Welfare Benefit Changes

Justin Tomlinson Excerpts

Wednesday 14th October 2015 Westminster Hall

[Carolyn Harris (Swansea East) (Lab)]

I beg to move,

That this House has considered the effect of changes to welfare benefits.

It is a pleasure to serve under your chairmanship, Mr Pritchard. Since this debate was scheduled, I have been inundated with offers of briefings from so many social charities that I could speak for the entire 90 minutes, although colleagues will be relieved to hear that I do not intend to do that. Several national charities have provided so much compelling evidence that this debate needed to be heard. I pay tribute to Barnado’s, Gingerbread, Crisis and The Trussell Trust, and we will all have names of local hard-working groups that are swamped with requests for help from those in difficult times. In my case, they are the Eastside food bank in Bonymaen and the Jesus Cares organisation, which deliver monthly food parcels to my office, allowing me to offer practical support to families in great need.

The changes to the welfare system have featured heavily on this Government’s agenda. Ministers repeatedly tell us that the reforms will tackle benefit dependency and incentivise people to work, but it is clear from the Institute for Fiscal Studies analysis of the summer Budget that, taken in the round, the measures are regressive. Even taking into account the new national living wage and the increased personal tax allowance, many families will be worse off.

As the Resolution Foundation made clear last week, the Prime Minister’s rhetoric on tackling poverty and disadvantage is in stark contrast with the reality: 200,000 more working households could be in poverty by 2020. What is too often missing from this debate is full consideration of the impact that cuts to benefits can have on children. We must remember that children are never responsible for their parents’ decisions or any misfortune. They must not be punished. I therefore want to concentrate on some of the aspects of the Government’s proposals and the impact that they will have on the UK’s poorest and most vulnerable children and young people.

The Welfare Reform and Work Bill, which is currently in Committee, contains several measures that will have a significant impact on some of our most vulnerable families. The Government’s impact assessment shows that an additional 224,000 children will be affected by the change in the household benefit cap. Of course, the Government’s response is that people affected will simply choose to move into work and therefore avoid the cut in income. As hon. Members will know from their own constituencies, however, the situation is rarely that simple.

In 2014, a judicial review examined the impact of the benefit cap on two single parents. In the Supreme Court ruling, three of the five judges found that the benefit cap did not comply with the United Nations convention on the rights of the child. Statements from the judges included that the benefit cap deprived children of the “basic necessities of life” and made them

“suffer from a situation which is none of their making”.

The judgment suggests that the policy is incompatible with the UNCRC and underlines the need for future assessment of the impact of the benefit cap on children’s wellbeing. The Secretary of State will be able to change the benefit cap levels without full parliamentary scrutiny. It is important that the wellbeing of children, particularly very young children, is taken into account. The UNCRC provides a framework for this scrutiny and the Children’s Commissioners hold the expertise about the convention. An impact assessment into the wellbeing of children by the Children’s Commissioners would provide the Secretary of State with the evidence to make an informed decision on future benefit changes.

In my experience, if families are relying on benefits, it is usually because they face significant barriers to work, not simply because they do not see the point in getting a job. Some lack skills or confidence. Others may have mental health problems or health issues. Young parents may be struggling to care for their children. Whatever the reason, the best solution is not a punitive one. This is not just about the cap. Depending on inflation, the four-year freeze in working age benefits could have a significant impact for those on low incomes. There are also the cuts to tax credits. That is a debate for another day, but it is important to register that over 4 million families, accounting for 7.5 million children, will see a difference between getting by on a tight budget and not getting by at all as a result of the changes to tax credits.

As I said, despite rhetoric to the contrary, the summer Budget is regressive. Poor families will get poorer and many on the edge could be driven into poverty. Barnardo’s has calculated that for some of the most vulnerable families, the cuts will mean a significant drop in income. I cannot see how that is right or fair, or how it is in line with stated Government policy. The Government tell us that work is the way out of poverty. Indeed it could be and should be, but we cannot ignore the fact that poverty also affects families where one or more adults works.

A Barnardo’s case study tells of a dad who asked staff for some nappies. When the project worker attended the house to see how things were going, she discovered only biscuits and crisps in the cupboard. The parents were missing meals in order to feed the children, and they had not asked for help because they were too proud. That family provides a window into the reality of life for so many people. The mother works at a call centre and dad looks after their three small children, one of whom is not yet in school. Their house was deemed too big, but no smaller one was available, so they were hit with the under-occupancy subsidy—the nice phrase for the bedroom tax. They are working people, but their income just does not cover the basics. Reluctantly, they eventually asked Barnardo’s for help and were pointed in the direction of a food bank.

