Oral Answers to Questions

Ann McKechin Excerpts

Monday 26th January 2015 Commons Chamber

[Esther McVey]

I will indeed praise that college, and I will praise my hon. Friend as well for all the work that he does in engaging with colleges and bringing businesses to them to support the young people so that they can get jobs.

[Ann McKechin (Glasgow North) (Lab)]

T7. Dr David Webster of Glasgow university has estimated that about £300 million is withheld in benefit sanctions each year. Is that figure correct?

[Esther McVey]

I apologise: I missed the question. What I do know, however, is that no one has any limits, or targets, or whatever it may be, for benefits or for sanctions. There are no targets for sanctions, and there will be no numbers.

Oral Answers to Questions

Ann McKechin Excerpts

Monday 8th December 2014 Commons Chamber

[Esther McVey]

I congratulate my hon. Friend on working closely with those magnificent businesses. She is right: government itself cannot give young people jobs. It can help with schemes and it can work with businesses, such as the ones she talks about. The Government are working with Movement To Work, 14 big organisations, and Feeding Britain’s Future—business working with government to support young people. That is what we are doing.

[Ann McKechin (Glasgow North) (Lab)]

The unemployment figures for young people actually increased last month, with many still in long-term unemployment. They are not apathetic: they are frustrated and angry. Is it not time we gave them a decent youth guarantee of paid work, so they can enter the work force and not be left behind?

[Esther McVey]

Youth unemployment is falling right across the country. There might well be a tiny difference in a single constituency, but from 2010 it has come down across every region and area. What we are doing is right. We are giving the right support to the right people, because we have had the biggest fall in youth unemployment since records began.

Oral Answers to Questions

Ann McKechin Excerpts

Monday 3rd November 2014 Commons Chamber

[Mr Duncan Smith]

First, let us start from where we are: more women are now in work than ever before, which is a huge start. I also accept—[Interruption.] The rate is even better: it is a record rate. Of course, it is absolutely vital and right to ensure that women who go to work get paid a decent salary. My right hon. Friend the Minister for Employment has been leading the charge for the Department, doing a lot of campaigning. Universal credit, as it rolls out nationally, delivers for working women a far better deal, with higher wages, than they would get under the present system.

[Ann McKechin (Glasgow North) (Lab)]

Given that 20% of workers are struggling on the minimum wage alone, when was the last time the Secretary of State spoke to employers about adopting a living wage for their workers?

[Mr Duncan Smith]

I have talked to employers endlessly about making sure that they pay a decent wage—first, making sure that people pay the minimum wage, which the last Government were rather slack about but we have done a lot on. My own Department pays our employees in London the London living wage, and we negotiated with the contractor to make sure everybody gets it, including all the cleaners.

Oral Answers to Questions

Ann McKechin Excerpts

Monday 23rd June 2014 Commons Chamber

[Mike Penning]

Clearly Her Majesty’s Opposition have a short memory as to what happened when they were in government. This problem started under Labour, Atos was in place under Labour—[Interruption.] Opposition Front Benchers are saying “No, not us”; then they should release the documentation that proves what the backlog was before the last election.

[Ann McKechin (Glasgow North) (Lab)]

2. What steps he is taking to improve the claims and decision-making process for personal independence payments.

[Fiona O'Donnell (East Lothian) (Lab)]

12. What steps he is taking to improve the claims and decision- making process for personal independence payments.

[The Minister of State, Department for Work and Pensions (Mike Penning)]

Yet again I am committed to improving our performance and that of our contract providers. I want to make sure the right decisions are made as soon as possible. With that in mind, I have looked, particularly working with Macmillan, at how we can reduce waiting times for terminally ill people waiting for PIP. That stood at 28 days when I first met the Work and Pensions Committee, and I said that was unacceptable. It is inside 10 days now, and I want it to become lower.

[Ann McKechin]

As the Minister of State is aware, by his own Department’s statistics it will take 42 years to clear the current backlog. In the meantime people are running out money, and they are becoming more stressed and more ill as a result of his Department’s failure to get a grip on a payment which his Government introduced. When will the backlogs be reduced to a decent level, as people have a right to entitlements in this country?

