Support for Care Leavers

Caroline Dinenage Excerpts
Thursday 16th November 2017

(8 years, 4 months ago)

Westminster Hall
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Caroline Dinenage Portrait The Parliamentary Under-Secretary of State for Work and Pensions (Caroline Dinenage)
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It is a pleasure, as ever, to serve under your chairmanship, Mrs Gillan. I, too, thank my hon. Friend the Member for Brentwood and Ongar (Alex Burghart) and congratulate him on securing this important debate on the support given by the Department for Work and Pensions to care leavers. I also thank hon. Members across the House for their valuable input to this important discussion. They have raised a number of really important issues on how the Government and, indeed, my Department support care leavers. I am very pleased to have the opportunity to address all—or at least most of—the questions that have been raised, and to set out some of the actions that we are taking.

Let me start by reassuring my hon. Friend, and indeed all Members, that the Government are committed to improving the lives of, and outcomes for, care leavers. We recognise that care leavers are among the most vulnerable groups of young people. We of course understand that sadly many were taken into care because of neglect or abuse as children. We understand that as they leave care, they often have to make the transition to adulthood and independent living at a younger age than their peers, and usually without the support of a family network, as other Members have said.

The exceptionally difficult challenges that care leavers face mean that their educational, health and employment outcomes can be significantly worse than those of their peers. That is why we introduced the first ever cross-government care-leaver strategy in 2013, and updated that strategy in 2016. The strategy sets out the steps that the Government are taking—from housing to health services; from the justice system to educational institutions; and from financial support to work—to support care leavers to live happy, healthy and independent lives. The Department for Work and Pensions was proud to play a full and active role in supporting the Department for Education in developing that strategy. In the time available today, Members will forgive me if I focus as specifically as I can on the actions that the Department for Work and Pensions has taken, but it is important to remember, of course, that they are part of a cross-Government approach, which needs to be joined up as far as possible.

My Department has put in place a comprehensive package of support and protections for care leavers who need to claim benefits to make the transition from local authority care to independent living. That support ensures that they are offered the help that they need to take that important step, including the necessary assistance to find employment. That is where universal credit is an enormous benefit. The new work coach model means that each claimant stays with the same work coach throughout their claim, giving continuity of support for claimants. It also means that work coaches are able to identify very early a claim by someone who has complex needs—someone who may require individualised, tailored support. That, of course, includes care leavers.

A couple of hon. Friends and hon. Members mentioned that very important data collection exercise. My Department is working very hard to try to collect better data on claimants with complex needs, including care leavers. Information that someone is a care leaver is held on the claimant profile as part of the universal credit system. We are at the very early stages of the process, and we are still working through what data is being collected and what the data is telling us. We will, of course, keep a very close eye on that, and see if further markers are needed. That is why we have built into the universal credit system a pause-and-learn approach, which means that we can incorporate the benefits of our learning as we go. The Department for Education continues to publish valuable care leaver outcome data for 17 to 21-year-old care leavers. A data-share agreement is in place between Her Majesty’s Revenue and Customs, Department for Work and Pensions, and the Department for Business, Energy and Industrial Strategy to explore the link between educational achievement and labour-market outcomes. They will also explore the quality of outcome information that the data-sharing provides for specific groups, such as care leavers.

In universal credit, work coaches can tailor interventions to the needs of the individual, and the support that they can offer is incredibly wide-ranging. It can address a variety of barriers to work, and might include improving job-search skills, referral to skills and other work-related training, and other types of support. The work-related training can include traineeships, apprenticeship places, and work experience. I will speak a little more about apprenticeship places later on.

Jobcentre Plus districts work closely with their local authority care leaving teams to put in place protocols and processes to support care leavers who need to claim benefits. There are some great examples across the country of effective working protocols between job centres and local leaving care teams. Barnet care leaver hub, for example, involves a Jobcentre Plus work coach, co-located in the local authority leaving care premises with the Drive Forward foundation, the care leaver charity that delivers intensive one-to-one work support. Jobcentre Plus partnership managers are working with their local authority leaving care teams to facilitate contracts and joint working protocols. We are working with the Department for Education to encourage local authority leaving care teams to contact Jobcentre Plus.

A key element of that is the facility to prepare a claim in advance of the claimant’s 18th birthday. With the support of their local authority leaving care adviser or a Jobcentre Plus work coach, a care leaver can begin preparing to make that benefit claim four weeks before their 18th birthday. That ensures that all the identification and evidence checks are completed before they leave care and prevents any unnecessary delays in benefit payments. It also provides the opportunity to arrange advances and to direct rent payments to landlords where appropriate.

Alex Cunningham Portrait Alex Cunningham
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The Minister is describing lots of good practice, but I wonder how we can get to the stage where a young person can be asked at their first point of contact with the DWP whether they are a care leaver, so that identification can follow them through the system?

Caroline Dinenage Portrait Caroline Dinenage
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That is something that we have discussed at length, and we are looking in detail to see whether that proposal could be incorporated. I would like to reassure my hon. Friend the Member for Brentwood and Ongar and other hon. Members across the House that we have worked hard, and are continuing to work hard, to ensure that universal credit works and is beneficial, not only for the majority of straightforward cases but for care leavers and those with complex needs too. That is why we have introduced a series of measures aimed at safeguarding and supporting care leavers.

I would like to go through a few examples, which people may or may not be aware of. We have exempted care leavers from waiting days in universal credit. Those who are under the age of 22 do not serve the seven waiting days and are entitled to universal credit from the very first day that they make their claim.

We have introduced the second chance learning initiative to enable care leavers up to the age of 22 to catch up on the education they may have missed out on when they were younger. That means income support or universal credit are available to care leavers who take up full-time study in non-advanced education. We have exempted care leavers from the removal of automatic housing support for 18 to 21-year-olds in universal credit.

The hon. Member for Stockton North (Alex Cunningham) talked about exempting care leavers from council tax. The Government have given councils the flexibility to support vulnerable groups, including care leavers, to manage their council tax bills. The Department for Communities and Local Government wrote to all councils in 2016 to remind them of the powers they have under the Local Government Finance Act 1992 to support vulnerable groups. A number of councils have already taken the decision to support care leavers through an exemption or discount in their council tax bills, as I think he said his local council was doing.

Lord McCabe Portrait Steve McCabe
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I do not get that many opportunities to praise Birmingham City Council, but it is one of the authorities that apply the exemption. Will the Minister consider writing to her colleagues at DCLG to ask them to publish a full list of the councils that exempt care leavers from council tax? Quite rightly, that is not something the Government can do, but it is a practice that almost all councils should follow unless there is a very good reason why they are not doing it.

Caroline Dinenage Portrait Caroline Dinenage
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The hon. Gentleman represents Birmingham beautifully—Selly Oak and also other parts of Birmingham, as we have learned today. He makes a good point.

Alex Cunningham Portrait Alex Cunningham
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He has broad shoulders.

