Oral Answers to Questions
Heather Wheeler Excerpts(10 years, 4 months ago)
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Mr Duncan Smith
What I never hear about from the other side of the House, including from the hon. Lady, is what was left to us, which is 250,000 people living in overcrowded accommodation. Nobody on the Opposition Benches ever speaks for them or for the 1 million people they left on waiting lists who cannot get into homes while the taxpayer subsidises people to live in homes that they do not fully occupy. I simply put it back to the hon. Lady: I wonder when she or Opposition Front Benchers will ever speak for those they left in terrible conditions in overcrowded accommodation.
Heather Wheeler (South Derbyshire) (Con)
24. As always when I talk about my wonderful South Derbyshire district council, I declare an interest: its leader is my husband. Does my right hon. Friend agree that good councils are spending the appropriate amount of money on this issue and that councils need to look at the systems they have to look after the most vulnerable people in our society?
Mr Duncan Smith
That is exactly the point. I am sure that the leader of South Derbyshire district council is doing almost as good a job as my hon. Friend did previously, although I leave her to sort that out with him later. The key thing is that discretionary housing payments are there to help the most vulnerable. Councils should use them. We have allocated an extra pot for those that think they might run over, so there is extra money to bid for, and we are happy to entertain those bids.
Housing Benefit
Heather Wheeler Excerpts(10 years, 6 months ago)
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Rachel Reeves
I thank my hon. Friend for that intervention. Indeed, analysis by York university’s centre for housing policy suggests that this will cost £160 million, because the Department for Work Pensions has underestimated the impact on the housing benefit bill of people moving to the private rented sector.
According to the National Housing Federation, 100,000 disabled people—some of whom we have already heard about—live in properties specially adapted for their disability, but the average grant issued by local authorities for adaptations to homes stands at £6,000. The total cost of doing the adaptations all over again could run into tens of millions of pounds.
Rachel Reeves
Would the hon. Lady like to stand up and say they are exempt, because that is not Government policy?
Heather Wheeler
What I would really like the hon. Lady to explain is how, out of the 77,000-odd properties in Leeds, only 36 have been swapped. What this is about is making sure that people who are in overcrowded accommodation can live somewhere decent. Would the hon. Lady like to address that?
Rachel Reeves
The hon. Lady said from a sedentary position that disabled people are exempt, but she would not say it when she was on her feet because she knows it is not true.
Many of those who move will end up in the private rented sector, meaning that the housing benefit bill may be much higher. The National Housing Federation says that families removed from a two-bedroom home in the social sector to a one-bedroom home in the private rented sector would end up claiming an average £1,500 more in housing benefit. How can that make sense? How do the sums stack up? They do not.
To cap it all, we have learned of the absurdity—the complete and utter travesty—of housing associations looking to demolish homes that the Government now refuse to house people in, while the families being forced out by this policy are left to the private sector, where rents are higher and conditions are poorer.
Heather Wheeler (South Derbyshire) (Con)
It is a pleasure to follow the hon. Member for Bolton North East (Mr Crausby). In my five minutes, I shall explain why what is going on in Labour-run councils is so different from what is going on in Conservative-run councils. I had the honour of being the leader of South Derbyshire district council when the Conservatives took control from the Labour group in 2007. In 2008, we implemented the Labour policy of the local homes allowance and we managed fine. That is coming along, and I am delighted to say that the present leader of the district council is my beloved husband. He is also managing fine. In our retained stock, 318 families are affected by the measure, and we have immediately adopted a policy of appointing a specific officer to talk to each of those 318 families.
Heather Wheeler
I am not giving way; I have only five minutes.
The important issue is what we are doing about under-occupancy and what we are doing about the 1,700 families on the huge waiting list as a result of no new properties being built. I can say that in South Derbyshire—
Heather Wheeler
No, I will not give way to the hon. Lady.
