(9 years, 4 months ago)
Lords ChamberMy Lords, not one of the individuals on jobseeker’s allowance to whom the noble Baroness referred will be affected. As I made clear in my Answer, this matter relates to those on universal credit. As we also made clear in another place, and I will make clear now, there is a considerable number of exemptions. I think that some 25 are listed in the regulations—I can go through them if the noble Baroness wishes me to do so—which offer protection for those who need it.
My Lords, given the massive increase that we have seen in the number of young homeless people on our streets, how will this policy help that situation?
My Lords, this policy will help that situation by encouraging young people to stay at home with their families rather than establishing themselves in a life on benefit. As we made clear, for those who need help, protections are in place. It is the noble Lord and those who wish to get rid of measures such as this who would condemn individuals to a life on benefit and cause far greater problems than we are addressing with this measure.
(9 years, 8 months ago)
Lords ChamberMany noble Lords took part in debates on this issue in the House. One issue that we discussed was the Green Paper about the new state pension and how that would affect the women involved. We made the concession. But after that we introduced the new state pension, which has been carefully focused on the poorest women. By 2030, 3 million women will be on the full rate and gaining £550 extra each year.
Can the Minister give any examples of where thousands of pounds have been taken from medium-income families in one fell swoop? Can he give an example of any other Government who have ever done that?
This measure was introduced in 1995 to equalise state pensions. There were adjustments in 2007 and 2011 and then in the Pensions Act 2014. The move to equalisation was a consensus policy by both the Conservative and Labour Governments during that time.
(10 years, 2 months ago)
Lords ChamberMy Lords, there is a different process for asylum seekers. However, once they have the right to remain, they are entitled to our welfare support.
My Lords, will the Minister guarantee that the anti-poverty measures which the Government have put in place will be measured independently, that those independent reports will be published, and that if the Government’s measures are found to be failing, they will change policy?
The noble Lord will be aware that we publish an enormous number of reports, many of which are independent. Indeed, many of them have been developed at the request of this House.
(10 years, 4 months ago)
Lords ChamberThe independent review will be considering long-term changes to the state pension age. It will not be recommending any changes before what is currently legislated for up to 2028.
My Lords, will the review take into account the ability of people to work beyond the age of 65, bearing in mind that some people have a very physical job and may not be able to work after that?
My Lords, as the terms of reference make clear, the independent review will consider changes in life expectancy as well all other relevant factors.
(11 years, 10 months ago)
Commons Chamber
Sir Tony Baldry
If I recall correctly the hon. Lady was one of those who voted for the welfare cap. Discretionary allowances have been working. Indeed, the constituency of the right hon. Member for Greenwich and Woolwich still has discretionary grant to spare.
The right hon. Gentleman should not let the Minister escape the question he was asked: will he put those figures in the Library so that we can see how that calculation of £1 billion has been made? We will then see whether those figures are real. Labour did agree to a cap on the welfare bill, but there are many other ways of bringing that down, such as getting employers to pay proper wages, bringing down unemployment, and many other things.
Sir Tony Baldry
Having been in the House for nearly a third of a century, I implicitly trust what those on the Treasury Bench say. If the Minister says that the cost of the Bill will be £1 billion, I am sure that it will be and that he will be able to demonstrate to the House how he has come to that figure. The fundamental point, which I think we are all agreed on, is that whatever the Bill costs, whether £0.5 billion or £1 billion, that sum must be found somewhere else in the welfare budget. We cannot simply come to the House and seek to spend taxpayers’ money without that having consequences. Given that everyone has pretty much signed up to the welfare cap, one consequence is having to make savings elsewhere in the welfare budget.
When I first saw the Bill, one of the policy conundrums for me was why the previous Labour Government introduced almost identical proposals for tenants in the private rented sector—[Interruption.] I will come on to this in some detail, don’t you worry! Why did they think that it was appropriate to treat tenants on housing benefit in social housing differently from tenants on housing benefit in the private rented sector? [Interruption.] The hon. Member for Rhondda, who is probably one of the greatest chunterers in the House, says that it was not introduced retrospectively. Given the length of the average private rented tenancy, if his best point is that there is somehow a distinction because shorthold assured tenancies usually run for six months it is not a very good point.
