Disabled People: Support

Baroness Keeley Excerpts

Wednesday 27th January 2016 Westminster Hall

[Barbara Keeley (Worsley and Eccles South) (Lab)]

It is a pleasure to speak in this debate with you as our Chair, Mr Crausby. I congratulate my hon. Friend the Member for Bermondsey and Old Southwark (Neil Coyle) on securing this important debate and on the excellent way in which he opened it.

I want to touch on the impact that the Government’s policies and proposals are having and are likely to have not only on disabled people, but on their family carers. The toxic combination of cuts to local authority budgets and changes to support are having a significant negative impact on disabled people and on their carers. My hon. Friend gave an excellent analysis of many of those impacts.

Social care is widely seen to be in crisis. The most recent survey by the Association of Directors of Adult Social Services reported that 400,000 fewer people are receiving social care services than in 2009-10. Of those who are still supported, a significant number are now getting less care. Most directors expect that still fewer people will get access to services over the next two years.

There have been five years of funding reductions, totalling £4.6 billion and representing nearly one third of real-terms net budgets for local authorities. This year, adult social care budgets will reduce by a further half a billion pounds in cash terms. Taking the growth in numbers of older and disabled people into account, an additional £1.1 billion would be needed to provide just the same level of service as last year. Before the Minister tells us that the Government are putting £3.5 billion back into social care in future years, I should tell him that I see the Government’s funding plans for social care as risky, uncertain and late.

Proposed increases to the better care fund are risky, because they are so back-loaded. They do not reach £1.5 billion until 2019, but as I said, demand is growing each year before then and we have already lost £4.6 billion. Funding from the social care precept is uncertain; it can only raise £1.6 billion by 2019-20 if every single council decides to raise council tax by the maximum possible, and they may not do so. However, adult social care is in crisis now and there have been significant cuts since 2010. Local authorities are not helped by Government funding that is too little and that comes too late.

Two months ago, the High Court ruled that the benefit cap unfairly discriminates against disabled people and their carers. I am glad that the Government are finally conforming to the Court’s ruling and exempting full-time carers from the benefit cap. However, other changes to social security are still in the pipeline and are causing serious concern for carers. The Government have announced consultation on the possible devolution of attendance allowance to local authorities in England and Wales. I know that Carers UK is deeply concerned about that announcement.

Attendance allowance is an important source of financial support for older people with care needs. It is a gateway benefit entitling the carer to claim carer’s allowance. Currently 295,000 people receive carer’s allowance or other financial support because they are caring for somebody who is receiving attendance allowance. There are deep concerns that the Government’s proposals will mean further delays and variations in people receiving these essential benefits. Local authorities, such as mine, Salford City Council, are still under severe financial pressure due to budget cuts. Salford has had to cut its budget for adult social care by £15 million since 2010.

Without ring-fencing, it is feared that the funding for attendance allowance will be absorbed into local authority social care budgets and then start to be subject to ongoing cuts. It is unclear whether local authorities will be allowed to change the eligibility criteria and level of payment for attendance allowance. If they are given that flexibility, it could lead to eligible carers losing the right to receive their carer’s allowance.

I am sure we all accept that carers provide the bulk of the social care in this country and save the state billions of pounds. If carers are unable to claim carer’s allowance they may be unable to continue caring and be forced back to work, putting pressure on local NHS and care services. Will the Minister say what steps are planned to ensure that the availability of attendance allowance and the eligibility criteria for it will be protected from local variations? It would be helpful if he told us whether he has assessed how many carers would lose access to carer’s allowance as a result of the proposed changes to personal independence payment eligibility. I will come to that.

The proposals to alter the aids and appliances eligibility criteria for PIP may also mean that fewer disabled people will receive the support they need. Currently, 35% of people who are ill or disabled qualify for PIP solely through the aids and appliances descriptors. As PIP is also a gateway benefit for carer’s allowance, any move to restrict PIP eligibility will have a significant impact for carers. I understand that the evidence base for the proposed reforms to PIP is based on an analysis of only 105 claimants when over 611,000 people are claiming PIP. That seems to be an absurd evidence base. The PIP assessment cannot encompass the complexity and fluctuating nature of many health conditions, such as multiple sclerosis and Parkinson’s disease.

The Government’s rushed consultation on the changes will close on 29 January. Disability and carer’s charities have said that all five of the Government’s proposed changes would restrict access to PIP and therefore carer’s allowance. Cutting PIP further is likely to put disabled people and their carers at risk. There are currently more than 7 million carers in the UK and hundreds of thousands of them may be hit by the Government’s proposed changes to support for disabled people. In a submission to the Government, Carers Trust has said:

“Failing to support carers means failing to protect and secure the longevity of our health and social care system.”

Continued underfunding of social care will undermine plans for the NHS and the integration of health and social care. The key point is that it will also damage the health of carers, many of whom—Carers UK reports—are already reaching breaking point.

--- Later in debate ---

[Barbara Keeley]

I had not heard the news that the hon. Lady has just announced, and I am delighted to hear it. I introduced a ten-minute rule Bill to exempt carers from the bedroom tax, but Government Members shamefully spoke against it.

[Dr Whiteford]

I thank the hon. Lady for making that point. She has a very strong track record of standing up for carers.

Disabled people and those with long-term health problems have faced huge upheaval and uncertainty during the past few years as the austerity measures have kicked in. For many, the changes to social security have already left them significantly worse off and living in precarious and reduced circumstances.

A couple of weeks ago, I was privileged to meet some of the disabled people who came to Parliament as part of the lobby organised by the Disability Benefits Consortium. I pay tribute to it and the other organisations that brief us on the real experiences of disabled people. We need to listen to them, because their experience should inform policy far more than it does at the moment.

As I mentioned, we are having this debate on the day when the Lords will vote on aspects of the Welfare Reform and Work Bill. There has been speculation that the Government may well face another defeat, on the cuts to employment and support allowance that were mentioned earlier. I moved amendments to the Bill on Report, which I am pleased to say were supported by Opposition parties, that would have removed those changes. They are deeply regressive and punitive on people whose disabilities are so severe that even under the very flawed work capability assessment, they have been found unfit for work.

I would be among the first to acknowledge the shortcomings of the work-related activity group classification. It has not been helpful or effective for anyone, and I echo the wider point made by the hon. Member for Blackpool North and Cleveleys (Paul Maynard) about the ESA process. However, the key point in our debate today is that people placed in the WRAG are people who are not currently fit for work. There is a wealth of evidence that piling financial or moral pressure on people when they are recovering from illness or living with long-term health conditions does not motivate them to get better any faster; it actually makes them more ill. Living in poverty while too unwell to work simply compounds the challenges that sick and disabled people already face and slows their recovery.

We get to the heart of the matter when we look back at the original announcement. Last summer, during his Budget statement, the Chancellor said that ESA was supposed to end what he termed

“some of the perverse incentives in the old incapacity benefit, but instead it has introduced new ones.”—[Official Report, 8 July 2015; Vol. 598, c. 333.]

Quite seriously, that is what he said. He seems to think that ESA creates incentives for people to be disabled or sick. It is the Chancellor’s thinking that is perverse, because there is absolutely no incentive for any person to live with the limitations, the pain, the social insecurity and the material disadvantage of disability. If the Chancellor thinks that £102 a week of ESA creates an incentive, he must be wired to the moon.