We saw this policy coming along in South Derbyshire for some time. What did we do? We built 88 new units of one and two-bedroom properties. Immediately, the council was able to swap 18 families, and Home Swappers was able to swap a further 86 families. We are proactive in South Derbyshire. We saw what was coming and we talked to the 318 families. The amount is £11.88 a week. Some 44 of the 318 families have said that they want to pay that £11.88.
Heather Wheeler
No, I am not giving way to the hon. Lady.
That is what a proactive council does. I ask Labour Members: what are you doing talking to your Labour leader; what are you doing talking to your housing chairman; what are you doing talking to the Homes and Communities Agency; what are you all doing? The answer is, “Not enough”.
Mr Deputy Speaker (Mr Lindsay Hoyle)
Order. The hon. Lady says “you”, but I am not responsible and I have no wish to be responsible for what she says.
Heather Wheeler
Thank you, Mr Deputy Speaker. I apologise. What are Opposition Members doing about it? Clearly not enough.
I shall finish. This motion is despicable. Thank goodness for the reasoned amendment, which I shall vote for with great pleasure.
Heather Wheeler
I will not give way.
Mr Deputy Speaker said that everyone in this Chamber is responsible for what goes on in their constituencies. For goodness’ sake, Labour Members should start leading in their constituencies.
Mr Deputy Speaker
I do not think I quite said that, but I call Jessica Morden.
Housing Benefit (Under-occupancy Penalty)
Heather Wheeler Excerpts(11 years, 2 months ago)
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Jane Ellison
I do not know how the hon. Gentleman can begin to criticise Wandsworth council, which has just set the lowest council tax in the country—it has done so for many years in a row. The difference between Wandsworth council’s band E tax and that of many surrounding councils, and particularly that of many high-spending Labour councils, is enormous—it is the equivalent of a family holiday, a new car or a new three-piece suite. That illustrates the benefit of low tax and leaving people with more of their own money to spend on what they will. I am glad the hon. Gentleman gave me the opportunity to pay tribute to Wandsworth council’s low council tax policy.
Some of my constituents will be affected by the measure—[Interruption.] I realise that other hon. Members want to speak, but if Labour Members want to make every general economic point and make endless reference to tax cuts for millionaires and that sort of thing—[Interruption.] Well, I made the point earlier that the Labour Government had several years after the financial crash and after financial reality had dawned to do something about the upper rate of tax, but they did nothing. The higher rate was in effect for, I believe, 37 days before the election. A lot of nonsense is spoken about that.
As I have said, we could look at aspects of the measure. The Minister’s speech was helpful because he clarified concerns and misunderstandings. The measure draws attention to the fact that subsidised social housing is a scant and important public resource. The fact that subsidy is built in to the rent for social housing means that social housing is often not appreciated as a valuable resource, and we should aim to provide access to it for as many taxpayers as possible.
I would like to make a point on behalf of the many people who come to see me who are over-occupying. No one claims that this policy will free up all of the 1 million rooms, but it might well encourage people to look at being in appropriate-sized accommodation. Many housing directors tell me that if they could match people to the correct-sized accommodation, they could resolve much of their waiting lists—that is what I have been told by people with many years’ experience in this field. This is not a panacea, but there are people in wrong-sized accommodation. If this measure starts to get people thinking and encourages them to move into right-sized accommodation where it is available, that is a good thing.
Heather Wheeler (South Derbyshire) (Con)
My hon. Friend’s point is very interesting. Many councils, such as the fantastic South Derbyshire district council, encourage, enable and give people money to move. This will all be part of the package. It is not draconian; it brings it to the fore.
Jane Ellison
It is right to put on record that many councils are responding sensibly and imaginatively to the many challenges that have been handed to them by the inevitable decisions that the Government have had to take.
