Covid-19: DWP Update
Baroness Coffey Excerpts(6 years, 2 months ago)
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The Secretary of State for Work and Pensions (Dr Thérèse Coffey)
With permission, Mr Speaker, I will make a statement updating the House on the work of my Department. First, I want to pay tribute to the civil servants in my Department as well as our contractors and partners, who have been working tirelessly to provide help and support to those in need. They are the hidden heroes for many people in this country, and they should take great pride in their hard work in and dedication to supporting people through these difficult times.
From16 March to the end of April, we received over 1.8 million claims for universal credit, over 250,000 claims for jobseeker’s allowance, and over 20,000 claims for employment and support allowance. Overall, that is six times the volume that we would typically experience, and in one week we had a tenfold increase. The rate for UC claims appears to have stabilised at about 20,000 to 25,000 a day, which is double that of a standard week pre-covid-19. I am pleased that my Department is standing up to the challenge. We have redeployed a significant number of DWP staff—about 8,000 so far—and staff from other Government Departments, about 500 so far, to process these claims. Our payment timeliness for universal credit is running at a record high.
We have also issued almost 700,000 advances to claimants who felt that they could not wait for their first routine payment, and the vast majority of those claimants received money within 72 hours. Where possible, and mindful of risk, we have streamlined our processes. We will consider learnings carefully from this time in the response phase, and whether any of them can be made permanent.
We have also sought to make it possible for people to work from home, and have deployed 10,000 computers. We are now at a level of deploying 750 new devices a day to enable working from home, and have added to the IT capacity for remote users. However, if staff need to continue to work at the office, we are applying social distancing. Making sure that our claimants and civil servants are safe is a key priority. From 17 March we suspended all face-to-face assessments for health and disability benefits. We automatically extended awards for existing claimants that were due to be reassessed by three months, and will only undertake reviews or reassessments when claimants notify us of changes that could lead to a higher payment. Any claim made under the special rules for terminal illness continues to be fast-tracked—it takes an average of six days to process those claims.
Since 24 March, job centres have not been open for regular appointments, but we continue to offer face-to-face appointments in exceptional circumstances if claimants would not otherwise be able to receive support. Claimants can continue to receive support over the phone or through their online journals. All local jobcentres have been turned into virtual processing teams, prioritising advances and the registration and payment of new claims. We have also paired jobcentres across the country to support one another with processing, using fully our network capacity.
That focus on the processing of claims means that we have stopped checking the claimant commitment on looking for and being available for work for three months. We do, however, want claimants to continue to look for work wherever they are able to do so. Ministers are working hard to make sure that existing vacancies can be accessed by people who have become unemployed. We will continue to support those people while they are waiting for the opportunity for work. We have created a new website to guide people—jobhelp.dwp.gov.uk—and we are advertising 58,200 vacancies.
Although our IT systems have worked—thanks to extensive work by the universal credit team, including our contractors—I know that some claimants experienced significant delays in the verification of their identity. Identity checks are crucial to reduce fraud risk, so we worked closely with the Cabinet Office to increase substantially the capacity of the online Verify system, and average wait times are now below five minutes.
Call volumes have been extremely high, with more than 2.2 million calls in one day at the peak. Having recognised the delays that people were experiencing—or, indeed, that they were not able to get through at all—we turned it around with our “Don’t call us—we’ll call you” campaign. A bolstered frontline team now proactively calls claimants when we need to check any information provided as part of a claim. This has been successful in freeing up capacity and reducing the time that customers need to spend on the phone.
In respect of other departmental operations, although we have redeployed staff we have kept critical work ongoing in child maintenance and bereavement. We are monitoring our performance and will return staff to these areas if the response rate is unacceptable. We have cancelled the pension levy increase, supported defined contributions through the job retention scheme, and worked with regulators to assist defined benefit pensions and to combat scams.
It is worth reminding the House of our financial injection of more than £6.5 billion into the welfare system so that it can act as a safety net for the poorest in society. We have focused on changes that could be made quickly and would have significant positive impact. We have increased the standard rate of universal credit and working tax credit for the next 12 months by around £1,000 per year; we increased the local housing allowance rates for universal credit and housing benefit claimants, so they now cover the lowest 30% of local rents; and we increased the national maximum caps, so claimants in inner and central London should also see an increase in their housing support payments. I have been made aware that some councils have not made the adjustment in housing benefit, and my Department is communicating with them all this week. Furthermore, across England we had already increased the discretionary housing payment by an extra £40 million for this financial year.
The 1.7% benefit uplift was implemented in April, ending the benefits freeze, and the state pension rose by 3.9%, as per the triple lock, reflecting last year’s substantial rise in average earnings. We have introduced regulations to ease access to benefits: we legislated to allow access to employment and support allowance from day one of a claim; we relaxed the minimum income floor so that the self-employed can access universal credit more readily; we have made it easier to access ESA by launching an ESA portal for online applications; and we legislated to ensure that statutory sick pay was available for employees from day one of sickness or self-isolation due to covid-19. I remind the House that statutory sick pay is the legal minimum.
We will continue to look at issues that arise—for example, we are ensuring that maternity pay is based on standard pay, not furlough pay levels—and see what we can do quickly and straightforwardly to fix either unintended consequences or unforeseen issues, but it is not my intention to change the fundamental principles or application of universal credit.
We have undertaken a significant project to support the Ministry of Housing, Communities and Local Government and the national shielding service by establishing the outbound contact centre. Furthermore, we use the contact centre to contact proactively our most vulnerable customers who receive their benefits or pensions solely through Post Office card accounts. I thank the Post Office for helping us to support this group of customers. We have been able to provide contact-free cash payments by Royal Mail special delivery, and we were able to signpost people to extra support from their local council.
I can inform to the House today that the DWP will stop any new benefit and pension claimants from using the Post Office card account from 11 May, as we prepare for the end of the contract. The uptake of accounts in the past year has been exceptionally low, but, in any event, given that we believe the vast majority of people using POCA already have a bank account, the cost of the contract is poor value for taxpayers. Existing customers who currently receive payment through a Post Office card account will see no change and will continue to receive payment into their accounts for the remainder of the contract period. We can use the HMG payment exception service for people who cannot access any bank account.
I thank the Health and Safety Executive—an arm’s length body for Great Britain that is sponsored by my Department—for its work on covid-19. It has been doing crucial work with the Department for Business, Energy and Industrial Strategy and Public Health England to provide guidelines for employers to adhere to once restrictions can begin to be eased. The HSE is working hard, along with local authorities, to enable work to continue safely in the sectors for which it is responsible. It has developed practical guidance on the enforcement of the law where workers are being exposed to unnecessary risk.
In conclusion, my Department is standing up to the challenge of unprecedented demand for its services, and we are getting support to those who need it. We will continue to work across Government to help the nation get through this health emergency. I commend this statement to the House.
Jonathan Reynolds (Stalybridge and Hyde) (Lab/Co-op) [V]
I thank the Secretary of State for advance notice of her statement. May I add my thanks to the dedicated frontline staff of the Department for Work and Pensions for everything they have done and are doing during this crisis to ensure that we can process the unprecedented volume of claims that have been made?
I welcome the measures the Secretary of State has announced so far. The social security system we had going into this crisis was a safety net with too many holes in it, and it is good that the Government have recognised that. My questions for the Secretary of State are about how we can widen that net so that everyone who needs support gets it, and about the steps that will need to be taken as we move from response to recovery.
First, the Government have significantly increased universal credit, but people on legacy benefits such as jobseeker’s allowance and employment and support allowance have not seen a corresponding increase in their benefit. More than 100 charities have pointed out that that discriminates against disabled people in particular. When will those benefits be uprated?
Secondly, there are now 100,000 families who will not be able to receive this increase because they are still limited by the benefit cap. The Government say the benefit cap exists to force people to work more hours or move to cheaper housing, both of which are clearly impossible during the crisis. Almost every organisation, from the Institute for Fiscal Studies to the Resolution Foundation and the Child Poverty Action Group, believes it should be temporarily suspended. Does the Secretary of State agree?
Thirdly, anyone who has been saving for a housing deposit, for a rainy day or for a substantial item could find themselves ineligible for universal credit because of those savings. Those people paid into the system when they were in work; should it not be there for them now? I do not believe we should punish those savers, and I believe those saving limits should also be suspended.
Fourthly, the Government say the two-child limit exists so people supported by social security have to make the same family choices as those who are not, but this crisis shows how absurd that claim is. People could not have been expected to make family choices three years ago based on the likelihood of a global pandemic shutting down our economy. The Government have suspended sanctions during the crisis, but the two-child limit is effectively an 18-year sanction on the third and fourth child in a family. Surely it should go too.
Fifthly and finally, those people who are eligible for support from universal credit will still have to wait five weeks for their money or take an advance that will be deducted from future payments. Many people do not appreciate that if they claim universal credit before they receive their final salary payment, their income means they have no entitlement for their first month and could have to wait as long as nine weeks for any payment. Since it was introduced, the five-week wait has been the single biggest driver of housing arrears, short-term debt and food bank use in the country. It should not exist at all, but in this crisis it is particularly egregious, and it simply must go.
May I also raise a very specific issue with the Secretary of State? It has come to light that the universal credit regulations treat maternity allowance, which is received mainly by low-paid women, as unearned income but statutory maternity pay as earnings, which are disregarded by the work allowance. That could result in a low-paid pregnant woman being as much as £4,000 a year worse off. Why is that? Will it change?
I turn to preparations for the recovery. As the Cabinet Minister responsible for the Health and Safety Executive, what conversations has the Secretary of State had with it about the process by which workplaces will be made safe when people are asked to return to work? When the lockdown began, most MPs were inundated with questions from constituents still in work about whether their workplace sounded safe. That simply will not do when lockdown ends. There must be a clear process agreed by the workforce and management, not least because a failure to do so would likely result in significant litigation.
This crisis has confirmed in terms what the UK’s unequal and unfair labour market really means. Although some people have been able to work from home on full pay, others have faced having to go into work and risk their health, or have lost their job through no fault of their own and will receive social security or sick pay set at just a fifth of the UK’s weekly median income. More than 4 million British children grow up in poverty, living in poor accommodation and perhaps without the internet connections many of us take for granted. The lockdown will have a severe impact on their wellbeing. Many have likened our response to coronavirus to fighting a war. If that is true, the aftermath should be equally so, with a renewed national effort to fight the inequality, poverty and insecurity that should have no place in this country at any time.
Dr Coffey
I thank the hon. Gentleman and welcome him to his position. We are in an unusual place today—literally, as he is appearing virtually for our first exchange in a statement—but we will be seeing each other again next Monday at questions.
On legacy benefits, I should stress that the increase to working tax credits and universal credit is only temporary —until 12 months from when it was applied. There are two things here. First, we have a digital UC system. The working tax credit system is digital. It is far more straightforward and it was quick to change that. It would take quite some time to change the legacy benefits system—I am talking about several months—with the process we have. When we make changes to benefits, they tend to happen four or five months before the actual changes come through, because that is how long it takes our computer systems to work.
Secondly, the statutory sick pay weekly rate is about £95. The change to UC is about £94. We anticipate and hope that people will be on UC for a quite a short time while we go through this significant emergency. It was, as I pointed out, straightforward to change that. There are other things that people will benefit from, including the work we have been doing on mortgage holidays, on stopping renters being evicted due to issues connected to covid-19, and on electricity pre-payment. No utility supplier will restrict supply due to issues at this time.
