Oral Answers to Questions
David Linden Excerpts(2 years, 10 months ago)
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Will Quince
Our expectation is that, as the vaccine is widely rolled out, restrictions will be lifted and our economy will reopen over the next few months. Therefore, the Government’s focus will rightly shift towards supporting people’s incomes by helping them back into work and to increase their earnings through progression as part of our comprehensive plan for jobs. We have consistently shown throughout the crisis that we will continue to assess how best to support individuals and businesses as the situation develops.
David Linden (Glasgow East) (SNP)
A Joseph Rowntree Foundation report stated that before the pandemic over half of working-age people receiving income-related benefits were already below the poverty line. We are at a critical juncture. This Tory Government can carry out one of the biggest cuts to benefits in decades, bringing the basic level of benefits back to early-1990s levels, or they can provide substantial long-term support to people, so which will it be?
Will Quince
As I said, our expectation is that as the vaccine roll-out gathers pace, as restrictions are eased, as our economy opens up and as our labour market starts to grow again over the next few months, it is absolutely right that our focus shifts towards supporting and empowering people back into work, because we know—all the evidence shows us—that work is the best route of poverty. We will do that through our £30 billion comprehensive plan for jobs.
Dr Coffey
I am conscious that digital inclusion is a key part of the skills issue. We are working collaboratively with the DFE, particularly on digital boot camps, and we have even changed the rules of aspects of universal credit to make sure that people can fully participate in extended courses. We will continue to use and signpost people to whatever resources are available.
David Linden (Glasgow East) (SNP)
The Public and Commercial Services union has been clear that the rush back to face-to-face assessments poses a serious risk to vulnerable claimants and staff alike. Given those concerns, I was quite surprised to learn that the Secretary of State has not personally met the PCS union in her nearly two years in office. Will she do better than just commend DWP staff for their tireless work throughout the pandemic and actually meet the union that represents those staff to listen to their serious concerns about safety?
Oral Answers to Questions
David Linden Excerpts(2 years, 11 months ago)
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Will Quince
The opposite is in fact the case. Many of those with a disability will be better off on universal credit, and it is important, as the hon. Gentleman suggests, that they go on a benefits calculator—one of the independent benefits calculators on gov.uk—and check their eligibility. Labour Members—and the hon. Gentleman is no exception —regularly come to this House and ask for many billions of pounds more to be spent on benefits after the pandemic. Let us be clear: that is exactly what the hon. Gentleman is asking for when he refers to the universal credit uplift. I have to say that we fundamentally disagree with Labour’s approach. It is an approach that under the last Labour Government left a generation trapped on benefits and in poverty, incentivised not to work, and left children growing up in workless households, and we know what that meant for their life chances. Work is the best route out of poverty, and that is why we have put jobs and supporting people into work at the heart of everything we do. The difference could not be clearer: Labour’s focus is on billions of pounds more on benefits and the Government’s focus is on jobs, jobs, jobs.
David Linden (Glasgow East) (SNP)
It is not just the SNP, the Work and Pensions Committee and a range of stakeholders who are urging the UK Government to make the £20 uplift permanent, but 100 Conservative MPs in the Tory Reform Group and the one nation caucus. Is the Minister really saying that he disagrees with 100 of his own MPs who say it would be wrong to slash £1,000 a year from household budgets just as we are coming out of the teeth of this pandemic?
Will Quince
I thank the hon. Gentleman for his question and welcome him to his place. Throughout this pandemic, this Government have consistently stepped up to support the lowest-paid, poorest and most vulnerable in our society. During the pandemic, the focus has rightly been on ensuring that people facing the most financial disruption got the support that they needed as quickly as possible, but all evidence suggests that work is the best route out of poverty. We had a jobs miracle before the pandemic, and with the help of our £30 billion plan for jobs, the support of business and creating the right environment, we will do so again. That is exactly why we shift our focus to supporting people back into work and to progress in work. We are doing that with the extra 13,500 work coaches in our jobcentres up and down the country and our £30 billion comprehensive plan for jobs.
