Universal Credit and Working Tax Credits

Tommy Sheppard Excerpts
Wednesday 15th September 2021

(2 years, 7 months ago)

Commons Chamber
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Tommy Sheppard Portrait Tommy Sheppard (Edinburgh East) (SNP)
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I suppose £20 a week may not seem like a great deal of money to many Members on the Government Benches. It is the sort of sum they might spend on a bottle of wine or leave as a staff tip in a fancy restaurant, but for 8,923 people in my constituency of Edinburgh East, it is a very great deal of money indeed. I am talking about people like Nicola, a 33-year-old mother of two, whose partner is in work but does not earn enough to get by without the support of universal credit. The £20 uplift over the past 18 months has been vital for her. She has used it to buy formula for her newborn baby. Then there is Megan, a single mum, who works 24 hours a week as a cleaner and cannot get by without universal credit. She wrote to me to explain that the uplift for her meant that she could stop using the local food bank. If it is taken away, she will have no recourse but to go back to it.

I know that it is probably difficult for a Cabinet made up of so many spivs and millionaires to empathise with people like Megan and Nicola, but it has a responsibility to do so and it shirks that responsibility if it does not pause this policy and reconsider its impact—an impact that will reach to almost 6 million families in every part of this kingdom. I agree with the right hon. Member for Preseli Pembrokeshire (Stephen Crabb) who spoke earlier when he pointed out that this long, difficult last 18 months has not been a situation where everyone has borne the misery and the burden of the pandemic equally. There are some indeed who have done quite well. I know the wealthy were fearful at the beginning when they saw the share prices tumble, but, perversely, the share prices are now at record levels and dividends have never been better. For those without capital, this has been a very, very difficult time.

I want in particular to look at the army of low-paid workers who have been responsible for getting us through this crisis: the people who have cleaned covid away; the people who have cared for our sick; and the people who have delivered and maintained essential lifelines during this pandemic. These are people who have not benefited from the furlough scheme; they have been working every day. They are people who have not had business grants or rates relief, and, such is the shameful wage inequality in our society that many of them are in receipt of universal credit and the only thing that they got was the £20 a week uplift and now that is under threat of being taken away. These are people to whom we owe a debt of gratitude. The Government should give these people their applause and their thanks and give them a reward. Instead, these people are getting a kick in the teeth.

There has been a lot of talk about the cost of this. A figure of £6 billion has been suggested as what it would take if this resolution were passed. That is the maximum estimate, by the way, assuming that everyone who is claiming at the minute continues to claim. Six billion pounds is a lot of money, but it is 1.5%—one and a half per cent—of the £400 billion that this Government have deployed during the pandemic. It seems ridiculous that this should be the first thing that is withdrawn, especially when we consider that this measure was brought in as an emergency measure to deal with problems arising from the covid pandemic, because the covid pandemic is most definitely not in the rear view mirror. The covid pandemic is still with us, which is why this policy should be cancelled.

Finally, let me mention the situation in Scotland. It is particularly cruel that, just as the new Scottish Government are bringing in a remarkable ground-breaking new benefit in the form of the child support payment in Scotland to tackle child poverty, the effect of that policy will effectively be wiped out by this cut in the universal credit uplift. There is not much that the Scottish Government can do about that when 85% of all social security spending rests here, but there is something that the Scottish people can do about that: they can choose not to go on living in this state with this Tory Government. They can choose to govern themselves, and that is another reason why they will choose independence in the referendum that is shortly to come.

Oral Answers to Questions

Tommy Sheppard Excerpts
Monday 11th May 2020

(3 years, 12 months ago)

Commons Chamber
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James Cleverly Portrait James Cleverly
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I welcome the hon. Gentleman to his place, although it is virtual. The UK Government have expressed, both publicly and to the Government of Israel, our concerns about reports of annexation, which we have consistently said we oppose and could be detrimental to the chances of the peaceful, sustainable two-state solution that we should all be working towards.

Tommy Sheppard Portrait Tommy Sheppard (Edinburgh East) (SNP)
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What recent representations he has made to the Government of Israel on the proposed annexation of parts of the Occupied Palestinian Territories.