Research published by the Disability Benefits Consortium for an earlier stage of the Welfare Reform and Work Bill showed that 70% of the disabled people surveyed by the consortium believed that further cuts to ESA would cause their health to suffer. Other hon. Members have alluded to that. The word “further” is most telling, because we need to understand the context of the cut in the work-related activity component. As others have said, it comes on the back of the Welfare Reform Act 2012, which allowed for the transition from disability living allowance to personal independence payment, cutting the budget for support for disabled people by £1.5 billion a year and significantly raising the bar on who can receive support.

Let us not forget that the bedroom tax was also a direct assault on the incomes of disabled people. Even when the legislation was going through Parliament, the DWP’s impact assessment showed that two thirds of the households that would be affected were home to someone with a disability. In Scotland the impact was magnified, and eight of 10 households affected were home to a disabled person. I am glad that the courts have ruled that the policy is discriminatory, as has been said all along and as hon. Members stated repeatedly in the House at the time. When we talk about the latest cuts, we must remember that the people who are being sanctioned are disproportionately affected by disability. We really should not need courts to determine those things when we have the evidence before our eyes.

We must take cognisance of the fact that the new measures come at a time when disabled people are already struggling on reduced incomes—and they are really struggling. The hon. Member for North Tyneside (Mary Glindon) laid out in some detail just some of the practical ways in which that manifests itself. The Disability Benefits Consortium research revealed that 57% of respondents had found that the amount of ESA that they currently received did not cover the extra costs of living with disability, and, as a consequence, many experienced difficulties in paying for essentials like food, extra heating and the extra transport costs that they may incur.

I want to touch briefly on the parliamentary review, “Halving The Gap?” led by Lord Low, Baroness Meacher and Baroness Grey-Thompson, which makes valuable recommendations. The report notes that some 500,000 people with physical or learning disabilities, mental health problems or autism are currently assessed as being unfit for work. I want to emphasise that that is the reality. People in the work-related activity group have been assessed as not fit for work, even under the stringent criteria of the work capability assessment, and slashing their incomes by £30 a week is only punitive. It cannot make them better more quickly. It will not incentivise them back to work. It will only make them poorer. For some, it will damage their health. The Government say that they want to halve the disability employment gap, but the policy is still without substance. We are still waiting for a strategy, and I hope that the Minister will bring forward more substantial proposals.

The barriers that disabled people face in accessing and sustaining employment are real, so concrete support through the social security system is vital. Often, it is financial support that people need. The difficulty is the Government’s track record; they have had to be dragged through legal processes to force them to make changes. Last time we debated the matter, I raised the High Court ruling that the DWP had unlawfully discriminated against disabled people on the issue of carers and the benefit cap, as the hon. Member for Worsley and Eccles South (Barbara Keeley) mentioned. Yesterday’s Government U-turn was not announced in a parliamentary statement; it was sneaked out on Twitter. That is an interesting way to do things.

It is sad that it has taken a legal challenge for the Tories to accept the damage that their obsession with austerity, and their willingness to put disabled people on the frontline of austerity cuts, is inflicting on disabled people. Disabled people should not have to fight through the courts for recognition of their rights, and we should not need a High Court judge or a Court of Appeal judge to determine that the benefit cap and the bedroom tax discriminate against those people. I am glad that the Government have been forced into retreat on the matter, but I hope that they will now take far more seriously the disproportionate impact that their cuts are having on disabled people, who are already disadvantaged.

The inquiry by the UN Committee on the Rights of Persons with Disabilities is a real indictment of the Government’s approach to supporting disabled people. I reiterate the point that the hon. Member for Bermondsey and Old Southwark made in opening the debate: the UK is the first country to be investigated by the UN in relation to the convention. The Prime Minister has tried to dismiss the investigation by saying that

“when you look at these investigations you find that they are not necessarily all they are originally cracked up to be.”—[Official Report, 21 October 2015; Vol. 950, c. 600.]

It is completely and utterly shameful for the UK Government not to take the matter more seriously. The UK is being investigated on the world stage for

“grave and systematic violations of the Convention”,

and the Government need to learn some humility.

The hon. Member for Strangford (Jim Shannon) raised some devolved matters from a Northern Ireland perspective. In Scotland, we have made serious efforts to distance ourselves from the UK Government’s shameless and regressive approach. We have tried to insulate the most disadvantaged people from the worst aspects of austerity cuts by establishing the welfare fund and the Scottish independent living fund, and by mitigating the bedroom tax in full. No one is complacent about the impact that income cuts and sanctions are having on sick and disabled people, however, and there is a lot more that we all need to do.

The UK Government, first and foremost, need to start listening to disabled people and taking their views on board. They seem to want to bulldoze through cuts to ESA. I strongly urge them to learn from the High Court judgment, the Court of Appeal judgment and the UN, and to think again.

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[The Parliamentary Under-Secretary of State for Disabled People (Justin Tomlinson)]

It is a pleasure to serve under your chairmanship, Mr Crausby. I pay tribute to the hon. Member for Bermondsey and Old Southwark (Neil Coyle) for calling the debate. He is a formidable campaigner with a wealth of experience having been the head of policy at the National Centre for Independent Living, the director of policy at the Disability Alliance and the director of policy and campaigns at Disability Rights UK. His speech demonstrated a genuine and wide-ranging knowledge. I am grateful for the huge range of issues that have been raised. I will do my very best, in a limited time, to cover as many of them as possible and I will keep going until I run out of time. I pay tribute to all the other speakers who contributed to what was mostly a proactive and constructive debate in which genuine concerns were raised and suggestions made about how we can continue to make improvements.

My hon. Friend the Member for Blackpool North and Cleveleys (Paul Maynard) once again demonstrated his huge wealth of experience, setting out practical solutions, particularly regarding apprenticeships. His point was timely as I am due to meet the relevant Minister from the Department for Business, Innovation and Skills to discuss that issue. I hope that my hon. Friend will be kind enough to join me in that meeting as I would like to push the subject.

The hon. Member for Worsley and Eccles South (Barbara Keeley) asked whether PIP recognises fluctuating health conditions. I feel that it does better than the DLA. The trained assessors are better at picking up on those conditions compared with the former DLA assessment. The main thrust of her speech concentrated on social care and attendance allowance. I understand that as I spent 10 years as an elected borough councillor, but I support the principle of localising the decisions. As a country, we have agreed that we will continue to devolve more responsibilities, particularly to Scotland, but I trust our English authorities to have the same responsibilities and opportunities. We have introduced the better care fund, the social care precept and the Health and Social Care (Safety and Quality) Act 2015.

[Barbara Keeley]

There is a fear about variations and carers losing their eligibility because some councils are so cash-strapped. The difference is very unfair. Even the social care precept will be different, as authorities can raise different amounts. It is an unfair and varied field now.

[Justin Tomlinson]

I understand, and we introduced the Health and Social Care (Safety and Quality) Act to set those standards. To be fair, this issue could be a debate in itself and I am conscious that there were so many other points that I need to come to. I am happy to discuss the matter further.

The hon. Member for Strangford (Jim Shannon) was right to highlight the fact that more needs to be done. He is a vociferous speaker; I have never taken part in a debate in which he has not contributed. He is right to challenge and is always proactive in making suggestions, particularly regarding learning disabilities. The proportion of people with learning disabilities in paid employment is typically 6% to 8% regardless of whether the economy is on the up or the down. It is the one stubborn area with which Government after Government have struggled and wrestled to try to make genuine progress. I am interested to hear more about the scheme in Northern Ireland that the hon. Gentleman talked about, and I would be keen to meet him to discuss that further.

