Universal Credit and Child Tax Credit: Two-child Limit

Alan Brown Excerpts

Tuesday 27th November 2018 Westminster Hall

[Mr Ivan Lewis (Bury South) (Ind)]

It is always a pleasure to serve under your chairmanship, Mr Streeter, and I thank the hon. Member for Glasgow Central (Alison Thewliss) for securing this timely debate. As others have said, hon. Members might find themselves experiencing a sense of déjà vu, having once again gathered in Westminster Hall to highlight a Government policy focused on hitting the poorest families the hardest. There are 870,000 families with more than three children currently claiming these benefits, with the bottom fifth of the income distribution expecting to lose the largest proportion of their income. We know the policy is set to save the Government £1.6 billion by 2020, which is no small amount. That compares with the £2.7 billion that the Government are spending on giving an income tax cut to the highest earners; they continue to make it clear that they are not governing in the interests of ordinary working people.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

The hon. Gentleman might be interested to know that I have House of Commons Library extrapolations of the Budget impact of the 2017-18 tax giveaways. The figure for inheritance tax, capital gains tax and corporation tax is £80 billion over the period 2017 to 2025. Does that not show how wrong the Government’s priorities are?

[Mr Lewis]

I agree entirely with the hon. Gentleman. The Prime Minister often talks about supporting those who are striving and working hard, but unfortunately in reality, the consequences of Government policy are the precise opposite.

We know that the Government are targeting minority and religious groups with this policy. In my constituency, the Haredi community will be the hardest hit. There is a substantial differential impact on religious communities for whom family size is determined by beliefs and for whom culture is also a determining factor. That was omitted from the Government’s impact assessment, and the Minister might want to respond to that in his concluding remarks. Some 31% of all children live in households with three or more children. For families of the Jewish faith, the proportion is 52%; for families of the Muslim faith, it is 60%; and we know that many families of the Christian faith also have three or more children. We do not expect that those families will change their behaviour because of this policy, which significantly penalises them for their religious beliefs. What has it come to when a Conservative Government are attacking the concept of religious freedom in our society, which is precisely what this policy does? I know that sometimes people do not like talking about faith, but we should say that the concept of religious freedom is central to British values. This policy goes right to the heart of undermining that principle, but it was not even part of the Government’s impact assessment, which is absolutely shameful.

Families with more than two children face a cruel poverty trap, as others have said. They are unable to work their way out of poverty because, for every extra pound they earn, the Government will reduce their two-child allowance by 75p. Those changes severely undermine the financial security of larger families, who stand to lose up to £2,780 for each additional child beyond the first two. Many families will be unable to meet their children’s essential needs. An estimated 200,000 more children will be in poverty as a direct result of this policy. Children raised in poverty, as many hon. Members know, face many disadvantages: worse life expectancy, worse educational performance, and poorer health. Although the policy may make some short-term savings, in the long term it causes tremendous economic and social costs to our society.

One of the most shameful things about the Government’s record is the abandonment of any notion of a child poverty strategy. Right at the heart of any Government who sought to govern in the interests of all of the people of this country, a top priority, whatever one’s ideology, should be the fight against child poverty. The Government have abandoned strategy and a cross-Government approach. They no longer have targets, which means there are consequences. There is no focus whatever in Government to tackle child poverty as a policy priority. We then end up with policies such as those we are debating today, where no impact assessments have been done, adding to child poverty. What kind of society is the Government seeking to create? Most of those affected are working families who are in the just about managing group. Again, the Prime Minister talks about that all the time, but there is a gap between rhetoric and reality. Substantially cutting support sends an unhelpful message about the rewards of work.

In conclusion, the policy does a number of things. It hits the poorest the hardest. It increases child poverty, risks an increase in abortion, undermines religious freedom and causes vulnerable women to be even more vulnerable. The Minister must surely accept that now is the time to U-turn on such an appalling policy.

