantial, comprehensive and broad-ranging offer. For example, in 2010 there was no 85% universal credit childcare, and parents could not receive the paid-for 15 or 30 hours of childcare. Universal credit claimants can claim back up to 85% of their registered childcare costs each month, irrespective of their hours worked. That is available to all parents who satisfy the childcare cost and the work condition to qualify for help. This is obviously a substantial increase from what existed before and it applies to any parent up to the maximum amount of £646 per month for one child and £1,108.04 per month for two or more children.
Separate from the universal credit childcare element, the Government also provide free childcare for many families. There are the 15 hours free childcare a week we brought forward for three to four-year-olds in England. In 2017, that doubled to 30 hours for working parents of three to four-year-olds. There are similar schemes available in the devolved nations. Since 2013, we have also provided 15 hours of free early education entitlement to disadvantaged two-year-olds. The obvious aim is to improve long-term educational outcomes, and narrow the attainment gap between disadvantaged children and their more advantaged peers.
Parents are eligible if they are in receipt of certain income benefits, and have a household income of less than £15,400.
Guy Opperman
I will pause there, although I have more on childcare, and let the hon. Lady intervene.
Hannah Bardell
Some of what the Minister describes is a very complex landscape, with which many of my constituents have significant issues. Does he share my concern that there are many billions of pounds of unclaimed benefits every year? Perhaps that is because it is such a complex system. It is difficult for people, such as single parents, who are under pressure to navigate it.
Guy Opperman
The Chancellor is looking at that matter. Clearly, any person who does not claim an entitled benefit is one person too many. We all accept that. We would definitely like to see a higher number of people taking the UC element of childcare. Support already exists, such as the flexible support fund, to assist that process.
The hon. Lady should also be aware that the whole purpose of the childcare is to assist people into employment. The published statistics show that the effect of bringing in the childcare, however imperfect she may consider it in the present situation, has definitely made a massive difference. For example, there are now 1.2 million lone parents in employment. There is clear evidence that demonstrates the importance of parental employment.
We can argue about the relative merits and improvements that have taken place over the past few years or decades. Bluntly speaking, there is the opportunity for childcare support, but that has to be married to the enhancements of existing benefits and the changes we introduced, such as the work allowance and the taper. Universal credit is designed to make work pay, so that not all a person’s net earnings are deducted from their UC.
Claimants with children or a limited capability for work will also benefit from a work allowance. The work allowance is the amount of earnings a UC household can earn before the single taper rate of 55% is applied, and their universal credit begins to be reduced. That has been reduced and changed over the past two years. Together with the changing of the taper rate and the work allowance, that boosts support for single parents and all families, who are dealing with this.
Much was made by the hon. Members for East Dunbartonshire and for Strangford of the issue of child maintenance, and I will try to address those points. I always enjoy the start of the hon. Member for Strangford’s speeches, because the first minute is normally a paean of praise to the individual Minister, irrespective of who that Minister is. I am always tempted to jump up and implore him to stop there, because that is the best part as far as I am concerned. My mum loves his speeches.
I accept the hon. Gentleman raised a number of key points. Child maintenance is devolved to Northern Ireland, and clearly the Department for Work and Pensions is not responsible for its delivery. In respect of child poverty in Northern Ireland, in the three years to 2019-20, 18% of children in Northern Ireland were in absolute poverty before housing costs. That is 6% less than in the three years to 2009-10. I accept that every percentage is too high, but I respectfully suggest that the statistics show things are better than they were. I take his comments on board.
To respond generally on child maintenance, the hon. Member for East Dunbartonshire raised a number of matters. I refer her to the three parliamentary answers given by the Under-Secretary of State for Work and Pensions, my hon. Friend the Member for Mid Sussex (Mims Davies), on 28 February, which set out in detail some of the points the hon. Lady raised. My suggestion to the hon. Member for East Dunbartonshire, because she is clearly very exercised on that point, would be that she sits down with Lord Younger, the child maintenance Minister in the Department for Work and Pensions—I am always pleased to give other Ministers the chance to have a meeting that is not my responsibility. I strongly suggest that she sits down with the officials and the individual Minister and goes through some of those key points. If she is interested in that, then, clearly, I will organise and facilitate it and make it happen.
