(5 days, 9 hours ago)
Commons ChamberBefore I call the next speaker, may I make it clear that I will come to the Liberal Democrat spokesperson immediately afterwards?
I welcome the return of this Bill to the House. I was happy to speak on it on Second Reading, when I welcomed the Government’s crackdown on fraud, because every pound lost to fraudulent claims is a pound that could be spent on the vital public services on which my constituents in Clwyd North rely. It is extremely good to see the recognition of the issue, and the action taken in response to the £7.1 million of fraud and error payments in 2022-23 in Wales alone—that figure is up by £600,000 on the previous year.
The fine-tuning of this Bill is important, and that fine-tuning is done through the Government amendments, which speak to the correct application under devolution settlements, policy intent, the application and limitation of part 3, and the consequential amendments proposed to parent Acts. I was glad to be a member of the Public Bill Committee that considered the Bill in more detail, and I throw my weight behind the comments made about how the Bill Committee progressed, and how helpful that was to Committee members. The explanations and expansions by the Ministers served us well and have brought us to where we are today.
I spoke on Second Reading about the distinction between intentional fraud and accidental individual error, and I am pleased that Government amendments speak to reservations relating to that, and to proportionality. Crucial safeguards will be strengthened to ensure that no one is pushed into undue financial hardship because of debt recovery. Those safeguards include strict affordability checks on recovery payments, and checks on vulnerabilities.
The Bill will protect vulnerabilities where we see them and it is very much a Bill of last resort. It is aimed at people who are not engaging with the DWP on fraud and error cases. Now that carers are aware of the problems that have occurred in the system, we hope that they engage, so I do not believe that the Bill will impact them in the way that the hon. Gentleman suggests. Indeed, the Bill will protect claimants by enabling early dialogue, which will stop errors sooner and prevent debt building up through genuine mistakes; I initially had a reservation on that point.
It is clearer than ever that the measures are powers of last resort for those who have refused to engage and are able to pay—it is important to emphasise that point. The measures put DWP powers in line with those that already exist for His Majesty’s Revenue and Customs and the Child Maintenance Service, and put the importance of the public money spent by those bodies on an equal footing.
The behaviour change that is expected to come as a wider benefit of the Bill is welcome. The Bill encourages debtors to negotiate a repayment plan ahead of using the measures of last resort. Importantly, as has been said, it deters organised fraudsters and those looking to become involved in fraud by ensuring that it is not framed as a victimless crime. It is anything but, because it robs us all of vital money for public services. We are not willing to shrug our shoulders at that, as the Conservative party did at the rising tide of fraud during the covid pandemic and beyond. We must all reinforce the narrative that benefit fraud is not a victimless crime, and our tackling it through the Bill is long overdue.
Throughout the passage of the Bill—in Committee and now on Report—I have been reassured that those who have genuine difficulty navigating the social security system have nothing to fear from the Bill. Indeed, it will raise awareness of the importance of early dialogue. However, I still have concerns about the complexity of the system and how it is administered, as I voiced at Second Reading, but that is for another day. As a member of the Work and Pensions Committee, I will continue to focus on that, as well as having regular dialogue on the subject with my constituents.
To conclude, I welcome the Bill and the fine tuning that has come about through Government amendments passed in Committee. I was pleased to serve on my first Public Bill Committee, and thank the Chairs, Ministers and all involved for its smooth running. I am happy to support the Government amendments put to the House today.
I call the spokesperson for the Liberal Democrat party.
I start by assuring the hon. Member for South West Devon (Rebecca Smith) that my office has talked me out of mentioning the Waitrose cheesecake that was a hot topic throughout Committee. On a more serious note, I would like to explore the challenges in the Bill. As we have heard, fraud can only be a bad thing, as it robs the public purse, but we need to ensure that our approach is proportionate, and that is where the rub is for us, as Liberal Democrats.
First, I want to focus on the covid crisis. We all lived through that, and some of us were in hot seats. I was leader of Torbay council at the time, so it felt as if I was in the eye of the storm for some of those challenges. I am afraid to say that for many of us in this Chamber, it feels as if the Conservatives were asleep at the wheel, given the level of fraud that we saw taking place during the pandemic. The fact that £10 billion-worth of fraud occurred around personal protective equipment is shocking. Some £16 billion of fraud occurred around support for businesses. While it was extremely important that we supported businesses appropriately, the safeguards were extremely limited. One businessman in Torbay said to me that it was as if the Chancellor of the Exchequer had got handfuls of £50 notes, filled carrier bags across the town centre, and said to the criminal element, “Come and help yourselves.” The reality is that the money could and should have been put to good use. In my constituency, Torbay hospital is crying out for investment. We have a sewage scandal, and the Environment Agency could be supported in tackling that issue. We also have the cost of living crisis; we could support people in ensuring warmer homes. All that money could help with those things.
A colleague and good friend has already alluded to the carer’s allowance crisis, and the real challenge that it poses. More than 136,000 people—the population of the Torbay unitary authority area—are affected by it. There is some £250 million of cost on those people. We Liberal Democrats fear that the powers in the Bill could make things even tougher for those who have challenges to do with the carer’s allowance.
Members do not have to take it from me that the benefits system is broken; the Secretary of State for Work and Pensions, the Chancellor of the Exchequer and the Prime Minister have said that it is. If there is such agreement in Government that the benefits system is broken, why are we adding to this edifice? It is built on a foundation of sand, yet we are looking to pile more responsibilities on to it, without looking for the true, positive culture change in the DWP that we need.
Colleagues have alluded to the areas of debate around the Bill. I will touch on a few major concerns that we Liberal Democrats have. The opportunity that the Bill presents for Orwellian levels of mass surveillance of those who get means-tested benefits causes me grave concern.
I congratulate my hon. Friend on his eminently reasonable and common-sense approach to this debate and on amendment 11. Does it seem to him, as it seems to me, that this legislation takes place in a wider context? Along with the proposed tightening of eligibility for personal independence payment, it moves us towards a hostile environment for benefit claimants, particularly disabled benefit claimants. We will end up treating them as suspects automatically. Does he agree that it was right for us to oppose this measure when the Conservatives wanted to do it? I tabled an early-day motion, signed by nearly 50 MPs, to that effect. We have to oppose this measure now. The best way to resolve it is by the Government accepting his eminently reasonable—
Order. That was a very long intervention. Perhaps we would be better off going back to Neil Duncan-Jordan.
I thank my hon. Friend for his intervention. I will cover the connection between this piece of legislation and the Green Paper shortly.
Order. It would be helpful if Members tried to confine their speeches to five minutes or so, but I do not propose to introduce a formal time limit yet.
I wish to speak in support of new clause 11, entitled “Publication of results of pilot schemes”. Make no mistake: this Bill allows for a massive expansion of state powers. It will permit mass financial surveillance of the public. It is a massive overreach by the state, so of course it requires close scrutiny. It requires the publication of those results, and then they must be analysed.
Let me put this in context. Before the covid years, fraud and error across the tax and benefit system were at an all-time low. Then, in 2020, after a state-imposed lockdown—another massive state intervention—unprecedented financial support was set up for millions of people, in a rush of panic, with the full support of Members on both sides of the House. I exclude myself from that, but very few Members opposed the arrangement, and it opened up all sorts of new vulnerabilities in the system.
This support was set up only because of a blanket stay-at-home mandate from the state. It was the state that opened up those fraud vulnerabilities, and it was the state that saw, as a result of those impositions, many millions more people claiming universal credit. Let me give the House the figures. In March 2020, 3 million people were receiving universal credit. By November that year 5.8 million were receiving it, and in January 2025 the number was 7.5 million. Just as the heavy-handed state intervention of lockdown left the public paying a very high price, I am concerned that the Bill, another heavy-handed state intervention, will also leave the public paying a very high price. As Big Brother Watch states, the Bill will introduce
“an unprecedented system of mass financial surveillance; create a second-tier justice system for people on the poverty line; undermine the presumption of innocence; result in serious mistakes risking the freedoms and funds of our country’s elderly, disabled and poor; and turn Britain’s once-fair welfare system into a digital surveillance system.”
I have said it before and I will say it again, lockdown was an experiment inflicted on the British people without their consent and that experiment failed. The Bill will be another such experiment on the British public.
Following the right hon. Gentleman’s track record on issues like this—he has been proved right on virtually every occasion—I agree. In addition to the mass surveillance, the extent of the information that can be sought and interpreted from the Bill is extremely wide-ranging and open to challenge.
What has annoyed me is that we are now introducing legislation in advance of what we were promised by way of codes of conduct and operation. We have no idea how this will work out in practice without those codes. Members may recall that the codes set out detail on how the system would operate at every level, with the information seeking, investigatory powers and so on. We do not have those, but we are being told not to worry, because the other place will receive them—well, that is not our responsibility as MPs. Our responsibility is to deal with the matter here.
