State Pension Reform

Bridget Phillipson Excerpts

Monday 14th January 2013 Commons Chamber

[Steve Webb]

The remaining contracted-out final salary pension schemes currently receive a 3.4% national insurance rebate. That will go, which will be a cost to those employers. We have talked to the pension funds, the CBI and so on. They have said that a fair response is to allow the schemes to reduce accrual rates—for example, to offset any additional cost—and that will be a provision in the pensions Bill that we publish later this week.

[Bridget Phillipson (Houghton and Sunderland South) (Lab)]

The Minister just referred to women applying for child benefit, even though they might not be entitled to any award. Does he not think that we are potentially storing up a big problem for the future, in that many women will see no reason to register for a benefit to which they will not be entitled?

[Steve Webb]

Just to be clear, even if we were not doing any of this pensions stuff, although someone might be the partner of a high earner when their baby is born, people’s relationships change. It is therefore always advisable for them to claim their child benefit anyway—even if, in the end, they receive a zero award—which also sorts out the pension credits problem.

Welfare Reform Bill

Bridget Phillipson Excerpts

Wednesday 15th June 2011 Commons Chamber

[Bridget Phillipson (Houghton and Sunderland South) (Lab)]

May I draw the Minister’s attention to one group of people who might fall into that category? Victims of domestic violence might not be on the electoral register because they are forced out of one area and into another and they therefore do not have the democratic accountability that comes through the ballot box.

[Maria Miller]

The hon. Lady is obviously a mind reader, because I was just about to talk about whether the changes we are discussing will be a problem for victims of domestic violence—a group whom we all want to ensure get that support and are able to move to a place of safety, as is absolutely right. We do not believe that the new localised service will be a barrier to people in genuine need, particularly victims of domestic violence. It will provide an opportunity for more joined-up services on the ground while continuing to give individuals in that situation access to national payments on account through advances or alignment payments. The hon. Lady will be aware that under the current scheme victims of domestic violence must have fled the family home to qualify for support to set up home from the discretionary social fund.

A third and very important reason why keeping the status quo is not a sensible option is the need to align support with the wider changes that are happening in the welfare system. To continue running the current administratively burdensome system is no longer financially sustainable. Community care grants and crisis loans for general living expenses will be replaced by locally based support, which will be the responsibility of local authorities in England and the devolved Administrations in Scotland and Wales. That will deliver on the coalition’s commitment to implement the Calman commission’s recommendations and will tie in with the wider Government agenda on localism, as has been mentioned. Local authorities are better placed to understand the issues that people in their area face and to dovetail existing and needed services. Different areas face different issues and local authorities will be free to come up with the sort of innovative ideas that will address these issues and make sure that the money that is available is targeted at the right purposes so that we move away from a situation that allows the sort of abuse I have mentioned.

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[Jim Shannon]

I thank the hon. Gentleman for his comments. Many Members in all parts of the House know how the system works and the importance of a crisis loan system operating through the social fund.

My final point relates to the appeals system. The proposed changes will do away with the independent appeals system or at least make it unnecessary. I fought a number of appeals for people who had applied for crisis loans through the social fund. Having the appeals system in place is critical. If they are turned down the first time, it may be because they provided the wrong information, or because all the necessary information was not available. An appeals system allows a review to take place. It is crucial that the independent appeals system is retained.

The system of crisis loans through the social fund is a crucial aspect of life in Britain today for the people who come to my office and for those I meet. It gives people hope and an opportunity to get out of sometimes dire financial circumstances. The Government, the House and we as elected representatives have a duty to make sure that the social fund and the crisis loan are retained.

[Bridget Phillipson]

I am grateful for the opportunity to speak to this important group of amendments concerning the discretionary social fund, particularly amendment 39, which calls on the Government to bring forward detailed proposals for the replacement scheme.

Discretionary social fund payments, such as crisis loans and community care grants, provide an essential safety net for some of the most vulnerable people in our communities who, at times of extreme hardship or disadvantage, need financial support. One such group I wish to talk about in detail are women fleeing domestic violence who, through no fault of their own, are forced out of their own homes and have to seek shelter elsewhere. It is because of my experience working with women affected by domestic violence and their families that I am so concerned about the Government’s proposals and what they could mean for those women.

