Universal Credit

Debate between Esther McVey and Marcus Jones

Monday 5th November 2018 Commons Chamber

[Ms McVey]

I would like to meet the hon. Lady to discuss the matter, and to meet this person to see what we can do to support and help her. She has obviously been through a lot.

[Mr Marcus Jones (Nuneaton) (Con)]

I welcome the progress that my right hon. Friend has made in securing changes that support people in a better way. There will have to be a number of votes on the measures that she is proposing. What does she think people will not be getting if Members decide not to back the changes that she is advocating?

[Ms McVey]

That is a crucial question. If people do not vote for these changes, it will mean the most vulnerable not being helped, it will mean 1 million disabled people not getting £100 a month, it will mean disabled people not getting severe disability premium, and it will mean 700,000 people not getting their full benefit and being supported as well, in addition to the other measures I mentioned. I thank my hon. Friend for asking that question.

Universal Credit

Debate between Esther McVey and Marcus Jones

Tuesday 13th March 2018 Commons Chamber

[Ms McVey]

I thank the hon. Gentleman for that intervention, because it allows me to explain that universal credit works on a tailor-made basis, so that the claimant will always be in contact with their work coaches to work out what is better, how progression would be better and why they would be taking reasonable work because it makes them better off. I am not saying this unilaterally. I ask all Opposition Members please to go to their local jobcentre and meet the work coaches, who can then explain how the system works.

In 2013, the Government announced the introduction of tax-free childcare as the successor to childcare vouchers. The passing of the Children and Families Act 2014, which legislated for tax-free childcare, had cross-party support. Tax-free childcare is now fully rolled out, and the date for the closure of the voucher scheme to new entrants is April this year. This was set out in the 2016 Budget, giving two years’ notice. Parents receiving childcare vouchers can continue to use them while their current employer continues to offer the scheme.

[Mr Marcus Jones (Nuneaton) (Con)]

Is not the bottom line that under the previous tax credits system people got 75% of their childcare costs but under universal credit they get 85% of their childcare costs, and they can work all the hours that they want to?

[Ms McVey]

Universal credit is far more generous, as my hon. Friend points out. Up to 85% of childcare costs will be given to people who need it.

Under the childcare voucher scheme, the estimated cost to the Exchequer of forgone employers’ national insurance contributions is £220 million per year. This is paid to employers and voucher providers to administer the schemes, so it is not surprising that voucher providers are lobbying hard to keep the scheme open. However, we are focused on delivering a better childcare offer for working families. Tax-free childcare is simpler to administer for childcare providers, who will not have to deal with multiple voucher providers. These regulations will bring the national insurance contributions relief in line with the income tax treatment. They are an essential step in reforming Government childcare support to provide a fair and well-targeted system. Closing the childcare voucher scheme to new entrants will ensure that more Government support goes directly to parents and helps working families to reduce their childcare costs.

Private Sector Pensions

Debate between Esther McVey and Marcus Jones

Monday 22nd January 2018 Commons Chamber

[Ms McVey]

I do understand the gravity of what happened, but there is one thing that we never seek to do in the House. In 2004, after much discussion, we asked an independent arm’s length body to look into these matters. When there have been misdemeanours and irresponsible behaviour and things have gone wrong, we announce that investigations are under way, but we are not the investigator. What we do is legislate to ensure that people are brought to account—and if they have done something wrong, my goodness, we need to bring them to account.

[Mr Marcus Jones (Nuneaton) (Con)]

A number of my constituents have been affected by the Carillion situation. What will the Pension Protection Fund do to support those who have pensions through Carillion, and what more will the Government do to ensure that people with private pensions can be confident that investing their savings in a company pension fund is the right thing to do?

[Ms McVey]

I can reassure my hon. Friend that the Pension Protection Fund is there to provide a lifeboat. Those who have retired will receive 100% support, while those who have not will receive 90% support, with a cap. That is what we are here to do: to protect the people who have done the right thing in saving for their future and to look after them in a responsible way, while also ensuring that regulations and processes exist to bring to account those who have done the wrong thing.