We also do not know how the “independent persons”, as they are described in the legislation, are to be appointed or how they are going to operate. The hon. Member for Brighton Pavilion (Siân Berry) raised the question of how their reports and recommendations will then be implemented. There is also the question of whom they will be accountable to and whether there is any accountability for those independent persons to this House.
Time and again, when we have introduced legislation like this in the past that has short-circuited the traditional protective constitutional and legal mechanisms, it has led to debacles and miscarriages. I warn Ministers that that is exactly what we are facing here. Reference has been made to issues with regard to the use of computers, models and algorithms. We seem to have learned nothing from where we have made those errors.
As I also raised on Second Reading, what is happening here is discriminatory. We are choosing a class of people—largely working-class people—who are claiming benefits, and we are targeting them. If there is a class of people we should be targeting who have a record of fraud and of claiming things that they should not, well, here we are. As the expenses scandal demonstrated, if there is one group of people we should be examining more closely, it is Members of Parliament.
I want to talk very briefly about the impact of these measures from a constituency point of view. As an MP for 28 years and a councillor for over 12 years—40 years in total—I have met lots of people who do not claim benefits to which they are entitled. They are often older people, but there are others as well. Why do they not claim? In my experience, it is because of the stigma attached to claiming benefits. With this Bill, we are adding a bit more stigma, which will act as a disincentive to those who genuinely qualify for benefits and should be coming forward. It is that terror of making an error, that fear of risking being penalised for claiming a benefit they may not be entitled to—or of being paid too much. There is a real fear among my constituents about such miscarriages.
Most of the constituents who come to our constituency surgeries have tried everything else by the time they get to us. They are the ones with the most chaotic lives. And they are the ones who get sanctioned time and again, not because of any deliberate act, but often because they have mental health issues, or because something in their life, prevents them from attending that interview, or from applying for enough jobs in time. What will happen to them? They will be dragged into this system again. At the moment, they come to us—this is largely the case in my constituency—because most of the advice agencies have been closed down thanks to the cuts that have taken place, and they come to us in desperation. This Bill will make people even more desperate. It will deter people who qualify for benefits from claiming, and it will cause real hardship and impose severe penalties on those who least deserve it. That is why I think this is a poor piece of legislation, and it will not be long before we are back here again to amend it, to restore some elements of civil liberties and protection for the poorest in our society.
I shall impose, with immediate effect, a four-minute time limit.
When it comes to public money, everyone accepts the importance of preventing fraud; there is no dispute about that. The mere thought that our benefit system could be exploited loosens the cement holding our welfare system together. However, if we look back in history, there has been a track record of fraud recovery measures not delivering what was hoped. This measure will also probably never save the £1.5 billion that is expected of it, so I ask: will the alleged rewards of this legislation ever match the scale of the imposition on our civil liberties, and are we really going after the right targets?
We all want to catch deliberate and professional fraudsters, but they are precisely the people who are astute enough to change tactics, set up separate bank accounts, and avoid suspicion. Instead, it will be the innocent and the accidental claimants who fall into the trap. The implicit assumption is that we should trust in the DWP as a completely error-free organisation across the entirety of its massive operation. But the DWP does make mistakes. It makes mistakes all the time. And even when it knows that it has made a mistake, and it has been told so, it is very capable of making the same mistake all over again.
In my constituency of Horsham, Anthony and his husband were accused of providing misinformation to the DWP and were overpaid £10,000 as a result. Anthony protested without success. After a long fight the case went to appeal. The tribunal wasted no time deciding in his favour—it was an open and shut case. But then, earlier this year, Anthony and his husband were migrated over to universal credit. After confirming all details were correct, the DWP overpaid them again, and then sought to claw the money back over the following months. The DWP’s mistake, but Anthony pays the penalty.
The DWP has its rules, but real life does not run in straight lines. Real life is messy. How can we possibly rely on the DWP to mark its own homework when we know that there are just four fraud advisers per regional office to handle cases flagged by frontline staff?
Yes, there are some checks and balances within this legislation, but what is really needed is a profound cultural change within the DWP, and that is much harder to achieve. The common experience of people who have to deal with the DWP on a daily basis is that they feel that it is always looking to catch them out. Years and years of inflammatory rhetoric under a succession of Conservative Governments have convinced people to regard the DWP as their enemy, not their friend. If anything, the Bill digs that hole a little deeper.
What concerns me most about the Bill is its extreme overconfidence. It assumes that Government agencies always get things right and that individual citizens are to be automatically treated as objects of suspicion. In Committee, the Government were resistant to any amendments except their own, so I very much hope that they will reconsider today and accept the Liberal Democrat amendments.
(1 month, 2 weeks ago)
Commons ChamberI will be reasonable and give way to Members, but first I want to point out that some of the money that has been saved will be spent on the national health service. There is £25.6 billion extra for the NHS this year. Unfortunately, I have had the bad luck of being in accident and emergency with a number of family members in recent months. In this place we often talk about the impact of the national health service struggling, and what I saw there shocked me. I have seen children sleeping on their coats on the waiting room floor for 12 hours. I have seen pensioners on trolleys in corridors for days, crying out for help. It is an appalling legacy—
Order. I remind Members that we are debating the winter fuel payment. It is perfectly in order to try to put that in context, but perhaps we should steer away from a debate on the NHS.
I thank you, Madam Deputy Speaker, for your reminder. I have come to the end of my section on context, so let me bring my speech to a close. [Interruption.] My hon. Friend the Member for Hartlepool (Mr Brash) makes the good point that I should give way.
Order. Around 15 Members still want to speak. The wind-ups will start at 6.35 pm, so if everyone is to get in, perhaps some thought could be given to the length of contributions.
I am grateful to the right hon. Member, including for the way in which he puts his point. He will hopefully share my relief, then, about the household support fund, which I often find my constituents do not know about. The fund is not reported heavily in the media, so it would be wise for us all to take the opportunity in this debate to reiterate that that support is available to people who are just above the threshold and who might just miss out on accessing the winter fuel allowance, so that they know that. I signpost many concerned constituents to Citizens Advice Wirral and support them in accessing the money available through the household support fund, hundreds of millions of pounds of which has come from this Government.
Conservative Members rightly talk about the need to relieve pressures and protect the most vulnerable. However, I question where their outrage was when their Government, back in 2021, broke their manifesto commitment and suspended the triple lock; I wonder where their outrage was when their leader recently suggested that we should look at means-testing access to the state pension; and where was their outrage when only months ago the shadow Chancellor suggested scrapping the triple lock all together?
It is Labour politicians who are committed to protecting pensioners’ incomes and delivering support to those in need. I have mentioned the household support fund, and we are ending the Tories’ disastrous plans to drag a record number of pensioners into paying income tax by uprating personal tax thresholds from April 2028. Unlike the Tories, we have an iron-clad commitment to the triple lock, which will see the state pension of millions increase by more than £470 this year. I would like to hear them welcome that. We are supporting those caring for their loved ones by increasing the income threshold for carer’s allowance so that more than 60,000 carers will benefit by the end of this Parliament.
Times are tough and this Labour Government have made tough decisions to get our country back on track. As I mentioned, NHS waiting times have now fallen for five consecutive months. We have not had that for a long time. We have made a deal with GPs so that healthcare in the community works for everyone, we have targeted income support to those in the most difficulty and we have launched the biggest ever drive to ensure that those who can claim pension credit do so, with almost 50,000 more pensioners now getting the money they are entitled to. The Tory status quo meant only decline for this country. With the Government’s plan for change, we will get the country back on its feet.
I am introducing an immediate three-minute time limit. I call Bradley Thomas.
The motion talks about ensuring that
“those eligible for Pension Credit receive it”.
To return to the point I made earlier, if Conservative Members were so concerned about vulnerable pensioners, why was there absolutely no movement in the take-up of pension credit under the previous Government? Some 700,000 pensioners are eligible for pension credit, but I do not remember a big campaign on that by the previous Government that made a difference—
Order. The hon. Gentleman’s intervention is far too long.
I thank the hon. Gentleman for drawing attention to his own Government’s promise to increase the take-up of pension credit. After the past winter, there are still 750,000 pensioners who have not taken it up, so he should not speak with any pride or seek to deflect to previous Governments when his own Government have withdrawn the winter fuel payment and there are still 750,000 eligible pensioners who are not receiving pension credit.
Once again in this House we find ourselves discussing Labour’s failure to protect our pensioners. Time and again we have exposed its false narratives and asked how it intends to use technology to reduce costs, improve services and drive productivity. This Government capitulated to the archaic working practices of train drivers and their trade union paymasters. There has been no serious attempt to modernise, no recognition of the technological advancements of the past five years, and no meaningful reforms to improve efficiency. Worse still, their Employment Rights Bill drags Britain back to 1970s French-style labour laws, rolling back the vital protections of the Trade Union Act 2016. These outdated policies stifle economic growth, make job creation harder and hand excessive power to unions—
Order. I remind the hon. Member that this debate is on winter fuel payments.
