Social Security Support for Children

Guy Opperman Excerpts

Wednesday 23rd November 2022 Westminster Hall

[Jim Shannon]

As always, the hon. Gentleman brings knowledge to these debates, which is helpful. That is a knowledge that he has gained through practical and physical work on the ground. That can probably be said of everyone present, in fairness, but it is an illustration of that work. What do I think about the universal credit system? It was designed, by its very nature, to help. From what the lady in my office who deals with benefits issues tells me, I often find we have to advise that it might be better for people to stay on what they have at the moment. They should not necessarily transfer to universal credit because that, in theory, could disadvantage them.

The hon. Gentleman asked whether there is a need to look at universal credit, and I think that the answer is yes, with respect. It should not be a disadvantage to go on to universal credit. It should not hurt people’s benefits. We must remember that the benefits are there for a purpose: they are there to help the person because they have a disablement. They may have care or mobility issues—serious issues. To make the change and lose out financially just does not make sense. I, the hon. Gentleman and probably all Members in the Chamber would be happy to give illustrations of that.

Sometimes our advice has to be that what is available is not necessarily the best thing to go on to. That is the issue, unfortunately. I know that universal credit is there for a purpose, but it may not suit everybody. In addition, it is a widely popular benefit to assist with living costs for those on low incomes. The issue with universal credit is that it is a combination of many benefits and often families will receive less money. That is making it increasingly hard to cope with the rise in the cost of living. The Government, through the autumn statement, indicated that they wish to give people in the benefits system more opportunities to work. I welcome that, but that will not work in every case. It cannot work in every case because people have disability issues that mean they cannot work. In theory, it may help people, as they can gain universal credit and have a job at the same time. There are opportunities, but it does not suit all.

The rise in the cost of living is also having a detrimental impact on people’s mental health. Any parent’s main priorities for their children are good health, housing and education. There has also been an increase in free school meals and uniform grant applications as parents are struggling to cope with the cost of school payments. This year has been horrendous. I have seen more and more people apply for the grants for free school meals and for uniform. A total of 97,000 children in Northern Ireland are on free school meals. There are consistent delays in processing the claims. The Minister is always keen to assist, so I ask, please, for some urgency when the applications are being processed. Let me give him an example. In September, one of my constituents applied for a school uniform grant. Eight weeks later—about two weeks ago—that money eventually came through. Again, at the time that it was needed, it was not there. It was not that it was not coming; that was not the issue. The issue is the processing of it.

[The Minister for Employment (Guy Opperman)]

I hesitate to interrupt esteemed colleagues in their speeches, because clearly I will try to address as many points as I can in closing. However, as always with any local constituency issue raised by colleagues from any political party, I ask the hon. Gentleman please to write me directly and I will look into it. Although that particular case may have taken eight weeks and the milk has spilt on that delay, I will look into it to try to see what I can do to ensure that the matters are processed an awful lot more quickly. We all accept that such delays are not acceptable.

[Jim Shannon]

The Minister has just demonstrated what I said earlier—he is a Minister who wants to help. I appreciate that, and I will take that opportunity. I think we all will. As he said, the milk is spilt and time has moved on, and the lady has got the payment, but she had to cover the full cost of uniform payments and free school meals herself for two months. The point is the pressure that is put on.

I know the Minister is always there, and I thank him for his intervention. He is keen to reach out and always does; he has done so in my constituency. I appreciate that. Could some discussions take place with the Northern Ireland Assembly Minister to get a feel for the situation back home? That could be used to develop a policy that would be helpful for us all.

There must be elements of dignity and fairness in social security support for children. Universal credit will rise by 10.1% in April 2023. I welcome that the Government have shown a willingness to support people. We thank them for the support, not just for children but also for senior citizens. My constituency has an ageing population and we also need to help them.

That help for everyone is welcomed, including those in my constituency of Strangford, but the reality is that people are struggling now. There are ways to tackle that, with more and better jobs and a benefits system that enables people to gain extra work. I think the Government said that in the autumn statement, which the Chancellor delivered last week, but I would like to see how that will work; we need more information, because we advise people.

Whenever we advise someone on benefits, we have to do that in a way that is to their advantage. It cannot be done without knowledge of the subject matter, because that could be detrimental. I am always conscious of that, and we have a very simple policy to always advise the pros and cons. The final decision is up to the applicant, but we have to advise them if there is a negative impact and they have to understand that.

The rise in the cost of living is having an impact on everyone, but some are more vulnerable than others. As the hon. Member for Airdrie and Shotts said, we are a voice for the voiceless—those vulnerable people, those parents and children in need. We must do better to help them through this time.

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[The Minister for Employment (Guy Opperman)]

It is an honour to serve under your chairmanship, Sir Christopher.