The Parliamentary Under-Secretary of State for Work and Pensions (Mims Davies)
I have regular discussions with a range of Ministers across the Government about how best to get young people into work and thriving. We are already incentivising employers to hire young people through the kickstart scheme, through which we pay wages and the associated national insurance contributions for six months. It is a job creation scheme for the young people who are most at risk of long-term unemployment, building vital experience throughout the pandemic and giving them the confidence and skills needed to thrive in their future workplace.
David Linden (Glasgow East) (SNP)
The kickstart scheme was launched with much fanfare but it has been a bit of a flop, not to mention a headache for many businesses such as METERology in my constituency, which has been given a total runaround by the Secretary of State’s Department. Recent figures suggest that if the UK Government maintain a rate of 400 new employees starting each day, they should hit their target of 250,000 new jobs in 625 days—that is two years—so what more are they going to do to ensure that kickstart can really live up to its hype rather than just be a slogan for the Chancellor’s naff hoodie?
Dr Coffey
The hon. Gentleman is being ungracious. We are still at step 3 of the road map to recovery. Dare I say that the Scottish Government are putting up a roadblock to recovery by pursuing the whole independence agenda when they should be focused on the economic recovery? If the hon. Gentleman has specific constituency matters to raise, he is welcome to do so. As we go through the steps, we will see even more kickstarters taking full advantage of the generous support, which will help them and employers alike.
Gender Pension Gap
David Linden Excerpts(3 years ago)
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Patricia Gibson (North Ayrshire and Arran) (SNP)
I am delighted to have secured this important debate on the gender pension gap, which stands at a shameful 40.3%—more than double the gender pay gap of 17.3%. That is truly shocking, and I hope that the debate will both highlight this terrible inequality and perhaps persuade the UK Government to take some fairly straightforward measures to address it if they are truly committed to pension justice and equality.
We are all aware of the justifications for women’s state pension age being raised, but equalising state pension ages is very different from pension equality. We could simply throw our hands in the air and exclaim that women have always had lower pensions than men, and that is just the way it is, but it need not be this way. It is simply unacceptable that all types of pension provision—whether state pensions, workplace pensions or private pensions—inherently discriminate against women. If they choose to do so, the UK Government could tackle this and thereby tackle the poverty that too many women face in old age. This can wait no longer, as an increasing proportion of women are simply not able to rely on their partner’s income in retirement, and nor should they be required to.
David Linden (Glasgow East) (SNP)
I congratulate my hon. Friend most sincerely on securing the debate. The average woman in her 20s in the UK will have to work almost 40 years longer than her male counterpart to build up the same pension. Indeed, a female saver can expect to have £100,000 less in retirement savings thanks to time taken out of the workplace to raise children. In the previous debate, the Government spoke an awful lot about levelling up. Does she agree that, if the Government are serious about levelling up, the first thing they could do is tackle the injustice of the gender pension gap?
Patricia Gibson
Absolutely. I know that the Minister will be listening intently, and I hope he will take away the reasonable and straightforward suggestions that I will make this evening, so that we can truly level up in the way that the Government say they want to.
Women born in the 1950s—WASPI women, or Women Against State Pension Inequality—have suffered hugely as their state pension age was accelerated, giving them insufficient time to prepare for retirement. Despite the clamour of outrage, the Government have refused to do anything to address the hardship caused to the women affected. I wish I could say that that policy decision was the only one that targets women in retirement. I wish this was the only measure I could find that has transformed retirement into a time of financial uncertainty and fiscal pressure for women. Sadly, it is a mere continuation of policy choices that have contributed to—indeed, exacerbated—the gender pension gap under which too many women now labour.
The Parliamentary Under-Secretary of State for Work and Pensions (Guy Opperman)
It is my mission as pensions Minister to make the UK pensions system safer, better and greener. We are doing that in a variety of ways, ranging from our world-leading climate change and environmental, social and governance reforms, which positively impact pension investments, to taking tough action on scams and unscrupulous bosses, and through our work to make pensions simpler and more easily understood with dashboards, and to tackle inequality.
I congratulate the hon. Member for North Ayrshire and Arran (Patricia Gibson) on securing this important debate. This Government, like previous Governments, recognise that this is an important issue—one that we remain committed to addressing. It is one of the key drivers of the automatic enrolment reforms and the 2016 new state pension reforms, both of which help to address the issue raised. Through automatic enrolment and the new state pension, we are enabling more women to build up pension provision in their own right, reducing historical inequalities in the pension system.