On the benefit cap, I said in my statement that it is not the intention to change fundamentally the process, principles or application of universal credit. I am conscious of the benefit cap, but we are still talking about a potential yearly income outside London of £20,000, or £23,000 in London, being given to benefits claimants. I am conscious that that could effectively be something like a £25,000 to £30,000 take-home salary after we take into account taxation and similar, so I do not think it is necessary right now to change the benefit cap. What I do want to point out to the hon. Gentleman is that claimants may benefit from a nine-month grace period, where their UC will not be capped if they have a sustained work record.
On the savings threshold, there is no universal credit eligibility where people have savings of £16,000. UC is designed to help the poorest in society. I am conscious that, if any changes were contemplated, they would have taken some time to process. We have decided to focus our efforts on those who are the poorest in society. I should also say that money saved for taxation payments, such as by the self-employed, will effectively be treated as business assets, and so would not be included for consideration or be deemed personal savings.
On the five-week wait, there is no intention to change that. In fact, in terms of the largest number of people who have claimed, this will be our biggest payment week going ahead. I am aware of what the hon. Gentleman says about people who have been paid in the last month. My understanding is that there is a phasing issue in terms of the calculation of universal credit payments that people would be entitled to with regard to the standard allowance. One of the benefits of having the advance is that it is designed to spread an annual income over 13 payments, instead of 12. For people who are going through that right now, my recommendation is that they should consider getting the advance. As I say, the total annual payment will be spread over the year.
On universal credit regulations relating to maternity allowance and statutory maternity pay, I will look into that for the hon. Gentleman and write to him. I know that quite a lot of consideration has been given to the different rates supporting people in maternity, but I will write to him on that.
On people only receiving statutory sick pay, I point out to the House that that is a legal minimum, but one of the purposes of the furlough scheme was that people, instead of being made unemployed, had this opportunity. Of course, if people are sick, an employer is entitled to do statutory sick pay. I should also point out that the furlough scheme can be applied straightaway for people who have been shielded and cannot go to work and cannot work from home, and we are encouraging employers to do so.
Rob Butler (Aylesbury) (Con) [V]
The extraordinary level of support that my right hon. Friend has described is certainly welcome in Aylesbury and it is undoubtedly assisting thousands of households. I join others in paying tribute to all the staff in the Department and branches of Jobcentre Plus for making that happen.
It would be helpful if my right hon. Friend could describe the ways in which these unprecedented levels of support from the DWP can help owner-directors of small limited companies, many of whom have written to me because they are mainly paid by dividends, so they are not entitled to the assistance scheme for the self-employed. To be clear, these are not multimillionaires, but hard-working hairdressers, make-up artists, decorators and electricians. They have lost their income and would really welcome her assistance.
Dr Coffey
My hon. Friend is right to speak up for the people he represents, and especially small business owners, who have set up their companies in particular ways—I am sure that they were well advised by accountants at the time on the optimal way to do that. It is fair to say that the self-employed income support scheme is expected to cover 95% of people who receive the majority of their income from self-employment, but if not, I recommend that those other people look online at their potential eligibility for universal credit. We have removed the minimum income floor—an assumed level of income in universal credit for self-employed people—so that should no longer be considered when trying to calculate the benefits for which they may be eligible.
Neil Gray (Airdrie and Shotts) (SNP) [V]
I thank the Secretary of State for advance sight of her statement. I wish to put on record my thanks to the DWP staff, who are continuing to work hard to deliver social security benefits as quickly as possible in very difficult circumstances, but the circumstances have been made more difficult by the decisions of the UK Government, who have introduced bureaucratic support schemes instead of a far simpler universal basic payment with a longer view towards universal basic income. Millions have been forced on to still inadequate universal credit, and despite DWP staff being moved to cope with the UC demand, over 200,000 people had their UC claim paid late, according to the UK Government’s best estimate. Because DWP staff have been moved to help process UC claims, MPs and other advice organisations are not getting casework inquiries answered in the normal way, which is also causing unfair hardship.
On the last day that I contributed in this House—18 March—before lockdown, I said that people needed help in hours, not days, yet the people applying for universal credit in that week will have only just received their first payment a few days ago. The British Government must finally stop the five-week wait. They claimed that they cannot solve it by making the advance payment system a grant rather than a loan because of vulnerability to fraud, so why not make the advance a grant when the applicant is confirmed as eligible for universal credit? I would appreciate proper consideration of that proposal. Airdrie food bank in my constituency has reported a 47% increase in demand for its services since the onset of covid-19. That should focus minds.
The Prime Minister said that nobody would get left behind, so why has there not been an uplift in legacy benefits, such as employment and support allowance, as there has been to universal credit? Finally, will the Government scrap the immoral, poverty-inducing two-child limit, the bedroom tax and the benefit cap, and will they uprate all benefits to make up for the years of cuts that came through the benefit freeze? 1.7% just does not come close.
Dr Coffey
I thank the hon. Gentleman for his questions. In terms of bureaucratic schemes, the Government have worked at pace to introduce brand new schemes in order to protect people right across the country. We have seen the success of the job retention scheme. The self-employed scheme is under way. Significant flexibility has been put into that system to help people who may not have had three years of earnings to give them time to submit their latest tax return promptly to get support.
There is a variety of analysis on universal basic income. The latest report I saw estimated it would cost over £400 billion a year. It is not targeted at the poorest in society and is not an appropriate way for us to try to distribute money. Instead, our schemes are focused on making sure that the poorest do get help.
On DWP staff being moved from department to department, we have made sure that we are monitoring performance and where there are increases in how long it takes to process certain kinds of payments I have made it clear to my officials that we then need to move people back. We are in the key peak of payments this week, with the largest uptake of applications, and I am confident that we will get through that with at least 90%, if not an even higher rate, of people getting their payments on time.
I have already answered the question about why the legacy benefits have not increased. On the question about making an advance a grant, that comes back to the principle that getting an advance effectively means people have 13 payments in a year instead of 12 to cover the annual allocation to which people are entitled. Nearly 700,000 people have received an advance, while nearly 1.8 million people have applied for universal credit and those others have not sought to have an advance. So it would not be fair to the other new claimants if one group of people got more money than they did simply because they had applied for an advance.
On the increasing use of food banks, extensive work is going on across Government. The Under-Secretary of State for Work and Pensions, my hon. Friend the Member for Colchester (Will Quince), is involved in a taskforce on helping vulnerable people. I am conscious of the increase in food bank usage and the Under-Secretary of State for Environment, Food and Rural Affairs, my hon. Friend the Member for Banbury (Victoria Prentis), and my right hon. Friend the Secretary of State for Environment, Food and Rural Affairs are doing excellent work in making sure we can work with them to ensure food can get to the most vulnerable people in society. While recognising the increase in food bank usage, I point out that we have had a sixfold increase in the number of people claiming UC and we are making sure we get our money to them.
Dehenna Davison (Bishop Auckland) (Con) [V]
I thank the Secretary of State for her statement and join my colleagues in paying tribute to the excellent DWP staff who have been working unprecedented hours to try to get support to the people in our country who need it.
The impact of coronavirus means more people in Bishop Auckland and across the country have been applying for UC, so what steps is my right hon. Friend taking to ensure that new claimants in Bishop Auckland and beyond receive their first payments swiftly?
Dr Coffey
The UC approach remains the same: we make an assessment of people’s incomes, and those already on UC whose income fell substantially will have seen their UC payment increase as a result. So it is working for new claimants once they have got through the initial claim. That is straightforward. I appreciate that there were difficulties early on in getting online identity verification, but the process should be very smooth now, and for those people who cannot make ends meet the advance option is there, and people can get that money very quickly.
Stephen Timms (East Ham) (Lab) [V]
I join the Secretary of State and others in commending the Department’s staff for handling the recent surge. I also welcome higher UC, working tax credit and local housing allowance, and it sounds from the Secretary of State’s earlier answer that she agrees that jobseeker’s allowance and employment and support allowance should have been increased as well; it is unfair that they have not been. The unchanged benefit cap is now blocking increased support the Government have decided people should receive, and that is having a particular effect in London. It could be increased, so will the Government now be more consistent in supporting people’s extra costs during this crisis?
Dr Coffey
I should point out to the right hon. Gentleman that we were trying to make a short-term increase, we went through with the Treasury how we could do this quickly, and the quickest ways were by increasing the local housing allowance and UC, rather than other benefits, as I have mentioned. On the situation in London, I am conscious that aspects of the housing benefit regulations went through a month ago, but not all councils have applied them. What we have done with the thresholds means that people in London should be able to see an increase in the amount of money they get in housing support, but otherwise it is not the Government’s intention to change the current threshold of the benefit cap.
Mr Peter Bone (Wellingborough) (Con) [V]
I wish to follow on from the point made by my hon. Friend the Member for Aylesbury (Rob Butler) about directors of small companies. The Government have done very well to protect people on PAYE and people who are self-employed, but directors of small companies fall through the cracks and it really is not good enough just to say, “They can fall back on universal credit”, because in many cases they will not qualify and because we have protected other sectors. We must do better, and we must sort out how we are going to protect the directors of small companies.
Dr Coffey
My hon. Friend will know, having been an accountant, that a variety of people will potentially receive dividends from a company, and it is not currently possible for Her Majesty’s Revenue and Customs to know whether somebody has given this to themselves in lieu of a salary or whether it is a payment to an investor. It is a different situation where people have chosen to finance their income from the business in that way, and he will be aware that the rate of tax on paying dividends is 7.5%, once someone goes above the dividends allowance. How people who are self-employed through a normal PAYE scheme would pay aspects of national insurance and tax directly is quite different. The Treasury, in devising the scheme, has sought to try to identify as many people as possible it could help, and achieving that for 95% of self-employed people is a pretty good outcome.
Stephen Farry (North Down) (Alliance) [V]
There is growing support for a recovery universal basic income, and it is being considered in other parts of the world. I would dispute what the Secretary of State has said about the costings, and stress to her that it can be supported through wider changes to the taxation system. Given the current cliff edge on the job retention scheme, the danger of vast redundancies, pressures on UC and the need to inject spending into the recovery to kick-start recovery, will she at least urgently work with the Treasury to explore that option?
Dr Coffey
No, I will not, and I have already set out why I do not think a universal basic income is the right approach. The hon. Gentleman is a Northern Ireland Member and will be aware that responsibility for welfare is devolved, so if he wanted he could lobby the Northern Ireland Executive, and they might be able to devise a scheme that they think is more appropriate locally.
Chris Grayling (Epsom and Ewell) (Con) [V]
May I join in thanking all the staff at the DWP, and indeed the Secretary of State and her team, and in particular, the staff at Epsom jobcentre, for dealing with the current crisis as effectively as they have? Will she look again at the issue of LHA for the areas immediately outside London, as there are still anomalies that particularly affect my constituency, and of course there will be a greater need for housing support. Will she look at the level of support to make sure that it really is related to the local rental market?
Dr Coffey
LHA is done on the basis of certain housing areas, and the Chancellor announced a significant change in order to bring this up to the 30th percentile. I say to my right hon. Friend that councils across the country have been receiving discretionary housing payments—separate from the hardship fund. That was ongoing, and we added £40 million to it for this financial year prior to this situation. I encourage anyone who is still struggling in his local area to go directly to the council for some support.