The Joseph Rowntree Foundation stated that working single parents will be hit hardest by the changes in benefits. Under the current benefit cap, single parent households are disproportionately affected, particularly those with younger children. Since the introduction of the benefit cap, 63% of affected people were single parent households, of which 70% had a child aged under five. In May 2015, 76% of capped single parent households had a youngest child under five and 34% had a child under two.

According to Barnardo’s, a lone parent working full time on the national living wage for 37 hours a week with two young children could lose £1,200 a year from April 2016. For many single parents hit by the benefit cap, it will not be possible to reduce expenditure through budgeting or moving to cheaper accommodation. Gingerbread tells of a single parent with two primary aged children who phoned its helpline in June 2015. She is expecting a baby in October and was told that, when the baby is born, she will be subject to the benefit cap, causing a shortfall of £32 a week in her housing benefit. I urge the Government to consider how we can justify reducing support to such families. We must think again.

What about larger families with more than two children? Children in larger families are already 1.4 times more likely to be living in poverty. The Welfare Reform and Work Bill will limit support through both tax credits and the Government’s new system of universal credit, so that families receive help for only the first two children. As the Government’s impact assessment makes clear, the policy will disproportionately affect black and ethnic minority families, who are more likely to live in poverty and to have larger families.

We also need to consider the less obvious implications of the policy. What if a family with two children decides to adopt a third? What if a family with one child decides to adopt two siblings? We know that sibling groups often have to wait a long time for a new home. There is already a shortage of families able to take them. Given such difficulties, will the Minister not agree that such scenarios were not considered when the policies were drafted?

What about the withdrawal of housing support for 18 to 21-year-olds? In the summer Budget, the Government announced that from April 2017 unemployed 18 to 21-year-olds making a new claim for universal credit will not be entitled to support for their housing. Crisis has serious concerns that the removal of young people’s access to support for their housing costs will lead only to a further increase in youth homelessness.

For many young people, housing benefit is all that stands between them and homelessness. That includes care leavers and those who have experienced violence or abuse in the family household. Some might be unable to live with their parents because of a relationship breakdown, but are unable to prove that—for example, if a parent remarries or they have been kicked out for announcing that they are gay. All such scenarios for why young people need to leave home must be considered.

Young people who have already found themselves homeless might have been supported into accommodation funded by housing benefit. Between 2010 and 2014, Crisis helped to create 8,128 tenancies in the private rented sector for people who were homeless or at risk of homelessness. It is vital that young people should be able to maintain such forms of accommodation and that those at risk of homelessness should be able to continue to access them.

An example from Crisis is that of Ryan, who was in care as a young child and adopted at four. He never had a good relationship with his adoptive parents and as soon as he turned 16, in the middle of his GCSE examinations, they asked him to leave. Ryan spent the next four years living in a series of hostels, bed and breakfasts and temporary flats, with periods of homelessness. During that time his housing costs, when appropriate, were covered by housing benefit. He managed a college catering course, but found it too difficult when homeless.

The Government will introduce the cut to housing benefit for young people through regulation rather than in primary legislation. Perhaps Ministers anticipated resistance to removing support from vulnerable young people. Whatever the reason, it is outrageous to introduce such a change without giving hon. Members the opportunity to debate it.

[The Parliamentary Under-Secretary of State for Disabled People (Justin Tomlinson)]

The hon. Lady is making an important point, but she should remember that vulnerable young people will be exempted from the changes.

[Carolyn Harris]

I thank the Minister and look forward to seeing the exemptions, because so far it has not been made clear to us what they will be. This debate is a good time for us to be told about them. I also hope that the Minister will commit to publishing the regulations in time for a full debate in the House when the Bill is on Report.

My final point is about the sanctions regime. The increase in conditionality is significant, primarily because it will mean that parents with three or four-year-old children will be subject to financial sanctions—in other words, a loss in their weekly income. Any sanctions on claimants in my constituency, where nearly 10,000 are dependent on out-of-work benefits, will be catastrophic for their families. Barnado’s, Gingerbread, the Trussell Trust, Crisis and in fact all the charities and organisations tasked with helping those most affected by sanctions would describe the regime as unnecessarily punitive and not fit for purpose.