Another group of people who often come to see me in my surgeries, and for whom there is no solution in social housing, are young single people, in particular young single men. I always feel my heart sink when they come to talk to me about the possibility of getting any sort of subsidised housing, because, as we all know, they attract absolutely no points. If some people affected by the removal of the subsidy choose to rent out a room, I would welcome that because the group likely to benefit would be those young single people in areas such as mine. They do starter jobs that are much-needed in a 24 hour city such as London. [Interruption.] The hon. Member for Bishop Auckland (Helen Goodman) from a sedentary position is questioning whether anyone would do that—people used to do it all the time. To return to the point about exaggeration, earlier in the debate someone implied that the inevitable consequence of deciding to take in a lodger would be some sort of abuse or crime. People used to do this all the time. Raising people’s fears and exaggerating them is not helpful at all.
Jane Ellison
Let me finish this point. I have checked with my council and it is the case that council tenants, as long as they do not either overcrowd or sub-let the lease, are able to take in a lodger if they so choose. For some people that might be a sensible solution. That might help the young single people who come and see me, and to whom I can give no suggestions about where they might find socially subsidised housing. If they are the winners of this process, that is a good thing, because they are currently the losers.
I am aware that other hon. Members wish to speak, so I will just draw attention to some of the practical measures being done by councils. There is an extra £30 million of discretionary housing allowance, and my council has certainly seen a significant rise in its discretionary amount. It has already put together a co-ordinated action plan between the finance and housing departments. It has contacted all potentially affected recipients and customers, and is beginning to confirm their benefit details. It has set up a helpline to discuss options to downsize. It is in direct contact with some of those households. It is also in direct contact with some of the social landlords to look at where there might be work that they could do. We heard an interesting example earlier about how social landlords in Liverpool had come together to try and pool their resources. There are quite a lot of sensible things that local councils that are planning ahead can do, and, of course, some people will choose to take other options.
I make this plea to Opposition Members. I would like to think that when they are approached by people with specific difficulties, especially associated with disability and so on, their first thought is not, “This would be an ideal case to read out in Prime Minister’s Question Time”—we have heard this in respect of many other welfare changes, particularly from the Labour party—but to say, “You might well be covered by the discretionary payment, and I’m going to make inquiries about that and exercise my influence to say that you should be.”
Mr Deputy Speaker (Mr Nigel Evans)
Order. Just before I allow the intervention, I must remind the hon. Lady that she said that a lot of people want to speak, and they do. After the next speaker, I will be introducing a time limit that will be less than the time she has taken so far, so I ask her to show some self-restraint so that we can make progress. Heather Wheeler, you were about to intervene.
Heather Wheeler
Very kind, Mr Deputy Speaker.
I find this really interesting. I do wonder about some of our Labour colleagues. We have mentioned the possibility of someone taking in a lodger and bringing in £4,200 a year tax free. Does the Labour party not want this cash flowing in our communities? Is there a problem with people taking control of their lives? Does it have an issue with that? Are we only allowed top-down rules? What is wrong with taking in a lodger? It might be like going back to the ’50s, but actually we had real communities then, and I think it is an excellent idea.
Jane Ellison
I thank my hon. Friend for her intervention. I hope that she makes her own contribution and develops that theme later.
I will wind up now. My principal point is that these debates are not well served by exaggeration and shroud-waving, but I am afraid that that is what we have seen. Undoubtedly, there are difficult cases. We all have them—I have some in my inbox, as have other colleagues on both sides of the House—and we must work with Ministers to look at them. We have had a commitment from the Minister to a rolling review of the policy, but let us also look at some of the potential winners and ensure that we bring to the attention of those in overcrowded accommodation and those who have no chance of qualifying for subsidised public housing the opportunity that might be offered to them by some of these changes.
I shall sit down now, Mr Deputy Speaker, so that others can contribute.
Atos Work Capability Assessments
Heather Wheeler Excerpts(11 years, 4 months ago)
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Heather Wheeler (South Derbyshire) (Con)
I apologise for not being in the Chamber for the beginning of the debate, owing to another commitment. Mr Speaker kindly put my name towards the end of the list for today’s speeches.
Interestingly, the scheme has worked relatively well in South Derbyshire. We have quite a high level of returners-to-work as a result, but equally, issues have come to my surgery and I have had occasion to write to the Minister and his predecessor. I welcome the Backbench Business Committee’s decision to hold the debate.