Barbara Keeley (Worsley and Eccles South) (Lab) [V]
During this crisis, the Government have rightly stopped recovering overpayments from universal credit recipients, but they are still deducting money from those who are given an advance payment. We need the five-week wait to be scrapped, so that people do not need advance payments. Will the Secretary of State confirm today that the Government will defer any recovery of advance payments until after the crisis has passed?
Mr Owen Paterson (North Shropshire) (Con) [V]
May I begin by heartily congratulating the Secretary of State and all the staff at the DWP on the astonishing achievement of handling 1.8 million applicants for universal credit and clearing 1 million? I draw her attention to those people, many of them self-employed, on working tax credits. They were encouraged by the Government to apply for universal credit, not knowing that at the moment they applied for universal credit, they automatically lost by law working tax credit. Some of them now find that because they have been prudent—they had set aside money for pensions and they had savings—they do not qualify under current rules for universal credit and cannot go back and claim for working tax credits. I have had letters from her Department talking about new-style employment and support allowance and the new self-employment income support scheme, which are very welcome. Will she go back to those people and make it clear that they have the right to apply for these schemes, because many of them are not accustomed to dealing with the benefits system and only went through the process under Government encouragement?
Dr Coffey
First, I thank my right hon. Friend for praising staff at the DWP. He is right to do so, and I thank him for that. I am very aware of the issue he is bringing to my attention, and I am actively looking at that particular scenario, where people, not realising some of the eligibility rules, have then made the application and are no longer effectively going to receive working tax credits. I cannot give an answer to my right hon. Friend or the House today, but I assure him that I am looking very carefully into what changes we could make to address that situation. I have already asked for the website to be updated, so that people are crystal clear when they apply.
Wera Hobhouse (Bath) (LD) [V]
May I, too, thank the staff at the DWP for their very hard work? The hospitality, arts and tourism sectors, which are vital industries in my constituency, will not recover overnight, even when the restrictions are lifted. Many of my constituents will have no option but to go on universal credit, with no job prospects any time soon. Does the Secretary of State think—she has even been reminding company directors of their eligibility for universal credit —that the current universal credit allowance of just under £5,000 a year for the over-25s is enough to live a dignified life?
Dr Coffey
With regard to the hospitality and tourism sector, the hon. Lady will be aware of the generous approach taken by the Government, whether that is grants, the furlough scheme or the other reliefs that are being applied. The figure that she quotes is solely the standard allowance. There are other elements of universal credit that people may be entitled to, such as if they have children or housing costs. It is the rolling up of six benefits into one. She focuses only on one, which equates currently to about £94 a week. I think that is a reasonable assumption, disregarding the other costs.
Stuart Anderson (Wolverhampton South West) (Con) [V]
I recognise the exceptional work that the DWP is doing at this time. I also want to applaud the work that everybody in Wolverhampton is doing, from following the Government guidance to caring for loved ones. What plans does my right hon. Friend have to provide support for people who have informal carers who are having to shield themselves during the covid pandemic?
Dr Coffey
My hon. Friend is right to praise people who have been undertaking that role. My Department has introduced two important temporary measures to recognise changes to caring during the current emergency. First, unpaid carers will be able to continue to claim carer’s allowance if they have a temporary break in caring because they or the person they care for gets coronavirus or has to isolate because of it. We have also made sure that, rather than just more traditional forms of care, providing emotional support to a disabled person will now count towards the carer’s allowance threshold of 35 hours of care a week. This recognises that the nature of caring might have to change during the current emergency.
Jim Shannon (Strangford) (DUP) [V]
Thank you, Mr Speaker; it is always a pleasure to ask a question. I thank the Secretary of State for her energy and commitment and her responses to the questions so far. I also thank the DWP staff across the United Kingdom of Great Britain and Northern Ireland, and in particular those in Strangford, who have done a whole lot to help people.
The Secretary of State referred to self-employed directors. Hospitality, retail, fishing, construction and bus companies invest their profit back into their companies, as well as self-employed directors. Many of these are family businesses creating many jobs in the high street. Exactly what can be done to help the self-employed directors in shops in Newtownards, Comber, Ballynahinch, Saintfield and villages across the constituency of Strangford?
Dr Coffey
It is good to see my hon. Friend doing well over in Northern Ireland. I want to stress again that the scheme established by the Treasury will cover about 95% of people who receive the majority of their income from self-employment. I have tried to share with the House some of the approach taken in order to support people who pay themselves only, in effect, by dividends. As I pointed out earlier, a small percentage of people get the majority of their income in that way, on which, in effect, they pay only 7.5% tax. I am conscious that it cannot be decided whether dividends are solely for substitute pay or whether they are a return on investment, but I encourage those people to consider other forms of support that may be available at this time.
Jason McCartney (Colne Valley) (Con) [V]
I join the acknowledgement of the superb effort of all the staff at the DWP, who have processed 1.8 million universal credit applications. I also want to acknowledge all the financial support that the Treasury has brought forward, including the bounce-back loans today. Will my right hon. Friend please look at what can be done to support self-employed limited company directors, as well as freelancers and those who started a new job in March and therefore cannot be furloughed? There are other groups who need extra support.
Dr Coffey
Several of those groups of people who are seeking support may well be able to get support through universal credit. I am conscious that the design of the furlough scheme and the self-employed scheme does not address every single worker or self-employed person in this country. I know that the Treasury worked at pace to establish those schemes, and they do cover the vast majority of people who are now seeking support.
Emma Hardy (Kingston upon Hull West and Hessle) (Lab) [V]
Last week, I was contacted by a constituent who has a heart condition. He is also immobile because of a problem with his spine, and he has had a liver transplant. He applied for personal independence payments in October 2019 and has still not had a reply. When I contacted the DWP, I was told that, because of covid-19, there would be delays in responding to me, but that application was from October. I am sure the Secretary of State agrees that that is unacceptable, so what is she going to do to ensure that benefits are processed in a reasonable timeframe?
Dr Coffey
In the light of what has been happening, we have tried to streamline the process. I do not know the details of the individual case to which the hon. Lady refers, and I am sure that my hon. Friend the Minister for Disabled People, Health and Work would be happy to look into that situation. I do not know whether no assessment had been made at all or whether the outcome was being contested. I want to make sure that we are not ignoring situations and that new claims are still being processed, but I accept that there may be people we need to follow up on, and I would be happy for my hon. Friend to do that on the hon. Lady’s behalf.
Laura Trott (Sevenoaks) (Con) [V]
Despite the enormous support being given to business, many people are newly unemployed. What steps are being taken to highlight to them the job opportunities in growing sectors of the economy?
Dr Coffey
I am pleased that we have added to the jobs website on dwp.gov.uk, and there are about 58,000 vacancies currently advertised there. I am supportive of all the work that has gone on under my right hon. Friend the Secretary of State for Education, such as on how people can get new skills, including through courses that are being made available online. There are, therefore, opportunities to consider upskilling while people are, sadly, not working, and people can also speak to their work coaches about potential further assistance.
Clive Efford (Eltham) (Lab)
It cannot be fair that families on the benefit cap are not benefiting from the uprating of payments that has happened during this crisis. The Resolution Foundation has predicted that, in over two thirds of local authority areas, a couple with two children in an average three-bedroom house will be affected by the cap. We know that covid-19 will affect poorer families more than other sections of our community. Is it not time that we moved the benefit cap to stop this situation getting worse?
Dr Coffey
As I have already said to the House, there may be claimants who could benefit from a nine-month grace period, where their universal credit will not be capped if they have a sustained work record. On other raises that have happened in terms of housing, changes have been made that should help people, particularly in central and outer London. However, in general, the principle is not to remove the benefit cap.
Huw Merriman (Bexhill and Battle) (Con) [V]
We rightly hail all our health workers for the amazing job they are doing, but it is good that we are hearing praise for DWP staff this afternoon. Down in Bexhill and Hastings, they have been absolutely amazing, as they have been across the country. When I asked my office what cases we had outstanding, the answer was zero. When I asked how the performance level rated, I was told, “Better than ever.” On that basis, will the Secretary of State look at whether we are using more discretion now that could also be used in future? Obviously, we have to keep a cost-control mindset and commonality of decision making, but it seems there are positive lessons that can be learned, and I thank my right hon. Friend and her team for everything they have done.
Dr Coffey
It is kind of my hon. Friend to thank DWP. I think it deserves, universally, credit. We are trying to learn from the streamlining we have done on the potential for permanent future changes, so that we see the enhanced processing we have successfully undertaken over the last few weeks.
Beth Winter (Cynon Valley) (Lab) [V]
Many of my constituents suffered financial hardship and poverty before covid-19 struck, with the delays in universal credit, the processing of personal independence payments, the child benefit cap, low wages and insecure employment. That has been multiplied by the coronavirus, with communities, individuals and businesses seriously affected. Our local citizens advice bureau has been inundated with welfare benefit queries, and I thank it and all local agencies for their hard work. It is time the Government began to face the financial realities and hardship of people’s lives. Will the Minister please agree to consider introducing a recovery universal basic income to help achieve a sustained economic recovery? It could become the foundation for a future social security system that provides financial security for everyone.
Mark Pawsey (Rugby) (Con) [V]
Rugby jobcentre plus was one of the first to go to full-service universal credit, and the staff there have been providing support to their colleagues in other offices, which is very important at a time when registrations are running at six times their usual level. I know the Secretary of State will join me in thanking all the staff for their hard work to make certain that the system runs smoothly. What is her assessment of what might have happened if we had not taken the tough decisions to modernise and streamline the welfare system and we were still operating under the highly complicated legacy system?
Dr Coffey
I have to say some unkind words: judging by my hon. Friend’s new attire, I wonder whether he is seeking his pension. However, he asks a serious question which deserves a serious answer. The reality is that—and I have been told this by my senior officials—there is no way that the legacy benefits system would have been able to cope. The move to universal credit has been successful. We still want to make sure that it rolls out universally, but I think it has shown that it has absolutely stood the biggest test of all.
Amy Callaghan (East Dunbartonshire) (SNP) [V]
Small increases in universal credit allowances are not enough, particularly because many people will lose that uplift due to the benefit cap. I appreciate that the Secretary of State has noted in previous answers that she sees no need to move the benefit cap, but I see the need for it in my constituency of East Dunbartonshire. Will she review the decision and finally lift the benefit cap so that people will actually receive the temporary increase in support that they so desperately need?
Gary Sambrook (Birmingham, Northfield) (Con) [V]
I thank the Secretary of State for visiting the Longbridge jobcentre with me back in March. We both saw at first hand that work coaches do a fantastic job supporting people into employment, but their ability to meet people in person has, quite rightly, been restricted due to the lockdown. Can my right hon. Friend update the House on the support being given to work coaches so that they can continue to provide support to claimants despite those restrictions?
Dr Coffey
As well as having a relationship with claimants, many work coaches have been deployed into processing claims. Both those things are critical to making sure that the 1.8 million people can get paid on time, and they deserve a tribute for that. As we get over this peak, I think we will see work coaches being able to resume other work with their claimants.