Caroline Dinenage Portrait Caroline Dinenage
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He is clearly very talented. We would be very happy to do that, and I pay tribute to him for his work as chair of the all-party parliamentary group for looked after children and care leavers. I would like very much to accept his offer to come and join that APPG for at least one of its meetings.

Patricia Gibson Portrait Patricia Gibson
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The Minister talked about councils being written to, to remind them of their flexibility and how they can implement the council tax exemption. Is she willing to give some money from central Government to help local authorities absorb the exemption that they are willing to give? That has happened in Scotland, where between 6,000 and 7,000 care leavers will be exempted from council tax, up to the age of 26. Will any money from central Government be given to help local authorities, including those in Scotland and other parts of the UK, to fund that?

Caroline Dinenage Portrait Caroline Dinenage
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The hon. Lady tempts me to make spending commitments on behalf of the Department for Communities and Local Government. While I would, of course, be absolutely delighted to do so, it is a little bit beyond my job description. I am sure the Department will read with great interest her comments in Hansard.

Norman Lamb Portrait Norman Lamb
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I am grateful to the Minister for giving way; she is being very generous. The former Minister Edward Timpson introduced a very good reform to enable payments to continue to children in foster care beyond their 18th birthday, which was widely welcomed. However, if the rate paid for the most complex children being looked after by very experienced foster carers goes down at their 18th birthday, it creates an incentive for the foster carer to encourage them to leave, which is the very last thing we should be doing. Does she agree that we should seek to find ways of ensuring we provide incentives for them to stay at home, as happens in every other family?

Caroline Dinenage Portrait Caroline Dinenage
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I am grateful to the right hon. Gentleman for drawing attention to my former colleague, Edward Timpson, who was a most fantastic Minister in the Department for Education and a great advocate for care leavers. We are supporting the Staying Put arrangements that the right hon. Gentleman alluded to, which mean that care leavers who remain with their ex-foster carer can claim means-tested benefit from their 18th birthday up to the age of 21, but I will look at everything he has said.

In addition, we have exempted care leavers from the shared accommodation rate until they are 22. The shared accommodation rate is normally paid to single people aged under 35. That means that care leavers can claim the higher local housing allowance one-bedroom rate of housing benefit until their 22nd birthday.

I have listened to the arguments made by hon. Members about the issue today. I particularly welcome the comments of my hon. Friend the Member for Colchester (Will Quince); he gave an eloquent description. I also thank him for the significant contribution he has made as chair of the all-party parliamentary group on homelessness, where he does a sterling and very valuable job.

We have always said that this is something we would like to achieve, but at the moment we do not have plans to extend the exemption for care leavers from the shared accommodation rate to age 25. I assure my hon. Friend and other Members who have raised the issue today that we will continue to keep it under review and will consider evidence from stakeholders on the impact that the shared accommodation rate has on care leavers.

We have given care leavers priority access to personal budgeting support in universal credit. That includes benefit advances, rent paid direct to landlords, payments more frequent than monthly and budgeting advice, including debt advice, which was raised by the hon. Member for Stockton North.

We have a fantastic “See Potential” campaign—I say fantastic as it falls under my ministerial portfolio. It encourages employers to recognise the benefits of recruiting people from all kinds of backgrounds, including care leavers. I was so pleased to celebrate the inspiring workplace and training achievements of young people, including care leavers and others, at the Land Securities Community Employment Awards recently—we saw the incredible growth, development and achievement of some very inspiring young people.

I am pleased that the Government are leading by example by setting up a cross-Government scheme to provide employment to care leavers. My Department’s own care leaver team includes a quite brilliant care leaver intern, who I have had the pleasure of meeting, and who is providing us with very valuable insights into issues that care leavers face and helping us improve our services for care leavers. She is very cool as well—she is in the room, which is why I am saying that!

In developing our support for care leavers, we have worked closely with stakeholders. I am particularly grateful for the input from the Children’s Society, representatives of which I met shortly after being appointed to the Department. When I met with them, I was made aware of the fact that in some cases care leavers have difficulty taking up apprenticeships and a number of hon. Members have raised that today. We know that without the support of a family, they struggle economically. Having had that meeting, I hotfooted it straight over to the Department for Education and met the Minister for Apprenticeships and Skills to discuss the idea of an apprenticeship bursary, which would ensure that apprenticeships were an affordable option for care leavers, who do not have the family support that most apprentices can rely on.

The Department for Education are reviewing how the new apprenticeship funding approach is supporting all those who are disadvantaged, including care leavers, with the intention of improving how the system supports those individuals from 18 to 19, so that apprenticeships offer a more attractive opportunity to them and a greater chance of success. It has agreed to explore the proposal for an apprenticeship bursary.

The debate has raised some really important issues, and I am grateful to all right hon. and hon. Members for the points they have made, which will continue to inform our work to support care leavers, alongside our discussions with our valuable stakeholders.

Alex Cunningham Portrait Alex Cunningham
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Just before the Minister sits down, there were two further points raised during the debate—first, the imposition of sanctions at a lower rate and, secondly, the opportunity to develop a way in which local authorities can work with care leavers applying for universal credit ahead of reaching their 18th birthday.

Caroline Dinenage Portrait Caroline Dinenage
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The hon. Gentleman is right to remind me about the sanctions—I pulled that little bit of paper out, but had forgotten to pick it up—but I think that I covered applications in advance of the 18th birthday earlier in my speech.

With regard to sanctions, I would like to stress that the Department for Work and Pensions recognises the unique set of circumstances faced by care leavers. Therefore, we allow care leavers to apply for hardship payments of 60% of their normal benefit payment from day one of the sanctions. Sanctions are used in a very small minority of cases, when people fail to meet each of the requirements that they agreed in their claimant commitment without good reason. That said, conditionality and sanctions are part of a fair and effective system that supports and encourages claimants to move into work, towards work or to improve their earnings. Work coaches are very well trained to deal with vulnerable claimants, and have the flexibility to tailor the requirements according to each individual’s circumstances, and that includes the needs of care leavers.

We do not impose sanctions lightly. Claimants are given every opportunity to explain why they failed to meet their agreed conditionality requirements before a decision is made. A well-established system of hardship payments is available as a safeguard if a claimant demonstrates that they cannot meet their immediate and most essential needs, including accommodation, heating, food and hygiene, as a result of their sanction. UC claimants are able to apply for a hardship payment from the first accounting period in which the sanction reduction is applied.

I have spoken to care leavers, and we do not do them any favours by insulating them from the challenges of the day-to-day reality and responsibilities that their peers face. The care leavers I have spoken to tell me that they do not want to be wrapped in cotton wool. They want a little extra support and help, but they do not want to be entirely insulated from the challenges and responsibilities that their peers face.

I am pleased to have been able to put on the record our commitment to supporting care leavers and the action we are taking, but I hope I have made it clear that we are not complacent. I am passionate about improving the lives of care leavers. We are determined to ensure that the welfare system in general and universal credit in particular help care leavers make a successful transition to independent living and working life, and that we support them as best as we can.