With respect to the hon. Lady, I submit that automatic enrolment has been a genuine game changer in workplace savings. It has happened over the past nine years, but the work has been done by successive Governments, including a Labour Government, who set up the Turner commission. Automatic enrolment was commenced by the coalition Government in 2012, before the original blueprint was fully rolled out by this Conservative Government in 2018-19. Savings of 8% are now the norm, and 10.5 million employees have been automatically enrolled by more than 1 million employers.
Overall workplace pension participation for eligible employees has increased by 44 percentage points since 2012, reaching 86% in 2019. It has been especially transformative for women, low earners and young people, who have historically been poorly served by or excluded from workplace pensions. The proportion of women participating in a workplace pension reached 86% in 2019, which is double what it was in 2012. Some 79% of low earners now save into a workplace pension, which is more than double what it was in 2012. Finally, 85% of young people now save into a workplace pension, which, again, is well over double what it was in 2012.
David Linden
I do not think anybody in this House would quibble with the fact that automatic enrolment has been a success story, but the point outlined by my hon. Friend the Member for North Ayrshire and Arran is that the £10,000 trigger in place discriminates against women. Why do the Government have such an objection to making sure that the trigger kicks in at the first pound, rather than waiting until £10,000, which is so disadvantageous to women?
Guy Opperman
I am grateful to the hon. Gentleman for raising that point, because I am coming to that specific issue. He will be aware that we conducted a review of automatic enrolment and that we are committed to implementing its findings by the mid-2020s. We intend to remove the lower earnings limit, which will benefit low earners, and for the first time everyone will get an employer contribution from their very first pound of earnings if they are enrolled or opt in. That will improve the incentive to save, especially for women and those individuals working part-time in multiple jobs. In addition, the review also proposed extending eligibility to those aged 18, which will support younger people with the opportunity to start saving earlier for a more secure retirement. Clearly, there is a benefit in the hon. Gentleman’s constituency. In the constituency of the hon. Member for Strangford (Jim Shannon), for example, 7,000 people are currently automatically enrolled, and thanks are due to the thousands of employers who are supporting them in that process.
Oral Answers to Questions
David Linden Excerpts(3 years, 1 month ago)
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Dr Coffey
We have just passed the Pension Schemes Act 2021, and aspects of scams were considered in that legislative process, so the suggestion that somehow we are not doing things to tackle scams is far from the case. Indeed, the hon. Gentleman will be aware from the Budget of the ongoing support that we continue for pensioners in honouring our triple lock.
David Linden (Glasgow East) (SNP)
In extending the £20 uplift of universal credit, albeit for only six months, the British Government are clearly conceding that without the £20 uplift, universal credit is insufficient to meet people’s needs. I want to take the Secretary of State back to a point she made to my hon. Friends the Members for Glenrothes (Peter Grant) and for Motherwell and Wishaw (Marion Fellows). She said that claimants should move from the legacy system to universal credit. Will she stand up at the Dispatch Box and make it crystal clear that for some people that will mean being worse off, particularly when the £20 universal credit uplift is taken away? Can she clarify why she thinks that disabled people, for example, have lower bills as a result of the pandemic and why they were not worthy of the £20 uplift?
Dr Coffey
The hon. Member should be clear about what I did say. I encouraged people who were on legacy benefits to get an independent assessment, which is available through a number of organisations and online calculators, rather than wait to be managed across to universal credit. It is really important that MPs encourage their constituents to consider the ways they could be financially better off, rather than waiting for the Government to go through quite an arduous process during the next few years.
Dr Coffey
My right hon. Friend is right to highlight the importance of the Child Maintenance Service in what we are trying to do to make sure that children have income coming ideally from both parents during their upbringing and to give them support. My noble Friend Baroness Stedman-Scot is actively working on ways to potentially improve aspects of the running of the Child Maintenance Service, which I am sure is something that the whole House will want her to continue to do.
David Linden (Glasgow East) (SNP)
Due to continued British Government inaction, more than 126,000 UK pensioners living in Canada have seen their state pension fall in real value year on year, with average payments as low as £46 a week. In November, the Government of Canada wrote to the British Government offering a reciprocal social security agreement. Has the UK responded to that letter and, if not, what message does the Secretary of State think it sends from global Britain of its attitude to UK pensioners who live in poverty overseas?