(12 years, 3 months ago)
Commons ChamberMy hon. Friend obviously has very enthusiastic young constituents with vibrant businesses. He is right that the new enterprise allowance is helping young people aged 18 to 24, some 7% of whom have set up their own businesses. I have said that we are creating a new enterprise generation, as shown by the 2,000 new businesses a month, 7% of which are set up by those aged 18 to 24.
Following last week’s Budget, will the Minister assure me that if people exhaust their pension pots they will still be entitled to the full range of pensioner income-related benefits?
Steve Webb
Unlike the Labour party, we actually trust people with their own money. The people we are talking about have saved frugally for their retirement; they are not the sort of people to blow the lot. We will, of course, look at all the rules on capital in our Department and in the Department of Health in the light of the announcement to ensure that they are up to date, but I think the hon. Gentleman’s view that older people will blow the lot is far from the truth.
(13 years, 6 months ago)
Commons ChamberI am here today because I care about this issue as much as the hon. Lady does. The fact remains, however, that it was the previous Government who signed the contract with Atos that led to all the problems and started the work capability assessment. This Government have accepted in full the recommendations of the Harrington review.
The disability living allowance was first introduced by John Major’s Conservative Government in 1992 as a way of helping people with the cost of their care and mobility needs. It is partly because of that reform that we now spend £50 billion a year on support for disabled people, which is one fifth higher than the EU average. I am glad that the coalition has rapidly expanded the access to work budgets, helping more than 30,000 people to retain and enter work. By this April, the disabled worker element of the working tax credit will have risen by £285 a year since the Secretary of State started in his job in 2010. The element for the severely disabled will have risen by an extra £125 a year on top of that. The Minister has said before that Britain is acknowledged as a world leader in its support and care for disabled people, and that that is something we should all be proud of.
I have initiated and signed early-day motions on these matters, and hon. Members will know that I have been an outspoken critic of the French multinational Atos in this House since November 2010, because of its treatment of a number of my constituents in Harlow, and I will go on to talk about that in a moment. I want to emphasise that this Government are expanding on what subsequent Labour Governments did after 1997.
I want to carry on for a moment.
The Labour Government were right to introduce the work capability assessment in the last 18 months before the 2010 election. The right hon. Member for Stirling (Mrs McGuire), the shadow Minister for disabled people, was also right at the Labour conference to defend the idea of testing in the personal independence payment, when she said:
“The principle of an arm’s-length assessment is not wrong.”
Whatever party politics might be involved, there is consensus on the principles and on what our aims should be, and that is welcome.
Yes, that is what I am saying. The reasons that were given included the fact that the infrastructure was already in place, and the cost of changing the contractor.
I have given way twice; I need to carry on.
As I have said, Atos has not covered itself in glory. It was the main contractor when the coalition came to power, but the problems are significant. For example, the Atos benefit assessment centre for my constituents in Harlow is in Romford, 20 miles away, and it has been a source of complaints and genuine disappointment to many. I have met Ministers several times to make these points and, to be fair, they have listened to and acknowledged them. I have also made a trip to an Atos centre in London to try to understand what occurs there.
I welcome the changes that have been made by putting in place champions with expertise in mental, cognitive and intellectual conditions, but the objections from many Harlow people are not about the principle of testing, but about how it is done. We have to remember that whenever a disabled person goes for a test, that creates an enormous amount of fear inside them, because they worry that something that they rely on might be taken away. Their objections are simple ones, but the problems have massive implications for ordinary people.