Cheryl Gillan Portrait Mrs Cheryl Gillan (in the Chair)
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I call Alex Burghart to wind up.

Oral Answers to Questions

Caroline Dinenage Excerpts
Monday 13th November 2017

(8 years, 4 months ago)

Commons Chamber
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Mims Davies Portrait Mims Davies (Eastleigh) (Con)
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1. What recent discussions he has had with Cabinet colleagues on support for Gurkhas in the welfare system.

Caroline Dinenage Portrait The Parliamentary Under-Secretary of State for Work and Pensions (Caroline Dinenage)
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The Department for Work and Pensions has regular discussions with colleagues across Government about the treatment of Gurkhas in the benefit system and its responsibilities under the armed forces covenant. Additional support is already in place for members of the armed forces community, to take account of their needs and circumstances.

Mims Davies Portrait Mims Davies
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Gurkhas put themselves on the line for our country. I recently met members of the Gurkha community in Eastleigh. They have travelled a long distance from home and they are phenomenal soldiers. Will my hon. Friend continue to ensure that their unique circumstances are recognised in both our pensions and benefits systems?

Caroline Dinenage Portrait Caroline Dinenage
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As you will be aware, Mr Speaker, I am married to a former Gurkha, so I fully understand and share my hon. Friend’s gratitude for their bravery and service. No member of our armed forces should be disadvantaged by their service to our country. I would like to reassure her that the DWP takes very seriously our commitment to the armed forces covenant. We will do everything we can, and work as hard as we can, to help them get the best possible support.

Paul Blomfield Portrait Paul Blomfield (Sheffield Central) (Lab)
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2. Whether he has made an assessment of the potential merits of reducing the repayment rate on advance payments of universal credit.

--- Later in debate ---
Ian Mearns Portrait Ian Mearns (Gateshead) (Lab)
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19. What assessment he has made of the effect of the length of waiting time to receive universal credit on levels of rent arrears.

Caroline Dinenage Portrait The Parliamentary Under-Secretary of State for Work and Pensions (Caroline Dinenage)
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The Department for Work and Pensions is currently undertaking work to investigate the reality of rent arrears in universal credit. It aims to understand the true level of rent arrears for tenants, what is causing them, and any impacts universal credit may be having.

Tracy Brabin Portrait Tracy Brabin
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New findings say that 49% of landlords are less likely to rent to those in receipt of universal credit. In Kirklees, only 121 social homes are available for the 9,700 people on the waiting list. What steps will the Minister take to prevent those on universal credit from being discriminated against?

Caroline Dinenage Portrait Caroline Dinenage
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The hon. Lady is right to ask the question, but alternative payment arrangements are available. We have listened carefully to housing providers and we are seeing improvements all the time.

Ian Mearns Portrait Ian Mearns
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I listened carefully to the Minister’s answer, and I wonder whether it would be of any surprise to her that the chief executive of a large housing authority in the north-west of England recently told me that the authority had arrears of more than £2 million from universal credit alone. Claimants in one authority in Yorkshire and Humber have average arrears of more than £1,100 each. Why is that happening and what is she going to do about it?

Caroline Dinenage Portrait Caroline Dinenage
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We have to be careful not to scaremonger on this issue. A National Federation of Arm’s Length Management Organisations report says that three quarters of tenants who started to claim universal credit were already in arrears, and research shows that after four months the number of claimants in arrears has fallen by a third.

Richard Graham Portrait Richard Graham (Gloucester) (Con)
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The single biggest problem for some welfare recipients who move into universal credit is their high level of debt. Can my hon. Friend the Minister for Employment tell me what he can do to take forward his idea of an interest-free period to resolve outstanding debt, and to promote the use of credit unions in advising strongly against the use of loan sharks, particularly in the run-up to Christmas?

Caroline Dinenage Portrait Caroline Dinenage
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On behalf of the Minister for Employment, may I say that my hon. Friend makes a very important point? We do want people to address their levels of debt, and that is why we have this effective system of advance payments, which enables people to budget properly and to meet their debts.

Stephen Timms Portrait Stephen Timms (East Ham) (Lab)
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18. Whether he has investigated reports of online applications for universal credit being lost; and if he will make a statement.

--- Later in debate ---
Stephen Kerr Portrait Stephen Kerr (Stirling) (Con)
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What are Ministers doing to close loopholes used to avoid child maintenance payments?

Caroline Dinenage Portrait Caroline Dinenage
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When a non-resident parent fails to pay on time or in full, we endeavour to immediately establish compliance before enforcement action is needed. There is a range of strong powers that we can take, including the forced sale of property, disqualification from driving or, indeed, commitment to prison, but we are exploring options to expand those, and they will form part of our new compliance and arrears strategy, which will be published shortly.

Nicholas Dakin Portrait Nic Dakin (Scunthorpe) (Lab)
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Members of the British Steel pension scheme need to decide whether to go into British Steel pension scheme 2 or the Pension Protection Fund by 11 December, but there is still a lack of clarity around the position of high/low pensioners in the PPF and whether that might change after the point of decision making. Will the Secretary of State look at this so that the information is available to people before they make that decision?

Supported Housing

Caroline Dinenage Excerpts
Wednesday 25th October 2017

(8 years, 5 months ago)

Commons Chamber
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Caroline Dinenage Portrait The Parliamentary Under-Secretary of State for Work and Pensions (Caroline Dinenage)
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I very much welcome the opportunity to discuss this important issue. We have heard from a huge number of colleagues on both sides of the Chamber. I thank them all for their really valuable contributions, as well as for their support for this essential sector and their individual stories, particularly those drawing attention to the work—we all understand that it is incredible valuable—that is done by the suppliers of supported housing and sheltered accommodation in their constituencies.

I want to emphasise the importance that the Government attach to supported housing. It plays a vital role for many vulnerable people, as so many Members have said. It gives them a safe and supportive place where they can live as independently as possible. The Government are keen to ensure that those living in supported accommodation and those who provide this type of housing receive appropriate payment and protections. We also want building and further development in this sector to meet the projected future demand and ensure we can offer supported housing provision to those who need it.

That is why we have announced today that the local housing allowance cap will not be applied to social sector tenants, including those living in supported housing. It is absolutely essential—for providers, commissioners and vulnerable tenants, as well as for taxpayers—that we put the supported housing sector funding model on a sustainable footing and ensure that it works for all. We will announce our proposals for supported housing next week, and I hope these will show that we have listened to what people and organisations have said and that we have understood the issues.

Mary Glindon Portrait Mary Glindon
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Will the Minister give an assurance that the YMCA, the largest charitable provider of young people’s supported housing, which has expressed lots of concerns, has been given a full hearing and that its suggestions have been taken fully on board in the review?