--- Later in debate ---

[Mike Amesbury]

I agree entirely with the hon. Lady. What the former Secretary of State said demonstrates how out of touch Ministers are. Perhaps more of them should have attended the debate today, because they would have heard many contributions that have laid bare the misery the policy is causing. We heard contributions from 10 Members: my hon. Friends the Members for Glasgow North East (Mr Sweeney), for Ealing Central and Acton (Dr Huq), for Stretford and Urmston (Kate Green) and for Bethnal Green and Bow (Rushanara Ali), the hon. Member for Glasgow East (David Linden), my hon. Friends the Members for High Peak (Ruth George) and for Bury South, the hon. Member for Strangford (Jim Shannon), my hon. Friend the Member for Midlothian (Danielle Rowley), and the hon. Member for Caithness, Sutherland and Easter Ross (Jamie Stone). They are all very powerful voices for vulnerable children in this place.

This weekend, the leader of Scottish Labour called on the Scottish Government to mitigate the impact of the two-child limit. I urge the Scottish Government to use their powers to do so in advance of the budget on 12 December. They are already planning to use the new social security powers to introduce an income supplement. I urge them to help the 4,000.

[Alan Brown]

Does the hon. Gentleman accept the early points made about the limits to what the Scottish Government can do? He should bear in mind that they are not only trying to mitigate Tory cuts; these things are happening against a £2 billion cut to the Scottish budget in real terms. They are trying to mitigate Tory cuts with both hands tied behind their back.

[Mike Amesbury]

As my hon. Friend the Member for Glasgow North East said, there is a £10 billion supplement from the Barnett formula. We have heard the stories, and I have questions for the Minister.

State Pension: Women born in the 1950s

Alan Brown Excerpts

Thursday 22nd November 2018 Westminster Hall

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

It is a pleasure to serve under your chairmanship, Mr Bone. I promise that my brief remarks will last less than 17 minutes. I congratulate my hon. Friend the Member for North Ayrshire and Arran (Patricia Gibson) on securing the debate and on making such a powerful speech. She covered the issue, but what she said about the number of people who are suicidal, attempt suicide, or self-harm, was particularly pertinent and should make the Government sit up. That sums up the injustice of the issue; the Government should really listen.

Once again, I am here to speak on behalf of the 6,500 women in my constituency who have been affected by the various Pensions Act changes. First of all, I want to look at some of the politics surrounding the pension changes and the subsequent developments. We all know that the women affected by the Pensions Act 1995 were not properly notified. That is completely undeniable and even loyal Tories have acknowledged in previous debates that there were “communication issues”, which is certainly an understatement. Many Tories have stated their genuine concern and have signed up as backers of the WASPI campaign, yet all these years and months later, there has been no change despite the fact that we now have a minority Government. How hard can those sympathetic Tories really be working their Government on the issue? The Democratic Unionist party were able to extract concessions to prop the Government up, but that is proving very challenging for Conservative Members.

As the hon. Member for Brentwood and Ongar (Alex Burghart) demonstrated in his speech, too many Tories blindly back the mantra that there was a £1.1 billion concession during the Bill stages of the Pensions Act 2011. Not robbing women of an extra £1.1 billion is not the same as putting money into the system. It was just a bit less of a shafting for some of those affected, and I could not believe that the hon. Gentleman repeated that myth. We then hear the bigger picture: the Tories blame all the cuts that they imposed on the financial crash and the previous Labour Government. I might agree that Gordon Brown squandered billions of pounds, but while the Tories impose spending cuts, they have no problem introducing tax cuts for the wealthiest.

A Library briefing with projections of Budget measures from 2017 and 2018 estimates that the tax giveaways such as corporation tax, inheritance tax and higher income tax thresholds will cost the Treasury £78.6 billion pounds between 2017 and 2025. It is clear that austerity is for some but not for others. The fact that the hon. Member for Brentwood and Ongar said that compensation is completely unaffordable just shows that those choices have been made by Members in the Division Lobbies.

The Liberal Democrats now fully back WASPI, but the Minister for Pensions in 2011, Steve Webb, was one of theirs. They are the ones who started the austerity process in coalition with the Tories. Back then, Steve Webb estimated that if the timetable was not altered, pension spending would be £26 billion higher over a decade. Why was that figure so important in the grand scheme of Government spending when, as I have pointed out, tax cuts have suddenly become affordable?

