Oral Answers to Questions

Esther McVey Excerpts

Monday 2nd July 2018 Commons Chamber

[Paul Masterton (East Renfrewshire) (Con)]

1. What recent steps the Government has taken to protect the welfare of vulnerable universal credit claimants.

[The Secretary of State for Work and Pensions (Ms Esther McVey)]

Universal credit is a person-centred benefit focused on the needs of the individual. We are working continuously with a variety of stakeholders to ensure that we provide the right support for vulnerable claimants, and our work coaches undertake awareness training to identify claimants with complex needs.

[Paul Masterton]

During a recent visit with the Secretary of State to the Barrhead jobcentre in my constituency, one of the things we discussed with staff was the payment of advances as a single payment potentially to claimants who have difficulty managing budgets or who are struggling with addiction. Will she take into account those concerns when reviewing how the advance system is operating?

[Ms McVey]

I was delighted to visit my hon. Friend’s constituency and local jobcentre and to visit the Greenhouse Café, which he champions and which helps vulnerable people to get closer to the workplace. On the question that he and the work coaches raised about the advance, those advances could be given up to 100%, and with the personal relationship that the work coaches have, through this training they can assess what the right needs are. That is the right thing to do.

[Stephen Timms (East Ham) (Lab)]

One of the concerns raised by the National Audit Office is that the Department does not really know who the vulnerable claimants are, and particular problems are being caused by the very long delay before people are entitled to their benefit. The right hon. Lady’s predecessor took an important step by reducing the minimum wait from six weeks to five. Will she commit to taking that further and reducing the period further still?

[Ms McVey]

Universal credit is all about the relationship with the work coach. They get to know their claimants and their claimants’ needs, so it is very much a tailor-made benefit. We as Ministers have always said that, should we need to adapt and change universal credit so that it best supports the individual, we will do just that. I am glad that the right hon. Gentleman welcomed the changes that we have already made.

[Dame Cheryl Gillan (Chesham and Amersham) (Con)]

Vulnerable claimants often consult their local citizens advice bureau. On a visit to the Chesham citizens advice bureau, staff told me that the fixed-term, timed appointments for their clients are often taken up by them hanging on to the DWP telephone line for up to 25 or 30 minutes, and then the time for the appointment has expired. Will the Secretary of State look at the telephone line and try to improve its efficiency and effectiveness, so that CAB advisers can instantly access the advice that they need to help these clients to make universal credit go smoothly?

[Ms McVey]

My right hon. Friend, who does so much for people in her constituency, and particularly those with autism, raises a very good point. We will look into exactly what we can do to do that for the citizens advice bureaux, as we have a very good working relationship with them.

[Margaret Greenwood (Wirral West) (Lab)]

The National Audit Office’s report on universal credit shows that people such as carers, families needing support with childcare and disabled people are more likely to have to wait for an initial payment. The report shows that, in December 2017, only a third of disabled people were receiving their initial payments in full and on time. As the Secretary of State claims that the NAO report is out of date, can she tell us what the figure is now?

[Ms McVey]

As we said quite clearly, the NAO did not take into consideration all the changes that we had made and their impact. What we can say is that we know that 80% of people will get their payment on time and in full, but what the NAO report has not taken into consideration is that 90% will get some payment within the first month and it is invariably down to non-verification and not fulfilling their claimant commitment.

[Neil Gray (Airdrie and Shotts) (SNP)]

On Thursday, our concerns became a reality, as we discovered from the Government’s figures that 190 women were put in the impossible position of declaring that their child was born as a result of rape in order to receive universal credit or child tax credits. We can also estimate from those figures that around 200,000 children have been affected by the two-child cap. How does she feel about cutting that money and stopping it being spent on up to 250,000 children?

[Ms McVey]

This whole House voted for the changes to tax credits so that we can make sure that people in work are treated the same way as people on benefits. However, what we did do was bring in a set of exemptions for people who would not be able to have those two children. It is only right that we have brought in specific exemptions to help those people who need them.