Pensions
David Linden Excerpts(3 years, 2 months ago)
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David Linden (Glasgow East) (SNP)
The statutory instrument before the House tonight is yet another example of how the UK Government are failing our pensioners, causing some of the most vulnerable to slip between the cracks, proving that pensioners are so often an afterthought for this Conservative Government.
Despite repeated calls from the SNP, the UK Government are refusing to lower the earnings trigger for pensions automatic enrolment. The fundamental issue with this is that workers on lower wages will continue to lose out on vital retirement savings. This is yet another example of the Tories pushing through policies that see the rich get richer and the poor get poorer.
We in the SNP have continually called on the UK Government to remove the £10,000 earning threshold for pensioners’ automatic enrolment in 2021 and 2022. In the Committees for this instrument, my SNP colleagues have made clear our concerns. Indeed, my hon. Friend the Member for Aberdeen North (Kirsty Blackman) outlined that the £10,000 earnings cap is unsuitable and that the UK Government have given very little evidence as to why the £10,000 threshold was put in place. Currently, that £10,000 threshold for automatic enrolment means that workers on lower wages, either in low-paying jobs or working part time, will lose out on retirement savings.
At this juncture, I want to thank colleagues at the Association of British Insurers for their very helpful briefing note in advance of today’s debate. The ABI rightly identifies the gender and ethnicity pensions gap, which is baked into our pensions legislation. Put simply, the threshold that we are debating tonight is a kick in the teeth for women who are disproportionately low paid or in part-time work and are more likely to experience later life poverty. To put the gender divide in context, we know that the average pension pot for a woman aged 65 is one fifth of that of a 65-year-old man, and women receive £29,000 less state pension than men over a 20-year period. Indeed, this deficit is set to continue, all else being equal, only closing by 3% by 2060. Extending the coverage of automatic enrolment further by reducing the earnings threshold to a lower level, ideally the first pound, would bring hundreds of thousands of people, mostly women, into pension saving.
Consideration also needs to be given to the ethnicity pensions gap, with the latest Office for National Statistics data showing a stark contrast between the private pension wealth of white British savers and savers from ethnic minorities. Arguably, this instrument will only exacerbate that gap further, causing many women and those from black and minority ethnic groups to experience later life poverty.
In addition, when we look at the impact of this pandemic, many of the effects will be far-reaching. The jobs market has already completely changed, with more people having to take on low-paid and part-time work, and it is only right that these people are not penalised for a situation that is demonstrably outwith their control. No one could have predicted this global pandemic and the many resulting consequences that have arisen for our economy.
I am here not just to highlight the problems, because we in the SNP have offered clear solutions. The UK Government should remove the lower limit—the qualifying earnings band—so that contributions are payable from the first pound earned, lower the age threshold from 22 to 18, and expand the contribution rates beyond the 8% statutory minimum. The UK Government must begin to address the faults in pensions policy and not further exacerbate the current issues.
From WASPI—Women Against State Pension Inequality Campaign—to frozen pensions for UK citizens living abroad, the £10,000 earnings cap is another example of poor pensions policy from a Tory Government that we in Scotland did not vote for. It is vital that workers on lower wages do not continue to lose out on their retirement savings and find themselves in pensioner poverty. It is time for the UK Government to step up to the plate and support pensioners by giving them dignity in retirement.
Pensions
David Linden Excerpts(3 years, 2 months ago)
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David Linden (Glasgow East) (SNP)
Let me start by expressing my thanks to the Minister for his kind words at the beginning of his speech; it is much appreciated and I look forward to working with him in this new role.
Last week, people across the British Isles rightly came together to mourn the passing of a remarkable gentlemen, Captain Sir Tom Moore, a war veteran who served his country and lived to see his 100th birthday. Honouring pensioners and valuing them for their contribution to our society is something that the UK does very well with words, but perhaps less so with actions, and that is particularly the case when it comes to pensions. It is an inescapable fact that the United Kingdom has one of the worst state pensions in Europe, which shows just how much the British Government value older people who have worked their entire lives, paid their taxes, and now find themselves struggling to get by on the relatively low state pension, compared with their peers on the European continent.