Thank you, Madam Deputy Speaker. I merely wish to set the scene for winter fuel payments.
The hon. Member makes a point that he is passionate about, but I do not agree with him. We need to produce more of our energy here at home, rather than relying on imports. That is why the Government should change their policy and issue new oil and gas licences. I urge hon. Members on the Government Benches —lots of them are honourable—to please support pensioners today and vote to keep the winter fuel allowance.
That brings us to the wind-ups. I call the shadow Secretary of State.
(3 months ago)
Commons ChamberThe eligibility verification measure is for banks and financial institutions. It has been tightly defined, which is one of the reasons the Information Commissioner has written his response now. The last Conservative Government just referred to third-party data. That was not a serious proposal, narrowly defined with proper independent oversight. We want the legislation to pass and be used proportionately and effectively. That is why we have included the proposals as drafted.
The second important point is that there will be a statutory code of practice on how the powers can be applied, which we will consult on during the passage of the Bill, to clearly define the scope and limitations. Thirdly, there will always be vulnerability checks for each individual under the new debt recovery powers to ensure that people are not forced to pay back money that they cannot afford. Last, but by no means least, final decisions affecting benefit entitlement will always be made by a human being. Those decisions will sit alongside the right to reviews and appeals—no ifs, no buts. Put together, I believe that those new safeguards will provide the reassurance that the public and some Members of this House need that the Bill’s powers are proportionate, safe and fair.
The Bill delivers the biggest upgrade to the DWP’s anti-fraud powers in more than 14 years. It brings in new powers to tackle fraud right across the public sector by empowering the Public Sector Fraud Authority, and not before time. Our approach is tough but fair: tough on criminals who cheat the system and steal from taxpayers; tough on people who refuse to pay back money; fair on claimants, by spotting and stopping errors earlier, helping to avoid people getting into debt; fair on those who play by the rules and rely on the social security system; and fair on taxpayers, by ensuring that every pound is spent wisely, responsibly and effectively on those who need it. We were elected on a mandate for change, and that is what the Bill will deliver.
A strongly held Conservative principle is that public money must not be wasted. We hold this view not because we are mean, but because the Government do not have money of their own. What they have, they raise through taxation from all of us. A tiny fraction of every penny that they spend is yours, mine and everyone else’s who pays in. Those who spend public money have a duty to spend it wisely, and ensure that it ends up only with those who should have it, for the purpose for which it was intended. In a big, complex system of government in a country of nearly 70 million people, from time to time that will not happen for a range of reasons—from a form that has been accidentally filled in with the wrong information, or a change of circumstance that someone forgot to notify the jobcentre about, to serious organised fraud—but however taxpayers have lost out, it is incumbent on the state to do all that it can to get their money back. That is what taxpayers rightly expect. It is part of the unwritten contract for collecting that money in the first place. Therefore, it will be no surprise to hear that, in principle, we support the Bill’s aim. In fact, much of the Bill continues work that we did in government, and legislation that was interrupted by the election.
It is important to put what we are discussing today in context. Before the pandemic, fraud and error across the DWP benefits and tax credit system was at a near record low, but then we had two national crises—first, the pandemic, then war in Ukraine—which piled huge cost of living pressures on families across the UK. During both, we acted rapidly. We set up never-seen-before systems of support in record time. We protected millions of people’s jobs. We paid half of everyone’s energy bills for a year. We got direct payments to the people who needed them the most. I am proud of what we did, and I think that history will look back kindly on how we supported people through those times, but the truth is that when we do something fast at a moment of crisis, that inevitably opens up new vulnerabilities in the system. Disappointingly, against a national spirit of getting through hard times together, some people saw it as a chance to make a quick buck, and we saw a material increase in the amount being lost to fraud within the system. Any and all of us could spell out better uses for that money. That is why, back in May 2022, we published our plan, “Fighting Fraud in the Welfare System”. We increased the number of frontline counter-fraud professionals in the DWP, created a new Public Sector Fraud Authority and started work on new legal powers to investigate and punish fraudsters. It was a good start. In 2022-23, fraud and error were cut by 10%. We saved £1 billion through the Department’s dedicated counter-fraud activities. The next year we upped that to £1.35 billion, exceeding the £1.3 billion target, yet we were still not satisfied.
In May last year, we published a second fraud plan to save £9 billion by 2027-28, which included hiring more staff to check claims for accuracy, modernising information-gathering powers, broadening the penalty system and investing £70 million in advanced data analytics. In April, we announced plans for a new fraud Bill to align DWP investigations with HMRC, treating benefit fraud like tax fraud and giving investigators new powers to make seizures and arrests. When the general election was called, the Data Protection and Digital Information Bill had already passed through the House of Commons. The Bill included the powers the Government are introducing today to require third parties, such as banks, to provide relevant information to the DWP. To the extent that this Bill continues that work, I do not envisage substantial disagreement—albeit we have questions on how the law will work in practice. I also have serious concerns about the powers that the Cabinet Office is giving itself.
Before I deal with those, let me say that I recognise the concerns that people have about the state getting too much information about their finances. Privacy should never be taken lightly. I do not want to live in a country where the Government can access our bank accounts and look at what we have been spending our money on, and I would not support a Bill that would allow the Government to do that, but I believe that it is right for the DWP to learn lessons from HMRC to recoup taxpayers’ money. The fact of the matter is that if someone receives money from the state, it is not unreasonable for the state to investigate if there are signs they are taking money that they should not be.
As I said, I have some questions about how the social security powers in the Bill will be put into practice, and I expect to probe those matters further as the Bill progresses. For instance, on the role of banks, how much testing has been done of the systems that they expect to use? The Horizon scandal is a recent reminder of how computer systems do not always get it right. What progress has been made on the code of conduct, and when will we see it? I also note that no impact assessment has been done on the cost to banks. Has the Minister met the sector and discussed what the changes mean for it? I know there are concerns within the sector about the lack of detail brought forward by the DWP. If the maximum level of scrutiny allowed under the Bill is demanded by the DWP, how would that work in practice for banks and what would it cost?
On the sanctions that can be meted out under the Bill, we support the Department for Work and Pensions being given further powers to pursue recovery outside of benefits and PAYE, but are the measures outlined in the Bill tough enough? Why is 40% the maximum amount of someone’s capital that can be reclaimed? Allowing for hardship, which the Bill does, why should someone potentially keep the majority of their ill-gotten gains?
It is not clear how the Bill intends to treat carer’s allowance overpayments, which I know from my time as Care Minister are complicated and often accidental, though unfortunately not always. None the less, they are a loss to the taxpayer that should be investigated. We would like to understand in more detail how the savings we are told to expect from the Bill will accrue. How many people does the Government think that will affect, and what proportion is it of the fraud currently being perpetrated? I was concerned the other day to see reports in the media of a number of artificial intelligence schemes being quietly shelved in the Department. It is noticeable that the plans rely heavily on human labour to root out fraud. While I know the Government have to create jobs somehow, I would be interested to hear what consideration has been given to automating some of the processes in future. That too will help ensure that taxpayers’ money does not go to waste.
I come to my main area of concern, which is the powers being given to Cabinet Office Ministers and the Public Sector Fraud Authority. I know what it is like to make legislation thinking that I, as a good person, would only use it wisely, but I also know what it is like to be wrongly investigated by a public authority on the grounds of a misleading newspaper article. Looking at the investigatory powers bestowed in chapter 2 of the Bill, how could one not be worried to see a Minister being given powers, with little oversight, to compel a person to release whatever information they wish, in any format demanded, within 10 days, along with the information of anyone connected to them, on any grounds that the Minister deems “reasonable”—and to disclose that information to whomever they think necessary, with the sole right of appeal being only to that Minister? It could be impossible for someone to comply within the timeframe given, yet the Bill includes fines set at £300 a day for missing the deadline.
Of course the Government should go after fraudsters, but I worry that some of that power could be abused and that, in its current form, it may breach laws on the state taking someone’s property without due process. I would be interested to hear if experts in the legal sector have been consulted on the legislation as drafted. Have Ministers engaged with the Law Society, the Bar Council or, for that matter, organisations like Liberty and Justice?
In the Department for Work and Pensions and the Cabinet Office, it is right to pursue fraudsters with the full might of the law, but the ends cannot justify all means and the process must always be fair, reasonable and proportionate. I look forward to further discussions on the detail of the Bill, and I am sure that colleagues in the other place will be preparing for that, too.
In the meantime, we must not let the Bill distract from the elephant in the room. For every penny the Bill will save—welcome though that is—it will do nothing about the billions of pounds that will be racked up in sickness benefits under this Labour Government. It is staggering that they did not come into office with a plan. They have done nothing to halt the tide in the seven months they have been in office, and I hear that they have shelved some of the work we handed over. We have heard not a murmur about what they will actually do, just briefing after briefing to the papers. Why not bring an actual plan to Parliament rather than talking to the papers? I suspect you, Madam Deputy Speaker, might agree with me on that point.
