Oral Answers to Questions

Mel Stride Excerpts

Monday 6th March 2023 Commons Chamber

[Simon Baynes (Clwyd South) (Con)]

1. What steps his Department is taking to increase the number of eligible people claiming pension credit.

[The Secretary of State for Work and Pensions (Mel Stride)]

My Department has carried out a comprehensive campaign of communication since April 2022 to promote pension credit. I am pleased to inform the House that the average number of pension credit applications is up 73% compared with this time last year.

[Simon Baynes]

I strongly backed my right hon. Friend’s campaign in December last year, particularly in my Clwyd South constituency. Will he give us a further assessment of how effective that campaign has been in Wales and across the rest of the UK?

[Mel Stride]

I congratulate my hon. Friend on the work that he has been doing in his constituency on this matter. I can inform him that for the week commencing 12 December, for example, there were 7,200 claims, which is a 177% increase compared with this time last year.

[Andrew Gwynne (Denton and Reddish) (Lab)]

This is not party political; we all want to make sure that pensioners in need get the help and support that they can get. The Secretary of State will understand, though, that in communities such as mine there are still too many pensioners eligible for pension credit who are not yet accessing it. Given the success of his campaign so far, what further will he do to ensure that the really hard-to-reach pensioners get the support that they deserve and need?

[Mel Stride]

I very much welcome the hon. Gentleman’s question and the non-partisan way in which he presented it. He is absolutely right; there must be no let-up in this matter. Two thirds of those we believe are eligible for pension credit receive it, but that means that one third do not. We cannot identify them precisely in advance, which is why communication is so important. We will write to 11,000 pensioners soon to tell them about the uprating and to stress the point about pension credit. From today, we are launching television advertisements to further that message.

[Mr Speaker]

I call the shadow Minister.

[Matt Rodda (Reading East) (Lab)]

The Government seem to be trying to pat themselves on the back after years of failure on pension credit. As we just heard, hundreds of thousands of pensioners are still missing out on a vital top-up benefit that is needed to get them through the cost of living crisis. Why has the Government’s response been so ineffective, and what on earth will the Government do about their dismal failure to help pensioners during their hour of need?

[Mel Stride]

I am very surprised to hear the hon. Gentleman pose that question, first, because of his party’s record on this matter when they were in government; and secondly, because of the clear progress that I have outlined to the House today and on previous occasions about the increase in take-up that the Government are securing.

[Patrick Grady (Glasgow North) (SNP)]

2. What assessment he has made of the potential impact of increasing the state pension age on trends in the level of pensioner poverty.

[The Secretary of State for Work and Pensions (Mel Stride)]

My review of the state pension age is under way. The review will consider a wide range of evidence, including two independent reports, to assess whether the rules on pensionable age remain appropriate.

[Patrick Grady]

I hope that the evidence that the Secretary of State examines includes analysis by Age UK that 1.5 million pre-state pension age households have no savings at all. Age UK warns that accelerating the rise of the state pension age

“will condemn millions to a miserable and impoverished run up to retirement”.

Instead of risking that increase in pensioner poverty, should he not establish an independent pensions and savings commission to ensure that pension policies are fit for purpose and reflect the demographic needs of different parts of the United Kingdom?

[Mel Stride]

The two reports to which I have just referred are independent—from the Government Actuary’s Department, on matters such as life expectancy; and from Baroness Neville-Rolfe, on the metrics that should be taken into account in determining when the next increase in the state pension age should occur. We certainly take into account issues such as pensioner poverty, on which we have an excellent record. In fact, relative pensioner poverty before housing has halved since 1999, and there are 400,000 fewer pensioners in absolute poverty—that is before or after housing—compared with 2009-10.

[Sir Desmond Swayne (New Forest West) (Con)]

Is it realistic to continue to expect people to spend a third of their lives on a pension?

[Mel Stride]

I have great respect for my right hon. Friend, but I am afraid that although he tempts me to answer that question, I cannot prejudge the decisions that I will take in the review.

[Rob Butler (Aylesbury) (Con)]

3. What steps he is taking to reduce levels of economic inactivity among working-age people.

[Stephen Hammond (Wimbledon) (Con)]

10. What steps he is taking to reduce levels of economic inactivity among working-age people.

[The Secretary of State for Work and Pensions (Mel Stride)]

The Prime Minister has asked me to review the matter of economic inactivity, and the results of that review will be shared with the House shortly.

