Oral Answers to Questions

Debate between Esther McVey and Neil Gray

Monday 15th October 2018 Commons Chamber

[Ms McVey]

Under the process of managed migration, the roll-out will be slow and measured. It will start not in January 2019, but later in the year. For a further year we will be learning as we go with a small amount of people—maybe 10,000—to ensure that the system is right. The roll-out will then increase from 2020 onwards. It will be slow and measured, and we will adapt and change as we go.

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

Has the Secretary of State requested any additional funds for universal credit from the Chancellor ahead of the Budget?

[Ms McVey]

I do not let people know what we do in private meetings, old-fashioned as that may be, but what the hon. Gentleman can know is that I am championing UC to make sure that it works the best it can possibly work. He can take from that what he will.

[Neil Gray]

That was barely a response, let alone an answer. Given the week that universal credit has had, where the Secretary of State has suggested that it will cost claimants up to £2,400 a year; two former Prime Ministers have called for her to rethink; dozens of Back-Bench MPs led by the former Secretary of State, the right hon. Member for Chingford and Woodford Green (Mr Duncan Smith), have called for a rethink; and expert groups like the Joseph Rowntree Foundation, the Resolution Foundation and the Child Poverty Action Group have all called for a rethink, does she not see that universal credit in its current form is causing misery? The roll-out must stop and the cuts must be reversed at the Budget.

[Ms McVey]

We all agree on the founding, sound principles of this benefit, which is helping more people into work. It will give extra money to the most vulnerable. One million more disabled people will get, on average, £110 more a week. We will also be helping the 700,000 people who were getting the incorrect amount of benefit, plus we will be bringing in transitional protection to help them. If the hon. Gentleman wanted to reverse this, what would he do for those most vulnerable people?

Oral Answers to Questions

Debate between Esther McVey and Neil Gray

Monday 2nd July 2018 Commons Chamber

[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.

Oral Answers to Questions

Debate between Esther McVey and Neil Gray

Monday 21st May 2018 Commons Chamber

[Ms McVey]

My hon. Friend asks a pertinent question. Employment is going up and unemployment is going down, which is reflected in the numbers, but because this is a brand new benefit that takes on people in work and people out of work, we are seeing the number of people claiming double. We are now giving support and career progression to people in work, so we will see the claimant count increase and, in some areas, double.

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

Increased debt, job insecurity, rising stress, housing insecurity and unpredictability of income are all highlighted by Gingerbread as issues raised by single parents in receipt of universal credit, and it states that the Government need to go further. How does the Secretary of State plan to address those problems and the estimated 165,000 single parents of pre-school-age children who are highlighted by Gingerbread’s report as being at risk of poverty and debt from new universal credit conditionality?

[Ms McVey]

As it is a brand new benefit, we are providing extra childcare support, which is needed by people with children and lone parents. We are also giving tailored support. The claimant commitment and the one-to-one relationship that people have with their work coach is about really understanding the needs of the individual. That is what we are doing to help people to get into a job, get a career and fulfil their job ambitions.

Universal Credit

Debate between Esther McVey and Neil Gray

Tuesday 13th March 2018 Commons Chamber

[Ms McVey]

I will carry on for a bit, and then I will gladly take some more interventions.

We are not just debating these regulations today, but trying to save them from the Opposition, who would be happy to destroy this extra support for our benefit claimants. Perhaps I should remind the House of some of the changes that are in these regulations and what benefits they will bring to claimants. After all, the policy underpinning these regulations has been widely debated and supported both inside and outside this Chamber. The regulations abolishing waiting days will help many claimants by, on average, £160, while reducing the time taken to receive the first monthly payment. These regulations bring into effect the housing benefit transitional payment, which amounts to two weeks of housing benefit at the start of the claim. That is worth, on average, £233 towards helping claimants stay on top of their housing costs as they move into universal credit. These regulations increase the work allowances and are worth around £68 a year in further support for those who are striving to enter work.

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

The Secretary of State is attempting to provide a stout defence of the impact of universal credit. Why is it then that, only last month, her colleagues on Stirling Council proposed three years’ worth of mitigation against the impact of universal credit, worth more than half a million pounds?

[Ms McVey]

Actually, if the hon. Gentleman looks at what this Government introduced in the Budget, he will see that it was a package of support worth £1.5 billion for the country. What we are doing is supporting people as best we possibly can. Additionally, these regulations fund temporary accommodation through housing benefit, which has been widely called for and unanimously welcomed by local authorities.

These regulations follow on from a host of other changes that we have already implemented, including making our telephone lines Freephone numbers, extending the maximum repayment period for advances from six months to a year, increasing the maximum advance that claimants can receive to up to 100%, changing the guidance to ensure that, when private sector housing claimants come on to universal credit, we know whether their rent was previously paid directly to the landlord and can ensure that that continues.

Oral Answers to Questions

Debate between Esther McVey and Neil Gray

Monday 5th February 2018 Commons Chamber

[Ms McVey]

My hon. Friend makes a very good point, and I have actually met the tremendous work coaches in his constituency. I go out to speak to work coaches all the time, and they are saying to me that the change we are delivering through universal credit is the best thing they have ever delivered. The support they can give—[Interruption.] Rather than Opposition Members laughing, they would be well advised to come and join me or others in meeting work coaches. I will tell them how we know this is working: if it were not working, we would not have an extra 3.1 million people in work.