I congratulate the hon. Member for Airdrie and Shotts (Ms Qaisar) on her first ever Westminster Hall debate. I confess that it is my first ever Westminster Hall debate in my new role, which I have been doing for just over three weeks. I have not had an opportunity to congratulate her on winning her by-election; it was a worthy win. I send my best wishes to her predecessor, with whom I did huge amounts of work when I was in the pensions brief at the Department for Work and Pensions for five years. I was battle-scarred after five years of working at the DWP. I had a brief sabbatical in the summer when I returned to the Back Benches before the Prime Minister asked me to take on this role. By my count, I have approximately 20 issues to respond to; I will do my best over the next 15 to 20 minutes.

Although the debate was introduced by a Scottish Member of Parliament, it is about social security support throughout the country, and it is timely, given the context of the illegal invasion by Mr Putin of Ukraine, the consequences of the aftershocks of covid, the rise in energy prices, the inflationary impacts that are clearly happening, and last week’s autumn statement. Although the autumn statement, which I am sure we will discuss, tried to address many of the issues that have been raised today, it would be naive not to accept and acknowledge that all countries in the western world are attempting to deal with difficulties in respect of the war in Ukraine, the energy price hikes, the fact that we are effectively in an energy war, the consequential impacts on national income, and the impacts of inflation.

The Government are responding to the challenges we face, and in last week’s autumn statement we showed a clear commitment to helping families and the most vulnerable. That includes a further £26 billion of cost of living support, on top of the £37 billion set out in spring last year by the then Chancellor. I will try to address the relevant points in a variety of ways. I have been in this role for only approximately three and a half weeks, but I have had the opportunity to go to jobcentres and meet DWP staff at locations ranging from Canvey Island and Birmingham to Hackney earlier this week.

I have previously visited a variety of jobcentres from Banff to Belfast, from Hastings to Amlwch in north Wales, and from Redcar to Blackpool, and I put on the record my desire to return to some of those locations. The hon. Member for Glasgow East (David Linden) has headed off, but I well remember visiting Shettleston and the Tollcross advice centre in his patch in 2019, and I deeply enjoyed the famous visit to the constituency of the hon. Member for Strangford (Jim Shannon). It is not a good thing to advertise the fact that I have been ambushed by a cake, but when I walked into his constituency office his staff literally ambushed me with a lemon drizzle. Obviously, that did not endear me to the previous Prime Minister bar one, my right hon. Friend the Member for Uxbridge and South Ruislip (Boris Johnson), but I hope to be back in Northern Ireland soon and I take on board the points raised by the hon. Gentleman. I will endeavour to look into the matter when he gets back to me on it.

As the Minister for Employment I cover this brief and others, although not all the matters that have been raised today, and it is certainly my intention to try to visit all parts of the UK shortly. I hope to visit Northern Ireland, Wales and Scotland within the next three or four months, depending on parliamentary diaries, negotiations with my good lady wife and various other things, as well as visiting a variety of locations up and down the country, to enable me better to understand the issues that have been raised.

In respect of support for children, the fundamental starting point should surely be the fact that the UK supports children and families throughout the country through child benefit. We need to begin with an assessment of that. It has continued under successive Governments, and as of August 2021 there were 8 million families claiming child benefit and 12 million children in receipt of child benefit. In Scotland alone, 532,000 families and 878,000 children were in receipt of child benefit.

[Margaret Ferrier]

Will the Minister give way?

[Guy Opperman]

I have a lot to try to address. Let me make a little progress, then I will give way.

Child benefit is available to anyone responsible for bringing up a child aged 16 or under, or 20 if they are in approved education or training. From April 2023, the weekly rate will increase by 10.1%, from £21.80 to £24 for the eldest or only child and from £14.45 to £15.90 for every other child. The UK child benefit bill for 2022-23 is almost £12 billion, and obviously there are other benefits with respect to claiming child benefit, such as national insurance credits, which protect future entitlement to the state pension and can be transferred to grandparents who provide childcare. Claiming also enables children to get their national insurance number automatically at 16.

[Margaret Ferrier]

The Minister knows that I have a lot of time for him because he sat through proceedings in the Chamber on my private Member’s Bill when he was pensions Minister. According to the Child Poverty Action Group, last year a couple working full-time on the minimum wage and a lone parent working full-time on the median wage were able to reach a minimum standard of living. That is not the case today, although the report was published before the autumn statement. What reassurance can the Minister offer lone parents for whom the cost of raising a child is already higher than it is for couples?