I have had conversations not only with my local citizens advice bureau but my jobcentre, which has highlighted a few points that I hope the Minister will take on board. I hope that he will answer them in his winding-up speech. I heard about a number of harrowing cases—not from the CAB, interestingly, but from the jobcentre, whose staff see people coming back into training and what have you after the assessment. Those staff are incredulous at times at the cavalier approach of Atos to people’s health conditions.
Long-term disabled people have come back into the work arena; unbelievably, within three months of being told that they are perfectly fit for work, they have dropped down dead. I would not like that on my conscience, and I find it surprising. I am sure that such cases are relatively rare, but when do they happen? If the Minister does not know the answer, perhaps he will be kind enough to write to me.
Does anybody go back through the files to check on what happened with Atos? There needs to be a review. Folk in the Chamber know that I used to be the leader of a district council. Our job was to put out contracts and make procurements, but we always had penalty clauses, clawback arrangements and the ultimate option of getting rid of a firm if it was not performing.
One of my early letters to a previous Minister asked about the point when we say that the system is not working; frankly, I have not had an adequate reply. When someone drops down dead within three months of being assessed as being perfectly capable of going back to work, what is the review process for Atos?
We have heard about the Harrington report and the need for mental health champions. Only last week, a constituent, who, frankly, did not know what time of day it was, went through the process. Not only were they not allowed to have their carer with them, but no mental health champion was there.
Mr Kevan Jones
I am sorry, but I do not think the hon. Lady understands the notion of mental health champions. They are not for the clients but to advise the health care professionals doing the assessment.
Heather Wheeler
I do get that point; I am saying that the champions ought to be there when the interviews are taking place. I find the juxtaposition astonishing—according to Professor Harrington’s report, people need that extra bit of care. I find it interesting that we have just heard that there will be 60 champions in the country. Patently and obviously, that is not enough. Perhaps the Minister will advise us that that number represents a pilot and, notwithstanding what we are saying in this debate, it will be increased in short order.
Sheila Gilmore
In Scotland, there are mental health champions in only Edinburgh and Glasgow. This is not a pilot; the Minister has previously said that he has implemented Harrington as far as mental health champions are concerned.
Heather Wheeler
I am sure the Minister has heard every word that the hon. Lady said.
I finish on two final points because time is short and many people want to speak. People have mentioned the tick-box nature of the interview; my constituents find it hugely frustrating that they cannot expand on an answer. After all this time, perhaps the interview process could be tweaked to allow that. My last point is about the absolute frustration of GPs and consultants who feel that no account whatever is taken of the fact that they take their time to write the letters. That is desperately frustrating and a huge waste of public money.
The Minister of State, Department for Work and Pensions (Mr Mark Hoban)
We do ask GPs and consultants to provide medical evidence; we send a form to them. Only 37% of those are returned in time.
Heather Wheeler
I thank the Minister for putting that on the record. I will gladly go back to my GPs and consultants and say that they will be taken into account if they please return the forms on time.
I will finish now, because many hon. Members want to get in. I am delighted that we are having this debate because I genuinely feel that there is an opportunity to get the issue right. The people deserve it.
Child Support Agency
Heather Wheeler Excerpts(11 years, 10 months ago)
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Heather Wheeler (South Derbyshire) (Con)
It is a pleasure to serve under your chairmanship, Mr Weir. I, too, congratulate my hon. Friend the Member for Loughborough (Nicky Morgan) on securing the debate—so much so that I have ripped up half my speech; but here we go. Hon. Members have given excellent examples and covered key issues in the debate, so I shall go straight to the heart of the two things that I think changes to the CSA should deal with, to make the agency truly effective. There are two loopholes that need to be addressed.