We had a plan—where is theirs? Every day the Government scramble about without a plan costs taxpayers millions. Fraud and error in the system is a problem, and I am pleased to pledge the Opposition’s support for tackling them, but let us not use this Bill as a distraction from the big issue. We all agree that the welfare system needs reform. Let us end the briefings and have some action.
Before I call the next speaker, I just want to make it clear that after the hon. Member for Oldham East and Saddleworth (Debbie Abrahams), I will call the Liberal Democrat spokesman, the hon. Member for Torbay (Steve Darling).
It is absolutely right that fraud against the taxpayer, whoever it is by, is detected, that money is recovered and that future fraud is prevented. We saw fraud during covid when, for example, the abuse of the bounce back loan scheme cost the taxpayer nearly £5.5 billion. There was also covid-related contract fraud, such as the purchasing of unusable personal protective equipment, which was outrageous.
As my right hon. Friend the Member for Leicester West (Liz Kendall) mentioned, the National Audit Office identified six areas of fraud risk against the public sector, estimated to cost the taxpayer between £55 billion and £85 billion. They are grant fraud, which is the misappropriation or misuse of grant money; service user fraud, which we have focused on today; procurement and commercial fraud; income evasion; internal fraud and corruption; and regulatory fraud.
In its 2023-24 annual report and accounts, the DWP estimated that it made overpayments—including fraud and error—of £9.7 billion out of the £269 billion that it spent. That is 6.7% of related expenditure. However, it also made underpayments of £4.2 billion—that is 1.6% of related expenditure—up from £3.5 billion the previous year, because of underpayments of disability living allowance. Within that, there were different levels of fraud for different benefit types. For universal credit, the level of overpayment for the same period is 13.2%. That is down from a peak of 21% in early 2020, during the covid pandemic, when some of the controls were suspended to speed up the application process. In fact, by value, two thirds of all overpayments are on universal credit—£6.5 billion out of £9.7 billion.
The DWP has tried to argue that the increase in fraud in the social security system reflects an increase in fraudulent behaviour in society. However, that does not explain why the overpayments are concentrated in universal credit accounts, or why, for example, there was a 10% reduction in fraud incidents reported in the crime survey for England and Wales between 2023 and 2024. The National Audit Office and Public Accounts Committee agree. In its recent report on the DWP’s annual accounts, the PAC said that it was not convinced by the DWP’s claims, adding that that was a “dangerous mindset”. The Committee also produced the following context, which we should all consider:
“It is concerning that DWP is not providing a decent service to all its customers, who include some of the most vulnerable in society and some of those with the most complex needs. In particular, claimants of disability benefits, including Personal Independence Payment (PIP) and Employment and Support Allowance (ESA), are receiving an unacceptably poor service including processing times compared with those receiving Universal Credit (UC) and State Pension.”
I worry that many of those disabled claimants, made vulnerable by their circumstances, are receiving less than the DWP estimates that they are entitled to. I believe that there is a genuine commitment from Ministers to change the DWP’s culture and build trust with its service users, but the Bill will be seen by many as more evidence not to trust the DWP and not to engage. I am not alone in that; in evidence to the Work and Pensions Committee inquiry on safeguarding vulnerable claimants, Citizens Advice raised concerns that the failure to engage is the second largest category that the DWP classes as fraud, and that when the enhanced review team identifies a household as having potentially made a fraudulent claim, payments may be immediately suspended. Citizens Advice recommended that the detriment caused by such a suspension should not take place while the fraud review process is ongoing. Disability Rights UK, UK Finance and others have raised concerns about the lack of systemic safeguards in the Bill. To their credit, Ministers have accepted that and will look at it as a whole.
However, Ministers—particularly those from the last Conservative Government—will remember the housing benefit fraud allegations, in which more than 200,000 people were wrongly accused of and investigated for housing benefit fraud and error last June. An AI algorithm—which the shadow Secretary of State, the hon. Member for Faversham and Mid Kent (Helen Whately), just said we should be using more of—incorrectly identified people as potentially behaving fraudulently, and they were investigated. That is really serious. What level of investigation of innocent people do Ministers consider acceptable?
Policy in Practice has also raised concerns about underclaiming, barriers to accessing support, the lack of value for money of the DWP’s fraud detection, prevention and recovery system, which addresses less than 5% of the debt owed, and how the focus on fraudulent claims is
“spoiling the system for the 97% of ‘genuine’ benefit claims”,
fuelling beliefs about benefit cheats, and detracting from
“the millions of households that are rightfully and legitimately supported by a social safety net designed to be there for all of us when we need it.”
I have questions for the Ministers, some of which I have raised with them before. What risk assessments of the Bill have been undertaken? I know that there is an impact assessment and a human rights assessment. What are the risks, what mitigations have been put in place, and will the Government publish them? How are safeguarding concerns, including the Caldicott principles and the responsibilities of the Caldicott guardian—which the DWP has, to its credit, now put in place—addressed in the Bill? This Bill is too important for us to mess it up and for innocent people to become the victims.
I thank the hon. Member for Oldham East and Saddleworth (Debbie Abrahams) for laying out very concisely some of the challenges in ensuring that the Bill does the right thing without going too far and breaking the things that people want fixed.
Clearly, defrauding the benefits system is wrong. One need only reflect on the level of disinvestment in many of our public services by the previous Government to note how that can bleed the system dry. I reflect on my own Torbay constituency, where the hospital tower block has scaffolding around it not because it is under repair, but to prevent bits of concrete from falling and killing people. I reflect on the lack of investment in our schools; the challenges with reinforced autoclaved aerated concrete mean that the necessary capital programme will not happen for the next six years. I reflect on the lack of investment in our police services, which means that the number of sworn officers has massively reduced. Those are serious issues that affect us following the lack of investment under the previous Government.
The Conservative Government were asleep at the wheel during the covid pandemic, as the Secretary of State alluded to in clear terms. Businesspeople in Torbay told me that they felt Rishi Sunak was—
Order. I remind the hon. Gentleman that we refer to Members not by name but by constituency. I think he was referring to the right hon. Member for Richmond and Northallerton.
My apologies, Madam Deputy Speaker. Those businesspeople felt that the then Chancellor of the Exchequer was filling carrier bags full of £50 notes and placing them around towns, expecting people just to pick them up, so low were the safeguards for a number of the covid support schemes.
I will move on to an item that has already been covered by a number of colleagues: the carers scandal. More than 136,000 people—equivalent to the population of West Bromwich—have been left with liabilities of £250 million that they are extremely worried about. The Government have quite rightly commissioned a review, but it is due to report not in the near future but next summer. I challenge the Minister: why not wait for that review’s findings before we push hard on these proposals, so that we can ensure that lessons are learned? We want fraud to be tackled, but we want it done in the right way. There have been just seven working days between this Bill’s First Reading and its Second Reading. Large tracts of the safeguards and the rails around it are out for consultation as we speak, which we need if we are to understand what safeguards there will be to protect our communities.
Colleagues have already mentioned AI, and they are right to have done so, because there are real concerns about a lack of transparency—[Interruption.] Sorry, Jennie is joining in; she is having a dream about rabbits. As Liberal Democrats have already highlighted, we do not know what safeguards there will be around the use of AI. How can we back the Bill until we know what safeguards will exist? I would like to reflect on how the Bill can contain those appropriate safeguards. Sadly, as the hon. Member for Oldham East and Saddleworth highlighted, the DWP is a broken Department.
(5 months, 1 week ago)
Commons ChamberWith permission, Madam Deputy Speaker, I shall make a statement on our “Get Britain Working” White Paper, bringing forward the biggest reforms to employment support in a generation, turning a Department for welfare into a Department for work, and taking the first steps towards delivering our bold ambition of an 80% employment rate in a decade of national renewal.
Nothing short of fundamental reform is needed to turn the page on the last 14 years, the legacy of which has left the UK as the only G7 country whose employment rate has not returned to pre-pandemic levels and with a near-record 2.8 million people out of work due to long-term sickness, and almost 1 million young people not in education, employment or training and millions more stuck in low-paid insecure work. All those problems are far worse in the midlands and the north, parts of the country that were deindustrialised in the ’80s and ’90s—the very same places that have lower life expectancy and chronic poor health that the Conservative party repeatedly promised to level up but repeatedly failed to deliver on.
The result is an economic but, above all, social crisis, paid for in the life chances and living standards of people across this country, and by a benefits bill for sickness and disability that is set to rise by £26 billion by the end of this Parliament. We have ended up here because of the failure of Conservative Members to create good jobs in every part of the country, to deliver on the NHS, and to properly reform welfare. Under our Government, that will change, with new opportunities matched by the responsibility to take them up: under this Labour Government, if you can work, you must work.