[Guy Opperman]

The hon. Lady and I spent nearly six months campaigning to ensure that there was a serious and legitimate change to women’s pensions entitlements in certain private sector pensions. I thank her for her work on the private Member’s Bill that she brought forward and that is now in law, having been signed by Her Majesty the Queen. I welcome the fact that she worked on a cross-party basis to ensure that happened. I will try to address the child poverty issue that was raised by several colleagues. I want to deal with it in a variety of ways. I will then segue on to the in-work progression point—namely, people who are working but also suffering from poverty.

Let me start with the background. The fundamental point is that the Government are committed to a sustainable, long-term approach to tackle child poverty in supporting low-income families. We spent £242 billion through the welfare system in the United Kingdom in 2022-23, including £108 billion on people of working age. We have made permanent changes to universal credit worth £1,000 a year on average to 1.7 million claimants, and have given the lowest earners a pay rise by increasing the national living wage by 6.6% to £9.50 from April 2022. From 1 April 2023, the national living wage will increase by 9.7% to £10.42 an hour for workers aged 23 and over. That is the largest ever cash increase to the national living wage. It represents an increase of more than £1,600 to the annual earnings of full-time workers on the national living wage, and is expected to benefit more than 2 million low-paid workers.

I will address the poverty statistics. The latest statistics show that poverty fell for nearly all measures in 2020-21 compared with 2019-20. In 2021 there were 1.2 million fewer people in absolute poverty, before housing costs, than in 2009-10, including 200,000 fewer children. We will come to workless households in a second, but since 2010 there are nearly 1 million fewer workless households in the United Kingdom. The number of children growing up in homes where no one works has fallen by 590,000 since 2010—

[Ms Buck]

rose—

[Ms Qaisar]

rose—

[Guy Opperman]

May I just finish? I will also come to the point made by the hon. Member for Airdrie and Shotts. That number has fallen by 590,000 since 2010, and 1.7 million more children are living in a home where at least one person is working. I give way first to the shadow Minister.

[Ms Buck]

On the issue of absolute poverty, in a previous debate I raised the fact that the absolute poverty figures for larger families—those affected by the two-child limit—have been worsening, rather than improving, as the Minister claims. Will he go away, have a look at that, and inform himself about it when thinking about where to go next on policy?

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[Guy Opperman]

Obviously, being three and a half weeks into the job I am looking forward to learning a great deal. I have merely recited the statistics on people in absolute poverty before housing costs. I will go away and think about the matter. I will give way to the hon. Member for Airdrie and Shotts in a moment; I just want to make a little progress because I have not made much thus far.

I want to address the issue of work and emerging out of poverty. The Government believe, as did previous Governments under the Blair and Brown Administrations, that work is the best and most sustainable way to lift children out of poverty. That is in terms of the parents, I hasten to add. We hope there is then progression in work, which I will come to in detail. Clear evidence exists about the importance of parental employment, particularly when it is full time. The latest data on in-work poverty shows that in 2019-20 children in households where adults were in work were about six times less likely to be in absolute poverty than children in a household where no one was working. I have talked about statistics compared with 2010. Clearly, one job for the Department for Work and Pensions is to address the million-plus vacancies that affect us all in constituencies up and down the country. We certainly want to do that to help to support people to gain the skills that they need to find a job and improve their earnings.

I will try to address in-work progression, which was specifically raised by the hon. Member for Airdrie and Shotts. There is clearly much that jobcentre work coaches are doing up and down the country. Members can go into their local jobcentre and meet and talk with them, and I urge colleagues to do so. I advocate a particular policy, which is called in-work progression. It started in April 2022 and was piloted in South Yorkshire. It was originally a voluntary offer, but it is now being fully rolled out, and approximately 2.1 million low-paid benefit claimants will be eligible for support to progress into higher-paid work. This support for people looking to progress in their current role or move into a new role—which we hope will pay them a greater amount of money, as they progress through the UC thresholds—is provided by work coaches, and focuses on removing barriers to progression and providing advice.

Jobcentres will be supported by a network of 37 progression champions, who will spearhead the scheme. The champions will work with key partners, including local government, employers and skills providers, to identify and develop local progression opportunities. They will also work with partners to address local barriers that limit progression, such as childcare and transport. This is being rolled out in South Yorkshire and Cheshire, and eight further districts will go live next week on 29 November, with champions to be in place beforehand—the recruitment is complete for those districts. Fourteen more districts will go live by 22 February 2023 and the remaining 13 districts will be rolled out by 22 March 2023. Across Scotland—to address the key point raised by the hon. Member for Airdrie and Shotts on in-work progression and support for people who are trying to make more money as they are on UC—that will be rolled out by March 2023, with six district champions.

[Ms Qaisar]

When I met representatives from Pregnant Then Screwed this week, they told me of their concerns about the plight of women. We have women who want to work and are more than qualified to work, but the cost of childcare is holding them back. I mentioned this earlier, and I hope the Minister will answer this specific point: will the UK Government follow the suit of the Scottish Government and introduce childcare for children so that women can get back to work?

