Welfare Reform and Work Bill

Debate between Lord Freud and Baroness Howarth of Breckland

Monday 7th December 2015 Lords Chamber

[Baroness Howarth of Breckland (CB)]

My Lords, I want to speak extremely briefly because the speech I might have made has already been made by other noble Lords in terms of detail.

Having listened to the Minister talk in various venues about wanting to ensure that there are no unintended consequences from this legislation, I want him to think carefully on the speeches that have been made and about what basis of philosophy or principle the Government have underlying this legislation. I know the basic tenet is that they want to make sure that parents can work and that all children are able to achieve the best educational outcomes—those are the Government’s own words. But some of these measures will undermine that and take families into greater financial hardship. I am particularly interested in the children, because taking those families into greater financial hardship will reduce the life chances of those children. Those of us who have worked with children down the years have seen the consequences of that, not only the emotional consequences but the financial consequences.

All the arguments around larger families, kinship care, adoption and the very many informal arrangements that families make to ensure that their children are emotionally cared for have been made. Again, I hope that the Minister will reflect on that in the context of his own Government’s policy and objectives.

We are a nation that should care. Indeed, the Minister’s party described itself as a “caring party”. I also admire the Government’s objective of ensuring that children make their own way and are not left in poverty because of parental behaviour. However, we know that you can affect that behaviour, as the noble Baroness, Lady Sherlock, and others have said, by the kind of care that they receive themselves and are able to reflect with their children. Therefore, will the Minister tell us how he intends to ensure that the Government’s philosophy and principles are reflected in the way that they deal with large families, particularly those from disadvantaged groups?

[The Minister of State, Department for Work and Pensions (Lord Freud) (Con)]

I thank noble Lords for some very good speeches. To pick up the point made by the noble Lord, Lord Kirkwood, I have listened to those speeches very carefully, although I am not in a position today to provide much satisfaction as I stand here. Let me begin by setting the context for the policy.

[Lord Freud]

No, it means that I am not in a position to provide any satisfaction and, by definition, that position does not change.

Let me begin by setting the context for the policy, which will remain relevant for the other amendments on these clauses. At the 2015 summer Budget, the Government announced their plans to move from a low-wage, high-tax and high-welfare economy to a higher-wage, lower-tax and lower-welfare society. This is part of the Government’s plan to deliver a new deal for working families, which also includes incentives to ensure that those who are in work are rewarded fairly. As part of this, we announced reforms to child tax credit and universal credit to help put welfare spending back on to a sustainable footing.

The tax credits system has become too generous. As introduced by the last Labour Government, it was originally forecast to cost £11 billion in its first year. In fact, tax credit expenditure more than trebled in real terms between 1999 and 2010; and increased by £9.6 billion in real terms between 2004-05 and 2014-15. Currently, the benefit system adjusts automatically to family size, while many families supporting themselves solely through work do not see their budgets rise in the same way when they have more children. The average number of dependent children in families in the UK in 2012 was 1.7, so the Government feel that it is fair and proportionate to limit additional support provided by the taxpayer through child tax credit and the child element of universal credit to two children.

[Baroness Howarth of Breckland]

My Lords, I am sorry to interrupt the Minister, but may I ask him about the difference between those families who choose to have more children—which I understand, in relation to the policy—and those who find themselves with more children, which saves the state money because of circumstances that have been described today?

Poverty and Social Exclusion

Debate between Lord Freud and Baroness Howarth of Breckland

Thursday 17th July 2014 Lords Chamber

[Lord Freud]

The previous Government put through the Child Poverty Act, which we on this side of the House supported. It is based on some research that comes out regularly on households below average income. That came out last week, and it showed that the proportion of children in relative poverty is at its lowest level since the mid-1980s.

[Baroness Howarth of Breckland (CB)]

My Lords, it is clear that there are more than 1 million children still in poverty, and the relationship between their welfare and their education is well known. Does the Minister not agree that there should be a great deal of focus on young people who are going to find it difficult to pay for expensive school uniforms and trips? Otherwise they will be seen as different from their peers.

