Statutory Sick Pay and Protection for Workers

Matt Rodda Excerpts

Wednesday 18th March 2020 Commons Chamber

[Matt Rodda (Reading East) (Lab)]

It is a pleasure to speak in this important debate. Let me start by thanking my hon. Friend the Member for Leeds North West (Alex Sobel) and many other speakers, including the hon. Member for North East Bedfordshire (Richard Fuller), who spoke very eloquently, and my hon. Friend the Member for Ilford North (Wes Streeting),, who made some thoughtful and far-sighted points.

I want to address not just the policy responses that we need, but the underlying scale of the problem. We have heard today that as many as 5.5 million people in this country are self-employed. I want to describe my experience of that as a constituency MP, but also to set it in the context of the wider crisis that we face.

We face an unprecedented situation, and I fully acknowledge the action that the Government have taken. Measures to reduce the spread of the outbreak are vital, and I am pleased that Ministers have announced robust measures this week, including the measures to support businesses that they announced yesterday. However, I want that action to go much further and to be much more resolute, because of the scale and need of people who work for themselves, and those who are on low incomes or in the gig economy.

I support the range of measures outlined earlier by my hon. Friend the Member for Wirral West (Margaret Greenwood). Let me draw the Minister’s attention in particular to the approach taken in Scandinavia, and also by a number of other European Governments: we have heard mention of the Irish Government today. The UK Government now need rapidly to develop a comprehensive approach and provide a safety net for all workers, and, indeed, all renters, who are uniquely vulnerable in the current crisis. Let me explain what that means to local people in Reading and Woodley, the area that I represent. Self-employed people are the absolute bedrock of our local economy, carrying out a range of activities in the knowledge economy, public services and other forms of service, retail and distribution.

Let me begin by highlighting the role and the importance to our local economy of IT subcontractors. Some of the largest IT businesses in the world are based in our part of the Thames valley. Those large businesses subcontract to many, many smaller businesses, most of them one-woman or one-man bands who are very dependent on a relatively unstable economic situation. As a growing and rapidly expanding area close to London and the midlands, we have a large amount of construction taking place. We have many small builders and other tradespeople who are dependent on jobs and work which is relatively short-term, and who may see only a few weeks ahead economically. We also have a vibrant transport sector, with a large number of people employed in the aviation industry at Heathrow, many taxi drivers, and many people who work on the railways. All are part of a transport sector that looks set to be severely constrained because of the crisis.

Reading is the main shopping town for the Thames valley and the related parts of the south midlands, and we also have a vibrant gig economy, with a number of distribution centres and warehouses nearby. Many people in this group are also renters, so we have a double hit in our local economy. We have many people who are vulnerable because they have only one month’s guaranteed income ahead, whether they are professional people, people with trades, or people who have other skills, and in the same group of people we also have many young families living in rented accommodation, which is very high cost in an area that is similar in cost to outer London or the centre of major cities around Britain.

I draw the Minister’s attention to this local example, which reflects the situation in many towns and cities throughout the country. There is this collision and reinforcement: people have insecure incomes, are vulnerable and have not yet had their situation addressed by the Government’s measures—however helpful those measures are for larger businesses—and they are also renters in a high-cost local rental economy, where rental income can be as much as £1,000 a month for basic accommodation.

We need to take action and to take it urgently. Will the Minister reconsider the Government’s approach, focus on the needs of these groups of workers and renters, and think about the world from their perspective? Their income is not guaranteed and is vulnerable, and they are the bedrock of the local economy in so many parts of our country and, indeed, in the country as a whole. They deserve our support and respect. We need to come up with a realistic and workable plan, using whatever policy measures are necessary to protect them and their family income and to ensure their safety and security.

Inequality and Social Mobility

Matt Rodda Excerpts

Wednesday 12th June 2019 Commons Chamber

[Debbie Abrahams (Oldham East and Saddleworth) (Lab)]

I am afraid that the Government’s record on inequalities, across the piece, is absolutely woeful. I was particularly concerned by some of the data mentioned by the Secretary of State.

Last month, on the 49th anniversary of the Equal Pay Act 1970, the Equality Trust published more data showing pay inequalities. It analysed the average pay of chief executives and other workers, gender pay gaps and gender bonus gaps in FTSE 100 companies. That followed the report, in February, of an increase in income inequality according to the Gini coefficient, a standard measure. Who could forget “Fat Cat Friday” in January, which exposed the fact that top executives were earning 133 times more than their average worker? In 1998, the ratio was 47.