The first is undoubtedly the 12-month rule, which 87% of family lawyers say causes difficulties, because it enables the CSA to overturn court orders after just 12 months. What is the point of going to court to seek an order, when after only a year—and without the need for any substantive change in circumstances to be demonstrated—the order is void? As my hon. Friend the Minister has said before, the rule is open to abuse, and has become a tool whereby non-resident parents, especially the self-employed, can hide income to avoid paying the full level of support. Furthermore, family lawyers tell me that the existence of the rule skews divorce negotiations, with solicitors increasingly relying on spousal maintenance as a backstop because of the inevitable consequences of the CSA’s ability to scupper a court order after 12 months. The rule likewise promotes hostility, as after 12 months the parent with care returns to court to seek a pound-for-pound increase in spousal maintenance to compensate for what has just been lost through child maintenance under an agency review.
Finally, the 12-month rule is used as a tool for blackmail. I have been shown a shocking but sadly typical case, evidenced by the e-mail exchanges between the parties, of a woman who, having spent considerable sums in legal costs to secure a financial settlement, was threatened with having her children’s maintenance halved unless she agreed to dispose of a joint overseas asset that remained unresolved from the divorce. Her lawyers advised her against short selling. At exactly the same time as her ex-husband, a wealthy accountant working in risk management and financial services, was funding private education for his other children, he was threatening to use the 12-month rule to reduce his maintenance payments by 50%.
The rule was not designed to be used as a tool for blackmail. Indeed, correspondence between the lady in question and the Minister, which I have seen, showed that the Minister regarded that use of the rule as abusive. Therefore, I have to agree with the findings of Henshaw on the rule. It is used as a means of securing a better outcome for the non-resident parent, not the child, and the Government should consider scrapping it, or at least extending it to four years. That would give security and certainty for both parents, and prevent the current abuse.
The second issue that reforms must address is that of spurious zero assessments. It is perfectly illustrated by the case of a lady whose ex-partner, a Porsche-driving former executive who lives in a luxury docklands apartment and who she says has an extremely luxurious lifestyle, is assessed as having to pay less than someone on benefits. Despite his extravagant lifestyle, he simply claims he lives entirely on his new wife’s earnings. The mother however, forced to provide evidence to the contrary, lives in poverty, works full time in low-paid work, and last winter, at the height of the cold snap, was forced to accept charity food parcels and to beg £300 from a friend to put heating oil into her boiler when the tank ran dry. Often the only way the parent with care can attempt to secure some maintenance is through a lifestyle inconsistency appeal, where they can demonstrate that the lifestyle of the non-resident parent is inconsistent with his declared income.
It therefore causes me considerable dismay that the Government have now made clear their intention to scrap the only two effective measures—including the lifestyle inconsistency appeal—by which parents with care can secure support for their children from non-resident parents who seek to hide their real income and capital. Curiously, in the case I have just mentioned, despite claiming to have no income or assets, the child’s father is still able to fund expensive legal proceedings against the mother on a separate issue. It is bizarre.
The CSA needs to be reformed. That is self-evident just from the three examples I have given. I therefore ask the Minister to consider extending the 12-month rule to four years; to examine the issue of zero assessments; and, in particular, to maintain the right of parents with care to mount a lifestyle inconsistency appeal. Lastly, we need to ensure that the CSA has a duty of care. In this era of increased accountability, we need to ensure that Government agencies are held to account.
Mrs McGuire
If the hon. Lady is not a lawyer, she should get a Bachelor of Laws degree, because she certainly sounded as if she had that sort of hinterland; studying an LL.B, perhaps part-time, might be an opportunity for her to take. Anyway, she highlighted some of the issues about how people try to manage these things.
Having said that, I must say to hon. Members that some of the situations that have been described today are hopefully not quite indicative of the changes that have happened in the CSA. I will just refer to a comment from a former Chairman of the Public Accounts Committee, which I think some hon. Members will probably agree with. The BBC reported:
“The public accounts committee said the CSA had a catalogue of complaints, a backlog of cases, and poor enforcement of uncollected payments”
and that the PAC said the CSA was one of the
“greatest public administration disasters of recent times”.
That was the view of the PAC in 2007, when it was under the chairmanship of the hon. Member for Gainsborough (Mr Leigh).