[Lord Freud]

The noble Baroness is completely right to concentrate on the fundamental causes of poverty, and working with youngsters is clearly right at the heart of that. That is why this Government have taken so many major steps in this area, including introducing the pupil premium and the early years pupil premium, raising teacher quality, and a number of others. I absolutely endorse her concentration on that area.

Food: Food Banks

Debate between Lord Freud and Baroness Howarth of Breckland

Tuesday 2nd July 2013 Lords Chamber

[Lord Freud]

If that sounded like jargon, I apologise. I meant that food from a food bank—the supply—is a free good, and by definition there is an almost infinite demand for a free good.

[Baroness Howarth of Breckland]

Given that there is so much uncertainty about the figures, the noble Baroness asked whether the Government were going to monitor this. What kind of research or monitoring can the Government undertake to be sure of the figures and the impact of the various factors?

[Lord Freud]

My Lords, as I said, food banks are not part of the welfare system. We have designed our welfare system to support people with advances of benefit where they require it. It is not the job of the DWP to monitor this provision, which is done on a charitable basis.

Welfare Reform Bill

Debate between Lord Freud and Baroness Howarth of Breckland

Tuesday 31st January 2012 Lords Chamber

[Lord Freud]

My Lords, this is a really important point. It may very well be that the concern of the House actually boils down to a discomfort with the dividing line between severely disabled and disabled. If that is the case, the way to do it—and I pick up what my noble friend Lord Newton was saying—is not to look at aspect or concrete ratios but at the precise issue that noble Lords are actually worrying about, which is the relationship. I will commit to having a very close look at this. It is clearly tied up with DLA definitions, which are under constant review and are being reviewed.

If we move the children from DLA to PIP, we need to look at this and there will be a real consultation process. I will review this dividing line and look at that very closely, and when we come to the regulations on this, I will report back to noble Lords on exactly what we find. My sense is that this is the real issue underneath all this. I know noble Lords had to find an amendment that had to weave through, to express this concern, so we all know what is happening on a technical basis. Let us go to the real issue. The real issue is: are we getting the dividing line right? People ask me if I am listening—I hear what noble Lords are saying; this is what I think noble Lords are saying, and I will go and do something about that.

[Baroness Howarth of Breckland]

I do not think that is the whole issue that is concerning noble Lords. There is another issue, about the context. If you expect a single mum to get work in order to benefit from universal credit, you should go out on to the highways and byways with these women, as I do, and try to get a job. You need to be part-time, you need to work within certain time constraints, and you need to be able to get specialist childcare if you are going to go out. It is about more than being proportionate, it is about understanding the nature of life when you have a disabled child, however severely along the spectrum that might be, because some behaviour disorders, which sometimes can be assessed as reasonably manageable, can be extraordinarily difficult to get someone else to manage outside your family home. As I said to the noble Lord recently on another point, if you compare the unemployment figures and the numbers of part-time jobs with the number of those women who would like to work getting into those jobs, there is also that contextual issue that I am sure is concerning their Lordships.

[Lord Freud]

Not just your Lordships—I share those concerns, clearly. One of the things I have been trying to do is to really hone in on the help for people to get them into the right kind of work. We have now substantially rebuilt the payment by results element of Welfare to Work. That is not about saving money; it is about making sure that the support is very individualised for people. We will have the formal national statistics on this later this year, but the anecdotal feedback that I am getting from providers is that that individualisation of support for people is really beginning to work. That is a real issue that needs to be addressed. We need to support people back into the workplace when they can work, but we also need to get severely disabled children, who will move into adulthood still needing to be supported, to this higher rate and not have this cliff edge.

The blunt truth is that if we got rid of this cliff edge and maintained higher levels for less disabled children—that is the set of choices that we are playing with here—the cost would be £200 million a year. When things are better, I can quite imagine any Government being very keen to put money in that direction. However, as noble Lords will know, you get an amendment here and an amendment there and pretty soon the amounts add up in a way that really damages our national finances. We can blame the Treasury if we like, but that is a real constraint. We have already looked at amendments the proposals of which we have totalled up to cost in excess of £5 billion over five years, and just taking that on the chin and continuing to get rid of the cliff edge would cost another £200 million, as I said. Those are the choices. We have done a lot of soul-searching on this, and our view is that it is right and fair to align the extra amounts payable for disabled children and disabled adults.