[Rob Butler]

One of the keys to getting working-age people to return to work is obviously providing the right incentives, such as the training programmes and advice provided by my right hon. Friend’s Department—the likes of Jobcentre Plus—but it is also important to remove disincentives. What discussions is he having with Treasury colleagues about ensuring that tax policy, especially on pensions, does not stand in the way of people who have skills and experience staying in, or returning to, the workplace?

[Mel Stride]

I thank my hon. Friend for raising this important matter, which of course is well known to the Chancellor and Treasury colleagues. We have a variety of discussions with the Treasury on those kinds of matters and others. Of course, tax policy is a matter for the Treasury.

[Stephen Hammond]

I commend my right hon. Friend for the work that the Department is doing to try to reduce economic inactivity. He will know that many of the over-50s moving out of employment and into economic inactivity are concentrated in the self-employed and part-time workforces. Can he confirm that his review will look at measures to bring those people back into the workforce?

[Mel Stride]

I can reassure my hon. Friend that we are most certainly looking carefully at that particular cohort of people who have prematurely retired—if I may use that term—and are over the age of 50. It is one of the biggest cohorts that we are trying to encourage back into the workforce, and I will have more to say on that matter in due course.

[Emma Hardy (Kingston upon Hull West and Hessle) (Lab)]

The pandemic made a revolutionary change to the way we work. I know the Secretary of State has heard me mention Work Hull: Work Happy before, but research published today by the Phoenix Group on economic inactivity in the over-50s states that

“flexible work…support with new technologies…and the opportunity to work from home”

are favoured support strands for people returning to work. Will the Secretary of State therefore back Labour’s plan to make flexible working a force for good for all workers?

[Mel Stride]

I very much welcome the hon. Lady’s question—I certainly enjoyed my time working with her on the Treasury Committee, where she raised these matters with great passion. She is absolutely right that flexible working is the way forward, and not just for the over-50s but often for those who have disabilities. This is a big opportunity that we need to seize.

[Steve McCabe (Birmingham, Selly Oak) (Lab)]

I understand that the latest figures reveal that there are 788,000 young people not in employment, education or training. Does the Secretary of State regard that as an acceptable figure, and if not, how and when is he going to tackle it?

[Mel Stride]

Even one person in the circumstances that the hon. Gentleman refers to is one too many. We are going to come forward very shortly with further measures on how we address those particular people, and at the time of the Budget on 15 March—which is very close now—the hon. Gentleman will probably learn more.

[Jonathan Ashworth (Leicester South) (Lab/Co-op)]

I understand that Ministers are struggling to convince the Office for Budget Responsibility that their inactivity plan will get half a million people back to work. One way in which the Secretary of State could hit his target is by encouraging more parents to move into work. Of course, many women, in particular, are blocked from returning to work because of childcare costs. Given that we should be doing more to help parents move into work, why has he now frozen the childcare cost cap in universal credit for the seventh year in a row?

[Mel Stride]

As to whether the OBR is or is not scoring the various measures that are being presented to it by the Treasury, I am intrigued as to how the right hon. Gentleman seems to know that it is having problems. The OBR operates under conditions of utter confidentiality in these matters, and I would not doubt that that is the way it has proceeded this time around. As for childcare, he is absolutely right. He will have to be a little patient—I know that he sometimes struggles to be patient—and we will then come forward with measures, and no doubt we will have something to say about the matter he has raised.

[Jonathan Ashworth]

I know that because the Secretary of State’s Government sources briefed The Sunday Times yesterday on that particular point, but I will wait and see. I will wait for the OBR report next week, and we will see what target for inactivity the Government publish and what the OBR endorses. He will know that many working parents would return to work if they could afford childcare, but many are expected to find hundreds of pounds—sometimes £1,000—to pay for childcare up front. Who has £1,000 down the back of a sofa? Will he make universal credit work by introducing more flexibility in how it operates, or is he prepared to punish hard-working parents by pushing them into more debt?

[Mel Stride]

I am afraid that I am just going to have to repeat what I have said, which is that the right hon. Gentleman will have to be patient. I am confident that we will have some things to say about the matters he has raised, but he will just have to wait another couple of weeks before he learns what we are doing.

[Mr Speaker]

I call the SNP spokesperson.