In May of this year, the PAC said:
“The Commission has made real progress in recent years but the challenges it faces”—
and hon. Members have illustrated some of those challenges today—
“in supporting separated families and securing maintenance payments for children are serious.”
So there have been significant changes, and the hon. Member for South Swindon remarked on the range of enforcement actions that exist and that were supported across the board; the Minister was in the House at the time. We had to realise that sometimes the carrot might not work and that sometimes it is about the stick. We can argue about whether six weeks is an adequate sentence, but the difficulties that people would face if they had their driving licence withdrawn, as well as all the other issues relating to enforcement, would really focus the minds of many people.
As a constituency MP, I have had nothing like the volume of CSA cases recently that I previously had. Ten years ago, I would have had a little queue of parents—both with care and non-resident—complaining about all the issues that have been highlighted today. I can now count on one hand how many live cases about the CSA that I have. I do not know if there is a particular problem in Loughborough, but I am just being frank with hon. Members in saying that I have seen a significant change. That is not to say that I do not occasionally have cases where somebody has had a wage deduction charge that has been wrongly applied—
Heather Wheeler
I am sure that my constituency of South Derbyshire is as fragrant as it always is, but I get three CSA cases a week—three a week.
Mrs McGuire
Mr Weir, I hope that you will agree with me that there must be a change in the atmosphere in Scotland, although I have to say that it is nothing to do with your political party. My experience is not the same as that of the hon. Lady. I can only put my experience on the table, in the same way that other colleagues have done.
Since the range of enforcement actions have been introduced, I have seen a significant downturn in the number of CSA cases. That is not to say that there have not been occasions when people have come to me and complained about the administrative errors at the CSA, which are unforgivable, or about the fact that the wrong assessment has been made. Those are the types of problems that have been highlighted in the debate today.
The comments that I quoted from the two distinguished Chairs of the Public Accounts Committee are intended to show that there have been changes in the CSA. The reality is that all of us have to wrestle with the legacy of a flawed initial approach; that includes the Minister, who is doing so quite admirably. The introduction of the CSA had joint-party support at the time, but it was rushed. The technology was not up to it and the scale of the problem in those initial years was grossly underestimated. Perhaps because we always want to believe the best of humankind, the idea was that if we suddenly introduced the CSA, everybody would conform. That was not the reality, as we know from individual experiences.
I am sure the Minister could tell us how many connections have to be made just to reach a conclusion in a single CSA case. Reaching a conclusion is quite a complex business; everything has to be tested. As MPs, we all know that someone can have a perspective on a particular case that might not fit with what another person thinks, whether that case is about the CSA, a housing complaint or any other complaint. So, all those checks have to be made in each case. I am trying to illustrate that this problem is not easy to solve, and there are some questions that I hope the Minister will address, which have been raised by colleagues in her own party as well as by my hon. Friend the Member for Edinburgh East.
I echo the advert that the hon. Member for Romsey and Southampton North gave for the Scottish legal system. Minutes of agreement are a good vehicle for getting parents to come to an understanding and to recognise that such an agreement is not something they can sign off and then just park; it is legally enforceable. That makes a significant difference to how those agreements are seen in Scotland.
The hon. Lady also suggested that such an approach could be exported, or perhaps transferred—I do not think we are quite into exports yet, Mr Weir, from Scotland to England—into the English legal system. I echo that suggestion, which the Minister might like to consider, although I appreciate this issue is not totally within her domain. Such an approach is an excellent example of how the legal system can formally—but almost informally—make something happen. Things are done between lawyers, and as a lawyer yourself, Mr Weir, you will know that in Scotland one always trusts the word of a Scottish lawyer. The Minister should look at that issue, which I know the Law Society of England and Wales and the Law Society of Scotland have highlighted in their response to the consultation. Interestingly, the Law Society of England and Wales has said that family-based agreements are unable to command support because they are not enforceable, and that they add to the existing uncertainty.
