(7 years ago)
Commons ChamberWhen fully rolled out, universal credit will be £2 billion per year more generous than the support it replaces. As a single system that integrates six legacy benefits, universal credit will enable 700,000 households to access approximately £2.4 billion of welfare that previously went unclaimed. Our welfare reforms are about targeting support at those who need it most.
At the Budget, additional funds, which are to come into effect in the new financial year, were allocated to pay for work allowances,. Will my right hon. Friend update the House on when those work allowances will come in, how much they will be, and how much extra the working people in my constituency who receive universal credit can expect to receive each week?
My hon. Friend is right that an extra £1.7 billion a year will be put into work allowances to increase them by £1,000 from April 2019. That will provide a boost to the incomes of the lowest paid that will result in 2.4 million families keeping an extra £630 per year of what they earn.
(7 years, 5 months ago)
Commons ChamberUrgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
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I thank the hon. Lady for that question. I know that she does fantastic work on the Work and Pensions Committee, and no doubt we will discuss this further at the Committee.
Let us be really clear about what happened. The advice that the Department got was that section 27 of the Social Security Act 1998 applied. That was why we felt we had to make the decision to back-pay to 2014. When additional information came forward from the National Audit Office and the Child Poverty Action Group about official error, the Secretary of State took the decision that, of course, we must do what the law says and go right back to the point of conversion. It was not in any way that the Government were trying not to do the right thing. We have proactively been utterly transparent and open with the House about this error, and we want to fix it as soon as possible.
The hon. Lady asked about the two phases. The first group of people that we are looking at date back to pre-2014 and the second group are from 2014. We have started to make payments to both groups of people, and so far we have paid out £420 million to the pre-2014 group.[Official Report, 22 October 2018, Vol. 648, c.2MC.]
We are talking about some of the most vulnerable people in society, who will be assisted by either carers or charities. Can my hon. Friend update the House on what assistance is being given to charities and carers? Is there a helpline or somewhere that people who may not be contacted by the Department can seek help and assistance?
My hon. Friend is a doughty champion for the most disadvantaged people in society, so I would expect no less a question from him. To reassure him, I visited the main centre in Oldham where we are contacting people who we feel may have been affected and then beginning to collect information, so that we can ensure that we pay them what they are owed. We are being very careful to ensure that we send letters, and in the letter there is information about a helpline that people can call.
We are very happy to speak to people’s carers. As my hon. Friend says, some people with severe disabilities may not be able to engage with us, and people with mental health conditions may be anxious and not want to engage with us. I was incredibly impressed by the care, compassion and professionalism of my colleagues in the Department for Work and Pensions in Oldham who are undertaking this very important exercise.
(7 years, 5 months ago)
Commons ChamberUrgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
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I apologise if I have not been to Scotland yet—I hope I will put that right in near time—but I have been going up and down the country to jobcentres, talking to people, and I have to say to the hon. Gentleman that universal credit is working.
Universal credit replaces six complex benefits, some of which are mutually exclusive. My hon. Friend the Minister has confirmed that 700,000 people do not claim the benefits that they are entitled to. When universal credit applies to those people, how much on average will they gain?
My hon. Friend is right: people have been underpaid benefits. On average, households will gain £285 a month. Under the previous system, 1.4 million people spent a decade trapped on benefits instead of being helped into work. That is changing under universal credit.
(8 years, 1 month ago)
Commons ChamberUrgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
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The Department has worked closely with Motability to ensure that disabled people get good value for money for the cars that they choose to spend their money on. The Charity Commission, which recently undertook a detailed review of the charity’s financial accounts and its relationship with the non-charitable company Motability Operations, said:
“That review did not identify regulatory concerns about the charity’s governance or its relationship with the commercial company. It is not for the Commission to comment on the pay of the CEO of a large non charitable commercial company. However, we have made clear to the trustees of the charity Motability that the pay of the CEO of its commercial partner Motability Operations may be considered excessive and may raise reputational issues for the charity.”
It also found
“the level of operating capital held by the company in order to guarantee the scheme to be conservative”,
but said that it should be “kept under continuous review.” I would say that that review needs to start again. The Charity Commission should again look into what has happened.
It is the Government who permit disabled people to have a benefit, but where that money is spent is always the choice of the people who receive it. When the scheme was originally set up in the 1970s, with cross-party support, that was deemed the best way forward, but as I said, the NAO must now look into the matter. When I personally looked into it in 2013, I ensured that Motability paid £175 million more to disabled people, and I will continue with that direct action from my new elevated position.
Only a third of those who can get grants from this operation currently do, so will my right hon. Friend ensure that the eligibility criteria are reviewed? Will she also look into the marketing to those who are eligible, so that people who are disabled and who can get this service actually get it and use the money?
That is exactly what we want to ensure. My hon. Friend is right that the people who could benefit from this scheme should be benefiting from it, but obviously it is their choice whether they want to do so. If we could widen the scheme by allowing the money held in reserves to go to those disabled people, surely that would be right.
(8 years, 4 months ago)
Commons ChamberIf that is an attempt by the Liberal Democrats to find an economy saving, I am not sure the right hon. Gentleman has managed it. I understand the case he is making. Obviously, we have to balance what is affordable within the public finances. I make the point that we may find some savings in terms of fraud and error in the UC system, but this is not an overall reduction on what we were previously spending on the legacy benefits.