The Select Committee on Work and Pensions and other organisations have already repeatedly called for a broad independent review of conditionality and sanctions. It is imperative that such a review should take place before sanctions are extended to families with three and four-year-old children. We know that sanctions can be hugely disproportionate—a single mother missing an interview because her child became ill on the way to school, or a father delayed because he is on the phone to a school and misses an appointment by 10 minutes. Those are examples of everyday occurrences that will result in sanctions for people dependent on benefit. The resulting loss of benefits for weeks on end will leave families struggling to feed their children and to heat their homes. Barnardo’s has reported that parents using its services because of sanctions are being driven to food banks or further into debt.

I hope that, as a result of what I have said and what others will say, the Minister takes a message back to his Department and says that the voices of those affected by such cruel, punishing and crippling benefit changes need to be heard.

--- Later in debate ---

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

It is a pleasure to serve under your chairmanship, Mr Pritchard. I give my apologies because, as you know, I have to leave before the end of the debate. I congratulate the hon. Member for Swansea East (Carolyn Harris) on securing this important debate. I would talk about tax credits, child poverty and working families, but I am aware that a lot of people want to speak. We have already heard powerful speeches and I am sure that we will hear more. I will therefore focus on what is a constant issue at my constituency surgeries.

The Government’s new proposals build on existing failures that will further punish those in need of our help. In Inverness, Nairn, Badenoch and Strathspey, an ever-rising number of constituents get in touch with me about their personal independence payment claims. There is the gentleman who has just had a second stroke but been deemed fit to work, and the young man with severe disabilities whose benefits were removed because the very action of his carrying a letter handed to him by his carer from the assessment room was evidence enough for an Atos assessor to make a judgment on his reading abilities.

Four out of 10 decisions made by Atos are later overturned. The stress people are put through in those assessments is incredible. There is a woman who, having worked all her life, now holding down two jobs, faces eviction because her husband took ill but was deemed fit for work, despite his being housebound. They can no longer make their rent; they are currently three months in arrears and shortly they will be knocking on Highland Council’s door as homeless, leaving their private rental and joining the 10,000 people waiting on the Highland housing register.

Day in, day out I see the pain and suffering my constituents are put through just to get an Atos appointment, for the lack of a home visit is the first hurdle for many disabled people. I have listened time and again to people describe the process in the assessment room. They use words such as degrading, inhuman and disgraceful, which are repeated often. Each and every one of them faces a catalogue of questions when the primary aim seems to be to find a hook to remove or reduce their benefit entitlement.

Minister, why is it that 30 minutes in an assessment room counts for more than months and years of medical records, or indeed the medical advice of those who are treating people on a daily basis? Why is it that I constantly find myself astonished that those people have been even asked to make their way to attend an interview, given their severe medical conditions?

[Justin Tomlinson]

I am conscious that the hon. Gentleman will not be here for my response. The process takes more than an hour, and it is nothing to do with whether an individual is fit for work. PIP is different from ESA and the assessor is not making a decision on whether someone should get a benefit. Their job is to help the individual complete the forms to present the strongest possible case to the DWP staff. I feel that he is mixing up two benefits.

[Drew Hendry]

I encourage the Minister to come and speak to people in my surgeries who have had to go through this, because I do not recognise the procedure he describes and neither do my constituents.

Indeed, even those who have degenerative illnesses are asked to attend assessment and reassessment. By the very nature of their illness, those people are not getting better. Why on earth does anyone find it acceptable to keep reminding them of that while subjecting them to punishing assessments? Why is my office dealing on a daily basis with constituents who, because—often aided and struggling—they can walk 50 metres, are cut off from mobility support?

[Justin Tomlinson]

Under the old DLA system, 71% of people were given lifetime awards, but the conditions of one in three people changed significantly within a 12-month period. Without a reassessment, huge numbers of people were on a lower benefit than they were entitled to, which is why, under DLA, only 16% of people got the highest rate of benefits. Under the personal independence payment, that figure is 20%. It is right to make sure that people get the appropriate amount of support.

[Drew Hendry]

I thank the Minister for that intervention, but again I have to say that he must get out there and speak to people in our constituencies, because their experiences are not reflected in his remarks.