Caroline Dinenage Portrait Caroline Dinenage
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A lot of comments have been made about how long it has taken to get to this point, but that is because we have spoken extensively with valuable stakeholders such as the YMCA. My hon. Friend the Member for Walsall North (Eddie Hughes) told us about the incredible value of that organisation and others.

As has been said, the DWP, in conjunction with the DCLG, concluded a 12-week consultation on the supported housing sector earlier this year. As many Members have rightly suggested, it is absolutely vital that we listen to the concerns that the sector has raised, and that is precisely what we have been doing. We welcome the input that we have received in this consultation—the views of the sector, local government and other stakeholders—as well as the excellent joint report from the Work and Pensions Committee and the Communities and Local Government Committee. I add my congratulations to both Committees on their work. We have been carefully taking stock of these views, considering the recommendations and continuing our extensive conversation with the sector. We have done so to make sure that we get the detail right before making an announcement and that the services provided are as good as they can be.

This morning’s announcement by the Prime Minister has already been embraced by the sector, which has acknowledged that we are listening to their concerns. The chief executive of the National Housing Federation has said:

“Things are really starting to change and it is great to see social housing getting the right kind of attention it deserves.”

The chief executive of the Chartered Institute of Housing has also welcomed the announcement, suggesting that the Government have

“clearly listened to the concerns of housing professionals across the UK”.

Several Members have raised concerns about how confidence in future funding is having an impact on the supply of supported housing. As I believe has been made very clear during this debate, we are absolutely determined to achieve our goal of ensuring a long-term sustainable future for the whole supported housing sector. Indeed, the National Housing Federation has welcomed the Prime Minister’s recent announcements on housing, which demonstrate that social housing and house building are firmly at the top of the Government’s agenda.

We understand that the sector needs certainty to help it to continue to plan and deliver much-needed new supported housing, including sheltered housing for older people. We need to inject confidence into a sector that is in need of clarity about the future arrangements and to reignite the stalled supply as soon as possible. However, it was vital not to be too hasty or rushed in reaching this decision. We have taken time to get things right and to take into account voices from the sector to ensure that this is sustainable in the long term and protects those who are most vulnerable and who most need our support.

The Government have a good track record in safeguarding supported housing and boosting new supply. Since 2011, we have delivered 27,000 units of specialist and general housing for disabled, vulnerable and older people. We announced £400 million of funding in the spending review to deliver new specialist affordable homes for the vulnerable, elderly or those with disabilities. In addition, there will be more specialised homes funded by the Department of Health.

Paul Farrelly Portrait Paul Farrelly
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In my area of Newcastle-under-Lyme, our local housing association, Aspire, is not building affordable or supported housing at all. It is developing in higher property price areas in Cheshire to recycle the money to support its existing estates because of the squeeze on its finances and income from Government policies. Is there not something fundamentally wrong when a local housing association cannot build affordable housing at all?

Caroline Dinenage Portrait Caroline Dinenage
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That flies in the face of what the National Housing Federation said; the Government are giving confidence to suppliers to build into the future.

As my hon. Friend the Member for St Ives (Derek Thomas) said, we recognise and celebrate the diversity of the supported housing sector and we are reflecting this in the design of the reformed funding model. We want to ensure that the model is flexible and responsive to meet the variety of needs and demands placed on it for such a diverse sector and client base. Across the Government, we have considered the needs of all supported housing groups, including those with learning difficulties, physical and sensory disabilities and mental health problems, older people and those experiencing homelessness and seeking refuge from domestic abuse. We are working hard to ensure that the funding model reflects the unique range of provision in the supported housing sector, and we are listening to the sector to make sure we get that right. I believe that that will be seen in our response to the consultation, and we have always been clear that we are committed to developing a separate model that will work for short-term accommodation.

I want to address some of the concerns raised today about short-term supported and emergency housing such as hostels and refuges, which play a vital role in providing consistent, high-quality support for many vulnerable people who have experienced or are experiencing a crisis, such as fleeing domestic abuse. That was mentioned by a number of Members from all parties. We have always been very clear that we are committed to developing a separate funding model that will work well for people requiring help from these types of accommodation. As a former Minister for Equalities, I carry on my passion for tackling domestic abuse, which is a key priority for this Government.

We fully support the valuable work carried out by women’s refuges and other supported accommodation providers, and we are fully committed to ensuring that victims of domestic abuse are not turned away from the support that they need. Since 2014, we have invested £33.5 million in services to support victims, and the number of beds for victims of domestic violence has gone up. I want to be unambiguous about this: everyone who uses short-term supported and emergency housing such as hostels and refuges and who is eligible to have their housing costs met by housing benefit under the current system will continue to have these costs met through any new funding model for short-term accommodation.

My hon. Friend the Member for Walsall North mentioned the YMCA setting, social enterprises and adopting to change. We welcomed his valuable and characteristically positive addition to the debate, and that is exactly the kind of innovative and flexible approach that the Government promote. It is absolutely right that we should do our best in government to listen to and support the sector, but we should also take the opportunity to recognise the tireless work and groundbreaking approaches, such as that which he identified today.

We have listened to the views of the sector on sheltered and extra care housing through its response to our consultation, through its participation in our task and finish groups and through its involvement in the joint work of the Communities and Local Government and Work and Pensions Committees. We have heard the concerns that it has raised, and it is clear that an alternative model is required to secure supply. The Government recognise that supported housing helps many vulnerable people to stand on their own feet and lead independent lives. We have done a lot of work to understand the needs of individuals who live in long-term supported housing. We are committed to protecting and boosting the provision of supported and older people’s sheltered housing and to ensuring we get the new model right to ensure that that housing is funded sustainably in the long term.

The Government are clear that everyone who would be eligible under the current system to have their supported housing costs met by housing benefit will continue to have their housing costs met under the new funding model. We are committed to protecting provision of supported and older people’s sheltered housing to ensure that we get the new model right and that funding for supported housing is sustainable.

The Government’s intention is to find the best means to deliver improvements in quality, oversight and value for money, while recognising the need to give appropriate consideration to the concerns raised by the sector through the consultation and the Select Committees. I can confirm that we will be able to announce the plans for supported housing next week and answer many more of the questions that hon. Members have raised. I am convinced that, when the announcement is made, it will be clear that we have listened and properly consulted and considered the concerns of all.

Question put and agreed to.

Resolved,

That this House calls on the Government to halt its current plans to cap, at the local housing allowance rate, help with housing costs for tenants of supported housing and to adopt instead a system which safeguards the long-term future and funding of supported housing, building on the recommendations of the First Joint Report of the Communities and Local Government and Work and Pensions Committees of Session 2016-17, Future of supported housing, HC 867.

John Healey Portrait John Healey (Wentworth and Dearne) (Lab)
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On a point of order, Mr Deputy Speaker. After the Prime Minister made an announcement at Prime Minister’s questions, ahead of our Opposition day debate today, that the Government will drop their plans for a crude cap and cuts to supported housing, have you or Mr Speaker had any indication that Ministers, when they make the full announcement next week, which the Minister has just mentioned, will come and make the announcement to the House with an oral statement? In the light of the unanimous support for our motion tonight and the widespread concern about the Government’s plans over the past two years on both sides of the House and across the sector, it is clearly really important that Members can question Ministers on the announcement in full that they make.