Jessica Morden (Newport East) (Lab) [V]
There have been more than 82,000 new claims for universal credit in Wales. That is unprecedented and I echo the thanks to DWP staff, but some people are still struggling to get support with their new claims, including the constituent who could not get through on the phone and had to walk for 45 minutes to get help because she cannot afford internet access. May I urge the Secretary of State to make it much easier to access support with new claims, including by ending the five-week wait?
Dr Coffey
We do not intend to end the five-week wait—that is where advances can help. The hon. Lady is right to point out the difficulties people have with telephony. We have turned that system around, so it should be more straightforward now that the DWP calls claimants rather than the other way around.
Harriett Baldwin (West Worcestershire) (Con) [V]
May I join colleagues in thanking DWP staff, particularly those in West Worcestershire who have worked so hard throughout this crisis? The Secretary of State has been asked a number of times about universal basic income and has resolutely rejected it. Can she confirm that a universal basic income would have to be paid universally —to everybody—including people like us?
Dr Coffey
My hon. Friend is absolutely right. We know that it is not a well-targeted system, and that is why we will continue to say that it is not the approach that this Government will take. May I also wish a belated happy birthday to my hon. Friend, who turned a significant age at the weekend?
Mrs Emma Lewell-Buck (South Shields) (Lab) [V]
Recently the Secretary of State said that she was confident that the system was working. Prior to this pandemic, more than 8 million people struggled to access food, and now a further 8 million households with children have lost their income. With food banks reporting increased footfall of more than 100%, can she please explain what possible grounds she had for that misplaced confidence and her continued justification for the five-week wait for universal credit, the two-child policy and the benefit cap?
Dr Coffey
The fundamentals of universal credit do not change. The reason for the assessment period is to understand people’s general income and use that as a basis, but that is where the advances come in: to help people who cannot make ends meet in between. As I said, fewer than half of people who have applied for universal credit have also wanted an advance. We are getting the vast majority of that money to people within three days and I think that that shows that the system is flexible enough to help those who need it most.
Mr Ian Liddell-Grainger (Bridgwater and West Somerset) (Con) [V]
The Secretary of State has made very clear how the system is working, and it is working very well, but will she take the chance to address some of the issues for self-employed people, who are still waiting for money from the announcement, and to reiterate the rules and the way in which they will be paid over the next few months? I think that it would be useful and helpful to let people understand just what the Government are doing to make sure that they are looked after and paid for the long term.
Dr Coffey
My hon. Friend will be aware that self-employed people will have 80% of their profits reimbursed in the form of a grant. I know that it will take some time for the system to be delivered; my understanding is that payments will start within a month, but in the meantime, there may be people who are currently self-employed who could seek support from universal credit.
Anne McLaughlin (Glasgow North East) (SNP) [V]
I was horrified to discover that, contrary to the announcement that personal independence payment recipients would be entitled to a three-month extension, my constituent—a lone parent with severe mental health problems—will not be. Why not? Because, as the PIP hotline confirmed to my caseworker, if someone’s award was decided by a tribunal—in other words, if they were forced to fight the DWP for that lifeline and that entitlement —they will again be treated differently from all other PIP recipients, and the three-month safeguard will not apply to them. Can that seriously be true? If so, why?
Dr Coffey
As I set out, where people were due to have a reassessment, the situation would arise in which we extend the award automatically by just three months. People who are in a tribunal process are those who have challenged the decisions; therefore the question of what award they have received will be the one that is under debate and review.
Christian Wakeford (Bury South) (Con) [V]
We know that coronavirus has seen the loss of loved ones in many families across the UK. What steps are being taken to ensure that widows, widowers and their families are being supported? What improvements are being made to bereavement benefits for widows and widowers?
Dr Coffey
The bereavement support payment supports working-age people who have lost a spouse or civil partner after 6 April 2017 by contributing to the more immediate additional costs associated with bereavement. People without children get an initial payment of £2,500 and 18 subsequent monthly payments of £100; those with children receive an initial payment of £3,500 and 18 subsequent payments of £350. Bereavement support payment is not taxable, and the least well-off will gain the most, as they receive the payment in full alongside any other benefit entitlements.
Dan Jarvis (Barnsley Central) (Lab) [V]
Mental and physical health conditions should not be a barrier to finding work. That is why, working with the Department for Work and Pensions, we launched Working Win, an employment programme that has now helped 3,000 people across South Yorkshire. Does the Secretary of State recognise the value of programmes such as Working Win? Will she commit to providing funding to support our most vulnerable workers through the covid-19 crisis?
Dr Coffey
The Department supports a number of schemes around the country; I am not aware of the specific one to which the hon. Gentleman refers. They will continue, I am sure, to be supported more broadly, but each and every one will be evaluated, because we need to make sure that the money that we have has the best reach. I am sure that he will continue to lobby for that case in South Yorkshire.
Antony Higginbotham (Burnley) (Con) [V]
It is clear that confusion remains about who can and cannot go to work. I receive questions every day about whether any given company is essential and, if it is not, whether it should be closed. What steps is my right hon. Friend taking to make the current guidance and any future guidance clear? May I suggest that some kind of public information campaign be considered?
Dr Coffey
My hon. Friend is right to raise that matter. Our communication about staying at home has been very effective, but we have also said from the start that people should try to work from home, but that if they cannot and are able to go to work, they should go to work. The Government will provide further advice in the coming weeks to employers and trade unions about how to make workplaces safer. We have set out how work must be done in the workplace, including tailored advice for different scenarios, as examples of how employers might implement social distancing and other measures to help protect their workforce and customers. We continue to learn from each other, including in this House.
Dr Rupa Huq (Ealing Central and Acton) (Lab) [V]
I am pleased to hear that the Secretary of State is fixing some of the glitches in universal credit—a system that many of us thought was woefully inadequate, and we have perhaps the biggest unemployment increase since the ’30s on the way. Will the right hon. Lady consider the matter in the round and do two small things: relax the savings threshold, because many people losing their businesses find that prohibitive; and replenish some of our reservoirs for discretionary housing payment in Ealing? A housing crisis was already under way in Ealing, Acton and Chiswick, and it is only getting worse.
Dr Coffey
On the question about the self-employed, where people have assets—for example, savings set aside for paying tax—they need to check carefully and go through that as they make their claim, because it will not be considered part of savings with regard to the £16,000 threshold. On housing, we have increased the local housing allowance, and I am sure that the discretionary housing payments have gone to Ealing Council. It is open for councils to come back to central Government if they would like that to be raised substantially.
Mr Mark Harper (Forest of Dean) (Con) [V]
It is clear from the Secretary of State’s statement and her answers to questions from Members that universal credit has been much more effective at scaling up to deal with the unprecedented level of claims arising from the coronavirus pandemic. I know from my constituents’ experience that we get half the number of problems that we got with the legacy benefits. May I therefore take the opportunity to thank all the staff, including those in my constituency, who have delivered universal credit? May they continue to do so.
Kate Osamor (Edmonton) (Lab/Co-op) [V]
May I remind the House that back in March, when I wrote to the Secretary of State to ask what emergency measures were in place to allow the Department to cope with the increase in new universal credit claims, I was told that the Department would redeploy staff and review priority of work? The Secretary of State has repeated that today. However, I am afraid to say that, months into the crisis, I still have constituents who are being told that the waiting time is eight hours when calling the claim line. As a result, many have been forced to use food banks for the first time. Given the ongoing issues that my constituents are experiencing, will the Secretary of State give resolving the technical and capacity issues the highest priority by providing clearer guidance to the public and the hard-working DWP staff on the correct process for making digital and non-digital universal credit claims?
Dr Coffey
We did have telephony issues, but I am led to believe that they have been significantly addressed, particularly with the “Don’t call us—we’ll call you” campaign. I recommend that the hon. Lady considers asking her constituents to use the journal when necessary. I appreciate that they do not all have internet access, but the average waiting time should now be considerably lower. The last I heard, it was, on average, about five minutes. I ask her to look into that.
Andy Carter (Warrington South) (Con) [V]
May I add my thanks to the DWP team, particularly those based in Warrington, who have helped process claims swiftly for my constituents in the last six weeks? On Friday, I visited Warrington foodbank to meet the volunteers who are working hard to support families in my constituency who have fallen on difficult times. One of the concerns they raised is the speed of recovery when universal credit is advanced. Does my right hon. Friend agree that it is important to ensure that anyone who receives an advance of their benefits is given a reasonable timeframe to pay it back?
Gavin Newlands (Paisley and Renfrewshire North) (SNP) [V]
Many people have had to apply for universal credit for the first time, but it is clear that, despite DWP staff working hard, the system simply cannot cope, and it was never intended to operate under such extreme circumstances. Constituents are waiting weeks for DWP phone calls and those unable to verify their identity online are told that the application does not exist, and therefore they cannot claim. What is the Secretary of State doing to prioritise new claims for universal credit, many of which are from people who have paid money into the system for decades and now find that their contribution means next to nothing?
Dr Coffey
I do not agree with the hon. Gentleman; I think UC has reacted very well to the increased challenge. However, I would say to him that there were initially problems with the online verification. There is an additional scheme called “Confirm your identity”, and between that and “Verify” it should be very straightforward for people to get through that part of the claim. I can assure him that he can also arrange for constituents to contact the DWP helpline and be processed that way, too.
Sir Desmond Swayne (New Forest West) (Con)
What increment in expenditure has the Treasury provided to my right hon. Friend’s Department since the onset of this coronavirus?
In-work Progression Commission
Baroness Coffey Excerpts(6 years, 4 months ago)
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The Secretary of State for Work and Pensions (Dr Thérèse Coffey)
The Department for Work and Pensions is establishing an In-work Progression Commission in order to increase its evidence base and support policy development on helping people to progress in work. The commission will define the barriers individuals and groups face to progressing and moving into higher paid work. It will advise Government on how to support individuals to overcome these barriers. To inform the work of the commission, a call for evidence will seek examples from employers and the third sector about what makes a difference in helping people to progress.
The work will be led by Baroness McGregor-Smith and supported by an advisory panel and officials in the Department for Work and Pensions. It will report to me in the coming months.
[HCWS161]
Contingencies Fund Advance
Baroness Coffey Excerpts(6 years, 4 months ago)
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The Secretary of State for Work and Pensions (Dr Thérèse Coffey)
Parliamentary approval for additional resources of £1,500,000,000 will be sought in a supplementary estimate for the Department for Work and Pensions. Pending that approval, urgent expenditure estimated at £1,500,000,000 will be met by a repayable cash advance from the Contingencies Fund.
This is not a request for additional funding but is to meet the Department’s cash requirements pending Royal Assent of the supplementary estimate 2019-20 and will enable the Department to continue to deliver an effective welfare system for our citizens.
[HCWS158]
Oral Answers to Questions
Baroness Coffey Excerpts(6 years, 4 months ago)
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Mr Stephen Morgan (Portsmouth South) (Lab)
The Secretary of State for Work and Pensions (Dr Thérèse Coffey)
There are 743,000 fewer children in workless households compared with 2010. The evidence shows that work is the best route out of poverty, and a child living in a household where all adults work is about five times less likely to be in poverty than children in households where nobody works.
Mr Morgan
I thank the Secretary of State for that reply. The Child Poverty Action Group has published a study that detailed the lives of children who go hungry and the impact on their health, education and friendships. It showed that some were ashamed to invite friends home because they have no food to offer them. When will the Government give child poverty the priority that it needs?
