Universal Credit (Liverpool)

Debate between Dan Carden and Maria Eagle

Tuesday 11th September 2018 Westminster Hall

[Dan Carden (Liverpool, Walton) (Lab)]

I beg to move,

That this House has considered roll-out of universal credit in Liverpool.

It is a pleasure to serve under your chairmanship, Ms McDonagh, although in this debate it will not be possible for me to do justice to the magnitude of concerns that have been raised with me about the imminent full roll-out of universal credit across Liverpool. Disability charities, trade unions, civil servants, housing associations, private landlords, advice agencies, food banks, local councillors and the local authority have all provided me with briefings, statistics and case studies, for which I am grateful. Together, they paint a bleak picture of what lies ahead this autumn.

Starting this month, and continuing into November and December, jobcentre by jobcentre, full service universal credit will be rolled out across my constituency. I am here because of the people I have met in my surgeries and food bank visits, and because of the harrowing stories I have been told. I am here because of the people I have seen—people who are broken and who feel worthless and trapped in a cycle of poverty that they cannot escape. The roll-out of universal credit is only the latest onslaught from a benefits system that is stuck in Victorian times; it is just the latest instalment of austerity for our city—a city that has borne the brunt of eight years of cuts that have hit the most deprived areas the hardest. Our local authority budget has been slashed by 64%—£444 million since 2010—and 40% of children in my constituency are growing up in poverty.

According to the Joseph Rowntree Foundation, Liverpool has the second highest level of destitution of any city in the UK, and there is a lack of basic essentials, including food, shelter and toiletries. That is the climate in which the Government are imposing their flagship welfare policy—a policy that had cross-party support when it was launched in 2011, but is now a byword for institutional incompetence. It is six years behind schedule, universally unpopular and, according to the National Audit Office, likely to cost more than the system it replaces.

[Maria Eagle (Garston and Halewood) (Lab)]

I have a case of a mum who has started a new relationship, and consequently she has been put on to universal credit because her partner, who is from another area, is already on it. Her tax credits were stopped at the end of May, but by 31 August her application still had not started to be administered. If it were not for the mayoral hardship fund, Liverpool’s citizen support scheme and Can Cook, which have fed the family for two months, that family would be absolutely destitute. Has my hon. Friend heard of similar experiences in his constituency?

[Dan Carden]

I will come on to some of the case studies and personal stories that I have been told. Well-documented design flaws and unresolved administrative issues have seen tens of thousands of claimants plunged into debt arrears and reliance on food banks. My casework is already loaded with people who are struggling to make ends meet, and piling universal credit—a policy that Citizens Advice has called a “disaster waiting to happen”—on to an economic situation that is already bordering on crisis will lead to levels of hardship not seen in the city since the 1980s. This is the last chance to apply the brakes, stop the roll-out of universal credit, and fix the flaws in its design and delivery.

Universal credit lists its stated aims as: to improve work incentives, reduce poverty and simplify the benefit system, making it easier for people to understand, and easier and cheaper for staff to administer. Who could disagree with that? However, the National Audit Office found in June that:

“Universal Credit is failing to achieve its aims, and there is currently no evidence that it ever will.”

Worse still, the evidence on the ground in areas where full service universal credit has been rolled out is clear: not only is universal credit failing to meet its aims, but it is having the opposite effect. It is punishing those in work, exacerbating poverty, and creating an unwieldy, arduous and inefficient system that increases pressures on claimants and staff alike.

Education Funding (South Liverpool)

Debate between Dan Carden and Maria Eagle

Tuesday 10th October 2017 Westminster Hall

[Maria Eagle (Garston and Halewood) (Lab)]

I beg to move,

That this House has considered education funding in south Liverpool.

I am grateful to have obtained this debate about education funding in south Liverpool. I intend to discuss a situation in my part of the Liverpool City Council area and in Halewood, which is in the Garston and Halewood constituency but falls within the Knowsley Metropolitan Borough Council area. Some of my Liverpool and Knowsley colleagues will talk a little about the experience of schools in their bits of south Liverpool, and I welcome the fact that they are here to do so.

In February, I began receiving correspondence from headteachers in my constituency about the dire financial situation they face. I sought to get a broader picture by contacting headteachers to see whether the complaints I was receiving were representative of all or most schools, and it soon became clear to me that the budgetary crunch of which those headteachers complained was a widespread concern for headteachers across my constituency. I have been seeking a meeting with Education Ministers to discuss this since the beginning of March, and I am grateful to say that I was finally granted my half-hour meeting with the Minister earlier today—well over seven months later. It took his Department 10 weeks even to reply to my request for a meeting, which I think is rather too long for an MP to have to wait to see a Minister about an urgent problem, although I am glad to see that he has decided to respond to this debate himself. I welcome him to his place.