I have had a good meeting with the hon. Member for North Tyneside (Mary Glindon) previously. I would be happy to meet with the group she described to discuss those issues further. We are taking action on the time it takes for appeals to be considered. First, the mandatory reconsideration process comes in before the independent appeal and picks up the majority of those cases in which new information has come forward and a mistake has been made. We continue to work on how we can access better information because, more often than not, decisions are changed when new information comes to light. To get that earlier would be beneficial for all. On the point about accessible housing, the discretionary housing payment funds will be increased over this Parliament by £800 million. I think everyone would welcome that.

To the hon. Member for Banff and Buchan (Dr Whiteford), to be fair, external groups, cross-party MPs, Lords, stakeholders and charities do get to influence policies. I spend a lot of my time meeting those groups. Her speech contained a lot of criticism. There are opportunities to make changes. We are reforming ESA through the Work and Health programme and the White Paper. Sometimes, it is good to suggest things that could work, rather than just saying which things are wrong. I reassure her that we do not announce things through Twitter. In the modern world, some people would welcome our doing so, but this week’s announcement about carers and the benefit cap was not made through Twitter. Lord Freud made the announcement in Parliament on Monday during the passage of the Welfare Reform and Work Bill. I hope that provides some reassurance.

I will address as many of the points that have been made as I can. First, on unemployment, we all welcome the Prime Minister’s pledge that we will halve the disability employment gap. Some 339,000 more people with disabilities have been in work over the past two years, which is a good start, but we still have a long way to go. There is a real-terms funding increase in spending to help people with health conditions and disabilities to return to and remain in work. There is support throughout the system, and we are multi-skilling our coaches to ensure that they are all aware how to support people with disabilities. There will be opportunities to make improvements through the White Paper.

The point about smaller, localised, flexible options is important. I get to make many good visits, and I have seen local solutions meeting market needs to create and train the skills where the jobs are. I made an enjoyable visit before Christmas to Foxes Academy, where I was corrected on my inability to cut carrots—it was the hotel featured on Channel 5. Early this week, I visited Ignition, a local brewery that employs people with learning disabilities, where it is socially acceptable to sample the goods at 11 am.

We have introduced the Fit for Work service particularly to focus on helping people remain in work. It is a lot easier to help people remain than to help them back into work. The current figure for Access to Work is 36,760, with four years of growth. It is a demand-led scheme, but a funding increase for an extra 25,000 places has been confirmed, which is significant. We are actively considering the best ways to do that. We have an open mind, and I welcome any suggestions, but obviously greater promotion is key, particularly to smaller businesses where the scheme would be particularly helpful in removing barriers. Specialist employment support has doubled the job outcomes of residential training colleges, which is good progress.

We constantly evaluate PIP, and we work with external stakeholders, charities and users to look at ways we can continue to improve PIP. The waiting time for assessments has reduced by more than three quarters since June 2014. We are now at five weeks for an assessment, and 11 weeks median end-to-end for the process. It is fair to say that the launch of PIP was not good. The reviews highlighted that, and my predecessors will have spent a lot of time in Westminster Hall and in the other Chamber discussing it, but PIP has been in a settled state for quite some time.

Housing Benefit and Supported Housing

Baroness Keeley Excerpts

Wednesday 27th January 2016 Commons Chamber

[John Healey]

No, I will carry on for the moment.

Since then, we have had a series of half-baked statements from the Government. The first was, “This is unnecessary scaremongering.” Not true—we are giving voice to the warnings and evidence from those who have the facts and will have to manage the consequences. Those are organisations the British public trust and respect, including Age UK, Mencap and Women’s Aid. Secondly,

“nothing will change until 2018.”

Not true—the cut and the cap apply to new tenancies from April this year, so the problem is immediate. My local housing association, South Yorkshire Housing Association, has told me that

“it takes time to rehouse anyone, let alone the most vulnerable people. Consultation on scheme closures will need to begin within a matter of weeks”.

No one will sign contracts for supported housing when they do not know whether the basic costs can be covered. New investment has already been stopped in its tracks: one in five providers have frozen investment and new schemes, according to the Inside Housing survey. Golden Lane Housing, Mencap’s housing arm, had plans for £100 million of investment over the next five years in supported housing across England, but they have been scrapped.

Thirdly,

“Additional discretionary housing payment funding will be made available to local authorities, to protect the most vulnerable, including those in supported housing”.

Not true—the fund is run by councils to deal with emergency applications from people already coping with the bedroom tax, the benefits cap, and the cuts in the last Parliament to the local housing allowance. Awards often run for only a few months. The fund is currently £120 million a year, and it is a short-term and overstretched measure.

Policy costing in the autumn statement scores the cost of the Chancellor’s housing benefit cut at £515 million. The Government proposed to top up the discretionary housing payments fund by not £515 million but £70 million. Housing organisations rightly dismiss the idea that the fund is the solution, saying that that is “nonsense and unworkable”.

[Barbara Keeley (Worsley and Eccles South) (Lab)]

The insufficiency of discretionary housing payments for the bedroom tax has been shown again and again. I am delighted that today at least one case involving a family of carers has been exempted. Does my right hon. Friend agree that facing this sort of situation preys on the minds of vulnerable people, as they know that they have to apply for a discretionary housing payment and may not get it?

[John Healey]

I think that my hon. Friend is discussing the case in the High Court, which found the Government to be in breach of equality legislation. We have always said that the bedroom tax is unfair, punishing people who often cannot afford to make up the difference, and that it should be scrapped. I hope that today’s High Court judgment will lead Ministers to think again about the bedroom tax and to act to stop the housing benefit cut damaging the prospects of many people.

The question for the Minister for Housing and Planning and for the Secretary of State—who was in the Chamber a moment ago, but then scarpered—is: did they discuss the cut with Treasury Ministers before the spending review? Was the Department even consulted? Either they did not spot it or they did not stop it. Either way, the Minister, the Secretary of State and the Department have been disregarded and overruled by the Chancellor.

The Housing and Planning Minister is in the Chamber to try to explain why housing schemes supporting more than 150,000 of the most vulnerable people, with nowhere else to turn, are set to close, while the real culprit keeps his head down in the Treasury. Forced to backtrack on tax credits when a tough stance on benefits backfired, the Chancellor turned to housing benefit cuts across the board to make his fiscal sums add up. With this, he has made the same errors of judgment. He has put politics above good policy and even basic humanity. He announces first, and asks questions later. He is failing many vulnerable people, and he is failing the taxpayer too.

This decision is a big test for the Conservative Government. The Prime Minister said just before the election:

“I don’t want to leave anyone behind. The test of a good society is you look after the elderly, the frail, the vulnerable, the poorest in our society.”

So will the Government act immediately and confirm that they will exempt in full from this crude, sweeping housing benefits cut those in supported and sheltered housing? Will they work with those who provide that housing to ensure that it is secure for the future? The only decision for Ministers to take on the motion before the House is to exempt that housing—a decision that would be based on evidence, compassion and care.

--- Later in debate ---

[Brandon Lewis]

As I have just outlined, this Government announced an extra £40 million for domestic abuse services.

Funding for supported housing is part of the Government’s wider financial settlement to councils, which includes £5.3 billion in the better care fund in 2015-16 to deliver faster and deeper integration of health and social care. That will result in councils being better able to work together and invest in early action to help people live safely in their own homes for longer.

[Barbara Keeley]

I am amazed. The Minister has started trotting out figures for the better care fund. That fund is back-loaded: the money will not reach councils until 2019-20, and is cancelled out by the new homes bonus being taken back at the same time. We have already lost an awful lot of support for older and vulnerable people.