[Neil Gray]

The Government continue to mislead. We know from the figures that 59% of all those households impacted are already in work. The Secretary of State continues to suggest today that this was about making the choices the same for those who are in and out of work, but actually it is about the Government making people’s choices for them. What advice does she have for a woman who is in work and in receipt of tax credits or universal credit and who has fallen unexpectedly pregnant with what would be a third child?

[Ms McVey]

The hon. Gentleman will know that we still pay child benefit for all children. We are also paying childcare costs. In fact, those have increased. As I said, what we have done with tax credits is make sure that people who are paying their way and are not dependent on the state get the same support as those people who are also getting support from the state.

[Ian C. Lucas (Wrexham) (Lab)]

2. What recent estimate she has made of the average number of personal independence payment assessments that are overturned on appeal; and what the average waiting time is for such appeals to be heard.

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[Peter Heaton-Jones (North Devon) (Con)]

3. What recent steps the Government have taken to ensure that universal credit is rolled out effectively.

[The Secretary of State for Work and Pensions (Ms Esther McVey)]

We are continuously testing, learning and improving to deliver an effective roll-out. The pace of the roll-out reflects the need to listen, respond and get it right. We have rolled out universal credit to 353 jobcentres and are increasing the roll-out to 60 jobcentres per month. Universal credit is on track to be in all jobcentres nationally by the end of 2018.

[Peter Heaton-Jones]

This Wednesday sees the roll-out of full-service universal credit in North Devon. Will the Secretary of State join me in acknowledging the hard work of Jobcentre Plus staff in ensuring the smoothest possible transition for all claimants?

[Ms McVey]

I will indeed join my hon. Friend in thanking his team. I also thank him for what he has personally done in his local area, working with Alex Coull, the work coach team leader, and his team. They have done an excellent job, engaging with stakeholders from North Devon Homes, North Devon Council, Citizens Advice Devon and North Devon+. That is the sort of work that all Members of Parliament can do to ensure that universal credit is rolled out safely.

[Rachael Maskell (York Central) (Lab/Co-op)]

19. Increasingly, my constituents are finding that elements of their benefits have been withdrawn—because there is less money in the bank—before the DWP has sent the decision letter. When they phone the helpline, they are told that, as a decision letter has not been sent, the adviser cannot discuss anything with them. A month later the letter arrives, with an explanation of their right to appeal. Will the Secretary of State put her house in order, and ensure that claimants are the first and not the last to know?

[Ms McVey]

I thank the hon. Lady for raising that case. It would be good to meet her. I have surgeries every Monday in the Tea Room, and if she would like to raise a personal case with me, I ask her please to do so. We can go through the case and see exactly what happened.

[Rachel Maclean (Redditch) (Con)]

May I commend the Secretary of State and convey to her the comments of staff at a jobcentre in Redditch? People who have worked there for decades said that universal credit was the best system that they had seen for 30 years. That is because it is an individualised system based on the “test and learn” approach. What more can the Secretary of State do to ensure that that approach helps our constituents?

[Ms McVey]

My hon. Friend has made a very good point. When we speak to the people who are working with the system day in, day out, they say that it is the best system that they have ever seen, and it is about a “test and learn” process. Listening to what is said in the House, one would not believe that over 3.2 million more people were in work. That is not something that happens by mistake. It is as a result of the hard work of our work coaches and the direction that is being set by the Government.

[Mr Speaker]

I am extraordinarily grateful to the Secretary of State, whose answers I always enjoy. The only point that I would make, gently, to colleagues on both sides of the House is that we have a lot of questions to get through, so we do need to be briefer—and that is now to be exemplified by no less a figure in the House than Mr Frank Field.

[Frank Field (Birkenhead) (Lab)]

Will the Secretary of State commission a report on real-time income, which for many of our constituents provides neither real-time information nor income and results in hardship, and publish that report?