The problems include centres that are inaccessible, and a long distance away. It can be difficult to travel to them, and there might be no parking there. There are sometimes no rails on the walls. People might have to lose a whole day’s earnings to attend, or use up a day’s annual leave. Some centres are on the second floor, with no proper lift. The testing centres can be hard for people in wheelchairs to get into. Some of my constituents tell me that they have been tested by doctors who do not even speak English properly. All of that is totally unacceptable, especially when people are going to those centres in fear and apprehension that that their benefit will be taken away.
I accept that, because of the contractual history, it is difficult to unwind the arrangement. What matters, however, is that we should learn lessons from what has happened to people who have been tested by Atos and use that information for the future. It is essential that those people who are tested for the new personal independence payment should go to a local centre and not have to travel far. I can understand why people should not be tested by their own doctor, but I do not understand why they cannot go to another surgery in their area to be tested. It is unacceptable that they have to travel so far, as those journeys take up an enormous amount of time. I urge the Government to look at radical localisation, and to consider the use of spare rooms in local buildings, including jobcentres.
The people who bring their complaints to me do not have an axe to grind. They just expect a public service to be as good and professional as the private sector. Given the experience of my constituents, it seems that the system that Atos has set up is still not good enough.
Annette Brooke (Mid Dorset and North Poole) (LD)
I rise to make just a few comments, particularly on fluctuating conditions. I have received many representations from people with mental health conditions, as have other Members. Some of the individual cases and stories that sometimes come from mothers with adult daughters about what has happened during the assessment process have been absolutely heartbreaking.
Let me read out a few comments from one of my constituents, who says:
“I do not believe that the WCA is working for people with mental health problems. Too many people are found fit for work when they are not, and are becoming trapped in a distressing and expensive cycle of appeals and reassessments. Too much of the decision making is inaccurate and too often the WCA and related processes worsen people’s mental health.”
Does the hon. Lady agree that, given that everyone in the House knows that Atos is not fit for purpose and given that we know the Government have taken no action on it, we can believe only that the Government are supporting Atos as long as lots of people are getting signed off and put back into work?
Annette Brooke
I think we are here today to point out that there certainly are problems, and I await to hear the Minister’s response to them. We need to remember that a great deal of improvements to the system have been made since the Labour Government set it up in the first place. That does not mean, however, that the situation cannot be improved. I think it is right and proper for us to point out where we feel improvements should be made.
(14 years, 1 month ago)
Commons Chamber
The Minister of State, Department for Work and Pensions (Steve Webb)
My hon. Friend is right that at the moment there is a concern that if people save small amounts of money, all they do is deprive themselves of means-tested benefits. That is why our state pension reform is absolutely essential to ensure that when people do save they are better off as a result, and we look forward to that being a firm foundation for auto-enrolment when it starts later this year.
T4. Is not the problem with the Government’s benefit to work programme the fact that due to economic policies and failures there are no jobs for people to go to? For every five vacancies, there are so many people chasing them that there is no chance of them getting work. When will the Government do something about growth so that people can get back into jobs?
We are working extremely hard to support our economy and to support businesses to encourage them to grow and develop. We have had some very good news in the past few weeks at Ellesmere Port, with Jaguar Land Rover, and in the north-east with the investments in Redcar. Those developments are all good news for jobs. Since the election, there are 400,000 more people in work in this country. Our challenge is to ensure that we get young British unemployed people into those jobs and that we have fewer people coming from overseas and getting them.
(14 years, 5 months ago)
Commons ChamberI will make a little more progress, if the hon. Gentleman will forgive me.
We are doubling Government spending on relationship support with an additional £20 million. I want to put on record my thanks to those groups that have worked hard with us to develop what that support should be—they are, as I have said, Gingerbread, Relate, Families Need Fathers, and the Centre for Separated Families. For families that need the more structured approach of the statutory scheme it will remain accessible and heavily subsidised, but there will be in-built incentives for parents always to see the advantages of working collaboratively and in-built incentives for parents to pay maintenance in full and on time.
Maintenance direct will be a no-cost way for parents to make ongoing payments to each other within the statutory scheme and the full statutory collection scheme, with its strong enforcement powers, will be a service that both parents pay for.