A woman fleeing domestic violence often must leave her home with nothing more that the clothes she is standing in, without money or access to money, but she still needs access to vital items for herself and her children, from food and nappies to children’s clothing. The social fund provides a vital lifeline for those women. Although far from perfect—I admit its shortcomings—it gives reassurance to the woman that help is available should she need it so that she does not feel pressured to return home to violence simple because she has no access to money. Community care grants allow women to start afresh, with a new life and a new home, by covering some of the costs attached, such as a washing machine or a cooker.

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[Ian Paisley]

The point that the hon. Lady is making is critical. A local authority might lay down a policy on this matter that is very good, but if another authority then does something slightly different that appears to be better, automatically all the good work that the first local authority has done will be seen as of no use as it will be held to another standard. We must have a single national standard so that people who require this fund, whether in Bushmills or Birmingham, know that they will see the same standard, with the same requirements, the same grant and the same opportunity to avail themselves of that assistance.

[Bridget Phillipson]

I agree entirely. It is vital that people feel that appropriate safeguards are in place with a national scheme and a national appeals system so that when things go wrong, as they sometimes do, there is an appropriate means of redress and decisions can be looked at again.

My concern with the Government’s proposals is that we will end up with massive variation between councils and between different parts of the United Kingdom, which will disadvantage people in certain areas. Some councils might choose a system that works very effectively and addresses the needs of vulnerable groups, but others might not do that so well. That is why the Government must be very clear about the standards that they will demand of local authorities, but they are not being clear.

Women fleeing domestic violence are often forced out of their local area in order to seek safety, so what safeguards can we expect when a woman is forced to move to an area where the local council might decide that she is ineligible for support? In the urban areas of the north-east, where large local authorities cover small geographical areas, it is not a great distance from Gateshead to Sunderland, but might the local authority in Sunderland, for example, take the view that the woman should seek support from her local authority in Gateshead? I sincerely hope that it would not take such a view, as that could hold up the process when the woman desperately needs financial help. This is not a factor at present because the scheme is a national one, but devolving responsibility to local councils will create a raft of potential problems for those councils and risk placing some very vulnerable people at risk of harm.

It is simply not good enough for the Government to hope that local councils will be able to manage this complex change. With a budget that is not ring-fenced and the potential for a reduced level of funding from recovered grants, it is inevitable that some local councils will not want to take people without a clear and established local connection, which I believe will be particularly damaging for women fleeing domestic violence if this is not done properly. That is why it is imperative that the Government set out detailed proposals, as amendment 39 makes clear, including eligibility criteria and an independent appeals mechanism. Without further clarity and detail, there is a real likelihood that some of the most vulnerable people in our communities will be unable to access financial support when they need it most.

[John McDonnell]

I will not delay the House any further because I think that colleagues from all Opposition parties have demonstrated why they are not convinced by the Government’s proposals, and why every charity and housing group in the country is not convinced either. Members’ surgeries will fill up as people can no longer receive grants and loans, so it is inevitable that we will return to the issue at a later date to reform the Government’s reforms. I will not push for two Divisions on this group and, on the basis of supporting amendment 39, beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

Amendment proposed: 39, page 52, line 22, leave out subsection (1) and insert—

‘(1) Section 138(1)(b) of the Social Security Contributions and Benefits Act 1992 (discretionary payments out of Social Fund) may be repealed, if the Secretary of State—

(a) publishes a detailed proposal for a replacement scheme, or schemes, based on wide consultation with relevant stakeholders;

(b) ensures that such a scheme, or schemes, will provide financial protection for applicants in an emergency or crisis, with the eligibility criteria for applicants specified in regulations;

(c) demonstrates the feasibility of such a scheme, or schemes, through a pilot or pathfinder process; and

(d) demonstrates how an independent appeals mechanism will be implemented.’.—(Ms Buck.)

Question put, That the amendment be made.

Oral Answers to Questions

Bridget Phillipson Excerpts

Monday 28th March 2011 Commons Chamber

[Chris Grayling]

Essentially, the Work programme’s role is to help those who are longer-term unemployed and are struggling to get into the workplace. Our work experience proposals and apprenticeship plans are very much geared towards those who are newer in the labour market and looking for opportunities in the early few weeks of job search. Of course, the really stark comparison is between what we are proposing and the vastly expensive future jobs fund run by the previous Government, which has proved to be three or four times more expensive than even their relatively unsuccessful new deals. In my view, our programmes will make a difference in a way that theirs did not.