[Ms McVey]

The right hon. Gentleman raises a good point. We are looking constantly at real-time income—how it works and how it works best—and we continue to do that and put out new guidance when we know what is going on.

[Tom Pursglove (Corby) (Con)]

Can my right hon. Friend confirm whether universal credit is seeing more people into work sooner than jobseeker’s allowance did?

[Ms McVey]

Not only is it seeing more people into work sooner, but it shows they are staying in work longer and looking to do more hours. It also shows that people who are in work are earning £600 more a year on average. My hon. Friend has raised a good question.

[Margaret Greenwood (Wirral West) (Lab)]

The Department for Work and Pensions’ own survey of claimants under universal credit full service found that over 40% were unable to register a claim online unassisted. These people are the most likely to be vulnerable in our society. Universal support is meant to address this, but the NAO report reveals that providers told the NAO that universal support does not meet the needs of claimants and leaves providers insufficient time to assist them. What are the Government going to do to ensure that these people receive the support they need?

[Ms McVey]

As the hon. Lady will know, we have provided £200 million-worth of support for local authorities to help people who will need the help not just for budgeting but for going online through IT; we have a free phone line and we meet with people face to face to do just that.

[Neil Coyle (Bermondsey and Old Southwark) (Lab)]

4. What assessment she has made of the efficacy of universal credit in supporting people into work.

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[David Hanson (Delyn) (Lab)]

5. What assessment she has made of the implications for her Department’s policies of the findings of the NAO report entitled rolling out universal credit, published on 15 June 2018.

[The Secretary of State for Work and Pensions (Ms Esther McVey)]

It is unfortunate that the NAO was unable to take into account the significant changes recently implemented in universal credit. Those changes address many of the concerns raised in its report. We continue to listen and learn from feedback, and make the necessary changes to the benefit as we roll it out.

[David Hanson]

Many of my constituents are among the one in five individuals who are not paid universal credit on time. As the Minister should know, the NAO specifically recommended that UC should not be rolled out further until the system can extend and work with the current level of applications. Will she accept that recommendation?

[Ms McVey]

The NAO made clear quite the opposite: it said that we need to continue with universal credit. It was also concerned that it was rolling out too slowly and said that actually we should increase what we are doing. So what the right hon. Gentleman says is absolutely not what the NAO said.

[Bill Grant (Ayr, Carrick and Cumnock) (Con)]

Will my right hon. Friend confirm that more than eight in 10 claimants are satisfied with their experience of universal credit?

[Ms McVey]

My hon. Friend is right—that is exactly the number. Actually, Patrick from Newport has said that it helped him with fares to get to a job and with the cost of clothing. He said:

“Thanks for all your help. It was really easy dealing with everyone who helped me back into work quickly and helping me buy what I need and travel back and forth.”

That was an example from Wales.

[Margaret Greenwood (Wirral West) (Lab)]

The National Audit Office report recommended that the Government should

“ensure the programme does not expand before business-as-usual operations can cope with higher claimant volumes”,

yet in her oral statement on 21 June, the Secretary of State said that the NAO report stated that the Government should

“continue with the roll-out and do it faster.”—[Official Report, 21 June 2018; Vol. 643, c. 495.]

Will the Secretary of State tell us where in the report it says that the roll-out should be speeded up?

[Ms McVey]

Yes, in the report it says just that. It says that it needs to continue to go forward and it needs to continue at a faster rate.

[Mark Pawsey (Rugby) (Con)]

The NAO report acknowledged the close links between local authorities and universal credit. As one of the first full-service sites, Rugby and its borough council received an £85,000 payment to assist with the cost of digitisation. Will the Secretary of State join me in welcoming that valuable support for local authorities in full-service areas?

[Ms McVey]

I will indeed join my hon. Friend in praising that support. It is really important that local authorities are involved in what is happening and that we provide the right support on the ground for individuals to get their benefit.