Dr Coffey
I am conscious of CPAG’s report, which tends to use the relative “after housing costs” poverty measure. However, it is important to say this about the relative element; if we go back just over 10 years, we can see that just having a recession reduces relative poverty. We need to keep focused on what is really happening to families. That is why, if we use the absolute poverty measure, we will see that fewer people are in poverty than was the case 10 years ago. We will continue to work with parents to ensure that they try to earn the amount of money that they need so that they can continue support their children.
Laura Trott (Sevenoaks) (Con)
Childcare costs place a huge strain on family finances. Will my right hon. Friend outline what help is being given to families with up-front costs of childcare?
Dr Coffey
The way universal credit works is for people to have payments in arrears, but 85% of eligible childcare costs are covered, compared with 70% under the legacy system. It is also important to stress that the flexible support fund can be used to help with those sorts of costs, but we need to ensure that people are paying according to their salaries, as opposed to our simply giving grants up front.
Mike Amesbury (Weaver Vale) (Lab)
According to the Department’s own figures, the majority of households hit by the two-child limit are in work but on low incomes. This policy pushes working families further into poverty, when our social security system should be giving people a route out. Will the Minister have a strong word with the Chancellor and end this pernicious policy in this week’s Budget, and why not support the Daily Mirror’s “Give Me Five” campaign while he is at it?
Dr Coffey
The hon. Gentleman will be aware that child benefit continues to be paid for all children, as well as an additional amount for any disabled children. He is hitting the wrong note here, as is the Daily Mirror, when it comes to the “Give Me Five” campaign, as this is not a targeted policy to reduce child poverty. I simply say that, by keeping the two-child policy, providing support for a maximum of two children ensures fairness between claimants and those who support themselves and their families solely through work.
James Wild (North West Norfolk) (Con)
Sir Robert Neill (Bromley and Chislehurst) (Con)
The Secretary of State for Work and Pensions (Dr Thérèse Coffey)
I work closely with my right hon. Friend the Lord Chancellor as does the Under-Secretary of State for Work and Pensions, my hon. Friend the Member for Colchester (Will Quince). The Under-Secretary also works with the Minister of State, Ministry of Justice, my hon. and learned Friend the Member for South East Cambridgeshire (Lucy Frazer). We have visited HMP Downview to see at first hand the excellent work of our prison work coaches, of which there are 130 based across the country. We have identified prisons that currently do not have a work coach as part of delivering on our manifesto commitment to break the cycle of crime.
Sir Robert Neill
I am grateful for that progress, but can the Secretary of State tell me when we will be in a position where all prisons will have this provision? Will she also tell me what progress there has been in ensuring that all prisoners are able to claim universal credit before the end of their sentence, because it is well established that access to a job or honest, legitimate benefits is one of the best means of preventing reoffending?
Dr Coffey
The Under-Secretary of State for Work and Pensions, my hon. Friend the Member for Colchester, is working carefully on the pilot scheme that is currently being rolled out in certain Scottish prisons, and we are working with the Prison Service to ensure that universal credit claims are made in a safe way. This includes booking appointments at the jobcentre in advance by using a telephony-based system to avoid the risk of IT crime that could happen as a consequence.
Mr Barry Sheerman (Huddersfield) (Lab/Co-op)
The Secretary of State will know that many prisoners have conditions that are not seen as a disability upfront. For example, they might be on the autism spectrum or have special educational needs—indeed, they may well not be numerate or literate. As someone comes up for release from prison, could the Department work to identify the real talents that many of these people have and support them in these?
Dr Coffey
The hon. Gentleman will be aware that it is primarily the role of the Ministry of Justice to consider these issues and help people to prepare for release. We are keen to have a work coach in every prison so that when people do leave they can get back into the world of work as quickly as possible. This issue is very much front and centre, and the Prime Minister has set up a specific taskforce, which he chairs, to ensure that we try to crack this cycle of crime, especially when people leave prison.
Michael Fabricant (Lichfield) (Con)
Robert Halfon (Harlow) (Con)
The Secretary of State for Work and Pensions (Dr Thérèse Coffey)
I commend my right hon. Friend for his passion and work on this particularly important issue. The year 2020 is crucial for our work on disability with not only the Green Paper, but the cross-Government national strategy. Of course, I will continue to speak to my Cabinet colleagues about supporting people with disabilities into work, making them wealthier in their own right and helping them live fulfilling, independent lives.
Robert Halfon
What assistance are the Government giving to apprentices with disabilities to help them with their travel costs or any other costs they may incur, and what are the Government doing—specifically and currently —to get more people with disabilities to do apprenticeships?
Dr Coffey
My right hon. Friend may not be aware of this, but people with disabilities undertaking an apprenticeship can receive assistance from the Access to Work scheme to overcome workplace barriers. In addition, our flexible support fund can support eligible claimants with a variety of the costs associated with starting work, whether initial travel costs or, indeed, things like clothing.
Kirsten Oswald (East Renfrewshire) (SNP)
Vicky Foxcroft (Lewisham, Deptford) (Lab)
The Secretary of State for Work and Pensions (Dr Thérèse Coffey)
The coronavirus is currently dominating my work at the DWP. The Department is fully prepared for all eventualities and has conducted extensive planning against reasonable worst-case scenarios. I have been in discussions with the Chancellor and will continue to work across Government to prepare. If claimants cannot attend their jobcentre appointment in person because of self-isolation, work coaches can exercise discretion, so claimants should engage with them—they will not be sanctioned as long as they let us know before the appointment.
As my right hon. Friend the Prime Minister set out last week, nobody should be penalised for doing the right thing. That is why the Government safety net also extends to those who are self-employed or who work in the gig economy. They can apply for universal credit or new-style ESA, and advances are available for universal credit immediately. These are exceptional circumstances and we will support workers to do the right thing for the protection of their health and public health.
Vicky Foxcroft
The local housing allowance is designed to cover the cheapest third of rents, but in Lewisham claimants face on average a shortfall of £40.22 per week between their rent and their benefits, and that is the case up and down the country. Has the Minister made any representations to the Chancellor ahead of the Budget to ensure that the local housing allowance once again reflects the true cost of renting?
Dr Coffey
LHAs will of course go up by 1%; I signed that off last year. The hon. Lady will also be aware of the discretionary housing payments that we have been making widely available to councils across the country. But let us face the reality: the Mayor should be building more homes in London.
Margaret Greenwood (Wirral West) (Lab)
The Government tried to justify introducing the new bereavement support payment in April 2017 on the grounds that it modernises support, but couples who are not married or not in a civil partnership are not eligible. Last month, the High Court in England found that that is incompatible with human rights legislation and discriminates against children of unmarried parents. The Prime Minister has admitted that that is an injustice, so when will the Government put it right?
Mr David Davis (Haltemprice and Howden) (Con)
Dr Coffey
I have tried to make clear to the House that people will not be penalised for doing the right thing. It is important that people have that conversation with their work coach. As I emphasised to the House, work coaches can exercise discretion but the important thing is a claimant’s ongoing conversation with their work coach.
Patrick Grady (Glasgow North) (SNP)
Dr Coffey
We are working, right across Government, on a number of different scenarios. We are preparing guidance carefully and I assure the hon. Gentleman that rapid progress is being made. The Government will always be guided by the advice of our chief medical officer and the chief scientific adviser, particularly on self-isolation.
Mr Philip Hollobone (Kettering) (Con)
Alison McGovern (Wirral South) (Lab)
Dr Coffey
The hon. Lady will be aware that the £118 a week is an average over eight weeks, and it will swing about whether people are eligible or not. I have tried to make it clear to the House, reinforcing the comments of my right hon. Friend the Prime Minister, the Chancellor and the Health Secretary, that people who are working will not be penalised because they cannot work in this regard. We continue to work across Government to bring forward the necessary legislation or other changes required.
Danny Kruger (Devizes) (Con)
It was encouraging to hear about the work coaches programme in prison. Do Ministers agree about the importance of independent civil society organisations, as well as DWP staff, in supporting prisoners who are preparing for release? Will they work with the Ministry of Justice to ensure that more prisons can give access to local community groups?
Debbie Abrahams (Oldham East and Saddleworth) (Lab)
Will the Secretary of State ensure that during the coronavirus epidemic, any social security claimant who fails to attend a work capability or work-related activity assessment will also not have their social security support stopped?
Gavin Newlands (Paisley and Renfrewshire North) (SNP)
My constituent, Jennifer Bell, was made redundant following the collapse of Thomas Cook, but secured a job with Jet2 late last year, which fell through given the DWP’s refusal to pay for a training course. She has now landed a job with Virgin Atlantic, which involves five and a half weeks’ training in Crawley. However, her application to the flexible support fund at Renfrew jobcentre for accommodation costs has been denied, despite other former colleagues having secured funding at other jobcentres. Will the Minister please look into this discrepancy for Jennifer?
State Pension Age: Universal Credit
Baroness Coffey Excerpts(6 years, 4 months ago)
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The Secretary of State for Work and Pensions (Dr Thérèse Coffey)
I can today announce that we will amend regulations to smooth the transition from universal credit to pensioner benefits and remove any potential gap in support.
All those who reach state pension age while claiming universal credit will receive a run-on, meaning that they can receive a payment for the entire assessment period in which they reach state pension age. Entitlement to pensioner benefits and state pension is unaffected and continues as usual. This ensures there is no gap in benefit provision as people approach state pension age. This will benefit approximately 200,000 pensioners who will benefit by an average of £350 from this run-on at a cost of around £70 million over the next five years.
This process is already in operation on an extra statutory basis, ensuring that nobody loses out upon reaching state pension age, and legislation will be amended accordingly later this year.
[HCWS146]
Oral Answers to Questions
Baroness Coffey Excerpts(6 years, 6 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Nicola Richards (West Bromwich East) (Con)
The Secretary of State for Work and Pensions (Dr Thérèse Coffey)
As my hon. Friends will know, reducing homelessness and ending rough sleeping is primarily the responsibility of the Ministry of Housing, Communities and Local Government, but it is a key priority for the Government and the Prime Minister. I enjoy working closely with my right hon. Friend the Secretary of State for Housing, Communities and Local Government on the approach to delivering housing support to reduce homelessness, and I look forward to supporting his conversations with the Chancellor.
Gary Sambrook
Last Friday, I visited Northfield Community Partnership and The Project, which are doing fantastic work on reducing homelessness, especially focusing on mental health, access to welfare and debt. Will the Minister continue to commit to working with voluntary organisations to reduce homelessness?
Dr Coffey
I commend my hon. Friend for the important work he does with the community partnership. Birmingham South West Jobcentre has an excellent relationship with the city council, delivering surgeries three times a week to help claimants with housing issues. My hon. Friend will be aware of the £6.5 million that the council received specifically to tackle the issue he raises. However, we will continue to work further with the organisations that he mentions, potentially through the new transformation challenge fund.
Mr Fysh
My local jobcentre in Yeovil is very proactive in assisting the smooth transition to universal credit, but I still encounter cases in which rent arrears are a problem. What more can we do to ensure that we can intervene in cases in which arrears threaten to make people homeless?