As the right hon. Member for North Thanet (Sir Roger Gale) outlined, the situation is even worse for pensioners who have moved abroad. Older people who have chosen to join family members overseas have found that their pension has been frozen at the same rate as it was when they first became entitled to it, or indeed the date on which they left the UK and were already in receipt. The reason I spoke about Captain Sir Tom Moore is that frozen pensions particularly adversely impact veterans who live overseas.
Bernard Jackson exemplifies the injustice of Britain’s frozen pensions. Bernard fought in world war two and participated in the D-day landings as a wireless operator in the Royal Air Force. He moved to Canada with his wife, to their dream home. Sadly, after his wife died, Bernard was forced to return to the UK because he could not live on his frozen UK state pension of just £48 per week. He served his country in its darkest hours yet he was forgotten by the UK Government, with that neglect forcing him to leave his dream home. After his return to the UK he continued to campaign against the injustice of frozen pensions, to ensure that nobody else would suffer as he did. Sadly, he passed away in March 2020.
For those of us who have been following the injustice of frozen pensions there has been an encouraging proposal from the Government of Canada to implement a reciprocal agreement and end the injustice of frozen pensions for the 150,000 UK pensioners who live there. I would argue that it is now incumbent upon the British Government to open negotiations with Canada and rectify that moral injustice, because failure to do so, leaving UK nationals abroad in poverty, would send an awful signal for what is now meant to be global Britain.
It is not just overseas pensioners who face injustice when it comes to UK pensions policy. Women here at home continue to be impacted by the changes to the state pension age. Like other parties, we in the SNP support the principle of equalisation of the state pension age, but we have long had concerns about the way in which it has been done. The WASPI women have been left high and dry by a British Government who continue to adopt an ostrich policy when called upon to provide fair transitional arrangements. So we in the SNP will always call for the WASPI women to be supported, and remind Ministers that it is not too late to act on that.
One other area of pensions policy that I want to raise is that of pension credit take-up, particularly during the pandemic. It was incredibly disappointing that the Minister, when appearing before the Work and Pensions Committee last week, confirmed that the DWP had discontinued its take-up campaign, despite countless reassurances from the Government that it would continue. The Government talk a good game about trying to increase the take-up of pension credit, but talk alone is not enough, so I would ask the Minister in summing up to outline exactly what the Government’s strategy is to increase take-up. Do they even have one, and if so, will the Minister publish it?
In summary, the uprating of the state pension in line with the triple lock is welcome, but the WASPI women, and pensioners living overseas, will not feel the benefit of that. As I said at the beginning of my remarks, the British Government are good at warm words for pensioners, but words alone will not keep our pensioners warm in their houses this winter.
Social Security
David Linden Excerpts(3 years, 2 months ago)
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The Parliamentary Under-Secretary of State for Work and Pensions (Will Quince)
I beg to move,
That the draft Social Security Benefits Up-rating Order 2021, which was laid before this House on 18 January, be approved.
There is no question but that this has been a challenging time, and the coronavirus outbreak has caused financial hardship and disruption for many across our country. That is why, since the start of the pandemic, we have mobilised our welfare system like never before to provide a comprehensive package of support worth over £7 billion, providing an essential safety net for those who need it.
My Department has risen to the challenge, utilising the speed and agility of the universal credit system to deal with the huge increase in people needing our support. There is little doubt that had we relied on the legacy benefit system, we would have seen queues down the streets outside our jobcentres and long delays, leaving families facing financial disruption without support. Crucially, through our universal credit system, we have managed to pay over 90% of new claimants on time and in full.
That has meant that universal credit and the Government’s investment in the welfare safety net have been there to help catch many of those affected by the pandemic. That has been hugely important for the 3 million more people who have made a benefit claim since March last year. I think it is right once again to publicly thank the thousands of work coaches in jobcentres up and down our country, who have responded at speed and scale to ensure that we have supported people in their hour of need. Now they are working tirelessly to deliver our plan for jobs.
As the House knows, the Chancellor introduced the £20 per week uplift to universal credit and working tax credit as a temporary measure in March 2020 to support those facing the most financial disruption. That additional support increased the universal credit and working tax credit standard allowances by up to £1,040 for a year.