[David Linden (Glasgow East) (SNP)]

Post pandemic, and under this uncaring Conservative Government, we have seen sanctions skyrocket, pushing many people into destitution. Can the Secretary of State come to the Dispatch Box and outline how plunging people into poverty helps deal with economic inactivity? Is it not the case that the only activity it stimulates is at local food banks?

[Mel Stride]

I am surprised, in a way, that the hon. Gentleman raises the issue of poverty, because what we have seen, certainly since 2010 and under this Government, has been absolute levels of poverty declining and fewer children growing up in workless homes, for example, in distinct contrast to Governments prior to my party coming into office.

[Mick Whitley (Birkenhead) (Lab)]

4. What estimate he has made of levels of economic inactivity in towns and cities.

[The Secretary of State for Work and Pensions (Mel Stride)]

The Office for National Statistics regularly publishes statistics relating to estimates of local inactivity. I have been leading work across Government with a further piece on participation, and the Chancellor and I will shortly be setting out more details of our plans.

[Mick Whitley]

Some 2.5 million people are economically inactive as a result of long-term illness, and half a million have left the labour market due to ill health since 2019. Does the Secretary of State accept that tackling health inequalities and improving health outcomes in deprived communities such as Birkenhead is essential to achieving equitable economic growth? Can he inform the House what conversations he has had with colleagues across the Cabinet about the need for a holistic economic strategy that recognises that health and wealth are inextricably linked?

[Mel Stride]

It is important that we take into account the issues of poverty and regional variations to which the hon. Gentleman refers. They lie right at the heart of all the decisions we have taken. We have come forward in recent times with significant cost of living support measures. My hon. Friend the Member for Mid Sussex (Mims Davies) will be taking through the remaining stages of the Social Security (Additional Payments) (No. 2) Bill this very afternoon to address the people to whom the hon. Gentleman refers.

[Ben Bradley (Mansfield) (Con)]

I do not know whether my right hon. Friend saw my article in The Times a few weeks ago, but it discussed opportunities for towns, such as Mansfield, that have specific local requirements when it comes to tackling economic inactivity, the opportunities of building bespoke local schemes with local employers and training providers, and the opportunities from those relationships on a local level as part of a wider strategy within the region. What is his stance on devolving decision-making powers in this space down to local areas?

[Mel Stride]

My hon. Friend raises a significant and important point. There are areas, particularly around the Work and Health programme, where we have done exactly that. We are engaged in discussions, contingent upon or subsequent to the White Paper that the Department for Levelling Up, Housing and Communities published on levelling up, and in particular with areas such as the west midlands and Greater Manchester, to make sure that we leverage the knowledge, know-how, expertise and all the resources they have at the local level to continue to bring people back into work.

[Mr Speaker]

I call the shadow Minister.

[Alison McGovern (Wirral South) (Lab)]

It is always a joy at Question Time to hear Labour MPs supporting Labour policy, but even more so to hear Conservative MPs supporting Labour’s policy of localising our efforts to get people back to work. On that, may I ask the Secretary of State something? I have been listening to what he has said, and I know that he will not pre-empt the details of the inactivity review, but can he just confirm that one of its objectives will be to rebalance our economy, particularly in this connection between health and labour supply?

[Mel Stride]

That is at the heart of our manifesto, Madam Deputy Speaker—[Interruption.] Sorry, Mr Speaker! Where did I get that from? It is a sign of the times. Right at the heart of our manifesto, and of the Government’s raison d’être, is the need to make sure that we level up communities across the United Kingdom. Of course, our action will take many forms, but one of them is most certainly the support that we will provide to make sure that, up and down the country, there is equality among those seeking work, and those who are economically inactive, and that they have the same opportunities.

[James Sunderland (Bracknell) (Con)]

5. What steps he is taking to support people aged 50 and over into employment.

--- Later in debate ---

[Beth Winter (Cynon Valley) (Lab)]

16 . What assessment he has made of the state of industrial relations within his Department.

[The Secretary of State for Work and Pensions (Mel Stride)]

Constructive discussions take place with the Public and Commercial Services Union, FDA and Prospect unions on a range of topics, as is set out in our employee relations handbook. The PCS and Prospect unions are in dispute with the Department for Work and Pensions, along with a number of other Departments, about various issues. As ever, we will remain positively engaged.

[Beth Winter]

Is the Secretary of State aware that more than a quarter of DWP staff are paid so little that the national living wage floor increase this April will lift their salaries? Is he aware that thousands of civil servants forced to take strike action are going without food and having to use foodbanks? Will he commit to constructive talks with the PCS union to resolve the dispute, to put a real pay rise on the table and to make ending the scourge of low pay in his Department a priority?