Social Security Support for Kinship Carers

Caroline Dinenage Excerpts
Wednesday 18th October 2017

(8 years, 5 months ago)

Westminster Hall
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Caroline Dinenage Portrait The Parliamentary Under-Secretary of State for Work and Pensions (Caroline Dinenage)
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It is a great pleasure to serve under your chairmanship, Mr Owen. I congratulate the hon. Member for Great Grimsby (Melanie Onn) on securing this important debate on social security support for kinship carers. She has raised a number of important issues and I am glad that she has taken the opportunity to highlight the invaluable work that kinship carers do. They truly are the unsung heroes, stepping in and offering care to children when they most need it.

Let me start by assuring the hon. Lady that the Government acknowledge the immense value of care given by kinship carers, be they family or friends looking after children whose parents are unable to provide the necessary care themselves, or non-parent carers supporting children who would otherwise be in local authority care. As she said, they save the public purse an awful lot of money; but more than that, the value of the stability and care that they give is probably immeasurable. A number of the issues she raised in passing, as well as the Family Rights Group and Kinship Care Alliance report that she referred to, cover a multitude of Departments. I will take a closer look at that report and recommend it to my colleagues from across different Departments.

I am grateful that the hon. Lady raised the specific issues of some of her constituents and others. Those individuals, through the selfless gesture that they make, play such a vital role in ensuring that children are raised in a caring family: an environment that gives them the stability they need to grow and develop. As a society, we owe them a massive debt of gratitude. In particular, she raised the story of her constituent, Alyssa, who raised three of her siblings from a very young age, and I understand that she gave up her own studies to do that. She has clearly done a remarkable job, given that one is now making her own way through university. She should be the subject of all our praise and thanks for that enormous act of self-sacrifice at such a young age—it must have been terrifying for her.

The Government work to ensure that the role of kinship carers is recognised and supported by ensuring access to the same support as parents within the benefits system in relation to child benefit, universal credit, child tax credits and other means-tested benefits. I am sure the hon. Lady will understand that the benefits administered by the Department for Work and Pensions are designed to try to suit the majority of claimants and cannot always be tailored to every individual circumstance, as that would introduce difficult and often subjective decisions into what are intended to be simple, streamlined schemes. However, I assure her that the Government recognise that there are times when the rules may not seem to have the flexibility that one would want, and this is clearly one of those times.

The hon. Lady has raised a number of important issues. This is something I will look more closely at and, as with all our policies, the Department will continue to keep the policy under review.

With regard to the Sure Start maternity grant, payment is restricted to just the one child under 16 in the family. We believe it is important to focus support where it is needed most. That is why we took that decision. The expenses related to the first child—buying all the necessary paraphernalia that come with a baby—are usually greater than those for subsequent children. That means that kinship carers of children under the age of 16 who then have their first baby are usually not eligible for the grant for that baby. However, as the hon. Lady rightly said, the circumstances of kinship carers vary, and it is not possible to legislate for every specific circumstance. As she highlighted, sometimes children taken into kinship care are not infants and did not come with all the necessary baby bits and bobs. That is why I take on board very much what she said and am happy to look at the issues she raised to do with that specific circumstance.

The hon. Lady also raised the Government’s policy to limit tax credits to two children. I would like quickly to touch on the rationale for the policy to provide support for a maximum of two children, as that might help to explain its impact on kinship carers as well as other claimants. As we know, a benefits structure that adjusts automatically to family size is not fair on families supporting themselves solely through work, who do not usually see their incomes rise when they have more children. We know that households need to think carefully about whether they are financially prepared to support an additional child without relying on income-related benefits. The Government’s view is that providing support to a maximum of two children or qualifying young persons in universal credit and child tax credit will ensure fairness between claimants on the one hand and, on the other, those taxpayers who support themselves solely through work. We believe that all children should be treated equally, and the decision to have more children should be taken based on whether the claimant can afford to support additional children.

However, I must stress that the Government recognise that some parents and carers are not able to make choices about the number of children in their family, and kinship carers often step up to the plate unexpectedly. That is why we have developed a number of exceptions for third and subsequent children to the maximum support on entitlement. One of those exceptions applies to parents who already have two children in their household and make the selfless decision to take on the responsibility of kinship care for children who would otherwise be at risk of entering the care system.

Claimants will still be entitled to an additional amount for any disabled children, regardless of the total number of children in the household. It is also worth noting that tax-free childcare is available to households where all parents are earning at least the equivalent of 16 hours at the national minimum wage per week. Households can receive support for any number of eligible children from age zero to 12, or to age 17 where the child is disabled. Child benefit will continue to be paid regardless of family size, as that is the basis of the Government’s contribution towards the cost of bringing up a child.

I reassure the hon. Lady that the Government recognise the pivotal role played by kinship carers. Our welfare policies are designed to ensure fairness between families supporting themselves solely through work and those on income-related benefits and to support those most in need. She has raised a number of important issues and the Department will give the policies discussed today and their impact on kinship carers every consideration.

Question put and agreed to.

Oral Answers to Questions

Caroline Dinenage Excerpts
Monday 9th October 2017

(8 years, 5 months ago)

Commons Chamber
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Andrew Bowie Portrait Andrew Bowie (West Aberdeenshire and Kincardine) (Con)
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I am sure that the Secretary of State and everyone in this House would agree that parents should fulfil their financial obligations to their children. But do they agree that much more should be done to combat those who are shamefully using legal loopholes to avoid paying child maintenance?

Caroline Dinenage Portrait The Parliamentary Under-Secretary of State for Work and Pensions (Caroline Dinenage)
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Where a parent fails to pay on time or in full, we aim to take immediate action to recover that debt and to re-establish compliance. Where someone’s personal income appears suspicious in any way, caseworkers may refer that case to our newly beefed-up financial investigations unit.

Sharon Hodgson Portrait Mrs Sharon Hodgson (Washington and Sunderland West) (Lab)
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I wrote to the Secretary of State on Friday about my constituent, Danielle Brown, who lost her leg at the age of two. She has now lost her PIP and her Motability car. Will the Minister look into this case and assure me that I will get a reply as soon as possible?

--- Later in debate ---
Lord Austin of Dudley Portrait Ian Austin (Dudley North) (Lab)
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How much does the Secretary of State estimate is being paid out through housing benefit, or will be paid out under the housing-related costs of universal credit, for unfit accommodation in the private rented sector? All too often, I meet vulnerable tenants living in completely unfit accommodation. A huge amount of taxpayers’ money is being used to line the pockets of dodgy landlords. It is a complete and utter disgrace, and I would like to know what the Secretary of State’s estimate is of the size of the problem and what he is going to do about it.