Does the Minister believe, as he seems to have just said, that the most vulnerable will be supported by the welfare reforms? That is just not true, as we see from all the court cases that are going through. How will people in 2,300 units of housing for older people in Salford be protected? I advise the Minister not to talk about discretionary housing payments, as those have been shown to be insufficient.

--- Later in debate ---

[Owen Smith (Pontypridd) (Lab)]

In my part of the world, often the best thing that is said about the Conservative party is, “You know where you are with them: they may be cruel, but at least they’re competent.” Following today’s debate, however, and particularly after this week for the Department for Work and Pensions, one must wonder about at least the latter part of that sentence.

We began the week with the Government’s defeat in the other place on their ludicrous suggestion that incomes should be carved out of the meaningful measure of child poverty that the previous Labour Government introduced. The Government then had to acknowledge that they should exempt those in receipt of carer’s allowance from the punishment of the benefit cap, despite the fact that they spent £50,000 in the courts just a few weeks ago defending the inclusion of carers under the aegis of that cap.

This morning, we saw extraordinary events in the Court of Appeal as the Government found their bedroom tax ruled not only cruel, but unlawful, because it discriminates against disabled people—in particular my friend and fellow countryman, Paul Rutherford, his wife, Susan, and their profoundly disabled child, Warren. He was discriminated against by the bedroom tax for many years, but he had his day in court today. I can only hope that the Government reflect on the meaning of that ruling with a little more grace than the Prime Minister during today’s Question Time, and that they will come back to the House to give us satisfaction by getting rid of the bedroom tax.

[Barbara Keeley]

Does my hon. Friend agree that it was always unfair to include carers under the bedroom tax and the benefit cap because their caring role means that they cannot go out to work or increase the number of hours that they do? These 60,000 unpaid family carers already save the state billions, so is it not time for them to be exempted? We call on the Government to take action straight away.

[Owen Smith]

Is not that just shroud waving? We have heard for the past few years—not just months or today—that we are shroud waving about the bedroom tax and its effects on the vulnerable. Indeed, we have been told that it is shroud waving to suggest that the bedroom tax might be unlawful, but it turns out that it is illegal, so the Government must come back to the House to address the situation—[Interruption.] The Minister for Housing and Planning is chuntering, but this afternoon there was a welcome yet extraordinary turn of events in the House. Despite Labour Members and others interested in the social rented sector asking him on hundreds of occasions in recent months to make the change, the Minister has only now said that he agrees with us.

We should address the deeply unfair 1% cut to social housing rents which is but part of the problem that the social supported housing sector faces. I welcome the fact that the Minister, without much good grace, conceded that there should be a delay. It is extraordinary that his Government have been looking at the policy not, I have to tell my right hon. Friend the Member for Wentworth and Dearne (John Healey), since 2014 but since 2011, which is when they first suggested that they ought to address the question of, in their view, high social rented costs versus local housing allowance. Five years later, they still have not reached a conclusion on what they are going to do. It is incompetence on a gross scale.

In the Welfare Reform and Work Bill Committee, we lost count of the number of occasions on which we were offered excuses as to why the change could not possibly be made, and why the moratorium—or, as we asked for, a full exemption—was not affordable or allowable. In Committee, I believe that the words, “shroud waving” were used on a number of occasions. We were accused of jumping the gun, and told that the measures would not be introduced for a while, so there was plenty of time for the Government to get their papers in order and get the policy right.

Universal Credit Work Allowance

Baroness Keeley Excerpts

Wednesday 6th January 2016 Commons Chamber

[Justin Tomlinson]

That was a very early intervention and, to be fair, I need a little time to expand my argument, which will address those points. An element of patience is needed; I know that we all needed it last night with the late sitting and the reshuffle news. A key point about tax credits was that people argued that all the changes needed to be phased in, and I will set that out.

The welfare system we inherited was simply not working. It was not supporting people to get into work, to stay in work and to progress in work. People were left with unfulfilled potential, languishing on benefits, with little or no incentive to work or to progress in work, and opportunity was stifled. Opportunity should be a given; it should not be stifled.

The truth is that our welfare system had become distorted and complex, as we all know from our casework with residents. Too often, residents were missing out on the benefits they were entitled to because they could not navigate something so complex. All too often, the system firmly shut the door on opportunity, because it paid more to be on benefits than to be in work. We all know that, and the electorate—hard-working families—were quick to remind us of it.

Let me be clear that I say that with no disapproval for those who claim benefits. The system itself was to blame, which is why we undertook to reform it. Our aim was and continues to be to create a system that extends opportunity and ensures that work always pays, moving Britain from a low wage, high welfare, high tax society to a higher wage, lower welfare, lower tax society. It is a common-sense approach, creating a system that is fairer to the taxpayers who face an ever-increasing bill and delivering a welfare system that is sustainable for our country but that, crucially, protects the most vulnerable.

Let me remind the House that welfare spending on people in work rose from £6 billion in 1998 to almost £28 billion in 2010.

[Barbara Keeley (Worsley and Eccles South) (Lab)]

It might help the debate if the Minister and his colleagues on the Front Bench had an accurate definition of transitional protection. My hon. Friend the Member for Pontypridd (Owen Smith) made an excellent speech from the Front Bench outlining Labour’s calls for transitional protection, but it seems that that is something that Conservative Members just do not understand. We are having a similar debate tomorrow concerning the state pension equalisation for women. People should not lose out in achieving the principles the Minister is outlining. Why should certain families on universal credit lose out compared with families on tax credit and why will the Government not protect those people so that they do not lose out?

[Justin Tomlinson]

That will be set out in my speech and I will cover the transitional arrangements. I gently ask the hon. Lady where the transitional arrangements were when the 10p income tax rate was changed. We will be mindful of the advice that we take.

Oral Answers to Questions

Baroness Keeley Excerpts

Monday 2nd November 2015 Commons Chamber

[Mr Duncan Smith]

I acknowledge that the Joseph Rowntree Foundation has written its report, and it has said many things in the past about what we have been doing. As I said earlier, the number of families that have risen out of poverty directly as a result of our changes has been dramatic. As the hon. Lady well knows, Wales had a difficult time in the recession, but unemployment is now falling dramatically and employment is rising. I believe that the best way to get people out of poverty is to get them into work, and eventually into full-time work. That is happening right now.

[Barbara Keeley (Worsley and Eccles South) (Lab)]

16. What discussions he has had with the Chancellor of the Exchequer on the effect on family carers in receipt of carer’s allowance of reforms to benefits and other financial support.

[The Parliamentary Under-Secretary of State for Disabled People (Justin Tomlinson)]

This Government recognise the need to protect and support the most vulnerable in society including pensioners, those with disabilities and their carers. Stronger rights for carers have been introduced through the Care Act 2014. Since 2010, carer’s allowance has increased from £53.90 to £62.10 a week, and in April 2015 the earnings limit for carers was increased by 8% to £110 a week.

[Barbara Keeley]

Indeed, but now there is a real threat, because around 700,000 family carers on carer’s allowance who work 16 hours a week at the minimum wage and can therefore claim working tax credit are going to be hit by the Government’s proposed tax credit cuts. The exact number is not known, but it is probably quite a lot of that group. Most of those carers cannot increase their working hours because they have such a big caring workload. They deserve, in my view, to be exempt from the Government’s tax credit cuts, so are DWP Ministers and the care Minister arguing now for this group of carers to be protected from the cuts?

[Justin Tomlinson]

The Chancellor said he will set out in the autumn statement what he will do to address the concerns some have raised about the transition from a high welfare, low wage economy to a low welfare, higher wage economy. As it stands today, we spend over £2 billion—a record amount—on supporting the valuable work carers provide in society, and the inter-ministerial meeting this Thursday, in which I will actively participate, will look at further ways in which we can support carers.