[Mel Stride]

The hon. Lady raises an important point. We will continue to have constructive and positive discussions with the PCS and other unions. She raised the national living wage; she will know that it is to rise by 9.7% this April, to its highest level on record.

[Bob Blackman (Harrow East) (Con)]

T1. If he will make a statement on his departmental responsibilities.

[The Secretary of State for Work and Pensions (Mel Stride)]

The Department’s major focus is looking after the vulnerable and those most in need. I am therefore delighted that next month, the basic state pension will increase by 10.1%, as will most benefits. The Under-Secretary of State for Work and Pensions, my hon. Friend the Member for Mid Sussex (Mims Davies), will be taking legislation through the House this afternoon to ensure that we continue substantial cost of living payments for the year ahead.

[Bob Blackman]

I welcome my right hon. Friend’s announcements. The extra £842 million for the household support fund, of which Harrow will receive £3 million, is extremely welcome. Could he update the House on what monitoring is taking place so that best practice is followed across the country and that the money that the Government are allocating reaches the most vulnerable?

[Mel Stride]

I thank my hon. Friend for raising this issue. He is right that almost £3 million from the household support fund will go to his constituency, on top of the £7.4 million that his local authority will receive in total. We monitor very closely how the money is administered to ensure that it has the maximum effect, by liaising closely with the local authorities concerned.

[Mr Speaker]

I call the Scottish National party spokesperson.

[David Linden (Glasgow East) (SNP)]

Does the Secretary of State understand and agree that expediting the rise in the state pension age is less about life expectancy, which, according to the Office for National Statistics is very much arrested, and more about a cost-cutting measure for the Treasury? Can he tell the House what representations he has made to the Chancellor about that in advance of next week’s Budget? Or is it just the UK Government’s policy that people should work until they drop?

[Mel Stride]

The hon. Gentleman is prejudging an awful lot of potential outcomes. He should wait until the Chancellor and I have taken those particular decisions. I am focused on a variety of metrics. Life expectancy is one of them, as is regional impact. The fiscal impact certainly cannot be ignored, and I would be surprised if he suggested otherwise. Fairness between generations and the period of life in which one is expected to be healthy in later years are also important considerations.

[Stephen Hammond (Wimbledon) (Con)]

T2. I warmly welcome the Government’s decision to increase the state pension by more than 10% in April, but does my right hon. Friend agreed that we should encourage private provision alongside state provision? Will he say what conversations his Department has had with the Treasury about extending the lifetime allowance or annual allowance for pensions, and anything more on auto-enrolment?

--- Later in debate ---

[Amy Callaghan (East Dunbartonshire) (SNP)]

Public and Commercial Services Union members in Scotland get a raw deal from this Government on pay, with many civil servants themselves using food banks. When will the Government give them a proper pay rise?

[Mel Stride]

As the hon. Lady will know and as I explained earlier, we are engaged in positive discussions with the PCS. It has been pointed out that many people working in the DWP are on the national living wage, and that will increase by 9.7% in April.

[Andrew Jones (Harrogate and Knaresborough) (Con)]

Working with Disability Action Yorkshire in my constituency, I have observed the important and growing role in the jobs market played by people with disabilities. I have spoken before about the Access to Work programme. Will the Minister update the House on what is being done to promote that excellent scheme among employers?

[Carol Monaghan (Glasgow North West) (SNP)]

On Friday night I was given the terrible news that a popular business in my constituency, Mortons Rolls, had ceased trading, putting at risk 250 jobs. Will the Secretary of State take the time to meet me to discuss what can be done to support that business and the 250 staff who are now threatened with redundancy?

[Mel Stride]

The hon. Lady raises an important matter, and she is right to raise it on the Floor of the House. We have a number of measures that we would typically stand up in the circumstances that she describes, including a surge of local support to get jobs going and vacancies matched up with those who are sadly going to lose their jobs. I will certainly ask the Employment Minister to meet her to discuss this as a matter of urgency.

[Chloe Smith (Norwich North) (Con)]

I echo the concern of my hon. Friend the Member for Harrogate and Knaresborough (Andrew Jones) about Access to Work. Can I ask what progress is being made on the disability action plan and how the Minister will ensure effective work across Government?