[Mike Penning]

It is really important that we get the decisions right and that the right people get those payments. I said before the Select Committee that I promise to do that within my own Department’s administration, and we are addressing that. There was a real performance issue as to how many people were coming through the schemes. I am addressing that now with the providers, and it will improve, and not in the length of time the hon. Lady mentions, which is scaremongering.

Oral Answers to Questions

Ann McKechin Excerpts

Thursday 30th January 2014 Commons Chamber

[Maria Miller]

My hon. Friend makes a really important point. That is why we have put in place a £10 million fund to look at how we can get to hard-to-reach places with new technology and new ways of doing things. He is right that superfast broadband is one of the most important infrastructure projects that this Government are putting in place. We are doing the hard work that the Labour party did not do when they were in government. The results speak for themselves: coverage in the UK is higher than in Germany, France, Italy and Spain and, what is more, our broadband lines are cheaper as well.

[Ann McKechin (Glasgow North) (Lab)]

2. What discussions she has had with the Scottish Government on the clustering of betting shops and fixed odds betting terminals.

[The Parliamentary Under-Secretary of State for Culture, Media and Sport (Mrs Helen Grant)]

The Administrations for Scotland and Wales were consulted during the Government’s review of gaming machine stake and prize limits, which was published in October 2013, and my predecessor wrote to the Scottish Parliament on these issues in 2013.

[Ann McKechin]

The number of bookmakers in the city of Glasgow has increased by 20% in the past seven years, and millions of pounds have been lost from our poorest communities—a situation that has been replicated right across the United Kingdom. The city council has asked the Scottish Government for powers to limit the number of bookmakers in such communities, and I ask the Minister, when she next has contact with the Scottish Government, to work with them, so that there is co-ordinated action across the United Kingdom to empower local authorities with the ability to control the number of bookmakers in local areas to suit their circumstances.

[Mrs Grant]

I hear what the hon. Lady says, but we believe that local authorities are already so empowered. Local authorities in England, Scotland and Wales have powers to ensure public protection by using licensing conditions afforded by the Gambling Act 2005 brought in by the Government of the right hon. and learned Member for Camberwell and Peckham (Ms Harman). However, planning is a devolved matter, and it is therefore for the Scottish Government to decide.

Oral Answers to Questions

Ann McKechin Excerpts

Monday 13th January 2014 Commons Chamber

[Esther McVey]

I totally agree with my hon. Friend who set up one of the biggest and best job clubs in her area, supporting people into work. Work experience is key and it does not matter whether people are on their way to university or just wanting to get into a job because this helps in understanding what jobs they want to do and what jobs they do not want to do. Around 113,000 people have gone through work experience and over 50% of them have ended up in a job. My hon. Friend is right to sing the praises of work experience.

[Ann McKechin (Glasgow North) (Lab)]

8. What steps he is taking to increase the ability of employment and support allowance claimants in the work-related activity group to gain paid employment.

[The Minister of State, Department for Work and Pensions (Esther McVey)]

ESA claimants in the work-related activity group have access to a wide range of employment support, including the Work programme where claimants receive tailored support for two years, and a flexible menu of support through their Jobcentre Plus. Specialist support is also available through Work Choice.

[Ann McKechin]

The Minister will be aware that the Lichfield review analysing the system said that it was beset by delays beyond the stipulated regulatory period and that Work programme providers consistently reported that they had very little information about the people referred to the scheme. Can the Minister explain to the House what specific steps she has taken to address those concerns?

[Esther McVey]

First, let us talk about the Work programme, which is the first time we have ever had a coherent way to address and support these people back into work. We know through industry statistics that over 440,000 people have got a job from that programme and that over 100,000 have found a long-term job. We are supporting people as best we can—the first time we have ever done this. We are taking specific steps, too: we are analysing everything, watching what works, conducting a best-practice group and implementing the findings. So this is new, it has started and we are getting it better.