James Cleverly Portrait The Minister for the Middle East and North Africa (James Cleverly)
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The UK is deeply concerned about the reports that the new Israeli Government coalition have reached an agreement that may pave the way for annexation of parts of the west bank. Any unilateral move towards the annexation of parts of the west bank by Israel would be damaging to efforts to restart the peace process and contradictory to international law, and might make the chances of a sustainable two-state solution harder. We recently made clear our concerns at the UN Security Council remote meeting on the middle east peace process on 23 April.

Tommy Sheppard Portrait Tommy Sheppard [V]
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I appreciate the Minister’s concern, but does he believe that the proposed annexation by Israel of the Palestinian territories would be illegal under international law? If so, does he think that the United Kingdom Government’s response should be the same as it would be with other countries guilty of illegal annexation, such as Russia?

James Cleverly Portrait James Cleverly
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Our long-standing position is that such a move would be contrary to international law. We continue to have a constructive relationship with both the Government of Israel and the Palestinian Authority, and we will continue to work towards a peaceful resolution that takes us to a sustainable two-state solution. That is our long-standing position, and we continue to work towards it.

Pension Funds: Financial and Ethical Investments

Tommy Sheppard Excerpts
Wednesday 22nd May 2019

(4 years, 11 months ago)

Westminster Hall
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Ed Davey Portrait Sir Edward Davey
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I saw what happened at the BP annual general meeting yesterday, and I welcome it, although a second motion, which was a bit stricter, did not carry. I would have liked that motion to carry.

That brings me to my argument. Not only is there a moral imperative for us to divest, given the threat climate change poses to our planet; there is also a financial risk for pension funds and their beneficiaries. We need to explore that. We need to make it clear to pension fund managers and trustees that pulling out of fossil fuels is the right thing to do in financial terms. The real issue is often called the carbon bubble. We are investing in more fossil fuels than we could possibly need if we were going to stay climate change compliant. At some stage, that bubble of investment in carbon that we do not need will burst, leaving pension funds and the wider economy in a serious mess. Those assets would be worthless; they would be stranded assets, which would cause huge disruption in our financial sector.

Tommy Sheppard Portrait Tommy Sheppard (Edinburgh East) (SNP)
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I agree completely with what the right hon. Gentleman is saying. I think he is coming to the heart of the matter. I, like many other people, have a private pension fund, and I instruct my broker to ensure that it is directed into ethical investments. Of course, the broker has always said, “You’re not going to get as much of a return as you might get if you invested in other things.” The time has come for that paradigm to be reversed. We have to explain to investors that, over the next 10 to 15 years, increasing governmental action against fossil fuels and dirty technology will make their returns worse. Now is the time to jump ship and to disinvest from dirty technology.

Universal Credit

Tommy Sheppard Excerpts
Wednesday 17th October 2018

(5 years, 6 months ago)

Commons Chamber
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Neil Gray Portrait Neil Gray
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I agree with my hon. Friend, and as a result, he may enjoy the conclusion of my speech.

Tommy Sheppard Portrait Tommy Sheppard (Edinburgh East) (SNP)
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Will my hon. Friend give way?

Neil Gray Portrait Neil Gray
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I will give again later, but I will make some progress now.

When universal credit is thrust on people, it is catastrophic. The Secretary of State said as much last week. For many people on universal credit, incomes will fall by £2,400 a year, which is £200 a month or £50 per week. The Child Poverty Action Group estimates that taking all working age social security cuts together since 2010, they reach £37 billion. The benefit freeze is the single biggest cut, as support has failed to match rent or inflation rises for years. Over the decade, this will cost the poorest 10% of households over 10% of their income, and by far the worst hit are families with children and particularly those with more than two children.

Some 500,000 disabled people have lost £30 per week from the ESA work-related activity component cut, while 100,000 disabled children and 230,000 severely disabled adults will also have their money cut via universal credit. Bringing that together, the CPAG estimates that a single parent with a disabled child is set to lose £10,000 from tax and benefit reforms this decade. That should bring shame on every single Government Member. We cannot sit back and allow that to continue; we have to act for proper change. This does not need tinkering at the edges, but fundamental reform.