I will conclude, because I am conscious that other people should speak in the debate. The effects of benefit changes are wide-ranging and widespread. I urge the Government to reconsider those punishing changes. We have also heard about the changes to tax credits and the vulnerability of the working families who will be affected. A great number of people in my constituency will be pushed into further poverty because of those changes in the coming months. I urge the Government not to use vulnerable people and the disabled as scapegoats for what is, essentially, a failed austerity agenda.

--- Later in debate ---

[The Parliamentary Under-Secretary of State for Disabled People (Justin Tomlinson)]

It is an absolute pleasure to serve under your chairmanship, Mr Pritchard. I pay tribute to the hon. Member for Swansea East (Carolyn Harris). I recognise that this is an incredibly important debate and that hon. Members have made constructive, thought-provoking speeches, often with personal stories, so I will not give a pre-written speech, but will try to address as many of the points as possible. I am the Minister for Disabled People and if the points raised relate to other Departments, I will do my best to cover them.

I pay tribute to the shadow Minister. It was helpful of her to encourage interventions, allowing everybody here to contribute, bar the hon. Member for Sheffield Central (Paul Blomfield). That was a real shame, because he is one of the Opposition’s most effective and measured Members of Parliament and has helped to shape Government policies in the past with well argued points. It is a shame that he did not have the opportunity to contribute.

I have a soft spot for Swansea East because, as the Minister for Disabled People, I celebrate, recognise and champion the fact that Swansea is the first city to be fully disability confident. It is a credit and an honour that the hon. Member for Swansea East represents such a wonderful town. One of my first media activities was to praise it, so she can be very proud of Swansea East. Leading on from that, she raised a point about barriers to work. I recognise that issue in my role as Minister for Disabled People. We have a commitment to halve the disability employment gap. In the last 12 months alone, 226,000 more disabled people have got into work, but halving the gap will require about another million, so there is still a huge way to go. We will be doing a huge amount of work through Disability Confident and our Access to Work scheme, through which we are now close to record numbers of people being helped.

The hon. Lady raised a point about sanctions. That has come up in a number of debates that I have spoken in, and the shadow Minister from the Scottish National party, the hon. Member for Banff and Buchan (Dr Whiteford), raised the point as well. The use of sanctions has fallen by 30% in the last 12 months. The Oakley review did recognise that that was an important part of the mix; it should not be something in isolation. This is about the claimant and the work coach coming together with a contract and both sides working to give that individual the best opportunity. The use of sanctions is an important issue. I recognise some of the personal stories raised, and we shall continue to look at that, but it is an important part of the mix.

The hon. Member for Swansea East also highlighted Parkinson’s UK. The issue was raised in a previous debate. I have since met Parkinson’s UK, and we have made significant changes to some of the practices in the personal independence payment based on its expertise and advice. I am very grateful that it was able to contribute to that. I thought that the hon. Lady’s speech was important. She highlighted the need for the voice of the vulnerable, and certainly the opportunity was taken with a very powerful speech.

[Steve McCabe]

Will the Minister give way?

[Justin Tomlinson]

I am going to be tight on time. Let us see whether I can get through these pieces of paper first and then hon. Members can feel free to intervene.

The hon. Member for Newport West (Paul Flynn) raised the concern that the TaxPayers Alliance was now setting policy. Fear not: it has not taken over the leadership of our party, so do not panic.

The hon. Member for Strangford (Jim Shannon), who for the second day in a row has been detained elsewhere when I have responded to his points—hopefully he will read this—raised the point about food banks. A number of other hon. Members also talked about that. We have argued in the past that we have made them more accessible. One thing we do know is that the proportion of people reporting difficulties affecting food is down in the UK from 9.8% in 2007 to 8.1% in 2012. This is an incredibly important issue. I recognise that concerns have been raised about even people in work sometimes having had to access such facilities. We will continue to look at the issue, but we know that the number of those reporting difficulties with accessing food is falling—something that we would all welcome.

The hon. Member for Central Ayrshire (Dr Whitford) talked about fluctuating health conditions. I stress that, in the proposed changes to ESA, the support group will not change—I just want to make that clear—but we have to recognise that people have fluctuating health conditions, particularly in terms of mental health.

