Welfare Reform and Work Bill

Baroness Massey of Darwen Excerpts

Monday 7th December 2015 Lords Chamber

Problem debt can have a severe effect on family relationships. Of parents currently in arrears on one or more bills, nearly six in 10 said that their financial situation had led to their current or most recent relationship being put under strain, with 7% saying that it led to their most recent relationship breaking up. Problem debt is also closely aligned to the educational attainment of children. Nearly 90% of parents said that schools should do more to teach children about debt and money management. It is coming up to Christmas. The kind of people that we have been talking about, who have often had impoverished, chaotic early family lives themselves, are often not very comfortable with relationships or feel insecure. One way of demonstrating love for one’s child is to get them an expensive present. Getting a 15 year-old a £150 pair of trainers is a way to show one’s love. The risk is that many poorer families will be borrowing a lot of money this Christmas from loan sharks or on payday loans. They will run up debt because they feel they have to buy these things for their children. This matter needs to be addressed. I know that the Government are concerned about it and I look forward to the Minister’s response.

[Baroness Massey of Darwen (Lab)]

My Lords, I crave three minutes to support the spirit of the amendments in this group, which recognise that progress and life chances for children depend on their physical, social, emotional and cognitive development and on other influences too. I support the view of the noble Lord, Lord Ramsbotham, that a government strategy for children should be drawn up, tracking development from birth to adulthood. As he said, we have the means to do that through government departments such as education, health and welfare working together, with help from the voluntary sector and local authorities. I remember that many years ago the noble Baroness, Lady Williams of Crosby—possibly when she was Secretary of State for Education—spoke about having level playing fields for children. She said that some children begin the race with both feet tied together. Sadly, this is still the case. Feet are tied together through poverty, deprivation, low expectation and lack of care and stimulation in the early years. We know that the gap in attainment between poor children and more affluent ones is large by the age of five and continues to grow. We have recently had strong evidence from research that a holistic approach is necessary and I support the noble Lord, Lord Ramsbotham, in his concerns.

[Baroness Meacher (CB)]

My Lords, I will speak very briefly to Amendment 34, tabled so comprehensively by my noble friend Lord Ramsbotham. This amendment is of particular importance in view of the enormity of the cuts to welfare spending since the passing of the Child Poverty Act 2010. The Institute for Fiscal Studies reports that this will amount to £123 billion taken from our poorest citizens by 2016-17. The second feature of government policy the effects of which need to be monitored effectively—and would be under Amendment 34—is the conditionality and sanctions regime which undoubtedly increases the stress level of claimants very considerably.

As a panel member, along with Sir Keir Starmer and others, for an inquiry by the Fawcett Society into the impact of the Government’s welfare measures upon women, and by association their children, I found quite appalling the sheer level of errors and abuse in some Jobcentre Plus offices, affecting innocent women who only wanted, if at all possible, to gain their independence from the state. Our inquiry concluded that sanctions applied through no fault of the claimant were affecting claimants’ mental and physical health and the health and well-being of their children to a considerable degree. The Government have a duty to be aware of the consequences of their policies and to respond to the adverse effects.

I am aware that the Minister believes that injustices are limited in number, and that his department is doing its best to lessen them further. However, the inquiry made it clear to us that in fact the quality of service across the country varies very considerably. In some offices the staff were helpful and professional, and claimants certainly reported that. However, in others they were inadequately trained and could be callous and careless, with the most appalling consequences for the families affected. A typical example were mothers who, contrary to the guidelines, were required to travel three hours a day in total to and from work. They could not afford this and believed—rightly, in my opinion—that it was entirely wrong for their very young children to be in childcare for 10, 11 or more hours per day. Despite this entirely unreasonable requirement, such parents were sanctioned and then could not even feed their children. This was not an isolated problem but rather a regular occurrence in offices up and down the country.

Another often repeated story was that of a mother phoning the office to say that she could not attend an interview or required activity due to the sickness of a child, and was told that this information would, indeed, be passed on to the appropriate official. Of course, nothing was done. The mother would arrive at the post office to pick up her benefit only to find that there was nothing there. A sanction had been imposed with no information given to her. I cannot imagine the shock and utter distress of a mother in that situation. I believe that the Government may have adjusted the sanctions regime to ameliorate that problem and to make sure there is a gap between the imposition of a sanction and it taking place. I would be grateful if the Minister could clarify the position this evening.

The Joseph Rowntree Foundation produced a comprehensive review of international evidence on sanctions within systems in which benefits are conditional on claimant behaviour. It confirmed that sanctions strongly reduce benefit use and increase exit from benefits. However, Rowntree also finds that sanctions are generally less favourable in terms of longer-term outcomes, the well-being of children and crime rates, for example.

Every sanction which is unfairly imposed will cause extreme stress to parents, who suddenly find that they have no food for the children and no money even for the bus fare to reach a food bank, and have more debt and so forth. It should be a matter of great concern to the Government that 28% of sanctions are overturned on appeal and a higher percentage—39%—in the case of lone parents. Successful appeals soar for high-level sanctions. Fully 64% of single parents have high-level sanctions overturned on appeal. These must be just numbers to many of us but the Government have a responsibility in my view to report on the mental and physical health effects of the extraordinary hardship behind those numbers. I look forward to the Minister’s response.