--- Later in debate ---

[Barbara Keeley (Worsley and Eccles South) (Lab)]

The Under-Secretary of State for Justice, the hon. Member for North West Cambridgeshire (Mr Vara), said earlier that letters were sent to all women born in the 1950s to inform them of changes to the state pension age. I have to say to him that the campaigning group, Women Against State Pension Inequality, disagrees with him. I have constituents who were not informed of the changes, and they suddenly discovered that they were not going to retire soon and that they had many years to retirement. Will the Minister look again at that issue and reconsider whether that group of women affected—there are many hundreds of thousands of them—can now have transitional protection?

[Mr Vara]

I am surprised to hear what the hon. Lady says, but I am happy to look into the matter further. The information that I have is that there was communication with those people, but I will correspond with her.

Welfare Reform and Work Bill

Baroness Keeley Excerpts

Monday 20th July 2015 Commons Chamber

[Stephen Timms]

The Secretary of State does not need to wait until the Committee because we will table a raft of amendments tonight: if our reasoned amendment fails and the Bill receives a Second Reading, we will table our amendments. He will see in that list of amendments a series of amendments to deal with the unfairness in that part of the Bill. Those amendments will give him the answer that he seeks. They will appear on the Order Paper tomorrow so that the House can consider them over the weeks ahead.

[Barbara Keeley (Worsley and Eccles South) (Lab)]

My right hon. Friend is right to talk about removing unfairnesses. There are a number of unfairnesses in the Bill that affect carers. The Conservatives seem blind to the impact of their measures on carers. Can my right hon. Friend say whether we will table an amendment to exempt carers from the benefit cap? Carers should not be affected by the benefit cap and they should never have been affected by the bedroom tax, but the Government would not listen about that either.

[Stephen Timms]

My hon. Friend is absolutely right. That will indeed be the subject of one of our amendments, because at the moment carers who do not live with the person they are caring for are caught by the cap, and they should not be.

I want to turn to the impact of the Budget changes on tax credits and on universal credit, some of which are in the Bill and some not. Of course the increase in the minimum wage is welcome, but it does not make up for the measures in the Budget, though mostly not in the Bill, that cut tax credits for working families. The claim that they do make up for it—the Secretary of State repeated it in his speech—is, according to the Institute for Fiscal Studies, “arithmetically impossible”. The problem will be especially bad in the next couple of years. The increase in the national minimum wage is phased in over five years, but big tax credit cuts hit immediately next year. Over 3 million working families will lose over £1,000 a year on average, and work incentives will be cut. That is the reason we voted against the Budget. When the Government bring forward the statutory instruments to implement those huge cuts to the incomes of working families, we will vigorously and fiercely oppose them.

--- Later in debate ---

[Nigel Mills]

I do not have that number to give the hon. Lady. However, her party is also committed to making large welfare savings. It is very easy to support the theory, but if Labour Members oppose all the large measures that are taken in practice, they are not going anywhere. They have to answer this question. If they are committed to large savings, but they do not support all these measures, which measures would they like to see? That is the challenge. We have to find savings to close the deficit. We have a clear mandate for welfare savings to form a large part of those savings.

The Government have produced measures that are a little less severe and fast than many of us feared they would be. The Labour party thought that they would be a lot more severe only a few weeks ago, when we were told that families would be £1,400 worse off overnight unless the minimum wage went up by 25%. What we are seeing is wages going up by more than 25% and some of the cuts being deferred over several years. The Government have attempted to make the cuts as fair as possible.

[Barbara Keeley]

The hon. Gentleman is being generous in giving way. He made a point about making work pay. I raised a point with my right hon. Friend the Member for East Ham (Stephen Timms) about carers and the benefit cap. Some 5,000 carers will be affected by the benefit cap. The hon. Gentleman is talking about making work pay, but many carers cannot work. Does he agree that carers should therefore be exempt from the changes?

[Nigel Mills]

We need to give carers every possible support. They perform an important and difficult role. Having done a bit of caring in my time, I know how hard and stressful it can be. We can look at that, but I cannot stand here tonight and say I would vote for it.

The reduction in the benefits cap is a hugely popular policy. Everybody I spoke to in my constituency said that the benefits cap was a great idea, but £26,000 a year was far too high. It was higher than the average wage in my constituency, so people did not think that it would affect a lot of people. In fact, the number of people who were affected by it in my seat was extremely small.

It is right to bring the cap down and to have different levels in London and the rest of the country. There are different levels of housing benefit around the country and that is one of the biggest costs that trigger the benefits cap, so it is right to have a different level in London. Twenty thousand pounds is the right level for the cap. It is a bit less than the average wage in my constituency. That will show people clearly that anyone who goes out to work will be better off than those who live solely on benefits.

I support the hard decision to have a benefit freeze for four years. When we have to find savings, perhaps one of the least bad ways of doing it is to freeze what people are already getting, rather than taking more people out of the system completely.

The point that the acting shadow Secretary of State raised about the withdrawal rates for tax credits and universal credit showed how fiendishly complicated the tax credits system is. It is difficult to work out exactly who will be hit at what level and by what amount by the new withdrawal rates and the new starting position. That reinforces the case for universal credit. Everyone will be able to see from every pay packet they get that when they work more hours in a month, they are better off than in months when they work fewer hours. We need that system to be in place, rather than the incredibly complex, slow and clunky tax credits system, which applies a year behind or a year ahead. Nobody quite understands how what they get in tax credits bears any relation to the work that they have done in the year.

Budget Resolutions and Economic Situation

Baroness Keeley Excerpts

Thursday 9th July 2015 Commons Chamber

[Graham Evans]

I have to confess that I have not seen those figures, but the Government’s overall mantra is “A higher wage, lower tax, lower welfare economy”, which will benefit all of our constituents. That is in contrast to the Labour party, which had a high-tax, low-wage, high-benefit culture. That is the debate we are having today: the Conservatives want high wages and low benefits and I believe that the Budget will move Britain in that direction. That will be good for the country, for my children and for our country’s future. We are a beacon in Europe, as its second biggest economy, and if we continue down the same road, in 10 to 15 years we will become the biggest economy in Europe. The whole world is watching this great country, and we are the beacon for how things can be done in difficult economic circumstances.

[Barbara Keeley (Worsley and Eccles South) (Lab)]

I want to add to what my hon. Friend the Member for Sheffield South East (Mr Betts) said. The IFS has said that it is “arithmetically impossible” for the Chancellor’s national living wage to offset the loss of income from tax credits. I recommend that the hon. Gentleman reads that. Will he and other Government Members who have said similar things to him today also advertise a surgery on tax credits and invite their constituents to see how they feel about it and whether they think this Budget makes things better?

[Graham Evans]

I am most grateful to the hon. Lady. I will indeed look into those figures. I hold surgeries every Friday, so I will see constituents about that. What I would say to her is that unemployment in Weaver Vale has dropped by 70% since 2010, and that is 80% full-time, good quality jobs.

I am not saying it is easy, but these difficult decisions have to be made. When Gordon Brown introduced working tax credits, he said the figure would be £2 billion. It is now £30 billion. The Labour party has to decide—I asked this question yesterday and did not get a reply—whether £30 billion is too much, too little or about right. We have to make these difficult decisions, but the hon. Lady makes an important point. I am not saying for a moment that it will be easy, but we are the party of aspiration. We are the party that always makes work pay, which is something that did not happen under 13 years of Labour.