[Dr Philippa Whitford]

The issue is the type of patients who will be put in the WRAG group as recovering, but are then pushed, because of loss of money. It is not the support group—

[Justin Tomlinson]

That is exactly the point I am coming on to. We have to be more flexible. In terms of mental health conditions, we know that one in five people going for ESA will have a mental health condition as their primary concern. That increases to just below 50% on a menu of conditions. A mental health condition is one of many types of condition that fluctuate, which has to be recognised. That is why the principles of universal credit will make a considerable difference.

This is not just about support to get people into work, although that is incredibly important; it is also about keeping people in work. For example, 300,000 people a year with a mental health condition drop out of work. I know from having employed someone with a mental health condition that it is a lot easier to keep someone in work than for them to drop out, navigate the benefits system, rebuild their confidence and get back into work. We are doing a huge amount of work. There are lots of pilots and lots of lessons that we are learning. Rightly—this goes across the political divide—we all recognise the significance of mental health conditions and other fluctuating conditions. Life is not simple and the system has to recognise that.

That brings me to the hon. Member for Merthyr Tydfil and Rhymney (Gerald Jones). I am delighted to say that his local football team finally got promoted the other season, which stops his team knocking mine out in the play-offs every year. I have had too many long journeys that have ended in great disappointment. He, too, rightly highlighted the need for flexibility. With universal credit, we will be encouraging the coaches. We will be making the coaches build a flexible relationship with the claimant, recognising that each person is an individual and has different challenges and, crucially, different opportunities.

We have talked about childcare. Obviously, there was our announcement about going from 15 hours to 30 hours. Crucially, this is a devolved issue. We will keep a very close eye on what the devolved Assemblies are doing to see whether there are lessons to be learned and, as ever, we will seek to share best practice. Capacity is a key issue. I recognise that. Between 2009 and 2012, we created 230,000 places—an increase of 12%. We have announced £2 million of start-up grants to encourage more childcare provision. We are simplifying the regulatory framework. That is something we look at.

I thought that it was a fair point about the jobcentre environment. I have done many tours of jobcentres and I think that is something we need to look at. Again, we are doing pilots on how we can change the environment and the services that are offered—joined-up services. Those were fair points on jobcentres. I think we would all recognise that there is work to be done there.

Many of the points in the speech by the hon. Member for Ross, Skye and Lochaber (Ian Blackford) were from the tax credits debate. That is not really today’s debate. There will be an opportunity for that next week, but those important points have now been placed on the record. I say to all the people concerned that we cannot look at this issue in isolation. The introduction of the national living wage will help 2.7 million people. The ripple effect will filter through to 6 million people in total. The changes to the personal income tax threshold have made a significant difference to our lowest earners, taking 3.2 million of them out of paying any income tax at all. I particularly welcome the measure whereby that will lock in with inflation once we hit £12,500, so we will not start to see the creep of people being dragged back into paying income tax. I very much welcome that and of course the increased numbers in work. We support the principle that work is the best route out of poverty.

The hon. Member for Aberavon (Stephen Kinnock) made some interesting points. I gently remind him, in relation to the quote that he used, that those were the very people who elected us to form this Government.

I understood the concerns expressed by the hon. Member for Banff and Buchan. I have made an offer before to meet to discuss those, because I know that she has a real desire to see an improvement in this area. I felt sometimes that there was a bit of confusion between the ESA system and the personal independence system; on some of the points, I felt that. I think it would be worth our having that meeting to discuss the issues in detail. I will say that there has been a complete transformation in the service that a claimant would expect through personal independent payment from when it was initially rolled out. There were well documented problems. I have done Westminster Hall debates on that before. We are now down to 11 weeks—median—end to end, and five weeks for an assessment. That is well within where we would expect to be, but it is a journey. We continue to meet organisations that help with the training and with improving the claimant’s experience.

Crucially on mental health, under DLA a disservice was done to people with mental health conditions. Under personal independence payment, all impairments are treated equally and the system is geared up to recognise them. That is part of the reason why we are now seeing 20% of claimants getting the maximum benefit, compared with just 16% under DLA. Rightly, the assessment has to be about dignity. The assessors are there to help people with their claims. I am happy to meet to discuss that further.

On ESA, let us remember that, on the WRAG group, only 1% of people are coming off that benefit. That shows that the current system has needed to be reformed. I welcome the extra £60 million that we will be spending on providing specialist support, rising to £100 million by 2020. That leaves me with just 20 seconds. I am sorry that I have not been able to touch my formal speech.