I will close with two points. First, we are trying with the universal credit to bring coherence and simplicity to our benefit support for people. I cannot tell noble Lords how difficult that is to do in practice. I spend every moment of the day when I am not here with your Lordships trying to do that and wrestling with issue after issue. It is very simple; if you are asking someone a set of questions, when do they turn off? How many questions can you ask? You have to simplify the whole system. One thing that I have appreciated more than anything else in the weeks in which we have gone through this Bill is that this House has supported absolutely consistently the introduction of a universal credit. It has understood what we are trying to do and the pressure and the need for coherence and consistency, and I am really grateful for that support. I ask the House please to maintain that support now, especially as we have already voted on this principle.

Finally, I will pick up the point made by my noble friends Lord Newton, Lord German and Lady Thomas that this is a matter for regulations and not for primary legislation. Noble Lords have sent a very strong message to me and to the Government. I will look at this issue and we will be able to discuss it in our debate on the regulations.

Child Poverty

Debate between Lord Freud and Baroness Howarth of Breckland

Tuesday 24th January 2012 Lords Chamber

[Lord Freud]

My Lords, we certainly agree on the importance of early intervention. We have put in a number of measures to reinforce that, including: the fairness premium, on which £7.2 billion is being spent; the expansion of free early education for three and four year-olds and for 40 per cent of two year-olds; and the introduction of the pupil premium. As for the Bills mentioned, in the long run the universal credit is predicted to take 350,000 children out of poverty, but rather more important than that is reducing the number of workless households by 300,000. That is a behavioural response. On legal aid, we have retained legal aid for child parties in virtually all family cases.

[Baroness Howarth of Breckland]

The Minister has said that the best way to get children out of poverty is to ensure that their families are in employment. How do the Government intend to bring the number of jobs available into line with the unemployment figures in the short term rather than the long term, because it is short-term measures that will have an effect on children? In addition to the issues he has outlined, what other financial help will he give to families in the short term while jobs are becoming available?

[Lord Freud]

My Lords, we have a large number of measures to deal with unemployment in the short, medium and long terms, but the really important area here is to look at the long-term unemployed who have been excluded from economic activity. That is one of the most important areas of effort that we are undertaking to try and get those families back into the economic activity of the country.

Autism: Disability Living Allowance

Debate between Lord Freud and Baroness Howarth of Breckland

Thursday 10th March 2011 Lords Chamber

[Lord Freud]

My Lords, we are all indebted to the noble Baroness for taking that Bill through the House. One of the effects of that Act is that even in times of restraint local authorities have an obligation to look after this group of people. The Act provides that protection for them.

[Baroness Howarth of Breckland]

My Lords, is the Minister aware that one of the most dreadful times for any person with a disability is the transition from childhood to adulthood? The Government have just published an exciting report which recommends that children with difficulties, disabilities and behaviour disorders have one assessment. Will he assure us that that one assessment will take that young person right through—obviously, that assessment will be reviewed—and that therefore these new reviews in adulthood will be unnecessary?

[Lord Freud]

My Lords, clearly that would be a desirable outcome. However, in practice, particular requirements apply that make it hard to travel from where we are today to the ideal.

Disabled People

Debate between Lord Freud and Baroness Howarth of Breckland

Tuesday 27th July 2010 Lords Chamber

[Lord Freud]

My Lords, to make it clear, we have a regular dialogue with RADAR and the whole disability lobby. I know that my honourable friend Maria Miller has seen 15 different lobby groups so far.

[Baroness Howarth of Breckland]

My Lords, I know that we are particularly interested in ensuring that disabled people can use transport and achieve places in education. What is the Government’s attitude towards those local authorities that are already cutting fees for transport? For example, there is a college where severely disabled youngsters are now being charged for their transport by their local authority for the first time. Is this the kind of policy that the coalition Government are looking towards?

[Lord Freud]

My Lords, I place on record the Government’s determination to push ahead with the equality agenda for people with disabilities. We are monitoring the situation very closely. We are signed up to the UN convention, as this House will know. Transport is one of those areas within the convention on which we are determined to fulfil our obligations.