Amendment of the Law

Baroness Keeley Excerpts

Monday 23rd March 2015 Commons Chamber

[Mr Duncan Smith]

The hon. Gentleman agrees with me. The key point is that we want to get people into work, including skilled work, and for them to develop skills not only while they are in work, but as they come through apprenticeships and university.

I want to return to the make-work scheme, because I have a feeling in my bones that the Opposition are beginning to slide away from it. They have failed to answer a number of questions. We have asked them time and again how many private businesses have signed up to the jobs guarantee, but we have never had an answer. We have been told endlessly that there is a lot of interest, but we have never heard any examples.

I heard the shadow Chancellor on, I think, a Radio 4 programme and he seemed rather scared and unusually unable to be coherent. [Interruption.] All right, I will drop the “unusually”. He was unable to list the vast number of private sector companies taking part. When asked how many there were, he seemed to lose his nerve and said:

“But if not, you can do it through the voluntary sector. If not, you have to have a final backstop: a public work scheme.”

The shadow Chancellor has pretty much made it clear that the scheme is going to be about jobs created not in the private sector, but in the public sector. [Interruption.] Oh no, it will not: the right hon. Member for East Ham (Stephen Timms) knows that to be the case. In other words, the Opposition would repeat the mistakes of the past.



I hope that the hon. Member for Leeds West will answer another question we have asked the Opposition time and again: how long will the guarantee last? Back in 2011, we heard about a 12-month guarantee for young people unemployed for one year. By 2013, the proposal had morphed into a six-month guarantee—half the time previously advertised—for those unemployed for two years. Even that is not enough, for as Labour begins to see what a disaster the policy is and the shadow Chancellor begins to wind away from it—there is no interest in it from private sector firms and it has no traction with business—they seem to be beginning to realise that it is not worth all the money they are talking about spending.

I had a look at the Labour website when it launched its tuition fee policy. Interestingly, buried in the relevant document—I would like to say it was in the small print, although the print was pretty small anyway—I found that the scope of the flagship jobs guarantee had been halved again. This announcement was made without fanfare and without anyone taking to the airwaves to tell everybody what a wonderful scheme it was going to be. Labour now proposes “a six-month job”—remember it was for a year originally—

“for any more 18-24 year olds who find themselves claiming Jobseeker’s Allowance for a year”.

It also proposes “a three-month job”—it used to be for six months—

“for the over 25s out of work for two years”,

not one year. In other words, Labour is edging back, killing off its policy bit by bit, and I suspect that eventually it will let it go altogether.

Following a Budget in which the Chancellor once again pledged that no spending commitments would be unfunded, the final and most significant unanswered question—I hope the hon. Lady will answer it, because this is her last opportunity to do so—is: how will the jobs guarantee be paid for? That is a legitimate question, for the Budget punched a hole in Labour’s two proposals with two new measures: the first to levy funding from the banks and the second to restrict pensions tax relief.

Given that the shadow Work and Pensions Secretary has herself declared that

“we need to make sure that the sums add up”,

it is right that we do the maths, starting with the cost of the jobs guarantee, an estimation of which was done by Treasury officials in January. The cost of the jobs guarantee for 2015-16 is forecast to be £1.54 billion for over-25s and £540 million for under-25s. That is £2 billion in total in one year alone, which is far more than the Labour estimate. Taking the small print of the document we found, even if the figure in it is halved, as the Labour U-turn seems to make clear that it will be, it is more than three times the £300 million a year that Labour says it will cost, at close on £1 billion a year.

When the hon. Lady gets up to speak, I hope that she will explain how Labour will fund the jobs guarantee. If she is going to use the bankers’ bonus tax again, I must tell her that it has been spent 11 times over. Here are the things on which it has been spent: reversing the VAT increase—£12.75 billion; reversing the tax credit savings—£5.8 billion; more housing—£1.2 billion; reversing the child benefit savings—£3.1 billion; more capital spending—£5.8 billion; child care—£800 million; and there are more. The last Chancellor, the right hon. Member for Edinburgh South West, said that he did not think it would be feasible to repeat the one-off bankers’ bonus tax, but the reality is that Labour will repeat it to pay again and again for other things.

Another announcement in the Budget was the excellent decision to reduce the tax-free lifetime allowance. It had already been reduced from the £1.8 million inherited from Labour to £1.25 million, and it will now fall to £1 million. The latest change will save about £600 million a year. Importantly, it will affect only 4% of those approaching retirement. That is in stark contrast to Labour’s proposal to reduce the tax-free annual allowance, which would plunder the pension pots of moderately paid, long-serving public servants such as police officers, teachers, nurses and others. With the Government already taking effective steps to curb the size of the very largest pension pots—my right hon. Friend the Minister for Pensions has been involved in that—Labour’s proposed pension tax relief changes will be left null and void. Despite the fact that Labour has committed the money for the purpose of increasing working and child tax credits and, very recently, to pay for the £3.1 billion cost of lower tuition fees, it will apparently be used only to fund the jobs guarantee. As for Labour’s final funding proposal, restricting pension tax relief for those with incomes of more than £150,000, it would not come in for a further three years.

[Barbara Keeley (Worsley and Eccles South) (Lab)]

Will the Secretary of State give way?

[Mr Duncan Smith]

Not yet. I will finish this particular point before I move on to the rest of the stuff in the Budget.

In this key area, the Opposition have absolutely no idea what they will do. They do not have the money, they are losing interest in the very policy that they said was at the heart of their policies and the rest has just become smoke and mirrors. It is as simple as that. There we have it: the cobbled-together nonsense of Labour’s jobs guarantee is destined to fail as wholly unfunded. Yet we should not be surprised by that from a party which built an entire economy on debt, with policies paid for by more borrowing and higher taxes. Under Labour, Britain accumulated personal debt of a record high, reaching some £1.5 trillion, while the level of household saving fell to a 50-year low.

[Mr Ronnie Campbell (Blyth Valley) (Lab)]

Will the Secretary of State give way?

[Barbara Keeley]

Will the Secretary of State give way?

[Mr Duncan Smith]

In a minute.

This Government are restoring stability in our economy, with no unfunded spending and no extra borrowing; instead, aspiration, responsibility and security will pave the way for a better future. The principle behind the Budget is to restore a Britain built on savings and investment, and that will be done with three new measures. There is a radical, more flexible individual savings account, with the complete freedom to withdraw money from a cash ISA and pay it back later in the year without losing any of the £15,000 tax-free entitlement. There is the brand-new Help to Buy ISA: we are working hand in hand with first-time buyers to help them to save for a home—£3,000 will be provided by the Government for every £12,000 saved—which is an excellent idea. There is a new personal savings allowance, with up to £1,000 interest-free. It will take 17 million taxpayers out of savings tax, not just cutting but abolishing that tax for 95% of people.

On pensions, the Government have already reversed the decade-long decline in pension saving, rolling out automatic enrolment to make saving the norm and introducing the new state pension, while reducing the means test and creating a solid foundation on which to save. We are returning to people who build up their pension pots the freedom to use that money as they see fit. In last year’s Budget, the Chancellor announced radical changes to abolish the prescriptive rules that dictated how and when people could use their pension savings. That means that from April, 320,000 people a year will be able to choose what to do with their pension savings on turning 55. In last week’s Budget, he went further still by allowing 5 million annuity holders to access their existing annuities. He has extended the freedom to give those people greater control over their finances, which is an excellent idea.

[Barbara Keeley]

One group of people who do not have much chance to accumulate pension pots is unpaid family carers, many of whom have to give up work in order to care. Will he say, at the end of this Parliament, whether he regrets forcing 60,000 unpaid family carers to pay the bedroom tax, meaning that not only can they not acquire pensions, but many of them are having to cut back on food and heating to pay it?