Dr Coffey
My hon. Friend will be aware of the money given to councils—including £359,000 for his own council—to help them to support homeless people. Issues such as this can often be addressed not only by discretionary housing payments but by the flexible support fund which provides hardship payments through local jobcentres.
James Sunderland
I am grateful for the Secretary of State’s earlier response, but will she please tell us what is being done to help ex-forces personnel into work?
Dr Coffey
My hon. Friend—indeed, my hon. and gallant Friend—raises an important point. Last year we secured about £5 million in the spending review to bolster the role of our local armed forces champions, which means that in the forthcoming year we shall be able almost to triple the resources to support full-time champion posts so that we can try to ensure that veterans are given work that is fruitful and long-term.
Nicola Richards
I am grateful to the Secretary of State for her responses so far. Thanks to the work of the Government, the west midlands Mayor Andy Street and local authorities in the region, the Housing First project has made great progress so far, enabling 137 people across the region to move into their own homes and get back on track, apply for work and rebuild their lives. Will the Secretary of State join me in supporting Andy Street’s mission to end homelessness in West Bromwich East and the wider west midlands, and will her Department work with the Ministry for Housing, Communities and Local Government so that we can reach the Prime Minister’s target of ending homelessness and rough sleeping during the current Parliament?
Dr Coffey
My hon. Friend is right to praise the work that is being done in the west midlands through Andy Street, and I commend her support for it. I shall meet my right hon. Friend the Secretary of State for Housing, Communities and Local Government later this week, and our officials are already working together on a programme to tackle homelessness.
Martyn Day (Linlithgow and East Falkirk) (SNP)
The Scottish Government are spending £50 million to ensure that no one has to pay the bedroom tax, which is helping more than 70,000 households to sustain their tenancies. Will the Secretary of State make it her policy to abolish the bedroom tax so that we no longer have to mitigate this unfair policy in Scotland?
Dr Coffey
I actually think that the spare room subsidy was an important part of a change to deal with the challenges of homelessness, which we have just been discussing. I absolutely believe that we will continue that policy, but, as ever, when there are problems, part of the role of the discretionary housing payments is to deal with them. The hon. Gentleman will be aware—I think I am right in saying this—that the Scottish Government have not introduced that policy quite yet, but intend to do so later in the year.
Mr Toby Perkins (Chesterfield) (Lab)
Anyone who has visited a food bank or has met homeless people on their streets will know that welfare policy is the No.1 reason for the appalling rate of homelessness in our towns. As a simple starting point, if the housing element of universal credit were paid to landlords, we could make a start towards ending the appalling problem of homelessness that welfare policy is currently inflicting on our streets.
Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op)
One of the real concerns in my constituency is the inability of people who want to rent to do so privately with the money that is available. Will the Secretary of State look at local housing allowance rates to ensure that families who could be living in the private sector—because they cannot obtain social housing—are not living in single hostel rooms, as many of my constituents have been for many years?
Dr Coffey
I am sure that the hon. Lady will welcome the increase in the local housing allowance from April 2020. I am conscious of the fact that two thirds of the people who are homeless are in London, and I really wish that the Mayor of London and his devolved authorities would get on and help to sort this out.
Mr Barry Sheerman (Huddersfield) (Lab/Co-op)
Would the Minister consider using all the orphan funds swilling around in pension funds to create a new fund that could do something about this issue? On Wednesday night, I counted 15 people sleeping rough right outside our door in the tube station. Has she been to ask those men and women what brought them there? Could we not use orphan funds for that purpose and for fighting climate change?
Dr Coffey
On a broader point, we are considering aspects of liquid assets, and we have seen the example of Legal & General, which is starting to get into the housing sector. I reiterate that when the Prime Minister was Mayor of London he made it a personal priority to ensure that no one spent more than one night outside. We have not seen quite that emphasis under this Mayor, but I am sure that he will seek to do this before the elections in May.
Mark Pawsey (Rugby) (Con)
Yvonne Fovargue (Makerfield) (Lab)
The Secretary of State for Work and Pensions (Dr Thérèse Coffey)
In total, universal credit is £2 billion a year more generous than the legacy system it replaces. For those who can work, universal credit ensures people take home more of their earned income and are supported to work more hours, whereas for those who cannot work, the higher disability element is more generous, meaning that 1 million disabled claimants will gain, on average, £100 a month.
Yvonne Fovargue
Last week, a report from the debt charity StepChange found that 65% of clients said that universal credit had made it harder for them to budget and manage their finances. Given the DWP’s oversight of the UK financial wellbeing strategy, what will the Department do to ensure that universal credit helps people to recover from debt and does not make the problem worse?
Dr Coffey
I know that the hon. Lady has focused on this issue for a lot of her professional career, as well as for a lot of her parliamentary career. We do important work through the Money and Pensions Service to make debt advice available, and that is an important avenue to which people can be referred. We also work closely with Citizens Advice on the Help to Claim service, to help to provide that alternative holistic approach for which we fund the CAB.
Mary Glindon (North Tyneside) (Lab)
Laura Farris (Newbury) (Con)
The Secretary of State for Work and Pensions (Dr Thérèse Coffey)
In the week that we leave the European Union, I am pleased to say that our labour market continues to thrive. Employment has reached a new record high of 76.3% matched by a record number of people in work, pulling Britain forward into the new decade. That includes 15.5 million women—more than ever before—and 1.3 million disabled people have joined the labour market since 2013. This shows a bright outlook for our buoyant economy as we continue to grow and enhance the labour market in this new era for our country.
Laura Farris
Discrimination against women during pregnancy or periods of maternity leave remains a particularly problematic form of workplace discrimination, and it has affected many of my constituents. What steps is the Minister taking to improve the take-up of shared parental leave to remove the onus and the spotlight from new mothers at that particularly vulnerable period in their working lives?
Dr Coffey
My right hon. Friend the Secretary of State for Business, Energy and Industrial Strategy leads on this issue. I assure my hon. Friend that we encourage people to take up the options and we support their efforts. We will continue to do more with our work coaches on helping people to get the most out of working.
Jack Dromey (Birmingham, Erdington) (Lab)
The Government have said that the aim of the Pension Schemes Bill is to support pension saving, putting the protection of people’s pensions at its heart. However, this weekend, we learned that the Financial Conduct Authority is preparing to write to just over three quarters of firms that advised individuals on pensions between 2015 and 2018 about “potential harm” in their defined benefit transfer advice. How can the Government claim to have a joined-up pension policy when pension freedoms can be exploited, giving licence to rogue financial advisers to put at risk people’s savings for retirement? Some have paid a terrible price, impoverishing them for years to come.
Stephen Crabb (Preseli Pembrokeshire) (Con)
Dr Coffey
My right hon. Friend is right to point to the creation of the shared prosperity fund. Discussion is ongoing within the Government. I know that the Wales Office is already engaged in conversation; we will engage in due course, once we have got through the initial design internally.
Daniel Zeichner (Cambridge) (Lab)
Zarah Sultana (Coventry South) (Lab)
Dr Coffey
The hon. Lady is right to praise volunteers at her local food bank who support vulnerable people in their area. I visited a similar food bank in my own constituency that has been working together with food redistribution schemes. Marrying the two is a perfect way to try to address the challenges that people face at difficult times in their lives. The hon. Lady will be aware of the work that we have been trying to do with the Trussell Trust, and I am pleased to say that we will also be having a roundtable of independent food banks to understand how we can help them and their customers to move forwards.
Colleen Fletcher (Coventry North East) (Lab)
Mrs Emma Lewell-Buck (South Shields) (Lab)
Dr Coffey
To be open, I am not aware of the study to which the hon. Lady refers. I will find out about it after questions, so I can send her an answer in writing. As I have mentioned to the House before, food bank use is not what we want to see in the long term. The best way to get out of poverty is through work, which is why we will continue to help people up the escalator of career progression.
Alex Norris (Nottingham North) (Lab/Co-op)
Disability Direct in my constituency has a success rate of more than two thirds when helping claimants to overturn disability-related assessment decisions. Do Ministers not recognise that a welfare system that is so wrong so often is simply broken?
Martin Docherty-Hughes (West Dunbartonshire) (SNP)
The Scottish Government have used 15% of social security that has been devolved to Holyrood to exempt the war disablement pension from the assessment of income, meaning that our veterans get the full worth of that pension in Scotland. When will the Department and the Secretary of State make the same commitment for all social security benefits?
Dr Coffey
The Scottish Government are already undertaking a series of policy changes that they recognise will take some time to work through the system, while they also create their own. I think it is best to ensure that those policies are well established before we consider any further devolution.
John Cryer (Leyton and Wanstead) (Lab)
Will the Secretary of State assure the House that there are no plans to reintroduce employment tribunal fees?
Dr Coffey
I am not aware, because as the hon. Gentleman will know, employment tribunals are basically managed by the Department for Business, Energy and Industrial Strategy, rather than the Department for Work and Pensions. I therefore encourage him to table a written question to BEIS instead.
Anne McLaughlin (Glasgow North East) (SNP)
My constituent did not wait five weeks for a universal credit decision. She waited five months and then started to receive payments, but there has been no mention of the backdated five months or whether a decision has been made. Will the Secretary of State urgently look at that case? If she lets me know the next time she sends one of her Ministers to my area, I will take him along with me and he can explain to my constituent why she nearly went bankrupt.
Dr Coffey
I suggest that the hon. Lady lets the Minister for Disabled People, Health and Work, my hon. Friend the Member for North Swindon (Justin Tomlinson), know directly about her constituent’s particular circumstances so that he can follow up on that individually. I know that he believed that he had let hon. Members know about this matter. We take the issue seriously, and we will check after Question Time what happened regarding the communication.
Chi Onwurah (Newcastle upon Tyne Central) (Lab)
Greggs in Newcastle has, as we know, given its workers a £300 bonus to share in its success as a company. Does the Secretary of State agree that that is the right thing for employers to do? Does she see why so many of the employees who are on universal credit will lose so much of that bonus because it is treated as a monthly income rather than an annual income, which is what it is?
Mr Toby Perkins (Chesterfield) (Lab)
The Secretary of State’s answer to my earlier question about homeless people’s universal credit payments going to their landlords missed the point completely. Many people who are homeless have alcohol or drug abuse issues. Giving the money to them directly is not solving the problem; it needs to go to the landlord. Rather than saying that it is a choice for them, that choice should, in many cases, be made for them.
Welfare and Pensions Update
Baroness Coffey Excerpts(6 years, 8 months ago)
Written StatementsRead Full debate Read Hansard Text Read Debate Ministerial Extracts
The Secretary of State for Work and Pensions (Dr Thérèse Coffey)
I am announcing the proposed social security benefit and pension rates for 2020/21.
More than 10 million people in receipt of working-age benefits will see their payments increase at the rate of inflation next year.
Some 2.5 million people on universal credit and claimants on legacy benefits will receive a 1.7% rise in April. This includes people receiving jobseeker’s allowance (JSA), employment and support allowance (ESA), income support, housing benefit and universal credit.
The basic and new state pensions will increase at the highest rate for 8 years, by 3.9%, boosting the retirement incomes of 13 million people. Pensioners receiving the full new state pension will get an extra £344 a year. The basic state pension will increase by £263 a year.
The pension credit standard minimum guarantee for a couple will be £265.20 a week, the basic state pension will be £134.25 per week, the full rate of the new state pension will be £175.20 per week, and the universal credit standard allowance couple one or both over 25 will be £507.37 a month.