Labour—Scottish Labour, in particular—is peddling, along with the Tories, the myth that the Scottish Parliament should be able to rectify matters for affected Scottish women. That comes after it said that pensions would be protected by Scotland remaining part of the UK in 2014, and after it fought tooth and nail against the concept of pensions being devolved to Scotland. Labour made sure pensions were not a Smith commission recommendation. The Scotland Act was designed specifically to make pensions a reserved matter and ensure that the Scottish Government could not introduce an age-based benefit. Why has Labour bought into the Tory sleight of hand which says that we can make changes in the Scottish Parliament while our budget is cut by £2 billion over a 10-year period? It was also a Labour Government that devolved pensions to Northern Ireland, while steadfastly refusing to do so for Scotland, which is another mystery that I cannot get my head around. Those parties all have culpability either for the current situation, or for masking responsibility for it.

Meanwhile, our constituents still suffer. I have been contacted by a constituent who has been fighting for 18 years to get her dead husband’s Metropolitan police pension. Recently, when she had primary care duties for her mother, she had to fight local authorities in England to get her mum into a care home. She has also been hit by the increase in contributions required, and is trying to pay more into the system—another five years’ contributions—so she gets a full pension when she reaches state pension age. She still has four years to go to reach her new state pension age, and without her widow’s pension she is in real financial hardship. She says that she does not want to access benefits because of a fear of the assessment process and of the threats and demands placed on jobseekers. That is the reality of the Government policy about which the UN special rapporteur says UK Government Ministers are in denial.

Finally, I pay tribute to a WASPI constituent of mine, Ann Hammil, who first raised the WASPI issue with me a number of years ago. She has fought her corner with the authorities and her case is now with the parliamentary ombudsman. The other week, she said to me:

“Alan, I will not give in to them.”

I completely support her attitude and that of other WASPI women and campaigners all over the UK. I hope I can help them achieve justice.

Oral Answers to Questions

Alan Brown Excerpts

Monday 19th November 2018 Commons Chamber

[Guy Opperman]

In Torbay, 7,000 people now have the benefit of an auto-enrolled pension. We want to ensure that my hon. Friend’s constituents have online access to as much of their retirement savings in one place as is humanly possible through the pensions dashboard, and that is what we are going to do.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

Many of my constituents contacted me to express concern that the Government were going to scrap the pensions dashboard. I welcome the Minister’s 100% commitment, but can he tell us exactly when it is going to be delivered?

[Guy Opperman]

The hon. Gentleman will understand that a feasibility study and consultation are pending, but I will be happy to discuss the dashboard with him in more detail if he will bear with me. There is no question but that the thousands of people in his constituency who have had the benefit of auto-enrolment, and the many thousands of employers supporting those employees, will be benefiting from the process.

Universal Credit

Alan Brown Excerpts

Wednesday 17th October 2018 Commons Chamber

[Neil Gray]

I completely agree with the hon. Lady. It is great to have her contribution, which should be listened to across this House.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

I could not get an answer to this yesterday. On the fact that the Government cannot prove that universal credit gets people into work, the number of claimants in my constituency is 930 higher than a year ago, which is an increase of 54%. The Library now confirms that we cannot make comparisons between one constituency and another where universal credit has been rolled out. It is a complete sham, and there is no way to measure this.

[Neil Gray]

My hon. Friend is absolutely right. On making work pay, the CPAG says that rewards from work are limited. A single person on the minimum wage would have to work full time for an extra two months in the year just to make up for the cuts—I would love to hear Work and Pensions Ministers explain how 14 months goes into 12—because the taper rate for work allowances makes those who are on universal credit the most highly taxed workers in the UK, at 63%. For every £1 earned, 63p is clawed back. That needs to be changed.

Universal Credit

Alan Brown Excerpts

Tuesday 16th October 2018 Commons Chamber

[Alok Sharma]

I repeat my previous answer: it depends on people’s individual circumstances. This new benefit system is ultimately about making sure that we help people into work. I have to say that, under the last Labour Government, many people were trapped on benefits, but that is changing.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

The National Audit Office says that there is no way of measuring outcomes of the universal credit roll-out, yet the Government and Government Members peddle the myth that universal credit somehow magics people into jobs. Will the Minister therefore explain why 930 more people are now registered as unemployed in my constituency compared with a year ago—a 54% increase?