We have all seen examples of how difficult it is to pin somebody down about their lifestyle and what they tell the CSA is their income. Before there was investigation and enforcement within the CSA, I had a long-standing case involving a woman who was married to a high-profile person who was returning an income of almost zero. Frankly, everybody and their dog knew that that was not the case, but the woman had difficulty in dealing with the situation. I think that is why there is some surprise that, given the Minister’s views on trying to get a consensual approach to arrangements, regulations 18 and 20 will, I understand, be withdrawn, and I hope that the Minister can throw some light on that.
I thank the Law Society of Scotland for its excellent comments in highlighting this problem. It is concerned that a change in the regulations, whereby the parent with care, and the CSA, could challenge the lifestyle of the parent without care,
“could allow non-resident parents with well-informed advisers to be navigated out of the child support system to the detriment of the children concerned.”
I suppose that that is the flipside of the lawyer. The lawyer will act in what he or she sees as the best interests of their client and, in those circumstances, that might be to try to navigate their way around—that is the sort of neutral term I would use.
Finally, I have one or two points to put to the Minister, which have arisen out of the recent Public Accounts Committee report. One is on the charging of parents, and a Member has already asked: if it is only £20, what is the point, because it will not even cover the costs, and there could be an element of tokenism? I certainly agree that that aspect would perhaps have been better left as it was. There is a view that the introduction of fees might well make child poverty worse, and that it might act as a deterrent. Given that some people will be on extremely low incomes, £20 might just be the deterrent that will put them off.
The Public Accounts Committee also identified that the IT system that has been introduced to save money is already running late, and every month’s delay will cost £3 million. [Interruption.] The Minister smiles in that enigmatic way that most Ministers before her have smiled about IT and Departments. Given that IT systems have been the bane of the CSA’s life, we need some—any—reassurance that she has this under control. The other related issue is whether a new IT system can be installed and tested while an existing programme is still being delivered. Those of us with accounts in the Royal Bank of Scotland and NatWest have perhaps seen an example of things going wrong when an incident happens during the running of a new system. I seek the Minister’s reassurance on that matter.
My hon. Friend the Member for Edinburgh East asked what would happen to the case load. Is it a zero-sum game? Will the current case load just be wiped, and will people have to say, “I want the CSA to be involved again”?
I hope that this has been a good discussion for everyone here. We have constantly to monitor the CSA. This is not an easy problem, and none of us should ever think that we can invent an IT system or an organisation that will solve the complexity of the emotional problems resulting from the break up of a relationship where children are involved. We only need think of our own families’ and friends’ experiences to see exactly what the pressures are, even in the most amicable of circumstances. In some ways, we are asking the CSA staff to work miracles in very difficult circumstances, and although they have come in for some criticism today, I think the majority of them work efficiently, to a high standard, and as compassionately as they can, within the parameters set by politicians.
Maria Miller
I think the right hon. Lady misunderstands me. I mean the introduction of the future scheme, which was considerably delayed under the previous Administration.
I am also somewhat surprised that Stirling seems to be atypical. Although the right hon. Lady might have only a handful of cases or fewer troubling her postbag, the statistics say something considerably different, which is that the Child Support Agency receives more than 20,000 complaints every year. I know that the agency’s chief executive is absolutely unhappy about that and is doing a great deal, working with staff, to do something about it, but it is indicative of the situation facing us.
Heather Wheeler
I hope that my hon. Friend will get around to talking about the duty of care, because if the CSA mucks up, there is nowhere else for the parent to go.
Maria Miller
My hon. Friend is right that as a Government we have a duty to ensure that we have a system that operates correctly for families. I would like to take her back a step, though, to look at the fundamentals.
The reality is that every child in this country has two parents who have a commitment to that child for life. For too long, the evidence has been conveniently ignored that children who live in a stable family do better than those who do not, and the most stable families that we have are married ones. This Government do not ignore the evidence. My hon. Friend the Member for Sherwood (Mr Spencer), who is no longer in his place, was right to say that both parents have a right to stay involved in their children’s lives. I applaud the work being done by my colleagues in the Department for Education to make sure that that will happen more readily in the future.