[Ruth George (High Peak) (Lab)]

6. What assessment she has made of trends in the level of financial hardship experienced by universal credit claimants.

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[Giles Watling (Clacton) (Con)]

9. What assessment her Department has made of rates of universal credit claimant satisfaction.

[The Secretary of State for Work and Pensions (Ms Esther McVey)]

Some 83% universal credit claimants are satisfied with the service. The claimant survey shows that the majority of people find interactions with their work coach, both online and in person, to be helpful and that the online journal is easy to use.

[Giles Watling]

With universal credit due to be rolled out in Clacton later this month, will my right hon. Friend reassure me that, with recent changes to the system, my residents will get a better service?

[Ms McVey]

I want to recognise all the hard work that my hon. Friend does in his constituency. Yes, his constituents will get a better service now that we have added those changes. However, he does not have to take my words for it. Chloe, a lone parent, said: “Universal credit is easier than the old system, and it has helped me to get a job. It is simpler, as I do not have to keep putting my wage slips in. I can actually vary my wages and get paid automatically.”

[Mr Barry Sheerman (Huddersfield) (Lab/Co-op)]

Has the Secretary of State looked into the level of satisfaction of people on the autism spectrum and of those facing similar challenges? Her Department’s offices around the country are very autism-unfriendly and difficult places for people on the autism spectrum to approach. When will her Department have a policy for autistic people?

[Ms McVey]

I share the hon. Gentleman’s concern for young people, or anybody, with autism. This is something that we, as a country, have to get right, as we are seeing a rising number of people with autism. Both sides of the House work very closely on this, whether it is my hon. Friend the Minister for Disabled People, Health and Work or Opposition Members.

[Several hon. Members rose—]

[Sir Desmond Swayne (New Forest West) (Con)]

What is the impact on housing association tenants?

[Ms McVey]

My right hon. Friend asks a rather open question but we have a landlord portal for housing association tenants. If people need their payments done automatically, they can have just that—if that is what he is referring to.

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[The Secretary of State for Work and Pensions (Ms Esther McVey)]

Those who take an interest in disability issues will know about our Disability Confident scheme, which supports businesses to employ disabled people. We have launched the Disability Confident 100-day community challenge to get people across this House involved in supporting people in their local area. To date, in 24 hours, 23 MPs have become involved. I hope that the whole House will help disabled people in their area to get into work.

[Sir Desmond Swayne]

This is complicated, Mr Speaker, so stay with me. What can the Secretary of State do to ensure continuity of universal credit benefit entitlement for those people paid on the same day every month for whom, every now and again, two pay packets will fall into the assessment period?

[Mr Speaker]

I think that it is all perfectly clear, as the hon. Member for Lichfield (Michael Fabricant) knows.

[Ms McVey]

My right hon. Friend is in the Chamber much of the time, so he might have heard me talk about this complicated issue quite a bit. It is about not just the last day of every month, but people who might have differing pay packets—they might be paid weekly, fortnightly or four-weekly rather than monthly. A recipient might not get their UC in a month because they have two pay packets falling within that month. What we can do straightaway is this: the person has their entitlement to benefits, and they will then sign on again the month after and remain in UC. We are providing guidance and support for both claimants and employees so that people stay on a cushion of benefit, but the system reflects their fluctuating wage.

[Mr Speaker]

Well, we are all now considerably better informed.

[Mr Barry Sheerman (Huddersfield) (Lab/Co-op)]

T2. If the Secretary of State wants people to have confidence in her Department, what is she doing about Motability? Is it true that its chief executive is on £1.7 million and that it has reserves of £2.4 billion? Many people who are struggling support Motability, but they want to know what is going on.

[Ms McVey]

Again, the hon. Gentleman raises a good point. As he will be aware, I am working with Opposition Members and with the Work and Pensions Committee to make sure that money from Motability—the charity or its operations—is being spent correctly and, most importantly, on disabled people. A report is being produced at this very minute.