The annual up-rating of benefits will take place for state pensions and most other benefits in the first full week of the tax year. In 2020, this will be the week beginning 6 April.
A corresponding provision will be made in Northern Ireland and the Scottish Government will lay its own statutory instrument in respect of increases to carer’s allowance in Scotland.
The annual up-rating process takes into account a variety of measures:
The basic and new state pensions will be increased by the Government’s “triple lock” commitment, meaning that they will be up-rated in line with the highest of prices (CPI), earnings or 2.5%. Consequently, they will be up-rated by 3.9% (the May-July average weekly earnings figure).
The pension credit minimum guarantee will also be increased by earnings in line with legislation. The pension credit savings credit maximum amount will be increased in line with CPI (1.7%).
Benefits linked to the additional costs of disability, and for carers, are increased by the annual rise in prices (1.7%). A number of other elements—including non-dependent deductions—will also be up-rated in line with prices.
Working age benefits will be increased by CPI (1.7%) from April 2020. Those linked to child tax and working tax credits will be up-rated in line with those benefits.
Universal credit work allowances will be increased in line with CPI (1.7%) from April 2020.
The full list of proposed benefit and pension rates will be placed in the Libraries of both Houses in due course.
This will increase expenditure on social security benefit and pension rates by £5 billion. This includes £3.9 billion more to be spent on pensioner benefits. From April 2020 the yearly basic state pension will be worth over £1900 more in cash terms than in 2010. £1 billion more will also be spent on working-age benefits, ensuring that we continue to support the most vulnerable in society.
[HCWS74]
Work of the Department
Baroness Coffey Excerpts(6 years, 8 months ago)
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The Secretary of State for Work and Pensions (Dr Thérèse Coffey)
The Department for Work and Pensions is the UK’s biggest public service Department, supporting people into work and administering the state pension and a range of working age, disability and ill health benefits to around 20 million claimants and customers. The Department is carrying out a world-leading transformative welfare agenda, and has had great success in recent years, while the Health and Safety Executive continues to make the workplace safer.
Universal credit is the biggest change programme in Europe, and the UK is seen as a world leader in welfare. The roll out of universal credit is now complete and it is available in every Jobcentre across the country, with 94% of all claims paid in full and on time to 2.5 million people. This financial year we will spend over £95 billion on working age benefits and over £120 billion on benefits for pensioners, bringing the total welfare spending across Government this year up to £220 billion.
The Government believe that work is a pillar of a strong economy, and that work should always pay— according to the 2018 universal credit full claimant service survey, 85% of claimants believe getting and keeping a job is their number one priority—with 75% feeling that having almost any job is better than being on benefits. Overall satisfaction among claimants has remained consistently high over the last three years, with four out of five people satisfied with the support they have received when claiming universal credit.
The next phase of universal credit, “Move to UC”, will open up work, allowing people to increase their hours without the penalties they would normally be subject to under tax credits. As of 26 September 2019 we have made over 13,800 severe disability premium transitional payments, worth on average £2,280. This represents over 90% of expected backdated payments, totalling over £37.2 million.
Universal credit introduced a single taper system so payments reduce in a transparent and predictable way as earnings increase, making sure we support claimants in their transition into work. Additionally, when we complete moving legacy benefit claimants over to universal credit, an estimated 700,000 more people will get paid their full entitlement because of universal credit—getting on average an extra £285 per month.
As universal credit was rolled out, we made the taper more generous, reducing it to 63%, which means claimants can work more hours and keep more of their benefits. And again, in April this year, we increased the universal credit work allowance by £1,000 per year. This means that 2.4 million households will keep an extra £630 of income each year.
To support our claimants, we have introduced additional dedicated specialist work coaches, with training covering domestic abuse support, mental health, support for those with disabilities and health conditions, through to specialised local employment support.
Furthermore, we have made changes to support the most vulnerable, such as reducing the length of the maximum single sanction from three years to six months.
From October this year we reduced the normal maximum level of deductions in universal credit from 40% to 30% of the standard allowance; lowering this rate could see a couple keep up to an extra £600 over 12 months.
To support families and households, we announced the policy to support a maximum of two children would no longer be extended to apply to children born before 6 April 2017 in new claims to universal credit. We have also introduced more flexible childcare cost arrangements, as well increasing their worth from up to 70% to up to 85%.
Additionally, we provide alternative payment arrangements such as more frequent payment options and managed payments to landlords—we have created an online system for landlords to facilitate this. We also encourage payments to go to the main carer.
From April 2019, Citizens Advice have been delivering the new “Help to Claim” support service to claimants making a new claim for universal credit.
In 2012, we reformed the child maintenance system with the aim of increasing co-operation between separated parents to meet their financial responsibilities, as this produces the best outcomes for their children. The scheme promotes parental responsibility by encouraging clients to set-up a private family-based arrangement where appropriate—and removing the obligation to join the statutory scheme.
We introduced further enforcement powers at the end of 2018 to enable us to deduct child maintenance directly from a wider range of accounts, target complex earners via a calculation of notional income based on assets and to disqualify non-compliant parents from holding a UK passport.
In June 2019, the child maintenance service was managing 488,300 statutory child maintenance arrangements, covering 706,700 children.
The Government are committed to improving employment outcomes for disabled people and for those with long-term health conditions. We want to support employers to realise the benefits and insight that the huge pool of talented disabled people can bring to the workforce.
That is why we have committed to more than doubling the number of disability employment advisers in our Jobcentres to over 500 to provide specialist expertise to help disabled people enter employment. Alongside this, the Government are spending £55 billion a year on benefits to support disabled people and people with health conditions. That’s a record high and an increase of £10 billion in real terms since 2010.
In November 2017, “Improving Lives: The Future of Work, Health and Disability” set out the Government’s 10-year plan, including an ambition to see 1 million more disabled people in work by 2027.
Over the past six years, we have seen 1.15 million more disabled people in work, reaching a total of 4.1 million in the second quarter of 2019. This includes an increase of 404,000 over the first two years since the Government announced their 2027 goal.
We are working with employers through our disability confident scheme; over 14,000 employers have now signed up and all Government Departments are signed up to this scheme.
The Government have completed a consultation on their proposed reforms to statutory sick pay so that it will be better enforced, more flexible and cover the lowest paid employees for the first time.
The Health and Safety Executive continues to make the workplace safer. It has clarified guidance on health and safety regulations to improve employer understanding of the need to consider mental health alongside physical health when undertaking a first aid needs assessment. The UK continues to rate as one of the safest countries in Europe in terms of fatal injury and to perform well against EU countries on a range of other health and safety indicators
Personal independence payment (PIP) is a more modern, dynamic and fairer benefit than the predecessor, disability living allowance. PIP focuses support on those experiencing the greatest barriers to living independently. The number of working-age people now receiving support from PIP and DLA is up by over 257,000 since PIP was introduced in 2013 and, crucially, a higher proportion of the over 2.2 million people on PIP receive the top rate of benefit than on DLA—31% compared to 15%. Claimants are also receiving their benefits sooner—the average time taken to process claims is down by over 60% since July 2014 for new claimants.
We have reduced the number of assessments for those receiving the highest level of support, where needs will not improve, as well as for people over the state pension age. Up to 325,000 pensioners will benefit from the change to ensure that pensioners will receive ongoing PIP awards with a light touch review at the 10-year point.
The Government’s pensions agenda will provide more security and safety to pensioners in retirement, tackle reckless behaviour from employers on people’s pensions and help more pensioners than ever before to plan for their retirement. In 2019-20 alone, the Government expect to spend over £120 billion on benefits for pensioners—this includes £99 billion of expenditure on the state pension.
Since 2012, 10 million workers have automatically enrolled into a workplace pension thanks to automatic enrolment. This policy alone has helped to reverse a decade of decline in savings and, as of 2019-20, an estimated extra £18.6 billion a year will go into workplace pensions.
We are building on the success of auto-enrolment, looking to make it easier for self-employed people to save. In December 2018 the Government published a report setting out their delivery plan for research and trials to identify the most effective options to increase pension savings among the 4.9 million self-employed workers and we will carry out these trials throughout 2019 to 2021.
The Government introduced the triple lock and, accordingly, the full yearly amount of the basic state pension is around £675 higher than if it had just been up-rated by earnings since April 2010. This is a rise of over £1,600 in cash terms.
Pioneering work has been undertaken to help more people prepare for retirement than ever before. Pensions dashboards—digital interfaces that will allow people to see online what they have in their various pensions, including their state pension—will put individuals in control of their data; they will, for the first time, provide clear and simple information regarding pension savings in one place online and help people reconnect with “lost” pensions pots.
The Government are also tackling reckless behaviour of employers that would strip people of their hard earned retirement funds. In February 2019 we announced measures to reduce irresponsible conduct from employers by extending the pension regulator’s powers, including the power to send business owners to jail.
Recognising that climate change is a defining national and international emergency, we have introduced three key measures to ensure that pension schemes understand their responsibilities in responding to it. Since January 2019, those running single employer occupational pension schemes are required to establish an effective system of governance, including consideration of environmental, social and governance factors related to investment assets in investment decisions; and schemes with 100 or more members must carry out and document a risk assessment of their system of governance including risks relating to climate change.
Furthermore, as of 1 October, trustees of occupational pension schemes must state their policy on how they take account of the financial risks of climate change when developing their investment strategies.
The Government are committed to ensuring that people have access to the information and guidance they need to make effective financial decisions throughout their lives. The Financial Guidance and Claims Act 2018 has brought together the services provided by Pension Wise, the Pensions Advisory Service and the Money Advice Service into a single organisation.
We have promoted long-term savings and pensions products, including the lifetime individual savings account, to encourage and incentivise more people to make provision for long-term needs, including a house purchase and retirement. We are encouraging working people to save for a workplace pension by helping to protect their savings and monitoring the products, charges, and processes adopted by pension schemes. We are also giving individuals the confidence to save and access their pension pots by providing more guidance and support on pensions through the establishment of the Money and Pensions Service which is delivering free and impartial money and pension guidance, along with debt advice.
We will continue to engage across Government to ensure that we are aligned with the industrial strategy, supporting the flexible working task force, and the careers strategy and the national retraining scheme—ensuring that skills provision meets the needs of an ageing demographic. We have introduced older claimant champions into all 34 Jobcentre Plus districts. We will also continue to work with employers through our business champion for older workers and the local enterprise partnerships. We will ensure there are provisions for older returners to the workplace by working with Government Equalities Office and HM Treasury, and are engaging with businesses to understand their concerns in line with changes to the ageing demographic of the workforce.
We have also been supporting everyone who can, and wants to work, to continue to work. Initiatives such as the fuller working lives strategy have led to more people aged 50-64 in employment than ever before. In addition to our legislative reforms such as removing the default retirement age and extending the right to request flexible working, we are supporting employers to recruit, re-train and retain older workers.
Our record on employment is strong, and the number of people in work is up by over 3.6 million since 2010—a near-record high. The employment rate, at 75.9%, is also at a near-record high, with 1,000 more people moving into work on average every day since 2010.
Through our new enterprise allowance (NEA) scheme, we have supported 209,000 claimants to create over 130,000 businesses since 2011. On average, we have helped to launch 203 businesses by unemployed benefit claimants, every week since 2017.