I understand that that subject is the elephant in the room; I know that the House is eager to know about the future of the £20 uplift to universal credit. The uplift sat, and continues to sit, outside today’s annual uprating order and is therefore not directly relevant to today’s proceedings, but I have to say that the Labour party is simply wrong in its use of emotive language that the Government plan to cut universal credit in April. In fact, the only talk of cutting universal credit in April has come from the Opposition parties. I gently say to them that they should be very careful with their use of emotive language and what they say in this House, because scaremongering in this House has real-world consequences, which the Department sees every day in claimant behaviour.
David Linden (Glasgow East) (SNP)
The Minister will be aware of the cross-party Select Committee on Work and Pensions report published this morning, which speaks of the need to extend and make permanent the universal credit payment. Does he think that his Conservative colleagues on the Committee who authored that report are scaremongering when they talk about the damage that would happen as a result of not continuing that past April?
David Linden (Glasgow East) (SNP)
Before I get to the substance of my remarks on the order before us, I want to take a moment to pay tribute to my hon. Friend the Member for Airdrie and Shotts (Neil Gray), who previously served as Scottish National party work and pensions spokesperson. More than just an exceptional five-a-side football player, he was a passionate advocate of social justice long before he entered this House, and although I am sad that he will soon be leaving this Parliament, I very much hope that Westminster’s loss will be Holyrood’s gain as he seeks to represent the finest town and football club in our national Parliament.
In taking on this role of shadowing the DWP, there are many things on which I will disagree with the United Kingdom Government in terms of policy and ideology, but I am very much on the same page as the Minister in paying tribute to our work coaches and DWP staff, who are the finest in the land, as I see at Shettleston jobcentre in my constituency.
Let me turn to the order before us. To be blunt, after a decade of Tory cuts to social security spending and with millions facing hardship, current social security provision simply does not go far enough to support people in a decent and caring society. These policies are part of a wider austerity agenda that continually attacks the most vulnerable in society. We see it time and again: the two-child limit, and the associated rape clause; and the benefit cap. The list gets bigger, yet the Union dividend for Scotland gets smaller. The structure and support of our social security system says a lot about us as a society and how we treat the most vulnerable when they need that safety net the most. Right now, this Tory Government are failing enormously to guarantee the future certainty of social security payments in the coming months. Ministers must therefore listen to the widespread calls to make the £20 uplift to universal credit and working tax credit permanent, and indeed extend this to the legacy benefits.
The crux of this issue for us in Scotland is that 85% of welfare expenditure and income replacement benefits remain reserved to the United Kingdom Government here in London. As we find ourselves in the middle of a pandemic facing not only a public health crisis but an economic crisis, Scotland should not have to wait and merely hope for the UK Government to reject austerity and help the poorest in our communities. The Joseph Rowntree Foundation highlighted the devastating effect of years of Tory austerity and welfare cuts on many families across Scotland, with levels of destitution rising by 35% between 2017 and 2019. Today’s uprating does not make up for four long years of benefit freezing prior to the pandemic. The proposed uplift also fails to account of the financial hardship that many families are facing as a result of the pandemic. Research by the Trussell Trust found that nearly a quarter of a million parents worry that they will not be will be able to properly feed their children if the £20-a-week boost to universal credit is whipped away in April. I do not think that the Minister would be suggesting that the Trussell Trust is scaremongering.
A case from our citizens advice bureau in the west of Scotland reports a client with a young baby facing financial difficulties as a result of unexplained deductions to her benefits. That client’s deductions are around £50 a month, meaning that any removal of the uplift will push her into more severe hardship. I do not think that the Minister would be suggesting that the citizens advice bureau in the west of Scotland is scaremongering. Indeed, at a national level, Citizens Advice Scotland reports that, without the universal credit uplift, more than seven in 10 people receiving complex debt advice from citizens advice bureaux will be unable to meet their basic living costs. I do not think that the Minister is suggesting that Citizens Advice Scotland is scare- mongering.