Food Banks

Ann McKechin Excerpts

Wednesday 18th December 2013 Commons Chamber

[Rachel Reeves]

The number of people going to food banks is increasing. The demand is there because they are not getting the support they need from the welfare state. The Red Cross, FoodCycle and the Trussell Trust are all saying the same. It would be useful if the Government published the report that they commissioned on the growing use of food banks.

What is the Government’s response to this crisis? The Secretary of State for Work and Pensions—it is nice to see him here—said on the radio this morning:

“There has been a growth in food banks, as they grow people attend them.”

In the world of the Secretary of State, the rise in food bank use to half a million people reflects an increase in supply, even though people need to be referred to a food bank—they cannot just turn up. The logic of this Government is like blaming the number of house fires on the number of fire engines. I say shame on the Secretary of State and shame on this Government. We have to ask how many children will have to go hungry this Christmas before the Government take action—before the Secretaries of State for Environment, Food and Rural Affairs and for Work and Pensions acknowledge that there is a problem and then finally do something about it.

The charities, churches, community groups and volunteers who run the food banks show us Britain at its best—a country of generosity and solidarity, of one nation where people pull together to do what they can for the least fortunate among us. We should, and we do, applaud them, as many hon. Members have said, particularly my hon. Friends the Members for Copeland (Mr Reed) and for Newport East (Jessica Morden), and, most recently, my hon. Friend the Member for Birmingham, Hall Green (Mr Godsiff), who spoke about the kindness of strangers. When the Prime Minister promised us the big society, is this really what he had in mind—homelessness rising, a boom in payday lending, more and more lives scarred by long-term unemployment, and half a million people relying on food banks to feed themselves and their families?

It is downright Dickensian, a tale of two nations: tax cuts for the rich and food banks for the poor. As my right hon. Friend the Member for Manchester, Gorton (Sir Gerald Kaufman) said, as we in this Chamber look forward to Christmas, we must spare a thought for those who are not going to have any sort of Christmas at all.

[Ann McKechin (Glasgow North) (Lab)]

Does my hon. Friend agree that it is a basic human right that people should have sufficient food that they do not need to go hungry, and that in this country they should not have to rely on charity?

[Rachel Reeves]

My hon. Friend makes an incredibly important point. While we all applaud and thank the food banks, the volunteers and the people who donate food, that is not how our basic needs should be met. The basic need for food should be met through wages and a social safety net when it is needed. The basic need for housing should be met by our wages or by a social safety net when it is needed. The basic need to be able to heat one’s home and turn on the lights should be met by having a decent wage or a social safety net when it is needed.

Oral Answers to Questions

Ann McKechin Excerpts

Monday 20th May 2013 Commons Chamber

The Secretary of State was asked—

[Ann McKechin (Glasgow North) (Lab)]

1. What steps he plans to take to implement the recommendations made by Professor Harrington in his final report on the work capability assessment in November 2012.

[The Minister of State, Department for Work and Pensions (Mr Mark Hoban)]

As with each of Professor Harrington’s reports, we have adopted all recommendations to improve the process we inherited from the previous Government. We are in the process of implementing those recommendations.

[Ann McKechin]

The Minister will be aware that the rate of successful appeals has actually increased, which would appear to suggest that the reforms to the system are not yet working. Does he intend to investigate the claims made by Greg Wood, a former medical assessor for Atos, who said that the system was skewed against the claimant and made several serious allegations about how people’s claims were assessed?

[Mr Hoban]

As I said, we are in the process of implementing Professor Harrington’s recommendations. I would make the point to the hon. Lady, however, that when her party was in government, one in 10 people received the full employment support allowance, but as a consequence of our reforms three in 10 people now receive it, which demonstrates that the system is an improvement on the one that we inherited.

Oral Answers to Questions

Ann McKechin Excerpts

Monday 11th March 2013 Commons Chamber

[Mr Hoban]

My hon. Friend is right to celebrate the achievements of Jaguar Land Rover. In national apprenticeship week, I commend him for his work to promote apprenticeships in his constituency. He is right, and he points the way towards how a private sector-led recovery can increase employment. That is why we have seen 107,000 additional jobs in the west midlands.