My hon. Friend the Member for Wirral West (Margaret Greenwood) was absolutely right to draw attention to the impact of austerity and the Government’s choices—and they are choices: poverty and inequality are politically determined—to ensure that their tax and spending plans harm the poorest most. That is not just my view. A report from the Equality and Human Rights Commission has shown that the poorest 10th of households will lose, on average, 10% of their income by 2022, which is equivalent to £1 in every £8. There have been similar findings from the Institute for Fiscal Studies and other organisations.

However, it is not just a question of income inequalities. Wealth inequalities are also prevalent and have worsened in this country. The richest 1,000 people in the UK have wealth estimated at £724 billion, which is more than the wealth of the poorest 40%, at £567 billion. That privileged 1,000 saw their income increase by £66 billion in one year alone and by £255 billion over the last five years.

[Matt Rodda (Reading East) (Lab)]

Will my hon. Friend give way?

[Debbie Abrahams]

Very briefly.

[Matt Rodda]

Does my hon. Friend agree that, at a time of widening inequality and huge gaps between those who have advantages in life and those who do not, it is deeply and utterly irresponsible for a leading politician to promise tax cuts to the very wealthy while lacking any consideration for those in much more challenging circumstances?

Personal Independence Payments: Merseyside

Matt Rodda Excerpts

Tuesday 26th March 2019 Westminster Hall

[Marsha De Cordova (Battersea) (Lab)]

It is an honour to serve under your chairmanship, Sir Edward, and I congratulate my hon. Friend the Member for Garston and Halewood (Maria Eagle) on securing this important debate. As a former Minister for Disabled People, she is well aware of many of the issues and barriers that disabled people face. I mean no offence to the Under-Secretary of State, but it is appalling that to date we still do not have a Minister for Disabled People, given that it is nearly two weeks since the former Minister resigned. However, given that the Under-Secretary is, himself, a former Minister for Disabled People, I am sure he will address some of the concerns that have been so eloquently raised by many of my colleagues.

My hon. Friend raised some important points, and highlighted the dire situation in her constituency. She started by mentioning the increase in complaints about the personal independence payment, and said that in the last three months alone, there has been a threefold increase in appeals. There are multiple issues and problems with the assessment framework, beginning with the lack of provision that means that people who require a home assessment are not given one. Inaccurate assessment reports are provided by assessment providers, and many individuals who are assessed do not even recognise what has been written. Some providers do not comply with guidance that allows supporters to be in the room to contribute to the assessment or support the person they are with.

The most important point, which was highlighted by many hon. Members, was the delay in PIP award decisions, and the long time that people have to wait for appeals. One person had to wait more than 12 months for an appeal, and the average is more than 36 weeks, which is not acceptable. There are a high number of mandatory reconsideration cases where decisions are not overturned. That stage was introduced by the Department to help get the decisions right, but that is not happening, as demonstrated by the number of assessments that are overturned when they arrive at tribunal.

My hon. Friend the Member for Garston and Halewood and my hon. Friend the Member for Liverpool, Riverside (Dame Louise Ellman) referred to a culture of indifference among assessment providers, and other Merseyside MPs made strong cases and represented their constituents well. Frankly, however, they should not have to come here, plead, and bring forward their cases. It is great that we can do that, but the Department should be getting those decisions right in the first place. The problem is that that is not happening.

My hon. Friend the Member for Liverpool, West Derby (Stephen Twigg) highlighted the experiences of his constituents who have been turned down for PIP. Those decisions are often overturned at tribunal, but in the meantime people are left destitute and have to turn to foodbanks, which cannot be acceptable. We also heard about the experiences of those living with mental health distress, which we know causes untold problems. My hon. Friend the Member for Wallasey (Ms Eagle) highlighted the experiences of her constituents; in her area people wait an average of 33 weeks for an appeal, and more than 70% of those decisions are overturned at tribunal. She highlighted five cases, and in each one the decisions made were wrong, and people were left financially worse off. The personal independence payment is supposed to help meet people’s extra costs, but if those costs are not being met, what happens to the lives of those individuals? We should be supporting ill and disabled people.

[Matt Rodda (Reading East) (Lab)]

It is deeply moving and troubling that so many people’s lives are affected in this way by what appears to be poor quality administration by some staff in the Department. I realise that civil servants are under intense pressure, but does my hon. Friend agree that there is perhaps a need for much greater training to try to avoid the terrible problems of delays and people having to resort to foodbanks?