Scottish Welfare Powers

Tommy Sheppard Excerpts
Tuesday 20th March 2018

(6 years, 1 month ago)

Westminster Hall
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Neil Gray Portrait Neil Gray (Airdrie and Shotts) (SNP)
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It is a pleasure to speak in this debate with you in the Chair, Mr Rosindell. I congratulate the hon. Member for Ayr, Carrick and Cumnock (Bill Grant) on securing the debate. As has already been evidenced, it has allowed us to highlight the rather stark differences in the approach to social security in Holyrood and here at Westminster.

I also feel a wee bit sorry for the hon. Gentleman as, when he secured the debate, he really must have thought it was going to be a chance to get another “SNP bad” story on the Scottish Government for failing to deliver on their promises. Of course, the Scottish Government are proceeding quite nicely as they build the new Scottish social security agency. He must have been choking on his kippers at breakfast this morning as he read the headlines about his Prime Minister selling out the Scottish fishing industry. Today is really not the day for Scottish Tories to talk about promises to the electorate, when the SNP Government are keeping theirs.

Tommy Sheppard Portrait Tommy Sheppard (Edinburgh East) (SNP)
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Last week, the Equality and Human Rights Commission published its report on the cumulative effects of the UK Government’s tax and benefit policies, which showed that the very poorest in our society—the bottom 10%—are the ones who have suffered the most, and the ones who have suffered the least are the richest 10%. In other words, it is a system that is in direct and converse relationship to what it should be. Does my hon. Friend agree that, given their legacy, Government Members have a bare-faced cheek to try to attack the Scottish Government?

Neil Gray Portrait Neil Gray
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I absolutely concur.

The hon. Member for Ayr, Carrick and Cumnock suggested that the Scottish Government are not following due process in preparing for the new system, and that they are not ready for the new powers because there is a lack of detail in the plans. I politely suggest to him that both statements cannot be true. Indeed, both are false. He himself acknowledged many of the areas in which the Scottish Government have used their powers to act. The Bill to create the new Scottish agency passed Committee stage at Holyrood—it did so with remarkable consensus, given the topic of discussion—so the process has been followed in a timeous fashion.

The Scottish Government are in regular contact with the hon. Gentleman’s colleagues in the DWP about how the two systems relate to each other. I wonder whether the Minister has done the groundwork that the Scottish Government have. We have yet to see evidence that he has. On the process point, the hon. Gentleman is clearly wrong.

Work Capability Assessments

Tommy Sheppard Excerpts
Wednesday 13th December 2017

(6 years, 4 months ago)

Westminster Hall
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David Linden Portrait David Linden
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I am grateful to the hon. Lady and will come back to how the assessments are conducted, because that forms a major part of my speech.

At this juncture, I want to commend to the House the excellent report by Rethink Mental Illness entitled “It’s broken her”. It was published just last week and makes truly harrowing reading. The report lays bare the full extent of the challenges for people with mental illness when facing assessments for both ESA and PIP. Drawing on findings from a series of interviews and focus group-style discussions, the report finds that the assessment can be “traumatising and anxiety-inducing” for the following reasons: there are numerous issues with the paper forms that claimants must submit, including their complexity and length, and the inflexible nature of the questions they ask; claimants must collect their own medical evidence, which is extremely burdensome, often expensive and time-consuming; the staff who perform face-to-face assessments frequently have a poor understanding of mental illness; and, finally, delays in mandatory reconsideration and appeals to the tribunal mean that claimants may have to wait many months for the correct result.

The report concludes that the current PIP and ESA assessment procedure

“inherently discriminates against people with mental illnesses”.

It sets out a number of policy recommendations to

“dramatically improve the benefits system for people with mental illnesses, as well as saving the Government the vast costs that are currently incurred due to persistent incorrect decisions made early in the process.”