[Henry Smith (Crawley) (Con)]

T6. I put on record my thanks to Department for Work and Pensions staff in Crawley for the roll-out of universal credit, which has gone so well over the past month. There is just one case in which there has been a difficulty, and I am grateful to my right hon. Friend the Secretary of State for her commitment to pursue that. Is not that an example of how MPs working with their local DWP departments can make a positive difference?

[Ms McVey]

That is exactly what we are doing with the slow roll-out. We are listening to what is needed. Members on both sides of the House supported the policy of universal credit because the old legacy benefits were not working, but we have to get this right and support claimants during the roll-out.

[Bambos Charalambous (Enfield, Southgate) (Lab)]

T3. Is the Minister aware of the hardship that parents face under the current regime of child maintenance non-resident parent capital rules? Will he meet me and my constituent, Elizabeth Green, to help to resolve her case, whereby her former partner has not paid a penny in maintenance in over 14 years, yet owns assets worth in excess of £5 million?

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[Anna Turley (Redcar) (Lab/Co-op)]

T4. Will the Secretary of State inform us whether it is now official DWP policy to scan claimants’ Facebook and other social media pages for evidence of spending patterns such as meals or days out with their family, and to then use that evidence to turn down illness or disability-related benefits? If this is approved DWP policy, will she put the guidance before the House?

[Ms McVey]

I will be honest: I do not believe that that is our policy; we would not do that. However, I have seen fraud investigations when people have said that they are not working or are unable to work, but unfortunately what they have posted on their Facebook page has very much proven that not to be the case.

[Philip Davies (Shipley) (Con)]

The Secretary of State knows that I was not happy with the level of outreach support in Shipley when the jobcentre closed at the beginning of January—we speak of very little else, Mr Speaker. I am delighted that some extra support has now been given, but will my right hon. Friend ensure that a Jobcentre Plus outreach worker is available at a public venue on a regular basis to help claimants in the Shipley constituency?

[Ms McVey]

When my hon. Friend said that “we” speak of little else, I was not sure whether he was talking about me and he, or he and the rest of the people in Shipley. But he is quite right. I am ensuring that one of the key things this Department does is more outreach work. As UC rolls out, it needs to reflect the needs of local people, and outreach is a sure-fire way to do that.

[David Hanson (Delyn) (Lab)]

T5. May I just drag the Secretary of State back to the National Audit Office report? It said that the Department should“ensure the programme does not expand before business-as-usual operations can cope with higher claimant volumes.”How does the Secretary of State square that with her comments about speeding up the scheme, rather than stopping it as the NAO recommends?

[Ms McVey]

The report said that we should carry on with universal credit and that the roll-out should not be slower. The very reference to it not being slower was to ensure that it is sped up. This has been a slow roll-out but, of course, we have to ensure that the roll-out is right, as we have been doing, hence the extra support that we are providing. I repeat the extra number of jobs that we are helping people get: 3.2 million more people are in work.

[Fiona Bruce (Congleton) (Con)]

Family relationship support providers such as Relate, Tavistock Relationships, OnePlusOne and Marriage Care are concerned that there could be a gap in funding—and therefore in critical services such as parental conflict resolution—after current contracts end next month and before new contracts start. How will Ministers address this?

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[Mr Speaker]

I am even more pleased that Roger Federer won his opening match in straight sets in less than an hour and a half. Conveniently it finished just before Question Time began—that was very helpful.

[Ms McVey]

Then everyone is a winner today in this Chamber.

My hon. Friend is right. I have met representatives of the agricultural industry. What was key was people understanding what opportunities are out there, what the work entails and the wage that it pays, and the fact that universal credit supports people in and out of work, which means that they can take up these job opportunities.

[Paula Sherriff (Dewsbury) (Lab)]

A gentleman in his 80s attended my recent surgery regarding his son, who in his 50s and has complex and multiple disabilities. It beggars belief that he is being found fit for work. Will the Minister meet me to discuss this specific case? When will her Government stop vilifying the disabled and the most vulnerable in society?