[Mr Duncan Smith]

The spare room subsidy policy that we introduced has been assisted by some £380 million that we have given to local government to ensure that anybody in the local community is supported and aided, as necessary. I do not regret that policy. I think it will bring fairness to social housing. Why does the hon. Lady not get up one time and answer this question: does she not feel ashamed about leaving so many people—7 million people—on long waiting lists for accommodation? Why does she not apologise for leaving so many people, when Labour left office, in overcrowded—

[Barbara Keeley]

rose—

[Mr Duncan Smith]

No, she has had her word. Why does she not apologise for leaving so many people in overcrowded accommodation? Labour Members do not apologise for that. The answer is that they have no policy on that. Social house building under the Labour Government fell to the lowest level since the 1920s. She should get up and apologise for that.

[Barbara Keeley]

I thank the Secretary of State for giving way, eventually. Perhaps he would like to look at the case of the couple in Sefton—the disabled person and her carer—who have fought their case through to the Supreme Court. The Prime Minister was unable to give an answer about that couple. It is not a question of such couples giving up their home or their spare room to anybody else. Carers find those rooms essential. That couple found their room essential. The Prime Minister could not answer. Will the Secretary of State answer?

[Mr Duncan Smith]

That is exactly the reason why we gave £380 million to local authorities to deal with individual cases. The courts have supported us in this. Again, the hon. Lady did not get up and apologise for the mess Labour left social housing in: overcrowded accommodation, people who could not find the right houses, people on huge waiting lists for accommodation and the lowest level of house building on record since the 1920s. That is the shame of the 13 years of the last Labour Government.

I spoke a moment ago about the pension freedoms that have been provided. The last pension freedom that has been provided by my right hon. Friend the Chancellor is to allow 5 million annuity holders to access their existing annuities. I pay tribute to my right hon. Friend the Minister for Pensions because that was originally his idea. It shows that the coalition is working at all levels.

It pays to save and, through our welfare changes, this Government have ensured that it pays to work. We have undertaken the most significant reforms in living memory, which span not only pensions but job-seeking benefits, disability benefits, child maintenance and more. They have been opposed at every turn by the Opposition. We are delivering a welfare state fit for the 21st century.

Universal credit is rolling out nationally. It is already in 150 areas and is set to be in every jobcentre by this time next year. The earliest claimants are spending more time looking for work, are moving into work quicker, are working more and are earning more than those on jobseeker’s allowance. It will bring economic benefits of up to £35 billion over 10 years, as the Public Accounts Committee agrees.

The benefit cap has ended the something-for-nothing culture. Capped households are 41% more likely to move into work and 12,500 have done so. Housing benefit is capped too. There has been the first real-terms fall in housing benefit spending in a decade and it is set to carry on falling in real terms up to 2020. Our reforms are restoring fairness and mean that we are making better use of Britain’s housing stock as we build more houses.

Over this Parliament, the increase in welfare spending has been the lowest since the creation of the welfare state at 0.5% a year compared with the 3.5% increase in Labour’s last Parliament in office. Total welfare spending is below what we inherited in 2010 as a proportion of GDP. In the coming year, out-of-work benefit spending will be back to pre-recession levels. Welfare reforms are set to have saved nearly £50 billion cumulatively, all while departmental baseline spending is down—I say this to the Chief Secretary to the Treasury—by some £2 billion a year. He can say “well done” if he likes. We are doing more, and we are doing more efficiently as a result.

As we come to the end of this Parliament, I am proud of the work we have done with my right hon. and hon. Friends in this House. I pay tribute to some of my previous Ministers, including my right hon. Friends the Members for Epsom and Ewell (Chris Grayling), for Basingstoke (Maria Miller) and for Hemel Hempstead (Mike Penning), and my hon. Friend the Member for Fareham (Mr Hoban), as well as to current Ministers, including the Minister for Employment, who has done brilliantly in her job, and the Minister for Disabled People, who is doing brilliantly in his. I pay particular tribute to an hon. Friend who is unsung and unfairly traduced by the Labour party: my good friend Lord Freud. He has worked tirelessly for two different Governments, determined only on one thing, which is to improve the quality of life for people in Britain. I am also proud of my working relationship and what has been achieved with the Minister for Pensions. We have worked well together and achieved good things, and we have also worked closely with the Chief Secretary to the Treasury on many subjects.

The last five years have often been hard and difficult, but always rewarding. We took a system that was bloated and unfair, and which under the previous Government seemed to penalise those who tried and rewarded those who did not. The last Government left us a system that measured only the amount put in and not the results obtained, and it trapped many in dependence. We took that system and changed it for the better, leaving a positive legacy: the deficit down, unemployment down, youth unemployment down, long-term unemployment down, employment up, private sector work up, working households up, growth up. That is a legacy of which any Government of any stripe should be proud. This Budget is key to that legacy, and I commend it to the House.

--- Later in debate ---

[Rachel Reeves]

According to the ONS, the number of zero-hours contracts has increased from 1.4 million to 1.8 million in the last year. This is a huge challenge for working mothers and others. We want to ban the exploitative use of zero-hours contracts so that if someone does regular hours, they will be offered a regular contract and so that their hours cannot be cancelled at the last minute without compensation. If we make those changes, I hope we can stem the increase in the number of zero-hours contracts, giving more people the security of paid work they know will happen week after week.

[Barbara Keeley]

I want to give an example from the social care sector to add to that given by my hon. Friend the Member for Cardiff South and Penarth (Stephen Doughty). I recently spoke to a constituent working in the care sector whose job decayed over the years after an agency took over the firm she worked for, to the point where, instead of working the 35 to 40 hours a week she wanted, she was lucky if she got 20 hours a week, and the agency constantly cancelled at short notice. She could not manage from week to week with that. Sadly that is the care industry these days.

[Rachel Reeves]

My hon. Friend speaks powerfully about something she knows a lot about. The number of zero-hours contracts in the social care sector, and more widely across the economy, has grown. It is incredibly difficult to plan from week to week if someone does not know how much money they will take home or whether they can afford to pay the rent and bills and put food on the table. That is why more people in work are having to rely on food banks to make ends meet.

I move now to key reforms that have spun out of control under the Government. Universal credit was supposed to cut fraud and make work pay, but after five wasted years of this Government and more than half a billion pounds of taxpayers’ money spent, it is being paid to just 41,000 of the 1 million people who were supposed to be receiving it last April. The National Audit Office has identified a fortress mentality and a “good news” reporting culture in the Department as key factors behind this fiasco. Last summer, the Secretary of State promised an accelerated roll-out plan, but we have yet to see much evidence of it—things could not be going much slower.

The Work programme—another failed programme—was the Government’s belated and inadequate replacement for the future jobs fund they scrapped, but it has failed to tackle long-term unemployment. Indeed, the number of long-term unemployed people has risen by a staggering 49% since 2010. It still sends more people back to sign on at the jobcentre after two years than it places in a job and has made no impact on the disadvantaged and high-risk unemployment faced by over-50s and disabled people. The introduction of personal independence payments has also been a complete and utter shambles, leaving sick and disabled people waiting months on end for support, while total spending has gone over budget by more than £2 billion. The roll-out of employment and support allowance was supposed to deliver big savings by helping more disabled people into work, but just 8% of people on ESA have been helped into work by the Work programme. Furthermore, analysis by the House of Commons Library shows that the Secretary of State has spent £8.6 billion more than he said he would on ESA. What a mess and what a waste—five years of Tory welfare waste we needed this Budget to put an end to.