[Bridget Phillipson (Houghton and Sunderland South) (Lab)]

T2. Many of my constituents are facing lengthy delays in benefit appeals coming to tribunal. This causes real worry, but also financial hardship. What action are the Government taking to address this, given that demands on the Tribunals Service are increasing?

[Chris Grayling]

I am acutely aware of the issue to which the hon. Lady refers. We have been in detailed discussions with the Tribunals Service about this, and it is moving ahead with an increase in capacity that will help to ease the situation. We have also, for the national roll-out of the incapacity benefit reassessment, introduced a reconsideration stage at Jobcentre Plus level to try to reduce the number of appeals and to make sure that we get as many decisions as possible absolutely right.

Oral Answers to Questions

Bridget Phillipson Excerpts

Monday 10th January 2011 Commons Chamber

[Chris Grayling]

I am a little confused by my hon. Friend’s experience, because tests and assessments of people’s physical capabilities are carried out under the work capability assessment. Our goal is to ensure that the WCA continues to improve and is the best possible mechanism. I am happy to talk to him about his constituents’ experiences.

[Bridget Phillipson (Houghton and Sunderland South) (Lab)]

T4. Further to the Secretary of State’s previous answer, will he confirm that unemployment will return to pre-recession levels by the end of the Parliament?

[Mr Duncan Smith]

We stand by the OBR forecast that unemployment will rise slightly in the coming year and, thereafter, will fall year on year.

Housing Benefit

Bridget Phillipson Excerpts

Tuesday 9th November 2010 Commons Chamber

[Bridget Phillipson (Houghton and Sunderland South) (Lab)]

Let me begin by referring the House to my declaration in the Register of Members’ Financial Interests.

I am grateful to you, Mr Deputy Speaker, for calling me to speak in this important debate, and I am pleased to follow the hon. Member for Hastings and Rye (Amber Rudd), although I beg to differ with her interesting interpretation of the word “fairness”.

The Government’s £1.8 billion cuts in housing benefit will push the most vulnerable families in our society into poverty and debt. It has been estimated that up to 12,000 households in the north-east could be made homeless. The Government are using extreme examples to justify their wholesale swingeing cuts, but the simple truth is that most housing benefit recipients are low-income, hard-working families, pensioners, carers, and people with disabilities. The housing charity Shelter estimates that only one in eight housing benefit recipients is unemployed. We should not lose sight of the fact that housing benefit is also an in-work benefit. In fact, the average housing benefit award to private sector tenants in Sunderland is just £93 per week, and for social tenants it is even less: £69 per week.

What concerns me most is that the cuts in housing benefit will affect not only hard-working, low-income families, but pensioners. In Sunderland alone, more than 20,000 housing benefit recipients are over 60. Those people have contributed to society throughout their lives, but in return—when they need help from the state at the time when they are at their most vulnerable—their security is threatened, and they are treated as mere statistics.

[Steve Webb]

I am sure that the hon. Lady does not wish to alarm pensioners in her constituency. The figures that she has given relate to housing benefit, which applies overwhelmingly to social tenants who will not be affected by this change. Will she correct the record?

[Bridget Phillipson]

What I will say is that many older tenants will move into different tenancies at different points, and will be affected by the changes that the Government are introducing. Many older people will, at times, vacate social homes and move into the private sector as their needs require, and may be affected by the Government’s changes. The only alarm being caused is coming from the Government Benches. I hope that the Minister will think again about some of these measures.

The Chartered Institute of Housing summed things up best when it stated that the Government’s motive

“appears to be reducing expenditure with little co-ordination or regard for the purpose of the benefit itself.”

This is not a genuine attempt to reform housing benefit and introduce a better system in its place; this is a Treasury-driven hit on the poorest and most vulnerable in our society.

[Kwasi Kwarteng (Spelthorne) (Con)]

I am grateful to the hon. Lady for giving way. The House is unclear about Labour’s position on the cap. Labour Members have accepted that there is a need for public spending restraint, but Government Members want to know whether they think the cap is fair or not.

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[Bridget Phillipson]

I respectfully suggest to the hon. Gentleman that had he been here earlier, he would have heard some of the arguments articulated by my right hon. Friend the shadow Secretary of State. I also respectfully suggest that I am not referring to the cap. That is not the issue that I am discussing in relation to Sunderland; I am discussing the changes in respect of the 10% and the 30th percentile. That is my concern, and that is why this debate has to be on issues broader than London. I understand the concerns of my hon. Friends with London constituencies about the impact there, but the impact it will have in Sunderland will be different.