Our White Paper brings in three major reforms. First, we will create a new jobs and careers service that overhauls jobcentres: from a one-size-fits-all service that overwhelmingly focuses on administering benefits, to a genuine public employment service that provides personalised support for all. We will bring jobcentres together with the National Careers Service in England, beginning with a pathfinder early next year, backed with £55 million of initial funding. We will work closely with mayors and local leaders to ensure that our new jobs and careers service is rooted in local communities and properly joined up with local help and support. We will also work closely with employers to develop the service, because only one in six businesses has ever used a jobcentre to recruit, and that must change.
For too many people, walking into a jobcentre feels like going back in time to the ’80s or ’90s, so we will trial a radically improved digital offer using the latest technologies and AI to provide up-to-date information on jobs, skills and other support, and to free up work coach time. We will also test video and phone support—because in the 2020s, rather than go into the jobcentre only every week or fortnight, people can have a jobcentre in their pocket. Our frontline staff are our greatest asset, so we will develop the work coach and careers adviser professions, including by launching a new coaching academy.
The second major reform is our new youth guarantee, so that every young person is earning or learning. This comes alongside our commitment to provide mental health support in every school, our work experience and careers advice offer, and our plans to reform the last Government’s failed apprenticeship levy to give more young people the opportunities they deserve. Our new youth guarantee will go further, bringing together all the support for 18 to 21-year-olds under the leadership of mayors and local areas so all young people have access to education, training and employment opportunities and no young person misses out. Today I can announce that we will establish eight trailblazer areas for our youth guarantee: the Liverpool city region, the west midlands, Tees valley, east midlands, Cambridgeshire and Peterborough, west of England, and two areas within Greater London, backed by £45 million of additional funding.
I can also announce a new national partnership to provide exciting opportunities for young people in sports, arts and culture, starting with some of Britain’s most iconic cultural and sporting organisations, including the Premier League, the Royal Shakespeare Company, and Channel 4, building on the brilliant work they already do to inspire and engage the younger generation and get them on the pathway to success.
This is our commitment to young people: “We value you, you are important, we will invest in you and give you the chances you deserve; but in return for these new opportunities, you have a responsibility to take them up, because being unemployed or lacking basic qualifications when you are young can harm your job prospects and wages for the rest of your life. And that is not good enough for young people or for our country.”
The third reform in our White Paper is our new plan to drive down economic inactivity caused by poor health. The Health Secretary is already taking action to get people back to health and back to work, with extra support to drive down waiting lists in the 20 NHS trusts with the highest levels of economic inactivity. We are joining up employment and health support, expanding individual placement support to reach an additional 140,000 people with mental health problems and delivering new WorkWell services, which include GPs referring patients to employment advisers and other work-related support such as the brilliant service in the Junction Medical Practice in North London we visited recently.
However, we will go much further and faster to tackle this issue. To meet the scale of the challenge, we will devolve new funding, new powers and new responsibilities to tackle economic inactivity to mayors and local areas, because local leaders know their communities best. We will support all areas in England to produce local “Get Britain Working” plans, joining up work, health and skills support.
Today I am announcing eight trailblazer areas backed by £125 million of additional funding in south Yorkshire, west Yorkshire, the north-east, Greater Manchester, Wales, York and north Yorkshire, and two Greater London areas. In three of these areas—south and west Yorkshire, and the north-east—this will include dedicated input and £45 million of funding for local NHS integrated care systems. We are also funding a new supported employment programme called Connect to Work, backed by £115 million of initial funding for next year. This will be included in the integrated settlements of combined authorities, starting with Greater Manchester and the west midlands.
Employers have such an important role to play in helping get people into work, and crucially to stay in work, so today I can announce a new independent “Keep Britain Working” review, looking at the role of UK employers and Government in tackling health-related inactivity and creating healthy workplaces. This will be led by the former chair of John Lewis, Sir Charlie Mayfield, and will report in the autumn.
Finally, we will bring forward a Green Paper on our proposals for reforming the health and disability benefits system, so that disabled people and those with health conditions have the same rights as everybody else, including the right to work; so that we treat disabled people with dignity and respect; and so that we shift the focus to prevention and respond to the complex and fluctuating nature of today’s health conditions. We will work closely with disabled people and their organisations as we develop our proposals, which we will publish in the spring.
This White Paper starts to turn the corner on the past 14 years, putting forward the real reforms we need to get more people into work and on at work, to give young people the very best start in life and to ensure our employment and social security system understands the fundamental issue that a healthy nation and a healthy economy are two sides of the same coin. This is how we get Britain working again. It is how we get Britain growing again, and I commend this statement to the House.
I thank the Secretary of State for advance sight of her statement. The Conservatives are the party of work and aspiration—[Interruption.] In the decade after we took over from Labour, we drove down unemployment—[Interruption.]
In the decade after we took over from Labour, we drove down unemployment and economic inactivity year after year, including youth unemployment, which went down by 400,000 after the mess we inherited from the last Labour Government. During the pandemic, we took unprecedented action to protect jobs and livelihoods, but since the pandemic we have faced a new and difficult challenge in this country: rising economic inactivity, particularly among young people. In government, we were tackling that. I know that, because as a Health Minister I was working on it. I am delighted that the right hon. Lady and the Health Secretary visited one of our WorkWell pilots just the other day. I was working on our fit note reforms, our youth offer, which helped a million young people, and our universal support scheme, which I now hear the Secretary of State has quietly rebranded as her own Connect to Work scheme.
Far from being cross that the Government are pinching our ideas, I welcome the right hon. Lady taking our work forward. She is making the right noises about how important it is to fix this area. Economic inactivity is a big problem for our economy and for each and every individual who risks being written off to a life on benefits. Knowing that, I am disappointed by the substance of what she is announcing today, because far from matching her rhetoric, it appears to be little more than a pot of money for local councils, some disparaging language about the work of jobcentres and a consultation that will be launched in the spring. Given that the Government have had 14 years to prepare for this moment, is that it?
Where are the reforms to benefits that will make material savings to the taxpayer, such as the £12 billion we committed to save in our manifesto? Where are the reforms to fit notes, which we had handed over, ready to go? Where is the Secretary of State’s plan for reforming the work capability assessments? She has banked the £3 billion of savings from our plan, but has failed to set out her own. Her big announcement is making benefits for young people conditional. Did she forget that they already are?
The fact is that the Secretary of State has dodged the tough decisions. Every day that she kicks the can down the road costs the taxpayer millions of pounds. At this rate, spending on sickness benefits will rise to £100 billion by the end of this Parliament. They are taking that money from farmers, from pensioners and from businesses. To get people off benefits, we need jobs for them to go into. Those are the very jobs that businesses are saying, since the Budget, they will no longer be hiring for. While the right hon. Lady tries to get people into work, her Chancellor is busy destroying jobs—50,000 jobs lost from her first Budget alone.
If the Secretary of State wants to get more 18-year-olds into work, she should have a word with her Chancellor, who has made it so that from April it will cost £5,000 more for a business to employ them. She should have a word with her Business Secretary, whose Employment Rights Bill will, according to the Government’s own impact assessment, make it less likely for employers to take on young people. The Government cannot solve this problem on their own. Businesses are the engine of our economy that create jobs for people to do. It is telling that I cannot see a single business representative on the new Labour Market Advisory Board.
I did hear the right hon. Lady talk about some new partnerships, but this announcement is such a song and dance about so little that I feel sure she will qualify for one of her own Royal Shakespeare Company apprenticeships. She has kicked the can so far down the road that her new partner, the Premier League, is sure to be on the phone by the end of the day.
May I for a moment cut through the word soup of the announcement? It is time for the right hon. Lady to tell the House some facts. How many people will it help into work, and by when? What is the total she is saving the taxpayer? When will she reach her 80% employment target? What return on investment is she expecting from these plans? How will she measure her success or failure? This is so far from the bold grasping of the nettle that she is making it out to be and that this country needs for our economy, for taxpayers and for the millions of people missing out on the purpose and freedom that work brings. It is simply not good enough.
May I say gently to the hon. Lady, who I personally like and have a great deal of time for, that the only people who dodge difficult decisions on welfare are the Conservatives? The facts speak for themselves. By the end of this Parliament, the Office for Budget Responsibility says that 420,000 more people will be on health-related universal credit benefits, rising from a third now to a half at the end of the Parliament. That is her Government’s legacy. One in eight of all our young people are not in education, employment or training. We have seen a doubling in the number of young people out of work due to long-term sickness and a doubling of young people out of work because of mental health problems. After 14 years in government, who does she think is responsible for that? I am afraid that the truth is staring her in the face: the Conservatives are now the party of welfare, and Labour is the party of work.
The hon. Lady talks about British businesses. I know only too well the pressures that many businesses face. We have spoken to the CBI, the Federation of Small Businesses and the British Chambers of Commerce, and they are keen to work with us on our proposals. They know that their members have hundreds of thousands of vacancies that they need to fill, one in three of which is because of skills gaps. They know that 300,000 people every single year fall out of work due to a health condition. They need support to try to tackle that problem. I believe that the Department for Work and Pensions and jobcentres should serve businesses’ needs and aspirations, not be the place of last resort. That is precisely what our reforms will deliver.