Does the Minister share my experience that it is not a question of the system but a matter of enforcement? Whether the process is voluntary or goes through the Child Support Agency, the problems of children not receiving any money come about because there is either no enforcement or the enforcement is not effective. How will the system provide the enforcement action that is needed?
I thank my hon. Friend for her support. The key is that we must ensure that we encourage both parents to work together, which is why we have configured the charging system in the way we have. That will always be in the best interests of the child, and hon. Members who work in this area will know that separation can be so damaging for children unless it is dealt with collaboratively.
I am still not absolutely sure what the enforcement action that will drive some parents to pay will be. On the point that the hon. Member for Devizes (Claire Perry) has just made on people who have doubts about their spouse’s income, many of those people are self-employed and do not declare their incomes, so we will not be able to chase them, and that is the problem, not that PAYE will not catch them.
The hon. Gentleman and I know that self-employed people, although a small number of individuals, are disproportionately represented in the problem cases that hon. Members have. He will also know that self-employed people still have to do tax returns, so rather than ex-partners having to pursue individuals who might be self-employed and have no office at which we can get hold of them, we will be able to use the HMRC link, which I think is an important improvement.
With regard to the enforcement that we will be taking to ensure that things really stick, first and foremost it is about ensuring that there is an understanding in the House about the charges that we will put in place for that enforcement action. Implementing a deduction of earnings order does not currently cost the person defaulting on their maintenance a bean. We are talking about making sure that those charges are passed on, which I think taxpayers would expect us to do. We will also consider implementing some of the other enforcement measures that Labour Members put in place through the Child Maintenance and Other Payments Act 2008.
Mrs McGuire
I listened to what the hon. Lady said, but she has obviously had no experience of trying to arrange a mutual swap in a small local authority area. We will have not only mutual swaps in small local authority areas, but national swaps, all supported by some anonymous Government agency. Frankly, the hon. Lady is living in cloud cuckoo land.
Mrs McGuire
My hon. Friend makes a very good point and no doubt he will pursue it outside this House.
Before I move on, I want the House to hear what Lord Freud said in the other place when asked about how people would cover the reduction in rent. The Minister glibly passed over it, saying that it was only £12 or £14 on average. Lord Freud said:
“Claimants affected by this measure will have to decide whether to meet any shortfall themselves—from their earnings for example, or they could take in a lodger, or someone they know, to fill the extra bedrooms.”—[Official Report, House of Lords, 18 October 2011; Vol. 731, c. GC72.]
How many times does the Government expect people to take lodgers into their family home? Will social landlords even allow lodgers to be taken in, because in my experience they do not allow it? I see the Liberal Democrats are nodding. Ministers also need to make it clear whether rent received in such circumstances would be taken into account in benefit calculations. They are putting people in an unbelievable bind.
This proposal is ill thought-out and will not achieve its aims. It is predicated on an assumption in the impact assessment that will not work. It will push the poorest people, including those who are working—we should not forget that this is an in-work benefit—into even greater disadvantage. It will force social landlords to take eviction action if people end up in arrears. In other words, it is a disaster of a policy, and we should support the Lords in these amendments.
We all want to achieve a service that is fit for purpose, but I am not sure that the charge is about delivering such a service. It will certainly not cover the cost of so doing. It seems to be more about effecting a cultural change, and I do not believe that charging the mother £20 will effect such a change. It would therefore end up being a tax on the mother who is trying to get money from an errant father. That is why I have a bit of a problem with the principle.
I will not give way at the moment, as I want to say a little something about under-occupancy, and a lot of people want to speak in the debate.
I listened to the debate about under-occupancy, and I am sorry that it turned into such a knockabout. There is significant under-occupancy in parts of the area that I represent. In my time as a councillor in the city of Hull, I represented a big council estate on which there was a huge amount of under-occupancy, which was largely, but not entirely, due to older people. Dealing with the matter is not as simple as just talking about housing swaps. I have tried to arrange housing swaps for constituents within the local authority, never mind outside it, and it is incredibly difficult. One party often gets cold feet and pulls out of the arrangement, for example. It is not easy to achieve at all.