On average, claimants of local housing allowance in the north-east will see a cut of about 10% a week, or £468 a year, in what they receive. That will have a massive effect in the region, and in Sunderland it will affect more than 4,500 households. Furthermore, those out of work on jobseeker’s allowance for more than one year will be hit particularly hard, with a cut of 10% in their housing benefit. Currently, 2,500 of my constituents are claiming jobseeker’s allowance in an area of ongoing deprivation, where jobs are increasingly hard to come by. That will simply drive people into further poverty and drive up homelessness at a time when, no matter how hard people try, it is often difficult to find a job.

Sunderland city council prevented homelessness for 157 households in 2009-10, helping people to find accommodation, often in the private sector. Overall, the changes made in the comprehensive spending review will make it even harder for Sunderland city council to prevent homelessness. In the long term, the use of temporary bed-and-breakfast accommodation will inevitably drive up housing costs for local councils and have massive social consequences.

Changes in the calculation of housing benefit—pegging it to the consumer prices index—will lead to a dramatic rise in rent arrears, contributing to increased use of temporary accommodation and increased homelessness. It is not yet clear to me whether those who fall into arrears because of the cuts will be deemed to have made themselves intentionally homeless, which would mean that councils would not have a duty to house them. I would be grateful for some clarity from the Government on that issue.

Before I was elected, I managed a refuge for women and children fleeing domestic violence, and the city council supported these homeless families and got them rehoused, often in the private sector. The women would often pay a small top-up to their housing benefit, often to be near supportive family who could help with child care so that they could undertake training or return to the workplace. Such women will be doubly hit, and at the point when they are trying to get their lives back on track.

It is clear that the Government have failed to come up with an acceptable plan for housing benefit. They fail to recognise the long-term solutions to the underlying causes, and they are certainly not progressive.

[Jim Shannon (Strangford) (DUP)]

Does the hon. Lady agree that for a great many people the purpose of housing benefit is to get them out of low-income housing? The changes that the coalition Government are proposing will keep those people in poverty and low-income housing for the rest of their lives. That is my concern. Does the hon. Lady share it?

--- Later in debate ---

[Bridget Phillipson]

I do. It is clear that the changes will have a huge impact not only in England, but in the hon. Gentleman’s constituency.

While more social homes need to be built, the coalition is cutting investment and scrapping regional housing targets. When people are crying out for help on unemployment, the coalition Government are set to cut 23,000 public sector jobs in the north-east alone. Until we tackle unemployment and until the Government bring forward a credible growth strategy, the housing benefit bill will not come down. In the north-east, the situation has not been helped by the scrapping of One North East and the lack of a regional industrial strategy.

Finally, when we need a system to stop unscrupulous private sector landlords from profiteering from the local housing allowance, the coalition Government do not even consider it. Instead, they focus their programme of cuts on the defenceless, the elderly and the least well off in our society. That cannot be allowed to happen. Labour Members all agree that there is a need to reform the current system of housing benefit—but not at such a cost, and not with the plan that the Government are implementing with such ill regard for the consequences.

I oppose these rushed, punitive and divisive measures. I will do what it takes to protect the low paid and the most vulnerable people across the country, who rely on housing benefit, and I encourage colleagues on both sides of the House to do so too.

Welfare Reform

Bridget Phillipson Excerpts

Monday 11th October 2010 Commons Chamber

[Mr Duncan Smith]

Perhaps I should not say this, but I think that it is Holland—I read that in a note. Some 20% of all households in this country have nobody in work, which is a staggeringly high number. We also have the highest number of children born to workless households. By and large, every other country is Europe is doing it better than we do—and that is the shame of the previous Government.

[Bridget Phillipson (Houghton and Sunderland South) (Lab)]

Has the Secretary of State considered the impact of the benefits cap on homelessness provision, including women’s refuges? What plans does he have for housing benefit for supported accommodation, where rents are understandably higher than in the private rented sector?

[Mr Duncan Smith]

We are looking at all that. I have made available some £60 million for transitional funding for local authorities and others, and we will keep that under review. We do not want to penalise households, because it may not be their fault that they are living in homes that they simply would not be able to afford. We need to ensure that the changes are made, and I hope that we will also be able to drive down some of the rents. A lot of change is coming in the next two years, and I hope that much of it will be very progressive.