Tommy Sheppard Portrait Tommy Sheppard (Edinburgh East) (SNP)
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My hon. Friend is making a powerful case. May I bring to his attention the case of my constituent, Adam Brown, a 51-year-old man who suffers from epilepsy and cerebral palsy and has a learning disability? By the time Adam came to see me, he had been trying to get a work capability assessment for nine months with the assistance of benefit agencies, and had not got it. We had to intervene and got it within 10 months. It is surely shocking that it takes the intervention of a Member of Parliament for people with disabilities to get fair treatment.

David Linden Portrait David Linden
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My hon. Friend makes a powerful point. I am glad that his office was able to help on that occasion, as mine was in the case of my constituent David Stewart. It is all well and good that as Members of Parliament we can intervene in individual cases, but so many people are affected throughout the entire process that our being able to help on a one-off basis is not good enough.

DWP Policies and Low-income Households

Tommy Sheppard Excerpts
Tuesday 17th January 2017

(7 years, 3 months ago)

Commons Chamber
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Drew Hendry Portrait Drew Hendry
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I am going to make some progress because other Members wish to take part.

The loss of the severe disability premium has taken nearly £62 a week out of the pockets of the most critically disabled. Cuts to the disabled child addition mean that 100,000 disabled children stand to lose up to £29 a week. Cuts to the severe disability premium mean that disabled lone parents with young carers stand to lose £58 a week. Those in the work-related activity group who receive employment and support allowance will lose around £30 a week.

Tommy Sheppard Portrait Tommy Sheppard (Edinburgh East) (SNP)
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Does my hon. Friend share my concern about the lack of information and data that the Department for Work and Pensions has on its own activities, particularly when it comes to the most vulnerable claimants? On 10 January, I asked the Department to provide me with the number of people who had had their benefits withdrawn or suspended in the process of transferring from disability living allowance to personal independence payment. It wrote back on 13 January to say that it did not know; is that not shocking?

Drew Hendry Portrait Drew Hendry
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It is shocking.

Disabled people who have been found unfit for work by the work capability assessment are still expected to take steps towards finding work. That group includes those who have suffered serious injuries, those in the early stages of progressive conditions such as multiple sclerosis, and those with learning disabilities. Disability unemployment is a long-standing, unique issue, and the universal credit process is creating more barriers for the disabled people in the workplace.

The Prime Minister has been talking about JAM—the so-called “just about managing”—but thanks to universal credit, many families’ income is about to be toast. I suggest the Prime Minister comes to Inverness and talks to my constituents about her shared society—to those families with children who will be up to £2,630 per year worse off, according to the Children’s Society; to the lone parents and people with limited capability for work under the age of 25 who will lose £15 a week; and to the young people and their families who will be pushed further into poverty because of reductions in standard allowances. The four-year freeze on support for children will see the value of key children’s benefits cut by 12% by the end of the decade. Universal credit will not only fail to lift children out of poverty; it will push them further into poverty.

Citizens Advice has said:

“Universal Credit is failing to live up to its promise…from the outset people have experienced problems…delays to claims and errors in their payments.”

The Public Accounts Committee found that the systems were “underdeveloped”, and said there was increasing pressure on DWP staff. My team and I see it every day, day in, day out. Only yesterday, a constituent, Laura Shepherd, got in touch. She was at the end of her tether. Her 20-year-old son, Douglas, has severe autism, and has been on the waiting list for a work capability assessment since the end of September. During this time, they have had no disability support, just the minimum level of universal credit of just over £200 a month. Quite understandably, the family are trying to get this sorted out—they want their claim backdated to cover a period when they were incorrectly given child tax credits instead of universal credit. The universal credit team cannot even give Laura any dates for a disability work assessment for her son, because assessments of that nature are done by an external contractor. The team actually told her in writing to contact me, as her MP, because they were at a loss as to what to do.

The wife of an officer serving in our Army has now been waiting five months for assistance with childcare costs—she has had no payments for five months—and has suffered a catalogue of errors and very sporadic communication. She could not get her problem sorted out because even DWP staff working on universal credit are not allowed to talk to the service centre or claims manager. Everything has to be duplicated by email, leading to confusion and lost information.