Children thrive when both parents take an active role in their lives, and evidence from elsewhere in Europe underpins that. If adult relationships break down and parents do not work together to ensure that they both continue to play an active role in their children’s lives, it is the children who suffer. For me, that is the starting point for today’s debate. Having the opportunity to reframe the subject is important for all of us here.
The hon. Member for Edinburgh East (Sheila Gilmore) got it wrong, I think, when she said that we are trying to say that the CSA causes animosity. The Government are not saying that; we are saying that the CSA is making the situation worse not better, and at a cost of almost £500 million a year that is completely unacceptable. For too long, the child maintenance system has played a one-dimensional role—pretty badly—focusing almost exclusively on money transfer. IT breakdowns apart, perhaps that is why it has fallen so short of the mark and why so many Members have taken part in today’s debate. In the past, the Government have spent almost 10 times more on the CSA, its IT systems and administrative processes for money transfer and enforcement, than on supporting families to work together to fix their relationship problems, which the evidence indicates is a more successful approach. We have to change that.
As right hon. and hon. Members have said, more than half the parents who use the current system say that they would like to make their own arrangements if they had the right support to do so. That is not to say—
Living Standards
Heather Wheeler Excerpts(12 years, 5 months ago)
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Amber Rudd (Hastings and Rye) (Con)
There has been much talk this afternoon about real people. Thinking about the incredibly important subject of living standards, I thought about a real person I met in 2007. In my constituency, in an extremely poor ward, I met a woman who had just come back from work. She said to me, speaking about the then Government, “Why do they bother giving me a pay packet at all? All I get is the leftovers. Why don’t they just give me the pocket money?” She had just been affected by the 10p tax cut, which famously affected 60% of women and was so damaging to the lowest paid.
Living standards is the overriding important issue that politicians try to work on to improve quality of life for everybody. It is the practical application of the famous phrase, “It’s the economy, stupid”, because it is the private economy, the budget, of individuals and families. There are so many levers that politicians try to move to work on living standards, and in the time allowed to me I will focus on two: taxation and jobs.
I mentioned the lady from Hastings, who lives in Bevan court in Hollington. As a low earner, she will now be approaching being taken out of tax. This has been referred to many times this afternoon, and I repeat that taking people out of tax is one of the most important things the Government can do to combat poverty and raise living standards. I urge the Government, however choppy the economic waters get, to ensure that they stick to the commitment to increase the level to £10,000. Aligned to increasing the level is tax simplification, which really would be welcomed.
Undoubtedly the best way to raise living standards is to help people who do not have a job to get one. I welcome the Government’s initiatives in relation to the youth contract and apprentices, because poverty really becomes entrenched where families follow each other into unemployment. I hope that the universal credit will mitigate some of that, with its associated reforms to help make work pay, such as introducing free child care for when mothers go out to work for one hour rather than their having to work a minimum of 16 hours. The best way to improve living standards is to create jobs and the best way to do that is to stimulate the private sector. I thought that the new president of the CBI, Sir Roger Carr, put it very well when he said:
“Government can set the climate, but it is business that must deliver the goods.”
Yes, we can set the climate, but we cannot produce the jobs. We must encourage the private sector to do that. This Government are doing their best to set that climate fair, despite what is going on in the eurozone and despite the inheritance we had. That is the best way to raise living standards.
Heather Wheeler (South Derbyshire) (Con)
Would my hon. Friend like to congratulate the great people of South Derbyshire on bringing forward 1,500 jobs in the Toyota factory and 300 jobs at the Nestlé factory?
Amber Rudd
It is great to hear about that marvellous triumph of the private sector. There is another example in Hastings: a year ago Saga moved into the town with up to 800 new jobs. Only 350 have been filled so far, but I hope that they will continue to build on that number. We have high public sector employment in Hastings, so with these changes and cuts, we are delighted to have a major private sector employer able to provide jobs.