Finally, the biggest challenge we face today is the growing number of people out of work or at risk of falling out of work due to health problems or a disability. Our entire employment and benefits system is simply not geared up to deal with that. We will take examples of good practice from wherever we find them, but we have got to go much further. We need big reforms, not easy slogans that say people just felt a bit too bluesy to work, which do nothing to help people get to grips with the real issues in their lives. We are facing up to our responsibilities and the difficult decisions necessary to get Britain working again. It is time the hon. Lady and her party did the same.
I call the Chair of the Work and Pensions Committee.
I warmly welcome my right hon. Friend’s statement, and I look forward to reading the White Paper later. The cross-departmental approach she is taking with colleagues is essential and is a breath of fresh air, particularly in relation to tackling the root causes of economic inactivity, which she has explained predominantly relate to ill health.
In addition to the need to tackle regional inequalities in employment, my right hon. Friend will be aware that there is a 30% disability employment gap, with 2.25 million disabled people wanting and able to work. How will she tackle that real injustice? We know that disabled people are more likely to be living in poverty than other groups. What are her specific plans in that regard?
I thank my hon. Friend for that important question. The Minister for Social Security and Disability and I are working hard to tear down the barriers to disabled people being able to get work and get on in work. We are taking action across Government, including reporting on the disability employment gap. We need to tackle the long waits for Access to Work and the adaptations and other support that people need.
We also need brilliant supported employment programmes for people with autism and learning difficulties, such as those that I and my right hon. Friend the Health Secretary recently visited in our own NHS trusts. They really provide a pathway to work, with the right help and support. There is much more that we need to do, and I look forward to discussing these issues with my hon. Friend and other members of the Committee.
Under the Conservatives the UK’s was the only economy to see employment rates fall over the last five years, leaving a legacy of wrecked apprenticeships, mental health services not fit for purpose and millions on waiting lists unable to work, as well as those with caring responsibilities staying at home to provide care for their loved ones because of the failure in our social care system. The Liberal Democrats welcome steps to improve access to skills, training and education. I praise the work of Fedcap and Maximus UK, which are doing just that in Chichester in conjunction with the jobcentres, working with those who have had long periods of economic inactivity or have additional challenges in finding work. But the insecurity and short-term nature of Government funding for such projects means that both organisations had to pause their referrals this year while they waited for the Government to confirm their continued funding. I am sure that the Secretary of State agrees that to get people back into work, the organisations already trying to do that need more security from the Government.
When it comes to tackling the mental health crisis, it is not enough to reverse the Conservatives’ lack of action. The Government must be proactive in improving mental health services. I invite the Secretary of State to take the proactive ideas that the Liberal Democrats laid out in our general election manifesto such as catching more mental health conditions early on by offering mental health MOTs and the introduction of mental health hubs in every community to deliver ease of access to walk-in services and support.
It is abundantly clear that ensuring people get the NHS treatment they need is critical to getting people back to work. The NHS cannot tackle its long waiting lists unless the Government get serious about fixing the crisis in social care. We have heard a lot of words from the Government on social care but seen little action, with the increase in the social care budget totally eroded by the national insurance contribution rise. Does the Secretary of State agree that a healthy society is a productive society and that fixing the health and social care crisis will get our country back to work?
The right hon. Gentleman raises many important points. As I said earlier, it is absolutely the case that Northern Ireland has the highest level of economic inactivity in the UK. We will set clear objectives for our plans as we work with the devolved Administrations, and at local level, to get the levels of economic inactivity down. That will be challenging because, as I said earlier, only 3% of people who are economically inactive get back to work each year. We need to increase that, and the only way we can do it is by more fully joining up work, health and skills support. Too much of the focus of welfare reform over the past 14 years has been on the benefit system alone. Clearly, the benefit system can incentivise or disincentivise work. We want it to incentivise work, but we also know that we need to join up work, health and skills if we are to get every part of the United Kingdom working again.
This statement will run until 3 o’clock, so short questions and short answers would be very helpful.
It is a sad reality that there are fewer people in work today than in 2019, before the pandemic, so I am under no illusions about the scale of the challenge. When I talk to young people in Welwyn Hatfield, the thing that most concerns me is that they often cite problems with their mental health as being a barrier to getting into work or progressing in work. Can my right hon. Friend reassure me that she will work in lockstep with the Health Secretary? We on the Labour Benches understand that investment in a healthy workforce is a down payment on future prosperity for us all.
I draw the House’s attention to my entry in the Register of Members’ Financial Interests and to the work that I did prior to prior to entering this place. It is difficult enough for a disabled person to enter employment; it is even more difficult for a disabled person to remain in employment if the employers are not aware of or not accommodating their disabilities and the reasonable adjustments that they might need. Within the debate on this White Paper, will the Secretary of State ensure that the work of exemplar employers is picked up and credited? There must be a recognition of the value that disabled people can bring to all workplaces. I also invite her to come and meet my old team in the employability service within NHS Lanarkshire, who have worked not just with Project Search but with disabled—
The issue that my hon. Friend raises is so important, and Sir Charlie Mayfield, who will be running our “Keep Britain Working” review, will indeed look at best practice among some great employers who understand what needs to happen to help disabled people get work and stay in work. If my hon. Friend writes to me about that exemplar working, I will make sure that he sees it.
(6 months ago)
Commons ChamberDoes my hon. Friend agree that the increase in employer national insurance contributions will impact charities, as well as businesses and GP surgeries? They include the Children’s Trust in Tadworth, in my constituency, which is a leading charity that provides support to children with brain injury. That charity now needs to find an additional significant—
Order. Interventions must be brief. I think the hon. Lady has made her point.
I agree with my hon. Friend.
In my constituency, farmers have been left reeling by the Government’s ruinous family farms tax that effectively ends the family farm through their reckless slashing of agricultural property relief, yet the Government repeatedly claimed there would be no tax rises on “working people”. Are the Government honestly suggesting that farmers are not “working people”? Those on the Government Benches made repeated assurances over the past year. The duplicity of the Labour party on this issue is breathtaking. At last year’s Country Land and Business Association conference, the now Environment Secretary stated that
“we have no intention of changing APR.”
The CLA has said that the change could harm 70,000 UK farms, declaring it a “betrayal” that
“puts dynamite beneath the livelihoods of British farming.”
The Prime Minister and the Environment Secretary were more than happy to leverage support from the countryside, with glossy photoshoots of rambling around the countryside in designer wellies. Indeed, the Prime Minister was very eager to make his pitch to rural communities during his Country Life article and photoshoot in September last year, in which he said:
“The need for stability now is urgent: farmers need to plan for the long term more than ever before.”
I doubt farmers were expecting that long-term planning to include being forced to sell 20% of their farms, making them unviable, or taking a 20% loan to cover those costs, potentially saddling the next generation with debts that farming is not profitable enough to repay.
Only yesterday, the Chancellor stated on the BBC that:
“Only a very small number of agricultural properties will be affected”.
A £1 million farm is 100 acres. According to DEFRA’s agricultural facts summary, published the day after the Budget, on 31 October, the average UK farm size is just over 200 acres. How can the Chancellor make her claim when the relevant Government Department has itself contradicted her position?
Given the speed and alacrity with which the Secretary of State for Energy Security and Net Zero has covered the countryside with solar panels, it should come as no surprise that the Government are so eager to force farmers out of business, freeing up swathes of the countryside to be sold to developers for more of the same. The Government will be forced into rowing back on this policy, whether it be now or after the visual spectacle of demonstrating farmers blockading Parliament Square with tractors. I urge the Government to do the right thing now, rather than being forced to do so in a few weeks.
Order. I plan to call the first Front-Bench spokesman at 9.40 pm. That means that many hon. Members will not get in, but there will be more Budget debate opportunities tomorrow and on Wednesday.
I will reduce the speaking limit to two minutes after the next speaker. I call Nick Timothy.
(11 months, 1 week ago)
Commons ChamberI suspect that this will be one of the most emotional speeches I have ever made in Parliament, so I apologise now for any snotty, ugly crying that may follow. I had hoped to hold it together, but given that I am following my hon. Friend the Member for Bury St Edmunds (Jo Churchill) and my right hon. Friend the Member for Reading West (Sir Alok Sharma), it is just not going to happen.
I was the 305th woman to be elected to the House of Commons, in 2010. I would like to thank very much the right hon. and learned Member for Camberwell and Peckham (Ms Harman), and my right hon. Friend the Member for Maidenhead (Mrs May), for being pioneers to people like me entering this place. I do not come from an ordinary political background. My parents were not interested in politics and I did not go to private school. Coming here was very much beyond what I thought was my reach, but it is because of the work that those women did to encourage women like me and others, including friends sitting around me, that we are here and I am able to make what will be my final speech in this place after 14 years.