Caroline Dinenage Portrait Caroline Dinenage
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We are always concerned about substandard rental accommodation, and we do keep in touch with the relevant bodies. This is something that is generally of concern to the Department, and it is something we will keep an eye on moving forward.

Lilian Greenwood Portrait Lilian Greenwood (Nottingham South) (Lab)
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The all-party parliamentary group on deafness recently heard compelling evidence about the disproportionate and damaging impact the cap on awards under the Access to Work scheme is having on people who use British sign language as their first language, with deaf people having job offers withdrawn, withdrawing from their roles and giving up on their careers. The Government say they are committed to improving disabled people’s opportunities at work, but this policy is destroying them. Will the Minister think again?

High Court Judgment: Benefit Cap

Caroline Dinenage Excerpts
Tuesday 4th July 2017

(8 years, 8 months ago)

Westminster Hall
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Caroline Dinenage Portrait The Parliamentary Under-Secretary of State for Work and Pensions (Caroline Dinenage)
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It is a great pleasure to serve under your chairmanship, Mr Hanson. I congratulate the hon. Member for Glasgow Central (Alison Thewliss) on securing this important debate on the benefit cap High Court judgment.

The hon. Lady is absolutely right to bring the issue to the House. As she knows, the Government are committed to building a country that works for everyone, and that means taking action to help and encourage people into work and away from a life of welfare dependency and to restore fairness between those who pay into the system and those who access it. We believe that those out of work should not receive more in benefits than many working families are able to earn. Before the cap, the Department for Work and Pensions disproportionately spent £10 million a year on just 300 families.

As the hon. Lady said, we introduced the benefit cap in 2013 at a national rate of £26,000 a year. Its aim was to encourage people to find work, and that is exactly what has happened. We did that on the principle that work not only pays, but brings self-esteem, better health, better happiness and improved self-confidence, as well as much more opportunity for social mobility for children in such households. The evaluation of the original cap shows that that is what has happened.

Capped households are 41% more likely to go into work than uncapped households, and 38% of those capped who were interviewed said that they were doing more to find work. The original cap met its aims, but the change was mainly felt in London and the south-east. To spread the work incentives across the country, we introduced a lower tiered cap in November last year. It aims to build on the original successes. The new tiered cap is set at £23,000 for couples and lone parents in Greater London and at £21,000 for other parts of the country. That is an equivalent salary of £29,000 in London or £25,000 in the rest of the UK. We know that four out of 10 households in London and in the rest of the UK earn less than those respective amounts. That system is fair to those who use it and to those who pay for it.

The cap levels continue to provide a clear incentive to work. Households are only required to work part-time hours to be exempt from the cap. Households that claim working tax credits are exempt from the cap if they work just 16 hours a week for lone parents or earn £520 a month on universal credit. However, we acknowledge that the move into work just is not appropriate for some people. That is why there is a range of exemptions for vulnerable groups, including households in receipt of most disability benefits, carer’s allowance, the equivalent universal credit carers element and the guardian’s allowance.

We were disappointed by the High Court judicial review decision, which challenged the application of the cap to lone parents with children under the age of two. The Court gave the Government the ability to appeal, and we will be appealing the decision, as we strongly believe that work is the best way for people to raise their living standards. We know that children whose parents work benefit from increased life chances. They are less likely to grow up in poverty. Evidence shows that one of the biggest drivers of child poverty is long-term worklessness and low earnings.

I want to respond to some of the issues that the hon. Lady raised. The latest labour market statistics show that we continue to have a record number of people in work. In April, nearly 32 million people were in work. Evidence shows that work is the best route out of poverty. There are also record numbers of lone parents in employment. It is not easy. In life, very few people choose to be a lone parent, as I know. I never made the choice to be one, yet I was a working lone parent, making the same difficult decisions that lone parents, particularly mothers, have to make every single day.

An evaluation of the previous benefit cap showed that it changed attitudes and behaviours. One in five of all capped households went to work after a year, compared with just 11% of similar uncapped households previously. Importantly, capped lone parents were 51% more likely to be in work after a year as compared with similar uncapped lone-parent households. Those surveyed said that the new employment had brought financial rewards —some felt better off and able to afford extra treats for their children—and other rewards in health, happiness and self-esteem.

The hon. Member for Glasgow East (David Linden) talked about the family test, but he is mistaken about what it is. He has a far too pessimistic view. It is not a tick-box exercise, but a way of assessing the impact of a policy on a whole range of family measures. It is not in children’s best interests to live in workless households. Children’s life chances and opportunities can be significantly damaged by living in households where no one has worked for years and where parents do not consider work as an option.

Let us face it: we are only requiring people to work for 16 hours a week. Children in households where no parent or carer is in work are much more likely to show challenging behaviour by age five. Parental worklessness has been shown to be significantly associated with poorer academic attainment and greater behavioural problems in children aged seven. Growing up in a workless household is associated with a higher risk of being not in education, employment or training in late adolescence.

David Linden Portrait David Linden
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The Minister is talking about the importance of ensuring that we do not have households with worklessness, but part of the problem is that the Government have done very little to tackle pay inequality. They are bringing forward a living wage that does not support under-25s. Nothing the Minister is saying reassures me that the Government are making any attempt to tackle pay inequality, particularly for under-25s. This Government will be actively discriminating against them with their false living wage.

Caroline Dinenage Portrait Caroline Dinenage
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I am afraid the hon. Gentleman is just wrong. Some 1.3 million people on the lowest incomes have been taken out of income tax altogether since 2015. In April 2017, we increased the national living wage to £7.50. That will directly benefit 12 million workers this year. A full-time worker on the national living wage will see their annual pay increase by more than £500.

One issue raised was that the benefit cap is forcing people to move. Our evaluation of the original cap found that very few households moved house. Where they have moved, the vast majority have moved locally.

I am particularly concerned about the arguments that the hon. Member for Glasgow Central made in respect of vulnerable women. Before doing this job, I was the Minister for Women and Equalities, and the violence against women and girls agenda is close to my heart. That is why I am delighted that the Government have committed more than £100 million to tackling violence against women and girls. Such violence is absolutely unforgivable in any circumstances.

We recognise that some groups, such as pregnant women, new mothers and victims of domestic violence, find it harder to adapt to benefit caps. That is why we have explicitly stated in the guidance that direct housing payments should provide targeted help to women within 11 weeks of an expected birth and to households with children under nine months. Women who need safe accommodation, such as sanctuary houses, are prioritised. Housing benefit can be paid for both the home a victim has fled and the refuge or other temporary accommodation for up to 52 weeks. That 52-week limit is to avoid the blocking issue that the hon. Lady specified. It is also disregarded from the benefit cap.

In regard to Scotland, 7,300 households have been capped since the benefit cap was introduced. Of those, more than half are no longer capped, with 21% moving into work. The cap is having a positive impact. We can always find negative and distressing stories; when those happen, the hon. Lady is more than welcome to bring them to my desk and to my attention, but we have to look at the vast majority of people who have been assisted by the cap.