Throughout the pandemic, we in the SNP have urged the UK Government to make permanent the £20 uplift to universal credit. However, it is not only the SNP demanding urgent action; these calls are coming from right across the political spectrum. In its report published only this morning, the Work and Pensions Committee said:
“We stand by our recommendation—made in October 2020—that the increase in Universal Credit should be maintained, with annual inflation-based increases.”
It went on to say that
“if the Chancellor cannot yet commit to making the increase permanent, he should at the very least extend it for a further 12 months.”
I do not think the cross-party Work and Pensions Committee, which includes a majority of Conservative MPs, is scaremongering.
A cross-party report published last week by the all-party group on poverty urged the Government to retain the uplift and to suspend the benefit cap. I do not think the all-party group on poverty, co-chaired by the hon. Member for Thirsk and Malton (Kevin Hollinrake), is scaremongering.
The Prime Minister’s assurance that the £20 uplift will remain in place until at least April is simply not good enough. People are now facing a cliff edge in April, because the UK Government have failed to act and, as usual, have let the issue run on until the 11th hour. Analysis by the Scottish Government has made it clear that removing the £20 uplift will have a devastating impact, forcing a further 60,000 people in Scotland, including 20,000 children, into poverty.
This £20 uplift has helped 2.5 million households across the UK during the pandemic, but the effects of the pandemic will be long lasting, with many industries suffering and countless people facing redundancies, so it is clear that this uplift needs to remain. The British Government have a moral duty to ensure that people have enough money to get by, so I argue that making this small increase permanent would be a big step towards doing that.
Patrick Grady (Glasgow North) (SNP)
I congratulate my hon. Friend on his appointment to his new post. Is it not the case that lots of families are, for the first time, experiencing what it is like to be on universal credit? There will be a double whammy for those who have come on to universal credit over the course of the past year and then face this cliff edge of the further reduction. It is actually increasing the long-term cost to the Government, society and the economy if people are not properly helped back on their feet from the pandemic.
David Linden
My hon. Friend hits the nail on the head. Far too often during this pandemic—whether in response to the public health aspects of the pandemic or, indeed, to the economic aspects of it—everything the Government have done has been about trying to get to the next day. It has been about trying to get a quick win and just get through the day, but unless we see a strategic thought-through process from the Government, we will continue to see these problems reinvent themselves.
Alongside increasing universal credit at the outset of the pandemic, the UK Government enhanced local housing allowance to cover the lowest 30th percentile of market rents. Both these actions effectively reversed the effect of George Osborne’s freeze on the benefit introduced in 2016. The benefits freeze is a prime example of what the Tories believe to be acceptable social security policy, but the Joseph Rowntree Foundation has made it very clear that the benefits freeze has been the biggest contributory factor in exacerbating poverty levels among working families.
Although there was a welcome increase to universal credit during the pandemic, there was sadly no increase to legacy benefits such as employment and support allowance and income support. Without this increase, those who are claiming legacy benefits face unprecedented financial challenges related to the pandemic, and this further risks worsening the financial situation for those claimants who are already facing difficulties. That specifically includes those with disabilities who cannot and should not be left behind by this Government who already have a pretty woeful record when it comes to penalising those with a disability. Increasing the value of the legacy benefits would also protect people from having to make complex and very difficult decisions about whether they would be better off moving to universal credit. The Government should ease pressure on households receiving legacy benefits by applying an uplift to mirror increases to the standard allowance within universal credit.
Before I conclude, I want to make reference to the two-child policy and rape clause. The Minister is probably wincing at the reference to the rape clause—indeed, he recently wrote to my hon. Friend the Member for Glasgow Central (Alison Thewliss), pleading with her not to call it that. Presumably, Ministers would prefer it to be given its Sunday name: the non-consensual-sex exemption. If the Minister is embarrassed by the reference to the rape clause, I suggest that it is not the wording that should embarrass him, but the very essence of a policy that is surely the most barbaric ever to come out of Whitehall.
The Westminster austerity agenda continues to punish some of the most vulnerable people in our communities and make their lives a misery. The order before the House today is a mere formality; for as long as Scotland remains chained to Westminster, my party and I will always speak up for the most vulnerable and make the case for a decent, generous and robust social security system. But there is no escaping the fact that until Scotland is independent we are forced to accept the majority of social security policy from a Westminster Government we did not vote for—whose support, at best, could only be described as meagre.