Following the Conservative election victory in 2015, the then Chancellor decided to cut the schools budget as part of the never-ending policy of austerity and public expenditure cuts, which he was left with as a result of his failure to meet the Lib Dem-Tory coalition Government’s deficit reduction targets, and he duly did so. Despite assurances that core school budgets would be protected, figures showed a planned 8% real-terms reduction in per-pupil spending between 2015 and 2020, and the National Audit Office found that school budgets have been cut by more than £2.7 billion since then. The cost pressures that schools face in addition to those cuts were and are considerable. They include the removal of the education support grant, the introduction of the apprenticeship levy, increases to employer national insurance and pension contributions, the requirement to fund pay awards to staff without additional funds, and the prospect of having to pay for shared services and support services, which local authorities previously provided for free.

Cuts to local authority funding have hit particularly disadvantaged areas such as south Liverpool hard when it comes to shared services and support services for schools, because they have been much larger than those in more affluent parts of the country. Furthermore, the number of pupils who need such services is much higher in areas such as mine. Between 2010 and 2020, Liverpool City Council will have had to face a 68% cut to its available resource, and it still has to find a further £90 million from its already denuded budget over the current spending review period. That is a considerable challenge. Meanwhile, Knowsley’s budget will be slashed by 56% between 2010 and 2020, and it has to find a further £17 million in cuts over the current spending review period. That means that both authorities have been forced either to cut back completely or to charge schools for services and support that used to be provided for free. Unsurprisingly, schools have generally not budgeted for those charges in advance.

On top of those challenges, which were already causing headteachers to worry, there are the Government’s changes to the national funding formula. Although they have the stated aim of making funding fairer—I am sure the Minister will explain how they do that when he gets his chance to speak—they seem to disadvantage the vast majority of schools in my constituency.

[Dan Carden (Liverpool, Walton) (Lab)]

I congratulate my hon. Friend on securing this debate. As she is outlining, this is a funding attack on schools not just in south Liverpool, but across our city and beyond. The education unions have calculated that, after the last revision of the funding formula and the extra money announced before recess, my constituency alone will lose £4 million, or £300 per pupil, by 2020. I hope she will push the Minister for a response to that.

[Maria Eagle]

I will indeed—and I think my hon. Friend has himself just pushed the Minister for a response. I am sure the Minister will want to make some points in reply and set out his understanding of the impact of the national funding formula, which seems not to advantage schools in our area as much as I would like.

Liverpool City Council told me that, according to its calculations, the Garston and Halewood constituency will lose £390 per pupil—a cut of more than £4.5 million between 2015 and 2020—which is not dissimilar to what my hon. Friend said is happening in his area. That is the equivalent of a cut of 125 teaching jobs. The local authority told me that across Liverpool as a whole the loss is £487 per pupil, or a 9% cut overall, and a cut of almost £28.5 million between 2015 and 2020, equivalent to 778 teaching jobs.

The Minister may well say that the revisions that were made to the national funding formula in July and September, with the finding of savings from his Department and the raiding of various capital budgets for £1.3 billion, will make a difference to that, but many of the schools in my constituency have reported to me that they have or are planning to cut teaching and support staff posts. One headteacher of a local primary school, which the Minister’s letter tells me will see an increase of 0.9%, told me that

“the current staffing levels are unsustainable due to the differentials between school income and school expenditure on staff… The Governors are currently planning a staffing review to identify how we can reduce staffing costs by making teachers and teaching assistants redundant. We need to lose three teachers by 2019 if we are to manage our school budget without going into deficit. This will mean we will not have a qualified teacher in each class, which by law we must have. We are looking ahead at troubled times in schools.”

That is not the only school to have told me it is planning staffing reductions. One school, which has already seen a significant cut in teaching and support staff and a narrowing of the breadth of its curriculum as a result, is now contemplating further reductions to the curriculum, to pastoral staffing and to the length of the school day and the school week.

Some of my schools have been hit particularly hard, according to Liverpool City Council figures. Springwood Heath Primary School in Allerton is a unique school. It is a mainstream primary with enhanced provision places, which integrates children with significant physical and medical needs into its community. The city council projects that it will lose more than £719 per pupil—a 14% cut. Although that may be ameliorated by the changes to the national funding formula, which the Minister will no doubt tell us about later, it is already losing teachers and support staff, and to lose support staff at Springwood Heath is to put at risk the ability of some pupils to continue to attend because they depend on those support staff, who enable them to attend that mainstream school. That would be a particular concern to me. It might be said, “Well, so you lose a few support staff,” but if those staff are ensuring that severely disabled children can attend a mainstream school, that is more than simply losing support staff; it is losing a richness and quality of education that no other school offers. If the Minister comes to Liverpool, which I invite him to do, I hope he visits Springwood Heath Primary School. Then he could tell me whether in his experience there is another school like it. I am not sure that there is.