The Budget was a wasted opportunity. We needed a better plan to make work pay and get social security spending under control, but instead the report of the independent OBR confirmed that all we could expect from the Government in the future was more of the same: more unplanned spending on social security and more failure to deliver promised savings on disability and sickness benefits, with the OBR noting on page 143 that

“projected spending on incapacity benefits, DLA and PIP is up by £0.2 billion a year on average between 2014-15 and 2019-20”;

more failure to deliver promised savings on fraud, with the OBR reporting on page 191 that it had

“revised down the savings associated with tax credits operational measures. These increase spending by £0.2 billion a year between 2015-16 and 2019-20”;

and more of the “good news” culture on welfare reform, with the OBR noting on page 192 that

“we have noted a history of optimism bias relating to reforms to incapacity benefits, disability benefits and universal credit.”

“Optimism bias” is a polite way of saying that we cannot trust a word the Government say.

In a moment of optimism bias, the Secretary of State promised that 1 million people would be on universal credit by April 2014, but one year on, fewer than 41,000 people are claiming it. In another moment of optimism bias, he promised that universal credit would be on time and on budget, but with delay after delay and millions of pounds written off, everyone knows that it is neither on time nor on budget. In yet another case of the Government’s optimism bias, they promised to back carers but then forced 60,000 households with carers to pay the bedroom tax, as my hon. Friend the Member for Worsley and Eccles South (Barbara Keeley) mentioned. Was it not optimism bias that led the Chancellor to promise to reduce the benefit bill, only for the Government to spend £25 billion more on social security than they set out to spend? And perhaps optimism bias is why the Chancellor broke his promise to clear the deficit by the end of this Parliament.

Housing Benefit (Abolition of Social Sector Size Criteria)

Baroness Keeley Excerpts

Wednesday 17th December 2014 Commons Chamber

[Rachel Reeves]

I have similar issues in my constituency, where there are 26 blocks of high-rise flats that are almost all two-bedroom flats. The council tries not to house families in that accommodation, and tries to put single people in there, because there is a feeling that a high-rise flat is not always the most appropriate place for a family to live. Many single people who have been put in two-bedroom flats in high-rise buildings have been forced to pay the bedroom tax through no fault of their own.

[Barbara Keeley (Worsley and Eccles South) (Lab)]

My hon. Friend has rightly raised the issues for carers such as the Rutherfords. Is it not the case that 60,000 carers should be exempt from the bedroom tax? If anyone should be exempt, it is unpaid family carers. All kinds of things have been said to suggest that they are, but they are not, and it is causing them hardship. If the Minister really believes that the Government want to fund people such as carers through the discretionary payment, they could do that now: they could exempt carers by regulation.

[Rachel Reeves]

My hon. Friend tabled a motion to exempt the 60,000 carers affected by the bedroom tax, but the Government blocked it, which was an unwise and disappointing decision.

--- Later in debate ---

[Michael Connarty (Linlithgow and East Falkirk) (Lab)]

rose—

[Barbara Keeley]

rose—

[Angie Bray (Ealing Central and Acton) (Con)]

rose—

--- Later in debate ---

[Mr Harper]

Let me make a little more progress.

It is also worth putting on the record that, when Labour Members were in power, they increased spending on a broken welfare system by 60%. They have rejected every welfare reform that we have implemented. They are seeking immediate abolition of this policy, which restores fairness. As my right hon. Friend the Member for Banbury (Sir Tony Baldry), who is no longer in his place, said, it brings the social sector into line with a policy that Labour Members themselves advocated for the private rented sector, and it ends the unfairness of 820,000 spare rooms being paid for by taxpayers when 250,000 people were living in overcrowded homes and 1.7 million were on waiting lists, as was the case when this reform was implemented. The Government are determined to help those families as well. Numbers on waiting lists have now fallen by a fifth to 1.4 million—the lowest for a decade.

[Barbara Keeley]

rose—

[Mr Harper]

I am sure that the hon. Lady will welcome that.

[Barbara Keeley]

I hate to disappoint the Minister, but I will not welcome the figures he has quoted. He is making a point about fairness. Does he think it is fair that 60,000 carers should have to pay the bedroom tax? They do not have spare rooms; they are essential rooms that they need to sleep in so that they can carry on their caring. It is cruel to keep on repeating that when 60,000 people who are struggling, unpaid, to care, and saving the state a lot of money, are not exempt from this cruel tax. Is that fair?

[Mr Harper]

Someone who has an overnight resident carer is exempt from the policy. To deal with particular circumstances, we have given local authorities the ability to use discretionary housing payments in what they judge to be appropriate cases. I am sorry that the hon. Lady would not welcome the news that waiting lists have fallen by a fifth to 1.4 million. That is a very welcome statistic, showing that fewer families are waiting for homes because we are now using the housing stock in the social sector more efficiently.

Oral Answers to Questions

Baroness Keeley Excerpts

Monday 8th December 2014 Commons Chamber

[Mr Harper]

No, I will not. I have talked to disability organisations about this matter, and they agree with the Government. More than 1 million people get social care through the mainstream social care system. The Government are not making any savings by moving the ILF to local authorities and devolved Administrations, and we are working closely with each local authority to ensure that the amount of money being transferred at the point of closure next year will be exactly what is needed and what is being spent by the ILF, meaning that disabled people will be protected.

[Barbara Keeley (Worsley and Eccles South) (Lab)]

Some £4.3 billion has been taken out of adult social care budgets over the past four years because of the Government’s cuts. If that funding transfers across, as is planned, it will plug only a very small part of the gap. If they will not rethink this policy, as my right hon. Friend the Member for Wentworth and Dearne (John Healey) just suggested, will Ministers require that the funding be ring-fenced to ensure that 70 people in Salford and 18,000 people across the country with disabilities can look forward to keeping their independence and to this continuing support?

[Mr Harper]

Of course local government has had to play its part in the savings, but local authorities can make choices. My local authority in Gloucestershire has protected the value of social care because it thinks that protecting older people—[Interruption.] No, my local authority has faced cuts, like all local authorities, but it has chosen to—[Interruption.] If Opposition Members want me to answer their hon. Friend’s question, they should stop yelling. My local authority has prioritised funding for older people and people of working age. Clearly, the hon. Lady’s local authority has made different decisions. If those on her local authority want to ring-fence the money transferred from the ILF, they are absolutely free to do so, so I suggest she take that up with them.

Oral Answers to Questions

Baroness Keeley Excerpts

Monday 3rd November 2014 Commons Chamber

[Esther McVey]

I will indeed meet my hon. Friend. I congratulate him on all the work he is doing, not just on job fairs in general but in supporting people over 50. He has developed something unique to help people have fuller working lives. I would be delighted to take forward what he is doing. In fact, I have looked at it, the Department now has a hold of it, and we are going to spread it right across the country.

[Barbara Keeley (Worsley and Eccles South) (Lab)]

In earlier questions on the bedroom tax, it was not mentioned that this unfair charge hits 60,000 unpaid family carers, many of whom are not able to move from adapted homes. They cannot move into work, they cannot take extra hours and they need those additional rooms, which are essential for getting enough sleep to enable them to carry on caring. Is it not about time that we accepted that they should be exempt from the bedroom tax?

[Mr Duncan Smith]

We have already had court cases that leave this very clearly with the Department. Our view is that those who need to be exempted are exempted, and we have left discretionary payments of some £380 million with local authorities to make those local discretionary decisions themselves. The hon. Lady’s local authority can do just that.