[Ann McKechin (Glasgow North) (Lab)]

T5. Local housing associations in my area are deeply concerned about their ability to provide services as a result of this year’s welfare changes. What assessment will the Secretary of State make of their credit ratings, both this year and next? Does he expect them to go down the way?

[Mr Duncan Smith]

The best thing for me to do is to ensure that I write to the hon. Lady properly and place the reply in the Library of the House.

Housing Benefit (Under-occupancy Penalty)

Ann McKechin Excerpts

Wednesday 27th February 2013 Commons Chamber

[Dr Whiteford]

I want to make a little more progress, because time is wearing on.

The disabled people in adapted homes who are forced to move into the private sector will undoubtedly find it hard to find accessible properties. Landlords in the private sector may also be less than happy about adaptations being made to their property, whether they be handrails, ramps, stair-lifts or bathroom alterations. What an unnecessary waste of public money at a time when local authorities are struggling to meet demand.

[Ann McKechin (Glasgow North) (Lab)]

The hon. Lady is making an excellent speech. She made a very good point about the cost of private rentals compared with social rentals. Is it not time that we started to regulate private rentals in Scotland so that we are not subsidising landlords, which is the route to increases in housing benefit?

[Dr Whiteford]

It is clear that rents in Scotland are not out of control as they are in London. Many of the problems with housing benefit have been fuelled by the vast over-inflation of the rental market in London and the south-east.

It is important that we remember that some of the disabled people who are subject to the bedroom tax are the same people who will lose their disability living allowance when it becomes the personal independence payment or whose support will be reduced significantly, and that some may lose their employment and support allowance, particularly if it is time-limited. Nevertheless, all those people will still have to deal with the same impairment or long-term health condition that they had before, and will still face the same physical, economic, attitudinal and communication barriers when they attempt to access the labour market and get on with their daily lives.

The Government have paid no heed to the cumulative impact of their measures on disabled people—a cumulative impact that will have disastrous consequences for thousands of people.

--- Later in debate ---

[Ann McKechin (Glasgow North) (Lab)]

I welcome today’s debate on a serious and deeply worrying issue. I, like many others, spent last week in my constituency, where almost every conversation I had—with constituents, DWP local managers, banks, post offices, housing associations, credit unions and my local citizens advice bureau—was centred on the so-called bedroom tax. Today, I listened carefully to the Minister of State, who took great pleasure in referring to the “spare room subsidy” and the question of equity. It reminded me of the debates on the poll tax in the early 1990s, when it was considered “equitable” that the poor should take a heavier burden. That message resonates today right across the House.

What struck me about those conversations last week was how unprepared we are for perhaps the most dramatic setback in decades for our housing sector and local communities, first, among the tenants. Up to the end of last year, housing providers earnestly hoped they could persuade the Government to change their mind; then they started to write to their tenants, who in turn put the letter in a safe place and hoped the issue would go away too. Only since the start of this year have tenants’ eyes been opened to the true horror, as housing associations have now started physically to knock on their door and find out how they intend to cope.

Let me give the examples of two constituents I met last week. One of the women looks after her father full time—she gave up her work 15 years ago to act as a carer—and he lives nearby in a one-bedroom flat, so she cannot move in with him. Because there are no spare houses, she faces having to move to the opposite side of Glasgow and then trying to commute every day to look after her father. The other woman is 58 years old and single; she has lived where she is now for 17 years. She is a good tenant, who keeps the area stable and looks after her neighbours, but she faces being moved many miles away to an area she does not know and where she does not know the local people—even though she does not have the money to move house in the first place. One question the Government have not asked is how we will manage moving all those people, many of whom have no spare cash.

Most welfare advisers and DWP staff I spoke to last week believe that now, we are seeing only the trickle, and that the flood of inquiries will start when the bills begin to arrive through people’s letterboxes. We know the grim facts about the lack of suitable stock—the hon. Member for Banff and Buchan (Dr Whiteford) described in some detail the extent of the problems right across the country, both in urban and rural areas—but analysis of the impact on individuals and the stability of their families, the detrimental impact on local communities as good long-term residents leave, the destabilising impact on schools and children’s education as many desperately look for properties to move to, and the likely non-payment reaction that will follow, is simply shallow and unco-ordinated.