That does not mean that we should do nothing about the problem, however. The point made by my hon. Friend the Member for Aberconwy (Guto Bebb) was interesting in this regard. We talk about under-occupancy figures, but we must also consider the figures for over-occupancy.
What I am saying is that in my constituency I encounter people who have no spare room but want one, not people who have a spare room and want to give it up. The situation may be different in the hon. Gentleman’s constituency.
Let me now move on the point that I really want to make, which relates to the Lords amendment dealing with Child Support Agency charges. I am reluctant to discuss the Child Support Agency, as I was the hapless Secretary of State who had to introduce it after it was legislated for by my predecessor. Discretion being the better part of valour, I always delegated the matter to my hon. Friend the Member for North East Bedfordshire (Alistair Burt), whose emollient manner proved the text in Proverbs that a soft answer turneth away wrath. I kept as distant from it as I could.
Jenny Willott
I thank the Minister for that useful information, which answers in part some of the questions I was going to ask.
It would be helpful if the Government kept an eye on progress. Certain money has been put aside for adapted properties, foster carers and so on, but it would be useful to know that if other vulnerable groups or particular parts of the country are identified as a particular problem, the Government would ensure that that was taken into account in the future allocation of money and in how they look at the impact of the policy on households.
On the Child Support Agency, there is a problem with up-front costs, particularly with the gap that was originally in the proposals between the amount required from those who are working compared with that required from those on benefits. I therefore welcome the Government’s announcement today that they are reducing the fee to £20, which will make a significant difference for a lot of households. Now, we just need to make sure that the service being provided is worth the up-front fee, which frankly it has not been in the past. I hope that we will see some progress in this area so that people will feel they are getting something for their money.
The Minister knows about a particular concern of mine, which I want to raise again today. I still have serious concern about the closing down of old cases and their transferral to the new system. I am sure that all MPs have had people come to see them in surgery with cases in which an irresponsible non-resident parent will not pay, plays the system, refuses to support their own children, and takes years to pin down until a deduction of earnings order in finally put in place. I am concerned about the impact on children of cancelling those orders and making the parent with care start the entire process again, not least because of the difficulties many have had with the CSA in the past and the lack of faith they have in the system. I would be grateful if the Minister would ensure that those cases were prioritised to ensure that when they are transferred to the new system they are properly monitored so that payment keeps flowing as much as possible and that if payment must stop it is only for a very short period so that huge arrears cannot build up, because those cases are the most likely to have a background of large arrears already.
Jenny Willott
I will not I am afraid.
This group of amendments is very varied and we have had a wide debate this afternoon. The Government have made improvements to the Bill, which I welcome, particularly those to the CSA fee. I hope that the Minister will take into account the points that my colleagues and I have raised, particularly on the issue of housing under-occupancy, which is probably the issue of most concern to us in the Bill. So far, I have found that Ministers have listened and taken concerns on board, and I hope they do that today because the Bill is in a much better state now than it was at the beginning of this process.
(14 years, 6 months ago)
Commons ChamberI thank my hon. Friend for his question, and I assure him that we are working very hard on reform of the maintenance system, which still fails to support around half of all children in separated families. He talked about cases in which both parents want to stay involved in their children’s upbringing; he and I share that objective, and I hope that he will continue to support the reforms that we are taking forward, which will provide far more family support to enable that to happen.
T3. What advice can the Minister give the 3,259 people in St Helens who have been told to downsize their home, despite the fact that on existing turnover it will take five and a half years for them to do so while, in the meantime, losing their benefit? What advice would he give those constituents?
The Minister of State, Department for Work and Pensions (Steve Webb)
I think that the hon. Gentleman is referring to social housing over-occupation. If people are in a particularly difficult situation, local authorities have been given an enhanced amount of discretionary housing payment to help them make that transition. It is vital that we tackle 1 million empty bedrooms in social housing.