UK nationals make up around 90% of all people in work and have accounted for 66% of the rise in employment over the last nine years. Additionally, over 60% of the growth in employment since 2010 has been outside London and the south-east. There are now more than 1 million fewer workless households than in 2010 and 730,000 fewer children living in a household where no one works.
Since 2010, over 75% of the growth in employment has been in full time work and employment, and employment high-skilled occupations has risen by over 2.9 million.
There are over 1.8 million more women in work since 2010, and the female unemployment rate is at 3.7%—a near record low; the black Asian and minority ethnic employment rate has reached 66.2%—a near record high—up 7.4% since 2010; and, the youth unemployment level has almost halved since 2010, to a near record low—falling by more than 130 on average every day. Furthermore, wages have been growing for 19 consecutive months.
We are providing targeted support for young people between the ages of 18 and 24 to get into employment, through the youth obligation support programme (YOSP), as well as other specialised support within Jobcentres for young people.
[HCWS66]
Oral Answers to Questions
Baroness Coffey Excerpts(6 years, 9 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Lisa Forbes (Peterborough) (Lab)
The Secretary of State for Work and Pensions (Dr Thérèse Coffey)
Universal credit payment timeliness continues to improve and is near a record high, with the most recent data showing we paid 83% of new claims in full and on time.
Tom Brake
Can I thank the Secretary of State for saving herself to answer my question? I welcome that. She will know that the five-week delay is still causing huge harm, so could I ask her what effort the DWP is making to ensure that UC recipients are not penalised by other organisations for the five-week gap in their incomes, and what extra support can the Government give to organisations that support universal credit recipients with financial management during this very difficult period?
Dr Coffey
It is important to recognise the help to claim—I think it is £39 million of support—that has been given through the citizens advice bureaux to try to help people who may not always be there with the paperwork that is required, so we are making best efforts so that people can make the right claims so they can be paid on time. As regards other elements, of course the advance is available, which can then be repaid over a 12-month period.
Lisa Forbes
With former Thomas Cook employees being offered food bank vouchers by the Department for Work and Pensions and the Trussell Trust in Peterborough reporting a 50% increase in the number of food parcels given to my constituents in the last year alone, can the Secretary of State tell us what impact she thinks the collapse of Thomas Cook will have on these figures?
Dr Coffey
The hon. Lady was at our first taskforce, and I am sure she will be impressed with the work that we have already been doing together, including the jobs fair that happened last Thursday. It is important, and we have seen this with Thomas Cook ex-employees, that they make a universal credit claim quickly—some of them have —so they can get the support that they need. I welcome, actually, the support that is given through the Trussell Trust in order to help people in this difficult time, but the sooner people come into Jobcentre Plus and start claiming universal credit, the sooner we can help.
Margaret Greenwood (Wirral West) (Lab)
Without giving this House a debate or a vote, as they had promised, the Government have pushed through regulations for the pilot of universal credit managed migration and payments to severely disabled people who lost out in being forced to transfer to universal credit. Will the Government explain why those payments still do not fully reflect the financial loss those disabled people have suffered?
Dr Coffey
There is an extra £600 million of support going to the most vulnerable. I really do want to encourage the Opposition to withdraw their early-day motion, because if they succeed in praying against this, they are hitting the most vulnerable people, and I am sure that is not something that they wish to be remembered for.
Alan Brown (Kilmarnock and Loudoun) (SNP)
The Secretary of State for Work and Pensions (Dr Thérèse Coffey)
The Department’s resource budget will increase by 1.9% ahead of inflation for the first time since 2011, enabling us to provide excellent customer service, help people move into and progress in work, and provide financial security through timely benefit payments. As part of this, the DWP has been allocated £106 million to support vulnerable people and help to tackle private rented sector housing affordability through additional funding for discretionary housing payments.
Alan Brown
The Joseph Rowntree Foundation has highlighted that, with more social housing and lower housing costs, Scotland’s poverty figures are lower than the rest of the UK. The reality is that the biggest poverty factor is still Tory austerity. The Institute for Fiscal Studies has estimated that recent announcements will only mitigate a quarter of the cuts implemented since 2010. It is clear from the Secretary of State’s answer that a 1.9% increase is not enough. If austerity is really ending, when will the other three quarters of the cuts that have been implemented be reversed?
Dr Coffey
The hon. Gentleman will be aware that the Government have lifted 400,000 people out of absolute poverty since 2010 and that income inequality has fallen. I encourage the hon. Gentleman to go back to the Scottish Government and see what more they are doing to increase the number of higher paid jobs, because we all know that the best way out of poverty is to work.
Marion Fellows
On this subject yet again, the spending round did nothing to address the cuts to the local housing allowance and the pressures on private renters, who are £38.49 a week worse off due to the UK Government’s benefits freeze. To ensure affordability and prevent evictions and hardship, will the Secretary of State immediately increase the LHA to the pre-2010 level, and uprate it in line with inflation and rent increases?
Dr Coffey
I have just laid out that we increased the amount of money for discretionary housing payments. I have spoken to Shirley-Anne Somerville, the Scottish Minister, and it is my intention to see her soon, but the hon. Lady knows there are things the Scottish Government can do with the funding they have.
Steve Double (St Austell and Newquay) (Con)
Grahame Morris (Easington) (Lab)
The Secretary of State for Work and Pensions (Dr Thérèse Coffey)
It is a pleasure to be in the Chamber as Secretary of State for Work and Pensions, leading a fantastic Department that serves people from the Shetlands to the Scilly Isles, with more than 20 million customers across the country. In my short time in this role, I have already witnessed at first hand the inspiring and incredible work of civil servants throughout the country, and they are benefiting as well in seeing our employment rate continuing at a joint record high and an unemployment rate at its lowest since the ’70s. There is more to do, however, and I will keep focusing on improving the payment of universal credit and ensuring that we support everyone in society.
Grahame Morris
I am grateful for the Secretary of State’s sunny disposition in outlining her priorities, but the retirement plans of millions of women born in the 1950s are in ruins because of a decision by the previous Conservative-Lib Dem coalition Government to accelerate the increases in the state pension age. Last week, a decision in the High Court made it clear that only a political decision could deliver a just solution for these women, so will the Government now give the WASPI women dignity in retirement? Some 197 MPs have signed early-day motion 63 calling for justice for the WASPI women and for this historic injustice to be put right.
Dr Coffey
The High Court set out quite clearly that successive Governments had taken a measured approach in recognising the inequality in the state pension age and the need to increase the state pension age. Indeed, it was the Pensions Act 2007 that started the trigger going beyond 65. It is important to recognise that and the efforts made to communicate it, but I can assure the House that, as the hon. Gentleman will be aware, there are record numbers of women in employment. We will continue to support them in fulfilling their careers.
Steve Double (St Austell and Newquay) (Con)
Dr Coffey
My hon. Friend is right to praise the people who work for the DWP in his constituency. We have more than 4,000 civil servants in service centres nationally and we constantly monitor the volume of work as universal credit grows, but I assure him that sufficient resources will be in place to support those workers in his constituency.
Dr Sarah Wollaston (Totnes) (LD)
Chi Onwurah (Newcastle upon Tyne Central) (Lab)
Peter Heaton-Jones (North Devon) (Con)
On Friday, I visited the new Barnstaple Work Club, a fantastic initiative giving support to those seeking employment, particularly those with disabilities. Will the Minister join me in welcoming this new initiative and in thanking the volunteers as well as Barnstaple library for hosting it?
Toby Perkins (Chesterfield) (Lab)
Dr Coffey
That is simply not the case. The first time that I became involved with a food bank was in 2006, when people were falling between the gaps. One of the things that make me proudest of the Conservative Government and the coalition is that people are better off in work than out of it unless they cannot work, and we have championed the vulnerable. Universal credit is ensuring that people can have more and more income, and I should have thought that the hon. Gentleman would welcome that.
Kate Green (Stretford and Urmston) (Lab)
Tom Brake (Carshalton and Wallington) (LD)
Dr Coffey
The right hon. Gentleman will know that we are still in the middle of a negotiation for how we leave the European Union at the end of the month. It is important to stress that we have decided on a three-year rise unilaterally. We encourage other European Union countries to do exactly the same and we will continue to support those who have relied on UK pensions.
Emma Hardy (Kingston upon Hull West and Hessle) (Lab)
People with a terminal illness want the choice of whether to work or not, and they should expect help and support from their employer. Does the Minister support the TUC’s Dying to Work campaign, which asks businesses to sign up and promise not to sack employees who have a terminal illness, and will she encourage more businesses to sign it?
Christine Jardine
Further to the points already raised by other hon. Members, there are 6,500 women in Edinburgh West who were born in the 1950s and who have been affected by last week’s Court judgment. Can the Secretary of State assure me that, in the meeting that she has agreed to with the chairs of the APPG, there will be a meaningful attempt to address the poverty that these women face and not just sweep it under the carpet like an inconvenient problem?
Dr Coffey
I refer the hon. Lady to the judgment that the Under-Secretary of State for Work and Pensions, my hon. Friend the Member for Hexham (Guy Opperman), has already raised. She might also wish to speak to her party leader, because she joined me in the Division Lobby when we made the changes that we did in the Pensions Act 2011. [Interruption.] Or rather, at least that the coalition Government did. I wish to make sure that we have a sensible conversation going forward, but the judgment stands. It is open for the ladies to appeal, but I can assure the House that we have made every effort, as did the Labour Government before us, to ensure that people knew about these changes.
Labour Market Update
Baroness Coffey Excerpts(6 years, 9 months ago)
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The Secretary of State for Work and Pensions (Dr Thérèse Coffey)
Latest data released in September shows UK employment has increased by 3.7 million since 2010. Around three-quarters of that increase in employment has come from full-time, permanent and higher-skilled roles. Youth unemployment has also halved since 2010, meaning more young people are in work and the number of children growing up in in workless households is at an all-time low.
It is important that we continue to build on this progress so I am introducing a £4 million package, including two new initiatives, to help disadvantaged young people into work and use mobile technology to help jobseekers into higher-paid jobs.
Additional funding of up to £1.2 million will provide extra support in Manchester and the west midlands, ensuring extra time and resources for young people facing the biggest hurdles to getting a job, like care leavers and young offenders.
Since 2018 the Department for Work and Pensions has worked with the West Midlands Combined Authority to develop the youth employability coaches concept (previously known as progression coaches). Following this successful pilot, we will be expanding the programme to other parts of the west midlands and Greater Manchester area to reach more disadvantaged young people. Youth employability coaches will continue to support young people for up to six weeks after they start a job, helping them continue to build skills and stay in employment.
A new data service will also be piloted, initially in Manchester, with up to £2.8 million funding. Using the latest data-analysis technology, this service will gather a range of skills and labour market data from a variety of public and commercial sources.
It will provide local areas with high-quality and real-time information on skills supply and demand. Additionally, jobseekers or those seeking to progress in work will be able to search for roles based on their skills and experience. The pilot service will show them what new skills they need to move into higher-paid roles available near them. By providing more tailored local labour market intelligence we can help individuals find jobs, back businesses, grow our economy and help people reach their full potential.
Both pilots have the potential to be rolled out nationally, helping reduce youth unemployment even further after it fell 48% since 2010, and helping more people boost their earnings.
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