Then there is this so-called helpline. Who on earth thought that it was a great idea to make it a premium call line? It is shameful that people with no money are being made to spend their last pennies on premium lines. What do they do if they have no credit on their mobile phones—that is if the phone has not had to be pawned to make up for the money that they are not getting through waiting for their payments? Many constituents have come to my office to call the helpline because they have no money. When they do call, they are left on hold while DWP staff try to sort out errors for more than 20 minutes. We asked CAB to monitor calls, and it found that none was under the Government’s stated waiting time of three minutes 27 seconds. In fact, all 36 that it logged were for longer than that. The longest was a staggering 54 minutes and 17 seconds. Sometimes, people are offered a call back. If it happens and they get to their phone in time, they are lucky. They only get one shot at that. It is like a universal credit version of Catch 22. The transfer of universal credit to full digital has already been halted, and the halfway house that has emerged is ripe for confusion.

People are required to make some online claims, yet need to take the original copy of letters to the jobcentre at their own cost. A report detailing the impact of the controversial new scheme in Glasgow shows not only that claimants are struggling, but that services and jobs are being put at risk. There is a lack of understanding and explanation of the general requirements of a claim, and those who have special needs are often left to struggle and to face the sanctions that follow. Where is the fairness or the simplicity?

The system is manufacturing debt and despondency. In Highland, the council has a framework agreement for the temporary homeless accommodation services. It is £25 a night or £175 a week. One of my constituents, Gavin, has been living in homeless accommodation. Under the old system, he would have been awarded £168 housing benefit, leaving him a small difference of £7 a week to pay out of his other entitlements. Under universal credit, he has the same housing costs, but gets only £60 a week, which means that he has to pay £115 a week out of his other allowances—but he does not get £115 a week. Even if he gave up food, heat, light and everything else and spent every single penny he would still be short. Gavin and others will always be in arrears. The system is flawed by design.

Employment and Support Allowance and Universal Credit

Tommy Sheppard Excerpts
Thursday 17th November 2016

(7 years, 5 months ago)

Commons Chamber
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Tommy Sheppard Portrait Tommy Sheppard (Edinburgh East) (SNP)
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We are discussing whether the state can afford to give less than 1% of its citizens, who have been assessed as unfit to work through illness or disability, £30 a week to help them to get through their lives. In one sense, it is a remarkably small amount of money, yet for the people involved it is really quite major. In some cases, it makes a difference of up to a third of the money they subsist on over the course of a week.

I want to deal first with the question introduced by the architects of the policy. It was put about that somehow the existence of more money on employment and support allowance would create a disincentive for the people in that category to seek employment, compared with those on jobseeker’s allowance. It was thought that this extra payment would somehow create a disincentive to their search for work. That argument is possible only if we assume that the needs of people claiming ESA are no different from and no greater than those who claim JSA. I hope that by now the Government are persuaded by the testimony, given by many Members from across the House about individual constituents in this situation, that that is not the case. People on ESA have greater needs and that is why the additional payment is justified.

We know that many people who claim ESA are isolated and vulnerable. Many are temporarily housebound. They spend much more time at home than their able-bodied peers, which means that their household bills are greater. We know that many people have a condition that may suddenly mean they have to get a taxi or may face some extra expense that other people do not face. We also know that some people are using this money to buy medical supplies not available on the NHS for their condition. The extra payment is there to assist people, to help them to cope with the conditions they suffer from while they try to get back into employment. The House really has to recognise that.

It is particularly iniquitous to have some people continue to claim £109 a week, while others in an identical situation who make a fresh claim will be paid less. How, as a matter of public policy, can we justify that? The Government suggest that this will affect only new claimants and that those already on the benefit need not be too concerned. In fact, the people already claiming the benefit are extremely concerned, because the nature of the benefit is such that we are talking about recurrent claims. People need the benefit for a period of time, after which they may have a period of employment before having to rely on the benefit again. Many such people suffer from mental illnesses, such as anxiety and depression. In that condition, I cannot think of anything worse than knowing that, were they to take a job offer that does not work out, when they ask the state for help again they will be offered £30 less than the amount they currently receive. That situation will exacerbate the mental illnesses that many people face.