[Alok Sharma]

I do not know whether the hon. Gentleman is referring to the claimant count, but people both in and out of work receive universal credit. I encourage him to look at the universal credit business case that we produced, which shows that, as a result of the universal credit roll-out, another 200,000 people will be in work.

Widowed Parent’s Allowance

Alan Brown Excerpts

Wednesday 5th September 2018 Commons Chamber

[Justin Tomlinson]

It is right to highlight that we should provide support, and that is why in the new benefit we have widened the support available to anyone of a working age and to younger spouses and civil partners without children. They will now get support, and it will not be lost when someone moves into a new relationship. We will continue to review the situation following the Court decision last week, and I will fully update the House.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

The Minister’s statement did not contain the word “sorry”. Following on the question asked by my hon. Friend the Member for North Ayrshire and Arran (Patricia Gibson), I will give the Minister an opportunity to say sorry to the individuals affected. Can he also tell us how many of the Government’s welfare and benefit policies have been found to be illegal since 2010?

[Justin Tomlinson]

As I have previously said, we are considering the Supreme Court ruling. As we have demonstrated, with the introduction of the new bereavement payments we have made it easier to claim, it is paid in addition to other household income, it is not taxed, it is not means-tested and is not included in the benefit cap. We have extended access to it and targeted those most in need. It is that principle of fairness that underlies not just these reforms but all our benefit reforms.

ESA Underpayments

Alan Brown Excerpts

Thursday 19th July 2018 Commons Chamber

[Sarah Newton]

The hon. Lady raises a very important point. I am more than happy to put it beyond any doubt for people who are receiving payments for these underpayments that those payments will be disregarded for the purposes of other benefits.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

Rather than waiting for this failing Department to contact my constituents about any underpayments, how can MPs make proactive inquiries on their behalf? Is the Minister aware that despite the MPs’ helpline for universal credit, some DWP offices are hiding behind general data protection regulation and saying that they cannot deal with verbal inquiries? Will she ensure that the MPs’ helpline does what it says on the tin?

[Sarah Newton]

The hon. Gentleman makes an important point, and as a constituency MP I understand the important role that we all have to play. I will ensure that he is able to raise constituency cases effectively and swiftly, and if he experiences any specific problems, he should please contact me so that I can rectify them.

The Secretary of State’s Handling of Universal Credit

Alan Brown Excerpts

Wednesday 11th July 2018 Commons Chamber

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

It has been interesting to hear Government Members talk about tweaking, making adjustments and listening and so forth, because universal credit is nothing new for some people. My constituency has been suffering from it for more than five years, from pilot through to full service roll-out. I was leader of Highland Council when the pilot was unveiled, and we noticed the problems, particularly with housing, right away. We wrote letters to the DWP and spoke to Ministers in meetings, telling them of the problems. We made suggestions and cajoled and pleaded with them to listen to us.

I was looking back and found that since 2015 I have spoken in 35 debates about universal credit, asked dozens of oral and written questions about it and signed 13 different early-day motions on it. I led the Scottish National party Opposition day debate on universal credit, in addition to securing two Adjournment debates on the impact it has had on my constituents—the pain and suffering it has caused and its impact on disabled people and the low-waged. Unfortunately, not everyone has sought help because some people have not known how to do it, but those who have come for help have seen extraordinary difficulties.

I invited all Government MPs to come to a summit in Inverness and hear at first hand from the agencies and the people involved about the pain that they were going through, but that was ignored. After this period, I have come to the conclusion that the Government do not want to listen. They are determined to make sure that austerity falls on the backs of the low-waged and the disabled—those people who are most vulnerable in our society.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

My hon. Friend is right that the Government clearly have not listened. Did the changes that the Secretary of State brags about not come about only because the Government were defeated in the High Court when they were infringing people’s human rights?