Both the cap and the policy limiting entitlement to the child element of tax credits were subject to detailed impact analysis throughout their development. We know that children whose parents work have improved life chances and are less likely to grow up in poverty. Parents receiving universal credit can get help with up to 85% of their eligible childcare costs. That is not just for children over the age of two or three; there is no minimum child age requirement for claiming costs through working tax credits or universal credit.

Our new childcare offer is backed by unprecedented levels of investment. Spending on childcare will increase to £6 billion by 2020. I was the Minister for early years education, and we are spending more than any previous Government on early years education and support for childcare. Finally, the flexible support fund can be used to help those working fewer than 16 hours a week with childcare costs for a child of any age, when those costs would otherwise present a barrier to work.

Lowering the cap emphasises the message that it is not fair for someone on benefits to receive more than many people in work. The hon. Lady may say that I should cross through those lines in my speech, but they are the most important. Even when claimants remain capped, they are better off from any work they are able to do. In some cases, a relatively small amount of work can be sufficient to mitigate the effects of the cap. For those impacted by the cap, we have made discretionary housing payments available to people who may need extra help.

Motion lapsed (Standing Order No. 10(6)).

Oral Answers to Questions

Caroline Dinenage Excerpts
Monday 3rd November 2014

(11 years, 4 months ago)

Commons Chamber
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Iain Duncan Smith Portrait Mr Duncan Smith
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I have not seen that report, but I am happy to look at it. However, I believe that the work being done in schools under this Government to support people who come from low-income families is phenomenal. Introducing that support for those children means that more children are now staying in school. As I said earlier, they are getting better results directly as a result of that support provided for them in school.

Caroline Dinenage Portrait Caroline Dinenage (Gosport) (Con)
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T7. Casework in my constituency has shown that, although the Department for Work and Pensions does well in identifying and prioritising claims made by terminally ill patients, when those claims are passed to Atos there is a lack of monitoring. What steps is the Department taking to ensure that those claims are dealt with in a timely manner at every point in the system?

Oral Answers to Questions

Caroline Dinenage Excerpts
Monday 1st September 2014

(11 years, 6 months ago)

Commons Chamber
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Iain Duncan Smith Portrait Mr Duncan Smith
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The hon. Lady is in a hole and she really should stop digging. Let me remind her of what we had to take over when we came into government. Left unreformed, the bill that Labour left us with would have exceeded £26 billion in 2014-15. Instead, today, it is £24 billion—£2 billion less. Under Labour, in-work and out-of-work housing benefit claimant numbers increased, and those who were in more despair, being out of work, had to claim higher payments. Under us, homelessness is down 7%, half the peak that occurred under the last Government, and rent collection is currently 98% higher than under the last Government. Also, housing association arrears fell during the last two quarters. All of that is better than anything that the last Government left us as a result of their record on spending.

Caroline Dinenage Portrait Caroline Dinenage (Gosport) (Con)
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T2. A number of my constituents have experienced lengthy delays while waiting for a decision on a review of their personal independence payment application. That is a time of great uncertainty and stress for all concerned. In addition to the efforts that the Minister has already outlined, will he tell us what steps he will take to speed up the application, review and appeal processes?

Lord Harper Portrait The Minister of State, Department for Work and Pensions (Mr Mark Harper)
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My hon. Friend will know from earlier answers the priority that we attach to this. As well as ensuring that the assessment can take place faster, we are also ensuring that the DWP decision makers will be able to cope with the increased number of cases as those cases move through the system, so that, once we have got the assessment process sorted out, those decisions will be made in a timely way which will benefit her constituents and mine.

Jobs and Work

Caroline Dinenage Excerpts
Wednesday 11th June 2014

(11 years, 9 months ago)

Commons Chamber
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Austin Mitchell Portrait Austin Mitchell
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If it is any consolation, Madam Deputy Speaker, my clock stopped in 1979. I hope that that qualifies me for an extension of my speaking time.

This kind of society where wealth accumulates and wages and salaries fall as a share of GDP is very undesirable. As Goldsmith put it,

“wealth accumulates, and men decay”.

And it is an economically inefficient society, because purchasing power and stimulus to the economy, then growth, come from the purchasing power of the masses, not the classes. If we are transferring more money to the classes, we will have a slow-growing, stagnant economy. Under the policy pursued by this Government, the only real long-term plan is to slash public spending, benefits and the living standards of the working classes, to transfer money to tax cuts for the rich. The theory is that this will stimulate enterprise and money will trickle down to the poor and the working class, in the same way that the trickle-down effect of horses improves roads. That is the plan, and it is a disastrous development for our economy.

I agree with the proposed measures on raising the minimum wage, promoting the living wage and improving skills, but other measures need to be taken as well. The only real solution to the problem is economic growth to put the people back to work, because full employment is the only adequate form of social security that we have ever developed in this country. That means, first, a massive house-building programme, particularly one of public housing for rent that people can move into, because most people now cannot afford a mortgage and could not get one if they tried. That could be financed by municipal bonds or quantitative easing. Why should the money from quantitative easing—which is, in effect, the Bank of England printing money—all go into the vaults of the banks? Why should it not be used to finance contracts for massive public spending and investment in work on new towns, for instance, provided that there are proper contracts and a proper rate of return? We should use quantitative easing to improve public spending.

Austin Mitchell Portrait Austin Mitchell
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I am not giving way—I am sorry. I am having my time extended as an incentive to carry on next year.

Secondly, we should expand public spending generally. What is the problem with borrowing? In a recession, we need to borrow to stimulate the economy. Keynesian economics still works. Why are we so reticent about borrowing more to spend, to stimulate growth? Only in a growth situation can we pay back the debt.

Thirdly, we should boost exports by getting the pound down to a more competitive level. It has risen by nearly 10% in the past few months, and it needs to be more competitive if our exports are to be stimulated.

We need to take all those measures to expand the real economy as well as the measures to deal with the labour market that we are discussing. I appeal to the Government to get rid of their restrictive attitude and start thinking about expansion. I ask my Front Benchers to be less cautious and timorous about capital. Let us expand, grow, and get the people back to work.

Robin Walker Portrait Mr Robin Walker (Worcester) (Con)
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It is a pleasure to follow such a passionate speech by the hon. Member for Great Grimsby (Austin Mitchell). I share his passion for full employment. It is a pleasure to speak on the day the claimant count in Worcester is more than 1,000 fewer than it was at the time of the general election and youth unemployment has halved since its peak under Labour in 2009. As a result of raising the tax threshold, more of those people who have found work will keep more of the money they earn, which we should all celebrate.