The impact on our housing associations should not be underestimated. Earlier this month, as the hon. Lady mentioned, I raised with the Under-Secretary of State for Scotland, who is not here to hear the debate—nor is the Secretary of State for Scotland—the impact on housing associations’ credit rating. That is not just a technical point: many experts are talking quietly about the need for wholesale consolidation of local social landlords, so that they can avoid bankruptcy as they try to cope with the ruinous increases in their cost of borrowing at the same time as they face a huge hike in both arrears and administration costs, with many having only very small reserves to buffer the losses. That impact will be worsened by the introduction of universal credit later this year. Even the Chief Secretary to the Treasury is now beginning to voice concerns about the impact of direct rental payments to tenants.

[Geraint Davies]

Does my hon. Friend accept that some of the opportunities available to local authorities consist of, first, taking the hit on arrears; secondly, cutting repairs and maintenance to make ends meet; and thirdly, knocking down walls to convert two bedrooms into one? That is being actively done. As a former housing chair, I can see that is a practical solution.

[Ann McKechin]

My hon. Friend describes the problem. I represent a seat in Glasgow where all the social rented properties are in the hands of housing associations. Many of them are very small and unfortunately do not have the capacity or resources that even a local council has, and some of the smaller local authorities will be very hard pressed to cope.

In reply to my question, the Under-Secretary of State for Scotland assured me that he had met local authorities and housing associations in Scotland and discussed their concerns about credit ratings, and that they were “satisfied”. Funnily enough, the following week the Convention of Scottish Local Authorities, which represents all the local authorities in Scotland, and the Scottish Federation of Housing Associations wrote to the Minister to set out a slightly different view. The SFHA wrote:

“With respect, this does not address the issue of the credit rating of associations. Indeed I am not aware of any government impact assessment of credit rating of associations but if it does, I would welcome access to it.”

Does the Minister have an impact assessment he can share with us? The SFHA continued:

“We remain very concerned about under-occupation issues, not least given the escalation in rhetoric about non-payment of the ‘bedroom tax’, so called purposely to resonate with the Poll Tax, a debacle which left councils with a trail of debts only now being resolved even in your own constituency.”

If that seems harsh, the letter from the president of COSLA reflected utter astonishment at the Minister’s response to my question. He wrote:

“While I do meet the Secretary of State for Scotland from time to time, I can’t recall the last time we had an opportunity to discuss my concerns over welfare reform with any DWP Government Ministers….

There was a hastily arranged meeting on 22nd November…which we understand the Scottish DWP office invited a selected number of council leaders to attend. Few were able to do so, and COSLA was not represented although an officer was present to observe and take notes….

Those notes, and feedback…confirm that David Freud informed the meeting of the steps DWP are taking in response to a variety of concerns that were raised. These were felt to be inadequate, considerable dissatisfaction remained, and David Freud gave an undertaking to return to Scotland to discuss the matters further”,

but, funnily enough,

“This meeting has still not been confirmed.”

Perhaps the Minister who winds up the debate can confirm when his noble colleague Lord Freud intends to meet local authorities in Scotland to discuss with them what they can do to meet the impact of this change, which is to happen in just a matter of weeks.

The hon. Member for Banff and Buchan suggested some changes that could happen in Scotland. Unfortunately, I think her colleagues in the Scottish Government have pressed the standard pause button, saying, “We need to wait until the sun starts to shine and we have independence”, but of course that depends on a referendum and we are still waiting for the date of that. The plain fact, to which the hon. Lady alluded, is that we do not have time on our side and people cannot wait. We need to start a serious debate now on how we can resolve these issues.

The coalition talks about the ever rising cost of housing benefit over the last 10 years. Yes, it is a problem that we are subsidising landlords when rentals are increasing at well above rates of inflation, yet the Government have made not one suggestion or proposal to address that or the systematic failures in the housing market as a whole. I believe there has been a permanent change—a major distortion—in the housing market since the banking crisis in 2007. We will not simply see a bounce-back to the position in 2005-06 at some undetermined point in the calendar, so I have some suggestions on how to deal with housing as a whole, not just the issue of people on housing benefit.