[Drew Hendry]

I thank my hon. Friend for making that point. As I have said, we have been through the pilot and the pain of live service to the absolutely crushing delivery of full service. Resources are stretched; the jobcentre is open seven days a week; the Highland Council welfare team is stretched to the limit; staff at our constituency office are working outside hours to try to cope with the excess of inquiries; and the citizens advice bureau is under extreme pressure. All have struggled with universal credit. The Highland Council housing team has tried desperately to deal with a broken landlord system, and Highland Council rent arrears are now in the millions of pounds.

We have seen evictions, people unable to feed and clothe their children, families made destitute and poverty driving people into mental health difficulties. What is the Government’s response: “You’re wrong. They’re wrong. It’s not happening. You’re scaremongering.” Well, that is the reality for people on universal credit; that is what is happening to them. People are suffering unimaginable hardship at the hands of this Government’s policies, and it has changed and damaged our community.

Earlier, the Secretary of State said that universal credit makes people more economically secure in life. Let me tell that to John who had 42p to last a fortnight, or to Gavin who was given £60 for a £175 rental bill. He had nothing else; he was in debt already. He cannot even eat, let alone turn on the power or do anything else. What about Ian and his two-year-old who had to rely on food banks and go for days without electricity? A woman from Grantown-on-Spey had to travel to Inverness to hand in childcare vouchers. It was an hour and a half each way on public transport—three hours on a bus—and the jobcentre then lost her claim. What do we say to those who are terminally ill who are asked to report to work coaches?

This affects people. More and more people are falling into poverty. Food banks are becoming a necessity rather than a helping hand. I have seen self-employed people lose their payment because their annual income has been counted as monthly income. The problems go on and on. The Secretary of State, from what she has said over the past week, has been at her worst. She should go, as should this failed, miserable system.

Personal Independence Payments

Alan Brown Excerpts

Monday 4th June 2018 Commons Chamber

[Ms McVey]

The hon. Gentleman makes a good point. We must have faith in the conversations and assessments, which is why I have looked forward to having them videoed to ensure that we see, hear and know what is going on. If the process is videoed, people will get an honest appraisal of what went on and, equally, we might see a more suitable conversation between the assessor and the individual.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

On Friday a constituent came to my surgery. It was quite obvious, and he explained to me, that he struggles to function due to a combination of excruciating pain in his shoulders and the severe and heavy pain medication he is on, yet he got zero points for mobility and lost his appeal. Hopefully there is a chink of light at the end of the tunnel for him, but what comfort does the Secretary of State think he will get from her standing and bragging that the Government have not appealed, that more money is being spent and that more people missed out on DLA, because that is not helping my constituent?

[Ms McVey]

I am sorry if the hon. Gentleman thinks that anybody was bragging. It is known as just putting the facts on the record after people have sometimes sought to provide misinformation or incorrect facts, merely by stating that more people are getting the higher benefits and more people are getting PIP than were getting DLA. That really needs to be heard so that we dispel any myths from the Opposition.

State Pension Age

Alan Brown Excerpts

Thursday 8th February 2018 Commons Chamber

[Guy Opperman]

The hon. Gentleman walked through the Lobby with me in 2011 to pass the Pensions Act when the Liberal Democrats was a party of financial discipline, and I believe that we took the right decision at that time. I assure the hon. Gentleman that the so-called cost-neutral option is far from it—it is neither workable nor cost-neutral. The Government are sticking to the position that has been in place since 1995. The Labour Government took the same position for 13 years as did the coalition Government in 2011.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

Yet again, the Minister has tried to break things down to a binary choice between paying out lower pensions or increasing the state pension age. However, pensions are only one aspect of Government spending and tax-raising powers. His Government have chosen to reduce corporation tax, which will cost the taxpayer £50 billion by 2025, and other tax cuts will cost £15 billion. As my hon. Friend the Member for Glasgow North (Patrick Grady) said, the parliamentary arithmetic is in favour of some changes, so will the Minister take control and actually make some sensible choices?

[Guy Opperman]

The hon. Gentleman and I are going to disagree massively on economic theory and taxation. It is right to cut taxes for business, because businesses make the payments that pay for the public sector that we all support so much. The key choice is whether the Government increase the state pension age or pay lower pensions, but the hon. Gentleman seems unable to accept that, and I do not agree with his approach to taxation.