I keep reminding myself that I have taken this decision to leave, and for what I think are all the right reasons. Everyone’s cancer journey is different, but for me, my breast cancer was life-affirming. It has given me a renewed sense of the vulnerability and fragility of our short lives, and with the big five-oh on the horizon, this election was the opportunity to seek a new adventure. I do not know what that is yet, but I guess that is part of the excitement.
Clearing out the office has been a wonderful way of reminding me and my team—more about them later—of some of the incredible things that we have done. I found a newspaper cutting from 2010. Shortly after I got elected, I intervened to secure a wheelchair for a young boy who had faced months of delay in getting one, and was therefore housebound. The cutting has a picture of him in his chair, which had images of spiders on it. He looked so happy. That is a reminder that while 99% of what we do never gets into the public domain, it is important and, for some, life-changing. Mr Deputy Speaker, stop crying; you will set us all off.
I am not a particularly sentimental hoarder of things, so perhaps I do not have as much packed up in the loft as colleagues, but it has been fun to find old election leaflets—goodness, I looked so young in 2010—letters from Prime Ministers, plural, and colleagues past and present. It was good to read again some of my big speeches that the office got bound for me, such as the most terrifying proposal to move the Loyal Address and my ten-minute rule Bill to protect youngsters from abusive sports coaches, and it was nice to flick through ministerial documents such as the sport strategy and the review that cut the stake for fixed-odds betting terminals, something I shall remain incredibly proud of, even if I was a thorn in the side of my right hon. Friend the Member for Maidenhead by resigning from her Government.
It is easy to forget in the chaos of any day’s inbox how much we actually do in this place. It is also easy to forget how often we work across party lines. I found in my piles of stuff the Christmas card Paul Goggins sent me 10 days before he died, inside the order of service for his funeral. Paul and I worked on the issue of mesothelioma together. I came in during the recess after he died to add my name to all his amendments to the Mesothelioma Bill so I could move them for him, and then pushed two or three to a vote. I worked with the hon. Member for Batley and Spen (Kim Leadbeater) on loneliness having met her before she came to Parliament at a reception with her parents to honour her sister Jo, whose plaque has always been in my eyeline.
I have worked cross-party on countless sports-related issues as well as played in many cross-party sports teams, including netball, cricket, rugby and of course football. I take home treasured medals, including the Guinness world record medal that I and the women’s football team secured, trophies, such as the much-coveted pancake race trophy, and various politician, parliamentarian and campaigner of the year awards, which will all thrill my husband as he seeks to carry the weightier ones up the ladder into the loft.
But everything we do here is only because of the trust that our constituents have given us and it is beyond words how honoured I feel to have been elected four times to serve the people of Chatham and Aylesford. I cannot begin to describe how lovely the vast majority have been to me over many years. I am not some fancy-pants posh Tory to them—just Trace, the girl who goes and stands on the terraces of Chatham Town football club, or politely tells the ref how he may have made the wrong call at Aylesford Bulls. I got IDed in my local supermarket at the age of 42 because I was wearing a hoodie and tracksuit bottoms and the new young worker did not know who I was, much to my delight but to the abject horror of the supervisor. However, during my time as their MP, I have seen much change in the constituency. There have been enormous housing developments that have not only altered the rural landscape forever but put incredible and unforgiving pressure on our infrastructure, which in turn brings an immense amount of casework.
This is where I turn in my speech to thank my team. In 14 years, I have only had 14 members on my payroll. Two of my team have worked for me in that entire time and I am truly indebted. Theo was with me on my campaign in 2010 and I offered him the job when I stepped off the platform. We recruited Sarah-Jane shortly after, who is the most brilliant caseworker. They often know what I think before I have thought it myself. Theo knows from the way I type whether I am sending back a strongly worded email. From the way I hit the “enter” key, he knows whether to dive straight into the sent items to see if he needs to batten down the hatches. SJ knows how much I hate injustice and will fight the authorities to the end on behalf of residents. Given that they have been in my life longer than my husband, I shall miss them enormously.
Current team members Will, Harry and Nicci have been amazing support, despite my decision to stand down impacting them, and Nicci in particular has been amazing in that she organises all my constituency events, such as the over-55s fair, the apprenticeship fair and community heroes, the output of which means I have met tens of thousands of constituents in person in positive, inspiring environments. I am so proud of the previous members of my team who have gone on to incredible jobs both inside and outside Parliament. I have tried not to think of any of them as staff; I think of them as a valuable part of who I am and what I do. I have respected their contributions to my work on behalf of local residents and tried hard never to let people think that I do it all alone.
In the spirit of not doing everything alone, will my hon. Friend confirm whether it was members of her team, or perhaps unnamed colleagues, who supported her in putting a row of question marks behind the Leader of the Opposition’s seat on the Benches a few weeks ago, or in decorating other colleagues’ offices with certain items?
I am not sure what my right hon. Friend is referring to. Nor would I ever, ever, Mr Deputy Speaker, on reshuffle day, call my most ambitious colleagues pretending to be Downing street. I wouldn’t have done that at all.
I thank all the people here who make Parliament work: the cleaners, the posties, the wonderful catering staff—we have already heard about the Tea Room. I particularly thank Godfrey, the absolutely wonderful young man who brought in some Ghanaian honey especially so that I could make honey and lemon, and allowed me to smuggle in my son during the October half-term when we were not on recess and cook some sausages and beans. I also pay tribute to the late Julia, who, when I was pregnant refused to let me have egg from the hotplate—sorry to anyone who eats egg from the hotplate.
I pay tribute to the Clerks, Hansard and the Doorkeepers; I see the Principal Doorkeeper standing in his place. He once caught me on a school day, shall we say, having a drink in a pub in Maidstone. My only defence is that he was also there. John, who is standing next to him, was in this place when I first started in 1996, as were some of the security staff, including Geo and Michael—or “Sticky”, as he is known. I promised I would make reference to Tweedledee and Tweedledum, the two Doorkeepers behind the Speaker’s Chair. They are always quick with a sweet or glass of water, a chirpy smile and some crack about South Africa winning something at rugby. Like my hon. Friend the Member for Bury St Edmunds, I got some good hugs in with many of the staff yesterday. I am so grateful for their support; they have looked after us incredibly well.
Finally, I thank my family and friends. I particularly thank my husband Steve, who has supported every decision that I have taken in this place. He is very proud of me and knows how to use the washing machine better than I do. He is also exceptionally keen for me to get another job as quickly as possible so that I do not get under his feet. At eight, my son Freddie does not really understand—he sort of gets it, he sort of doesn’t. But he is very much looking forward to my being at home a lot more often—at least he says that until he realises the regime of homework that I will be imposing upon him. Ultimately, I am looking forward to having the summer off and spending some time with them both.
I made the choice to go, but I did not expect it to be so soon. I still had things to do—laws to pass, issues to raise and casework to finish. But ultimately, it has been a pleasure. I have known my hon. Friend the Member for Brigg and Goole (Andrew Percy) since he was a young student working at McDonald’s. I taught him how to make a Big Mac—he was going on to bigger and better things in management at McDonald’s. I wish my hon. Friends who are standing a safe election, and I wish everyone, those who are standing and those who are not, the best of luck for the future, whatever or wherever that may be.
(11 months, 1 week ago)
Commons ChamberUrgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
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My hon. Friend the Minister will be aware of the work that my Select Committee has done around the national disability strategy, but I specifically draw her attention to the words of the right hon. Member for Kingston upon Hull North (Dame Diana Johnson) earlier this week: nothing about me without me. What reassurance can the Minister give me that disabled people will be fully included in the ongoing consultation on personal independence payments? What reassurance can she give me that she continues to work with Disability Confident to ensure that disabled people are enabled to move into work and supported when they are in work? What reassurance can she give me that the victims of contaminated blood, sodium valproate, Primodos, and mesh will not be subject to ongoing assessments year after year to make sure that they continue their entitlement to benefits? What reassurance can she give me that she agrees that inclusion is not wokery, and that including disabled people is crucial to ensuring that their rights are upheld?
I was looking forward to giving evidence to my right hon. Friend on many of these matters, alongside my hon. Friend the Minister for Employment. Indeed, there was work to come forward on Disability Confident, Access to Work, the disability employment goal and much more.
I point my right hon. Friend to action we have taken, including just this week. There is the Government-backed lilac review on disabled entrepreneurs, which is absolutely about listening to disabled people and having them at the heart of the conversation. Fantastic engagement on British Sign Language, fully in BSL, has been at the heart of that. There has also been the PIP consultation and the wider reform conversation. We have also brought forward the Buckland review.
My right hon. Friend is absolutely right about inclusion. It works because when it is embedded, it is right for the bottom line of the business, the organisation and the community. It is not a “nice to do” and it is not woke; it is what we should be doing.
(1 year ago)
Commons ChamberI thank the hon. Lady for her response and the gracious manner in which she accepted my apology, which is much appreciated.
The hon. Lady said that she cannot be expected to comment on the PIP proposals, but I remind her that the work capability assessment proposals went through a consultation, and we still do not know where the Labour party stands on those. We have spoken about fit note reforms, we are setting up WorkWell, and in the autumn we will trial some of those fit note possibilities. We do not know where the Labour party stands at all on those matters.