[Sir Edward Leigh (in the Chair)]

Order. If one is going to intervene, it is normal courtesy to be present for most of the debate beforehand.

The Secretary of State’s Handling of Universal Credit

Matt Rodda Excerpts

Wednesday 11th July 2018 Commons Chamber

[Matt Rodda (Reading East) (Lab)]

I am grateful for the opportunity to speak in this important debate and to present the concerns of many of my constituents, whom this failed public policy is supposed to help. The root of the problem for many is that applications are processed solely online. That causes enormous problems for people who are digitally excluded, those who do not have a smartphone or a computer at home, and those for whom English is a second language. The support provided by the DWP is inadequate and jobcentres are simply not set up to provide the necessary level of IT support. The National Audit Office report supports that view, and the Department’s own survey found that nearly half of claimants were unable to make a claim online unassisted and a fifth of claims fail at an early stage because claimants are not able to navigate the online system.

I am grateful for the work of my constituency staff and several local support and advice organisations that work tirelessly to plug the shortfall and help to process claims in the absence of adequate DWP support. Without those organisations, to which I pay tribute—they include Reading citizens advice bureau, Woodley citizens advice bureau, Reading community welfare rights unit and CommuniCare—hundreds of people would be falling through the cracks. I visited one of those organisations recently and, in the bright sunshine, I was shocked to find that more than 10 people were queuing at 9 o’clock on a Monday morning. They were waiting in line, desperate for help. This simply is not good enough.

I urge the Secretary of State and my Reading colleague, the Minister for Employment, to see these problems for themselves and pause to fix the roll-out of universal credit.

Personal Independence Payments

Matt Rodda Excerpts

Wednesday 31st January 2018 Westminster Hall

[Matt Rodda (Reading East) (Lab)]

I congratulate my hon. Friend the Member for North West Durham (Laura Pidcock) on securing this important debate. I will reinforce the points made by a number of Members this morning. To put it quite bluntly, I believe that the emotional trauma caused by PIP and the Government’s approach to its administration has led to suffering on what can only be described as an enormous scale.

I will give one example of a constituent, as her case illustrates the fundamental problems with PIP, and then make two other brief points. My constituent suffers from chronic long-term and debilitating back pain, which was made worse in the aftermath of an operation, during which she suffered terribly. However, after her disability living allowance was terminated, she was awarded much less support through PIP and her mobility car was taken away from her because she had not scored enough points in the arbitrary assessment. Ironically, it can be said that, in this and many other cases, personal independence payments reduce people’s personal independence and mobility. That is one of the fundamental problems with this system that we need to consider today.

I will briefly address two other points; I realise other colleagues would like to speak. First, the length of time that people suffer because of the trauma caused by the system is a problem. It is important to note that, all too often, the ordeal does not stop with the assessment, which is just the beginning of a very lengthy process. My constituent lives in flat so small that there is not even room for her husband to stay. She has to contend with living alone in cramped conditions and in pain. As if that were not bad enough, she is having to find the strength to challenge her initial assessment report formally, because it does not reflect her condition or what she said to the so-called health professional.

There is a wider issue, which was mentioned earlier, about whether due weight is given to medical evidence. In certain cases, the written evidence of GPs and consultants has been discounted or not given proper consideration because, according to the DWP, they are regarded as the applicant’s advocate and are therefore, in the warped world of PIP assessments, somehow biased. The irony is that the Government give total credence to the advice given by their own so-called health professionals, who, as we have heard, are not necessarily trained in the area of medicine that they are due to assess. Reconsideration of that issue in particular should be a top priority for the Government.

[Anna McMorrin]

I want to set out the case of a constituent who came to me. A medical professional, he was terminally ill and had weeks to live, but he was advised that he would be eligible for PIP only from December of that year. His partner was distraught, as was he. He wanted to use that money for the last few weeks of his life. It turned out that there had been an administrative error, but they had to come to me to sort that out. That is a disgrace.

[Matt Rodda]

I thank my hon. Friend for that intervention. I would like to make a suggestion to the Government. How about going back to the drawing board and designing a system that listens to people and allows them to express their issues in their own words. Above all, how about developing a system that demonstrates real compassion and decency, which we had for many decades in our welfare state? The Government can and must do better. It is so obvious that the current system is designed and contrived to cut public spending. I ask the Government to think again.