[Guy Opperman]

The hon. Lady has obviously pre-read my speech and the comments that I will make, because my fifth point was going to be about childcare. There are a variety of points, which I will address in their totality; I will then try to deal with the specifics, particularly for those on universal credit.

It is patently obvious that for some parents childcare costs present challenges—at the very least—to entering employment. As the father of a 15-and-a-half-week-old child, I can testify to the bitter experience of that. The Government’s 13 hours of free childcare offer entitles all parents of three to four-year-olds in England to 570 hours of free childcare per year, with many children also entitled to the additional 15 hours of free childcare for 38 weeks per year. In addition to helping parents to manage childcare costs and working patterns, free childcare supports children’s development.

I will deal in particular with universal credit and childcare, in respect of which there is a massive role for Members of Parliament. Bluntly, those on universal credit are entitled to a massive amount of childcare, but the take-up of that offer is not good.

[Kirsty Blackman]

They are entitled to 85% of childcare costs—that is absolutely true—but is the Minister aware that the caps set in 2005 have not been uprated, despite the fact that childcare costs have since increased dramatically? Will he take a look at those numbers?

[Guy Opperman]

The Under-Secretary of State for Education, my hon. Friend the Member for East Surrey (Claire Coutinho), and I have had a preliminary meeting. The country wants to try to assist parents who want to go back to work. There is a real desire to address childcare on a long-term basis to ensure that parents who wish to can go back to work.

There are many discussions about all aspects of how we reform, improve and expand childcare in this country. The bit that I control is the ability of somebody on universal credit to access and take childcare. I take the point made by the hon. Member for Airdrie and Shotts and I will go and look at that, but the blunt truth is that the take-up is low. That is the first problem. I am genuinely of the view that there is not sufficient knowledge that individuals on universal credit can claim 85% of their registered childcare costs each month, regardless of the number of hours they work. That is a significant increase on the previous 70% of costs that could be claimed back on legacy benefits.

Parents can claim up to a maximum of £646.35 per month for one child and £1,108.04 per month for two or more children. For families with two or more children, that could be worth over £13,000 a year. I take the hon. Lady’s point on board and will go away and look at that, but that is still £13,000 of subsidised childcare paid for by the state in circumstances. That support is also available to all lone parents and couples who satisfy both the childcare cost and the work conditions to qualify for help with childcare costs.

I am conscious that there is an issue with prepayment of childcare. Various support funds are used up and down the country. In my three-and-a-half week journey of understanding this issue, there seems to be patchy take-up, but I urge all local areas and individual job centres that are assisting parents in this process to ensure that the various support funds available can be provided. It is not a grant, but it is a provision to pay for the childcare deposit. That is definitely happening up and down the country and we should try to encourage and nurture that on an ongoing basis.

I am conscious of time and the desire to deal with a large number of other matters. The autumn statement saw £26 billion in total, as part of further support in 2023-24, to provide around 8 million households on means-tested benefits such as universal credit with payments of up to £900 to help their income stretch further. That is on top of the £37 billion of cost of living support for households in 2022-23. In addition, there are benefits increases in line with September inflation of 10.1%, worth £11 billion, to working-age households and disabled people. There is also the triple lock and support for pensioners.

We will continue to provide support to all households through the energy price guarantee, which caps the price paid for each unit of energy, saving the average UK household £500 next year. For those who require extra support, we are providing an additional £1 billion to help with the cost of household essentials next year, bringing total funding for this support to £2.5 billion since October 2021. In England, that includes an extension to the household support fund backed by £842 million for the 2023-24 financial year. Devolved Administrations will receive £158 million through the Barnett formula. I could go into detail about support for free school meals across England and about the Healthy Start scheme.

I will briefly touch on the funding and powers in Scotland. The hon. Member for Airdrie and Shotts highlighted the extension to the Scottish child payment. The Scotland Act 2016 devolved significant social security and employment support powers to the Scottish Parliament, worth around £3 billion, as well as providing additional powers to create new benefits in areas of devolved responsibility, top up reserved benefits and provide discretionary payments. The UK Government provided the Scottish Government with a record £41 billion per year Barnett-based settlement at the 2021 spending review. That is the largest settlement since devolution. That record settlement provides the Scottish Government with around 25% more funding per person than equivalent UK Government spending in other parts of the UK.

In respect of various other matters, I will endeavour to write to colleagues. To conclude, I welcome today’s debate. I will attempt to work with colleagues on an ongoing basis. It is my job to ensure that there is ongoing support for children through the social security budget that operates throughout the United Kingdom. I commend the hon. Member for Airdrie and Shotts on her first Westminster Hall debate.