I warmly welcome my right hon. Friend’s statement. Will he update the House on exactly how many people in receipt of UC have gone on into work as a direct result of going on to this new system? Obviously, that is the intention and we should be singing it from the rooftops.
Three studies have compared this system with the legacy benefits and all three showed that a higher proportion of people have gone into work and progressed there than did so under the legacy benefits. There is greater flexibility in the system, so that people are not stuck on doing 16 hours, as is undoubtedly the case at the moment. The analysis we have done, which has been peer reviewed, suggests that there will be about 250,000 more jobs in the economy than would have been the case had we not made that reform. That works out at about 400 people per constituency, and I am proud of that.
(9 years ago)
Commons ChamberUrgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
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I have received a great deal of information from and had roundtables with a number of providers and charities, including some of the smaller ones. We have been very clear: those for whom it is inappropriate to live at home will be exempt from this policy.
The principal reason why young people become homeless is a relationship breakdown with their family. Will my hon. Friend assure the House that decisions will be taken by the Secretary of State, not by local decision makers who may discriminate against young people when they cannot live with their family?
I commend my hon. Friend for his excellent work on the Homelessness Reduction Bill. Absolutely: it is a question of young people informing a work coach, somebody in the local authority or a trusted medical professional of their inability to live at home because their relationship with their parent has broken down, and in those cases they will receive the exemption.
(9 years, 1 month ago)
Commons ChamberI am happy to listen to the right hon. Gentleman’s latter point. One purpose of the northern powerhouse and, indeed—more widely—of the Government’s consultation on the industrial strategy is to ensure that the success of the economy is spread to all regions of the country. I am more than happy to talk to the right hon. Gentleman about any specific points he wants to make on his region.
Almost 7.3 million eligible workers have been enrolled into a workplace pension because of automatic enrolment. This is an unseen revolution; the way people are now saving will lead to more freedom, more choice and more security for the pensioners of tomorrow.
Does the Secretary of State agree that it is quite clear that many people who would otherwise not save into a private pension will now have a pension for their futures, and that young people, who often do not save for a pension now, will have a secure future in retirement?
I agree with my hon. Friend, particularly on his point about young people. The Institute for Fiscal Studies has done some research showing that participation in auto-enrolment among those aged 22 to 29 increased from 28% in 2012 to 85% in 2016. That is a very impressive improvement.
(9 years, 2 months ago)
Commons ChamberUrgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
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The hon. Lady makes a really important point. We want people to be able to access the jobcentres they feel most comfortable with. In some circumstances, for example where people feel sufficiently vulnerable that they do not wish to go to a jobcentre, we send the DWP visiting. I have seen that at first hand, with claimants accessing services by telephone—perhaps in instances of domestic violence—where they feel vulnerable about having to go to a public building. I absolutely take on board her points about our public sector equality duty, which we take very seriously. That is why we are carrying out an equality analysis and talking to our claimants to understand how this will impact on them.
In my constituency over the past seven years, unemployment has more than halved. That is good news, but it means that the people who are still unemployed are the more difficult people to place and they need more intensive work. The good people of Edgware will be wondering what they have done to upset their public services, with the closure of two libraries and the jobcentre. Will my hon. Friend consider the potential for not only home visits but satellite visits using commercial premises so that job organisations can run them and workplace coaches can coach a number of people together?
I reassure my hon. Friend that the DWP is doing exactly that. Outreach is an important part of our suite of products to enable claimants to be get back into work. We will continue to look at the best ways to deliver that in the best locations across the country.
(10 years ago)
Commons ChamberI have a very direct answer to that very direct question. It is the one I have been giving all afternoon, which is that the Government will not be seeking further savings in the welfare budget.
One of the major problems that disabled people face is the prejudice in a society that talks about what they cannot do rather than what they can do. In leading the Department, what will right hon. Friend do to change that attitude to concentrate on what people can do rather than what they cannot do?
The can-do principle that my hon. Friend describes is very important, and it is at the heart of everything we are trying to achieve in all our welfare reforms. In the area of disability, the central understanding that my predecessor brought to the Department, along with the sense of mission and purpose, was to focus on what people can do. For people who genuinely cannot work and need the support of the state, we need to reorient resources to make sure that those who are the most vulnerable and need them most get those resources.
(10 years ago)
Commons ChamberUrgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
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I am not sure that the hon. Lady came into politics to decide that the future for people is so bleak that nothing can be done. Our role in this House is to make the changes necessary to improve people’s life chances and lengthen their life expectancy, so that they may enjoy the fruits of that life expectancy, having worked hard and saved hard, in a decent time of retirement. I am an optimist about Britain; she is a pessimist about Britain.
Will my right hon. Friend confirm that the Government intend to review the pension age every five years and to give people the opportunity to know their retirement age with a long lead-in time, so that they can plan for a secure future for themselves and their families?
My hon. Friend is absolutely right. Essentially, the commitment made in the 2014 Act was to have a review in every Parliament. That will allow every Parliament to make decisions, and I hope that any changes, by the time we make them, can be done on a non-party basis. That would be the way to do it, and that is what we are engaged in.
This review was always known about. For those who are suddenly complaining that they had not noticed it, today’s written ministerial statement was down to be made yesterday. I do not recall their doing a single thing to bring it to anyone’s attention until a couple of newspapers wrote articles, after which a request for an urgent question was suddenly sent in.