Universal Credit Project Assessment Reviews

Matt Rodda Excerpts

Tuesday 5th December 2017 Commons Chamber

[Matt Rodda (Reading East) (Lab)]

I am grateful for the opportunity to speak in this afternoon’s debate, and I want to support the points made by my hon. Friend the Member for Oldham East and Saddleworth (Debbie Abrahams). I also wish to thank the Secretary of State for his concessions today. Although I welcome them, they are, sadly, not nearly enough to address the very many serious flaws of this failed benefit.

I wish to address my remarks to the situation in my constituency of Reading East where universal credit is rolled out tomorrow, on 6 December. Tomorrow, 10,000 of my constituents will be hit hard by this failing programme and many—I wish to point this out to the hon. Member for Wealden (Ms Ghani) and others—are families in work; some are disabled; and some are people in all kinds of desperate need. We have 10,000 people facing the possibility of a Dickensian Christmas in a relatively wealthy town in one of the most prosperous regions of the country in 21st century Britain. Is that acceptable to any of us? I do not think so.

The delays in the roll-out—it could be several weeks—mean that it is unlikely that many of those 10,000 people will be able to enjoy the benefits in time for Christmas. Indeed, many will only be paid universal credit in January 2018. Just like the family of Tiny Tim in Dickens’s “Christmas Carol”, there will be no Christmas in these households. For those who are not familiar with that situation, it is important to consider that those families will be struggling to find any sort of Christmas dinner, any sort of presents and any sort of celebration.

I note that the Secretary of State has now allowed a greater level of loans for families in receipt of universal credit. However, until January, loans of only 50% are available, so I ask Conservative Members to consider what it would be like to be one of the working poor in Reading, struggling to get by with 50% less income from benefits to cover their Christmas expenditure. That is half the payments they would have had this time last year. Is not Christmas hard enough already for these families? This is not only a sadly mistaken policy, but actually wrong, and the roll-out, in its current form, is failing deeply.

I appreciate that some changes were made in the Budget. However, deep flaws remain—not least the long wait and various other points made by hon. Members. I will run through some of the effects of the budgetary changes on my constituents that many have overlooked today. For the areas where the roll-out is taking place in December, it is irrelevant that the seven-day waiting period is being changed. It will be too late because it happens in February. The period over which advance payments are recovered is being extended, but this is also too late, starting in January. The interest-free advances are too late, as they start in 2018. On and on—these late interventions will not help families who will have a terrible Christmas this year.

It is quite clear that universal credit is, quite simply, a failing programme. The Government are refusing to release key documents, and the changes set out in the Budget fail to meet the needs of families. Given these fundamental flaws, the failure in delivery and the Dickensian misery being forced on families, surely the Government will admit that it is time to pause and fix this benefit.

Universal Credit Roll-out

Matt Rodda Excerpts

Wednesday 18th October 2017 Commons Chamber

[Matt Rodda (Reading East) (Lab)]

I have been interested to hear the range of views discussed today. I am from one of the areas where universal credit will be rolled out in early December, much to the concern of local residents. It is difficult to imagine the stress and deep financial distress that many of the people on this benefit will face over Christmas because of the ill-considered timing. From my perspective, this is wholly unacceptable, but I believe it is only one of a number of deep flaws in this ill-thought-through policy.

As we have heard, the six-week payment delay is a severe flaw. It does not take account of the reality that many people, especially those on low incomes, not only budget on a bi-weekly basis, but are in some cases paid once every two weeks. In our area, Reading Borough Council and local charities will do their very best to help those affected, but they have already raised serious concerns about this delay.

I should point out that the country as a whole is experiencing a dramatic rise in rent arrears, as well as increased evictions. We have noticed that in our town, and it is the same in many others in the south-east, as my hon. Friend the Member for Slough (Mr Dhesi) mentioned. That is because of the difficulty that people who receive the benefit experience in budgeting to cover their rent. It is also because landlords appear unwilling to house people on universal credit. I have been warned about that as an MP and previously as a local councillor, and I have heard worrying evidence of it from tenants and community groups.

Evidence also suggests a link between the six-week delay and the pressure on food banks. Food banks in areas of full universal credit roll-out have experienced a 17% average increase in referrals for emergency food—more than double the national average. Delays in receiving benefits and changes in benefits have become two of the three top reasons for referrals to food banks.

Those issues, linked with the delay in payment, have contributed to an increase in loans being taken out to meet basic needs—

[Madam Deputy Speaker]

Order.