One would have thought that given the central role that PIP plays in the welfare system in our society and country, the Labour party would have some kind of view on that benefit. But we hear precisely nothing on that matter because the Labour party has no plan. The consequence of that will be that, as under previous Labour Governments, the welfare bill will continue to spiral out of control. That will fall to hard-working families up and down the country to pay, by way of higher taxation.
The hon. Lady asked about the abolition of the work capability assessment, which, as she said, is set out in the White Paper. Those measures will not be due to come into effect until 2026. We will take into account the conclusions that may be drawn as a result of this consultation when we consider that matter. She raised numerous other questions, many of which are included in the consultation. I am sure that she will actively take part in the consultation as we work towards the answers to those questions.
I was rather surprised that the hon. Lady raised the NHS. This party is spending more on the national health service than at any time in its history, with a 13% real-terms increase in spending over the last couple of years, 21,000 additional nurses and 7,000 more doctors in the last 12 months alone, and from next year £2.4 billion additional spend on mental health services, to which she referred. That is on top of the additional £4.7 billion that the Chancellor previously set aside for more mental health treatments and, at the last fiscal event, 400,000 additional talking therapies within the national health service.
The hon. Lady concluded by referring to Harold Wilson’s comments on unemployment. I simply refer her to the fact that under every single Labour Government in the history of this country, unemployment has been higher at the end of their term of office than at the beginning.
A constituent who has cerebral palsy has been in touch with me this afternoon to outline how he currently uses PIP. It gives him the freedom to live independently and work full time, as he uses it to buy mobility aides such as hoists and wheelchairs. His concern is that any changes to PIP might push those costs on to the NHS and reduce his flexibility to choose what to spend the money on and when. He does not want to be pushed into a cycle of renewal that may be too rapid and therefore cost the NHS more money. What reassurance can my right hon. Friend give that this consultation will enable those sorts of concerns to be highlighted and that, in the long term, it will give more choice and not restrict my constituent’s freedom?
I thank my right hon. Friend very much indeed for that question and for raising the issue of her constituent. The reassurance I can give her is that we are aiming for the best outcomes. There will be a number of ways in which those best outcomes may be achieved—that is the purpose of the consultation—but it is reasonable to at least explore the issue of whether cash transfer payments are always the right solution, particularly given the growth in mental health conditions we have seen in recent times. The final point I would make is that we are absolutely interested in examples of situations where people have lifelong regressive illnesses from which, unfortunately, they are not going to recover, and to ask whether, under those circumstances, it is right to require them to go through re-assessments.
(1 year, 1 month ago)
Commons ChamberI thank the hon. Lady for her response, not least on the apparent points of agreement between us. We accept that there are strong feelings about these complex issues, and she is right to say that they must be given serious consideration and that we should listen respectfully to all those affected. She asks when the Government will return to the House with a further update, and I can assure her that there will be no undue delay.
The hon. Lady made a slightly political point about the 2011 Act, and I gently remind her that the ombudsman’s report focuses on the period between 2005 and 2007, when her party was in government.
The hon. Lady asked a series of questions about various assessments based on the findings in the report. Of course, that goes to the heart of my response, which is—and I think she agrees with this—that we should look closely at the report in order to make those assessments.
On the hon. Lady’s specific point about notice of changes to state pension age, it has always been the position that that should be adequate. Indeed, in the last review that I undertook of it, there was a delay in the decision to increase the state pension age to 68 into the next Parliament. Among other reasons, that was to allow for just that point to be addressed.
What is particularly important now is that we will fully engage with Parliament, as we did with the ombudsman. On the hon. Lady’s point about the ombudsman, its chief executive stated on Sky News on Thursday, the day the report was published:
“The Government, the DWP, completely co-operated with our report, with our investigation, and over the period of time we have been working they have provided us with the evidence that we asked for.”
That is our record in this particular matter, but may I once again assure the House that the Government will continue to engage fully and constructively with Parliament, as we have done with the ombudsman?
I welcome the Secretary of State’s comments and his emphasis that this is a complex matter—of course it is. However, the WASPI women have been waiting five years for the outcome of the ombudsman’s report. In his report and subsequent to it, when he wrote to various Select Committee Chairs from across the House, he gently encouraged us to keep a weather eye on how quickly the Government come forward with a solution. I recognise that this is an interim update, but I gently press my right hon. Friend: the WASPI women have been waiting five years for the ombudsman and they will not want to wait for a Select Committee inquiry into this report in order to see action from the Government.
I welcome my right hon. Friend’s question. Let me reassure her, as I have just reassured the House, that there will be no undue delay in our approach to this matter. We engaged fully with the ombudsman— that included more than 1,000 pages of evidence and a full commentary in respect of the previous interim report that it published. This report is more than 100 pages in length and it is very detailed, so it is only right that we do, in an appropriate manner, give it the due attention that it deserves.
(1 year, 2 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
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As ever, Sir Charles, it is a pleasure to serve under your chairmanship. I congratulate the Chair of the Work and Pensions Committee, the right hon. Member for East Ham (Sir Stephen Timms), on securing this important debate.
The former Secretary of State, my right hon. Friend the Member for Suffolk Coastal (Dr Coffey), has made the point that when constituents come to our surgeries to discuss their Child Maintenance Service concerns, cases and complaints, it is almost invariably a very distressing meeting. I will not rehearse every case that has been brought to me, but I will highlight some issues that I have encountered recently.
A man was in tears because he simply could not get the Child Maintenance Service to adequately explain the arrears on his account. On the phone, he would be told that he owed nothing, but days later he would get a letter telling him he was several thousand pounds in arrears. A deduction from earnings order would then be attached to his employer, the Ministry of Defence. It became very difficult for him professionally, because he was not allowed to be in debt, yet whenever he spoke to the service on the phone, he was told that he was not in debt. There are complexities and confusions that still prevail within the system.
Another issue that I would like to highlight is the flip of that. There are several live cases that I keep raising with the Child Maintenance Service involving 17, 18 and 19-year-old children who are no longer in college, but whose parent is still in receipt of child benefit. The paying parent is still being asked to make contributions, yet they can produce evidence from the colleges to show that those young people are no longer attending. The parent with care is claiming that the child is still in full-time education, but the child is not. They are effectively fraudulently claiming child benefit, as a result of which the paying parent is still expected to pay their child maintenance contributions. They are not averse to supporting their children; they are just trying to make the point that this is a young person who is no longer in education. When they raise that with the CMS, the CMS takes it at face value when the parent with care says, “Yes, yes, yes—they are still attending college.” It is hugely problematic.
I think there are times in this place when we should confess our sins. Previously, for 12 months of my life, I was the Minister with responsibility for the Child Maintenance Service—a Commons Minister. I pay tribute to the Minister here today, who I know is going to do an admirable job in responding to us, but I want him to take a very strong message back to the DWP: there remains a great deal of unhappiness about how the system is or is not working.
During my time at the DWP, I was desperate to have the power to remove passports from non-paying parents. Several successive Ministers—my right hon. Friend the Member for North West Hampshire (Kit Malthouse) and my hon. Friends the Members for Gosport (Dame Caroline Dinenage) and for North Swindon (Justin Tomlinson), the latter of whom eventually delivered on that power—all followed in my footsteps to make the point that taking a driving licence away from a non-paying parent hampers their ability to go out to work. Taking their passport hampers their ability to take their new partner on a weekend to Paris. I know which would be more likely to be effective in my mind.
In the intervening years, we have taken only a handful of passports from non-paying parents. My hon. Friend the Member for Stroud (Siobhan Baillie), who has done so much good work on this, passed me a note that told me it was seven in 2022. It is just not good enough. If we are to have powers in place, like the curfews suggested by my hon. Friend the Member for Crewe and Nantwich (Dr Mullan) or those advocated for by my hon. Friend the Member for Hastings and Rye (Sally-Ann Hart), they have to be used. We have to make the point to non-paying parents that powers exist and they are going to be used robustly. If they do not cough up for their children, they will suffer the consequences. I regret that I still do not think we are getting that message across adequately.
Finally, I have veered away from the many times when I have accompanied constituents to tribunals and sat with them while their cases were heard by telephone; I have always sought to support them. I recently had a really concerning response from the DWP about a constituent who had sought a deduction from earnings order for a parent who had not paid for years for their children. The DWP responded that it could not grant a DEO because it was not confident of the non-paying parent’s address. We know that the DWP has the powers to look at HMRC records and that it can see where someone is employed, yet it was not confident of the individual’s address.
That sends a very clear message: if anyone wishes to be a non-paying parent, then they can just disappear. If they ensure that their partner cannot trace their address, the DWP will back off. To be quite frank, we should never be in a situation where the DWP backs off. Parents have a duty to support their children and I urge the Minister to take the message back that we must redouble efforts to ensure that non-paying parents are compliant.