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

Contrary to the “SNP bad” broken record from the hon. Member for Gordon (Colin Clark), will the Secretary of State join me in welcoming the Scottish Government’s recently introduced flexibilities for universal credit payments, and will she consider implementing Scotland’s model down here, especially as her colleague in the Scottish Parliament, Adam Tomkins, has said he is “very much in favour” of them?

[Ms McVey]

The underlying principle of how we get people into work is working right the way across the United Kingdom. It is working in Scotland, and that is correct. Equally, we agree with giving extra powers to devolved Governments, and Scotland has the right to do things in its own way. As we pointed out earlier, however, some of the changes taken on board in Scotland have actually resulted in slower payment to people who need their benefits.

Personal Independence Payment

Debate between Esther McVey and Neil Gray

Tuesday 23rd January 2018 Commons Chamber

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

Thank you, Mr Speaker, for granting this important urgent question. I congratulate my hon. and assiduous Friend the Member for Glenrothes (Peter Grant) on securing it.

The High Court ruled that the UK Government’s PIP regulations were “blatantly discriminatory” against people with mental health impairments. That follows the damning report from the UN Committee on the Rights of Persons with Disabilities, which found “systematic violations” of disability rights. Although I welcome the Secretary of State’s acceptance of the High Court ruling—a position I hope the Government will adopt more regularly in response to High Court defeats on social security policy—I was worried by an aspect of her written statement, which was sneaked out on Friday. She said on Friday and again today that

“Although I and my Department accept the High Court’s judgment, we do not agree with some of the detail contained therein.”—[Official Report, 19 January 2018; Vol. 634, c. 30WS.]

Will she clarify that she will implement the ruling in full? Will she make an oral statement on the Floor of the House, so that we can consider whether the response follows the High Court ruling? Will she answer the pertinent questions put by my hon. Friend regarding the timescales—a matter she has not covered? Finally, in the light of the ruling and other external interventions, will the Government admit that their policies are causing harm and commit to widescale review of the social security system in the United Kingdom?

[Ms McVey]

We will implement the judgment in full, but we will work with stakeholders and charities to understand and implement what was said. When we said we did not agree with the detail, it was a reference to the language and terminology that went above and beyond a legal ruling and judgment, but we saw through that to the facts and that is why we decided not to appeal.

I reiterate that I am not the kind of person who sneaks anything out. I have come to this House and answered every question. I set out the timetable. The matter had to go to the Court for a decision on Friday. The House was not sitting by the time I made the decision, so I put out a written statement. I hope that all hon. Members understand that it is better to get a decision right than to rush just to answer in a different way. Nothing was sneaked out.

Again, I reiterate the support the Government give and have said they will give to people with mental health conditions. The Prime Minister has made that a key issue that she wants to deal with, and she and I came to that decision to do so.

Private Sector Pensions

Debate between Esther McVey and Neil Gray

Monday 22nd January 2018 Commons Chamber

[Ms McVey]

I completely agree with my hon. Friend. This is about strengthening the corporate governance of organisations. This is about giving power to the boardroom. This is about giving shareholders responsibility. This is about having responsible businesses doing the right thing. Where we can ensure that that happens, and where we can look into investigating what is going wrong—should things be going wrong—it is right that we do. As I said at the beginning, most businesses—the vast majority of businesses, and there are over 6,000 defined benefit schemes—are doing the right thing, but where they are not, it is right that there is fury from the public to make sure that they do the right thing. That is why the Insolvency Service carries out investigations in this regard and gets money back where it can.

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

Thank you, Mr Speaker, for granting this urgent question, and I congratulate the hon. Member for Oldham East and Saddleworth (Debbie Abrahams) on securing it.

That we are talking about private sector pensions again highlights the fundamental need to address the regulation of the pensions industry—something that the SNP has been calling for for years, but that has until now fallen on deaf ears. The BHS pension scheme was in deficit by more than £500 million. Carillion is estimated to be up to £900 million in the red, and there are over 5,000 other private sector defined benefit schemes in deficit, to the tune of £900 billion—a ticking time bomb for savers.

However, the real issue is that, while top executives make bad decisions and are rewarded for it, 11 million people who rely on a final salary pension could still be at risk of having the rug pulled from under their feet and of facing reduced entitlements should cases such as BHS or Carillion continue to be repeated.

The SNP has long called for the establishment of an independent pensions commission to ensure that employees’ savings are protected and that a more progressive approach to fairer savings is considered. Alongside that, will the UK Government make sure that the Pensions Regulator is now given the appropriate authority to step in and protect the interests of savers and pensioners before cases such as those of BHS and Carillion happen again?

[Ms McVey]

The Pension Protection Fund is there to do just that: to support pensioners. It does step in and support them where necessary. The hon. Gentleman is quite right: where businesses have not worked responsibly, we should be getting involved, and we did that when we saw the conditions with British Home Stores. What happened there is that anti-avoidance enforcement did take place, and £363 million was got back, so we did not have to use the PPF. Also, a prosecution did take place. All these instances have been different, but the hon. Gentleman is quite right: where there has been an abuse of the system, we will carry out an investigation and bring people to account.