Other Members have commented correctly on the need to build more housing, both in the social rented and private sectors. How much land in Scotland, or the UK, is held by building companies as part of their land banks? It is estimated that perhaps 250,000 houses with planning permission are still to be built. Has there been an audit of where those properties are? Can we levy unused plots of land to provide a stimulus to build, because in many cases builders are just waiting to get more money for the land on which they sit? Can we control private rentals? The hon. Member for Banff and Buchan rightly commented that rental levels in the private sector in Scotland, as in many other parts of the United Kingdom, are in excess of those in the social rented sector. According to Shelter Scotland, the taxpayer would on average pay more than £100 extra in local housing allowance each month if someone in Edinburgh moved from the social rented sector to the private sector, and the same would apply in Glasgow and Inverness; in Aberdeen—one part of the United Kingdom enjoying something of an economic boom—an extra £200 would be paid per month. The hon. Lady was incorrect, however, to state that increases in rentals were a phenomenon only in Greater London. There is a shortage of housing, and people cannot afford to buy a house or provide a deposit, so they are moving into the private rented sector, pushing rentals ever upwards.

In a speech last month, the Leader of the Opposition referred to reform of the law on residential leases, which should also be considered in Scotland, where the law is distinct but not that much different. The law was last altered in the early 1980s, to create short-term assured tenancies, which have become the absolute norm—the default—for all private residential domestic tenancies. Although there is clearly a market for short-term assured tenancies, they are not suitable for an increasing number of people who are looking for security and stability and to put down roots in a local community.

[Mr Jim Cunningham (Coventry South) (Lab)]

Does my hon. Friend recall that many years ago there were rent officers, who regulated rents in the private sector? Is that a possibility that could be pursued?

[Ann McKechin]

My hon. Friend refers to regulated rents. I am afraid that I am not an expert on the law of leases in England, but in Scotland long-term secured rentals are still subject to regulated rents. Very few of those remain in the United Kingdom—the average age of the residents in such cases is probably 85 plus—because frankly they were not attractive to the market at the time when the law was changed. In urban communities—the situation is worst in London, but it is an issue in areas such as Glasgow as well—transience is increasing, as people move house at ever more regular intervals, not through choice or for job reasons but because their landlord thinks he can find another tenant who is prepared to pay a higher rental. The only way to stabilise the market and get rentals back down is to improve regulation, and that is why the law needs to change. The Scottish Government should start an urgent debate about that. There is no reason why Scotland cannot lead the way in the reform of leases.

[Jonathan Edwards]

Will the hon. Lady confirm that should the Labour party find itself in government following the next Westminster election, it will introduce rent caps for England?

[Ann McKechin]

The hon. Gentleman raises a good point. The Leader of the Opposition has stated on the record that we want to reform the law of leases in England to create longer-term leases of five years plus. That would be a good measure to stabilise the market.

Registered social landlords should also be provided with much better assistance. Scotland has many small housing associations. The Scottish Government, working with local authorities and housing associations, should be much more proactive in seeing how they will cope with the additional costs they will undoubtedly incur. The housing association is often not just a landlord but acts as the hub of the local community, providing community resources and arranging contact with local police or local schools. It is very much in the control of local tenants and represents the local community. Should a consolidation of housing associations be necessary, it is vital that that be planned rather than chaotic, and that they be fully supported throughout the process.

In Scotland there is also a need to examine how local authority powers under social work legislation can be used. As Members have commented, the costs of eviction and of housing people under the homelessness legislation are high, and in many cases it is much easier, and cheaper for the public purse, for a person to remain in their house.

We also need to consider increasing council tax bands, to find out whether we can levy the additional £50 million per annum—that is a rough estimate—that the change will cost social landlords and councils. That would provide a buffer zone. I believe that those with the broadest shoulders, not the poorest, should take most of the burden.

Doing nothing is not an option. Dropping the bedroom tax and working with tenants, housing associations, local authorities and the devolved Administrations to reduce housing benefit costs in a sensible and co-ordinated way that does not kill our communities should be the only option on the table. I urge the Government to reconsider.