While I accept that there is always criticism made of the system, the system is, with respect, both doing better than it was and under a transformational procedure.
Guy Opperman
Of course I will, and I am going to try to answer some of the points that she raised.
Amy Callaghan
On the point of transformational change, I wonder what the Minister would say to my constituent, Felicity, who has been struggling to get maintenance for her son over a number of years because of consistent failures in the child maintenance system.
Guy Opperman
Well, the simple point is that I strongly urge the hon. Lady to raise that with the individual Minister. I cannot comment on a particular case, as she knows, but, without any shadow of a doubt, the Department is clear that our role is to support parents who choose to use its services, encouraging them to make a family-based arrangement to start with, or supporting them with the statutory scheme if they cannot.
The Child Maintenance Service is genuinely delivering a transformation programme and aiming to improve outcomes for children by enabling parents to set up, and then manage, their child maintenance arrangements in ways that suit their own individual circumstances. Significant improvements have been made to the online offerings, whether around applying for child maintenance or the development of a new service to help in arranging child maintenance. All of that makes for a more accessible service.
Let me give a few examples. In the quarter ending September 2022, 872,000 children were covered by Child Maintenance Service arrangements—an increase of 25,700. Our current estimate is that, as a result of regular child maintenance payments, 140,000 fewer children are growing up in poverty. Clearly, these matters are always difficult, always contentious, and always a difficulty between individual parents. We accept entirely that the principle is that child maintenance is designed to encourage parents to work together and make their own family-based child maintenance arrangements wherever possible, which is usually better for the children, but it can play a role in helping to lift children out of poverty and can help to enhance the outcomes of individual children.
I will turn back to some of the other points that I wished to make. Clearly, as a result of some of the decisions made in September, the child benefit itself—which is payable to anyone responsible for bringing up a child up to age 16, or under 20 if they are in approved education or training—will increase by 10.1% from April 2023 for the eldest or only child, and there will also be an increase for every other child. Alongside the financial assistance that child benefit provides, claimants also receive national insurance credits to protect their future entitlement to pension entitlements. Those can be transferred to grandparents providing childcare.
I will touch on a couple of quick points that were raised on other matters. There were multiple references to the Chancellor. On flexible working, the Under-Secretary of State for Business and Trade, my hon. Friend the Member for Thirsk and Malton (Kevin Hollinrake), is obviously bringing forward legislation on that point.
There have been great changes there, and I can assure colleagues that the Department for Work and Pensions, as with other Departments, operates a very flexible working arrangement. It is not necessarily based in Whitehall, I can assure them. For example, I have two ladies who job share one of the most senior roles in Government in the Department for Work and Pensions. Between them, they cover one directorship in one of the most impressive job share and flexible-working examples I can imagine. Frankly, that is becoming the norm on a greater and greater basis.
I will conclude by stating that I accept and endorse the approach of the hon. Member for East Dunbartonshire on how we are driving these matters forwards. I accept that more can be done on the Child Maintenance Service, and I encourage her to take up my offer of a meeting, on behalf of my parliamentary colleague. I am pleased to have had the opportunity to set out certain matters in detail, including the amount of support that is available to single-parent families. Clearly, I will report back to the Chancellor the last-minute additions to the Budget that many have put forwards.
We are committed to meeting the needs of individuals and single-parent families in the United Kingdom, and we continue to provide the Scottish and Northern Irish Governments with generous funding and support where these matters are devolved.
Ian Paisley (in the Chair)
Thank you, Minister, for the revelation about Jane Bond. I hope that Thames House was not listening.