As a member of the Business, Innovation and Skills Committee—I very much enjoyed my Chairman’s speech earlier on apprenticeships and pubs, which are two areas on which we are making progress—I am delighted that jobs and work are at the heart of the Gracious Speech and particularly welcome the small business Bill. Small businesses are the lifeblood of our economy, and it is to the credit of this coalition Government that we have seen increasing numbers of businesses starting up, employing and expanding. Worcester has a very lively small business community, and one of my greatest pleasures as its MP has been to visit some of the entrepreneurial businesses starting up and then see them grow and take on jobs and apprentices.

It has been right to reduce the tax burden on small businesses as well as on the people who work in them, and the Gracious Speech commits us to continue to do that by talking about the need to

“cut taxes in order to increase people’s financial security.”

Caroline Dinenage Portrait Caroline Dinenage
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My hon. Friend is an outstanding member of the BIS Committee. Does he agree that, contrary to what the hon. Member for Great Grimsby (Austin Mitchell) has said—when he said that his clock stopped in ’79, I thought he meant 1479—the one thing we need to do to get businesses employing and growing is not to print more money, but to trust them, tax them less and cripple them less with bureaucracy, unlike the previous Government, who between 2007 and 2008 imposed more bureaucracy costing £10 billion?

Robin Walker Portrait Mr Walker
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I could not agree more with my hon. Friend, who has been a truly outstanding member of the Committee. We will miss her if she goes on to greater things.

One of the ways in which we have removed a burden from small businesses and the people who work for them is by freezing fuel duty not just once, but throughout this Parliament. My hon. Friend the Member for Harlow (Robert Halfon) has campaigned very hard to achieve that and I congratulate him on his success.

In this Parliament, I am very proud to have supported the scrapping of Labour’s jobs tax, the introduction of the employment allowance and the extension of doubled small business rates relief. The Gracious Speech takes forward that legacy, but business rates are one area on which I would have been keen to see the Government go further. I warmly welcome the decisions taken in last year’s autumn statement to provide extra discounts to small retail businesses and to initiate a consultation on how the valuation office and appeals system could be improved. However, our Committee recently concluded in its excellent report on the retail sector that fundamental reform was needed:

“Clear, decisive action needs to be taken. If there is one thing that this Report urges the Government to do, it is to reform Business Rates. For retail, and other enterprises, to continue on the High Street, the Business Rates system must be addressed urgently.”

Such reform should make the system more responsive, allow for more regular revaluations, faster appeals, incentives for growing businesses that create jobs and reduce the unfair burden borne by the retail sector.

Although I regret the omission of a business rates reform Bill from the Gracious Speech, I welcome the inclusion of a number of other business-friendly Bills, particularly the small business Bill, which the Federation of Small Businesses nationally and—perhaps more importantly to me—in Worcestershire has warmly welcomed. John Allan, the national chairman of the FSB, has said:

“This landmark Bill will…be welcomed by our members.”

Local businesses have told me that they would particularly welcome measures to encourage prompt payment and a tightening up of what has so far been largely a voluntary code. I have taken evidence as part of cross-party work on some of the problems with late payment that affect many small businesses, and there are sectors, including construction, where not just encouraging but mandating better behaviour would make a massive difference.

Local businesses will also welcome an even greater focus on helping small businesses to access finance. It is good news that the Government should be ensuring that banks automatically pass on customers to alternative lenders when they are turned down for credit. That should encourage the growth of crowdfunding and support the development of community development financial institutions, such as Impetus, which helps many companies in Worcestershire.

Procurement is certainly an area in which the Government can do more to help small businesses. I am delighted that since 2009-10, the value of Government procurement to small and medium-sized enterprises has risen by almost 50% to £4.5 billion, but there is much further to go. That figure is still only just more than 10% of overall public procurement, or 19% if we include the supply chain. This Government have rightly set out to make the figure at least a quarter. Other countries, such as Germany and the US, seem to be able to support a higher proportion of Government procurement from SMEs, and we must do all we can to learn from their example.

This legislative programme also sets out to do something that previous Governments failed to do and that too many small businesses feel they have had to police for themselves, which is toughen up enforcement of the minimum wage. I am proud that this Government have decided to increase the minimum wage above inflation and that they have done so in a way that has kept the support of the business community, but I am also determined that the disreputable minority who flout the rules do not benefit from doing so. Most companies I speak to want to do the right thing, but they expect to be able to compete fairly by doing so, and not to be undercut.

Yesterday, members of the Business, Innovation and Skills Committee met some Members of the German Bundestag to discuss their debate about introducing a national minimum wage. One suggestion to come out of that discussion was that enforcement could be linked to Government procurement, with any company proved to have failed to pay the minimum wage named and shamed by the Government and barred from winning Government contracts. I hope that my right hon. Friends on the Front Bench will consider doing that.

Similarly, I am pleased that this Government, unlike their predecessor, are taking real action on zero-hours contracts. It is good news that the majority of jobs created have been full-time ones. Yet where there has been growth in zero-hours contracts, that matter has been taken seriously by the Government, and legislation affecting this area will be introduced.

In dealing with fairness, we need to continue this Parliament’s valuable work to limit the cost of, and to regulate, high-cost credit. I was pleased to welcome the Chancellor’s actions on this in the Budget. I recently attended meetings with the Church of England and the Financial Conduct Authority, which, in their different ways, are taking forward their respective duties. I want to see further progress on real-time data sharing across the industry and more support for the free debt advice sector, with the cap—when it comes—set at a level that will alleviate the many problems that high-cost credit can cause. I was honoured, alongside my Select Committee colleague, the hon. Member for Sheffield Central (Paul Blomfield), to be named the Citizens Advice parliamentarian of the year for my work on this front, but there is still more to be done.

I welcome this Queen’s Speech and its measures to create greater prosperity and more jobs in this country. I hope that those measures will have their full effect in Worcester, and I look forward to fighting Worcester’s corner in the year ahead.

Oral Answers to Questions

Caroline Dinenage Excerpts
Thursday 30th January 2014

(12 years, 1 month ago)

Commons Chamber
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Jenny Willott Portrait Jenny Willott
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As I understand it, there are 500 more after-school clubs than there were at the time of the last election, which is a 5% increase over the past couple of years. The Department for Education is working extremely closely with schools to encourage the increase of breakfast clubs, wraparound care and after-school clubs as they make it far easier for a large number of parents to work while their children are in a safe and protected environment.

Caroline Dinenage Portrait Caroline Dinenage (Gosport) (Con)
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As a working mother under the previous Government, I was painfully aware of how child care costs became the most expensive in Europe. Does the Minister agree that the Government’s introduction of tax-free child care really helps working parents get the affordable quality child care they need?

Jenny Willott Portrait Jenny Willott
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My hon. Friend is absolutely right. That is not the only thing the Government have done to ensure that child care is affordable. By increasing the number of hours of free Government-funded child care to which three and four-year olds are entitled, parents are saving nearly £400 a year more. Furthermore, by introducing extra free child care for disadvantaged two-year-olds, parents save £2,400 a year, which makes a significant difference to the families of some of the most deprived young children.