I was impressed yesterday when the former Secretary of State, the right hon. Member for Chingford and Woodford Green (Mr Duncan Smith), said that there is not a simple dichotomy of being either fit for work and not receiving benefit, or being unfit for work and receiving benefit. There are lots of shades of grey and nuances. If people are unable to work at all and are in need of permanent support, they are transferred to a support group. The WRAG claimants are trying to get back into the job market. The support they receive is to enable them to get back into employment. Far from incentivising people, I fear that if this cut goes ahead it will drive many people into deeper despair and greater isolation, and make it less likely that they will be able to enter the jobs market. For that reason, I ask the Government to think again.

The Minister is listening intently and I appreciate that. I ask the Government to consider the character of this debate: the language being used and how the arguments are being presented. It is the job of the Government to govern and make decisions, and it is the job of the Opposition to attack those decisions. Such is the rough and tumble of politics. However, I ask the Government to note that in this instance that is not the nature of the debate. Members from across the House have come together to make a heartfelt plea for reconsideration of this particular policy. I am hopeful that we will get some movement. I do not accuse the Department for Work and Pensions of malicious intent towards disabled people. Tomorrow, I will be speaking at a DWP conference in Edinburgh at the Hibernian stadium, which will bring 100 local employers together to try to encourage them to take on people with disabilities and to explain the precise support the Government can give to them as employers. That is a good thing and I welcome the Green Paper, on which we can have a debate and consultation.

What sense does it make to pursue this cut now, introduce it in April and reduce the benefit for potentially 600,000 people, while considering how to improve the situation for the very same group of people? Surely the most sensible thing to do is to press the pause button and to put off any final decision on the level of support that claimants in this particular category receive until after April next year. There would then be the opportunity to look at the other means of support available, consider the consequences of the discussion on the Green Paper and then take a balanced decision. It seems to me that we actually jeopardise and hinder some of the potential improvements by making this cut now.

Somebody once said that when you’re in a hole, stop digging. I appeal to the Government to consider doing exactly that. I also appeal to them again to understand the nature and the tenor of the debate. People from across the House are coming together and trying to build a golden bridge over which the Government can retreat. I urge them to cross that bridge. I promise that if that happens, they will not find people on this side of the House condemning them for making a U-turn. Rather, we will salute them for doing the right thing.

Autumn Statement Distributional Analysis, Universal Credit and ESA

Tommy Sheppard Excerpts
Wednesday 16th November 2016

(7 years, 5 months ago)

Commons Chamber
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Tommy Sheppard Portrait Tommy Sheppard (Edinburgh East) (SNP)
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One of the beneficial consequences of the recent change in Government personnel is that we are no longer subjected on a daily basis to the phrase “long-term economic plan.” We know of course from recent press reports that that is because the Government do not really have an economic plan at present, and many of the pre-existing problems in our economy are now exacerbated considerably by the decision to leave the EU. We also know, as my hon. Friend the Member for Ross, Skye and Lochaber (Ian Blackford) said, that it is going to get a lot worse before it gets better. The Institute for Fiscal Studies reports that pretty much every forecaster says things are going to get extremely challenging. Six months ago we could have got $1.50 for £1; today, we would be lucky to get $1.25. As those changes feed through, we are going to see a rise in prices and in inflation.

Yet at the same time we have had practically no real-terms growth in wages over the last 10 years, and that is likely to continue. Although there has been a blip in 2016 as a result of the increase in the national minimum wage, it is likely to be just that; we are not likely to see sustained growth in wages, so revenues are not going to increase as a result of increasing wages. This will present the Government with an even more challenging problem; they will be facing rising costs, and revenues not keeping pace with them, and they are going to have to take some difficult decisions.

James Cartlidge Portrait James Cartlidge
- Hansard - - - Excerpts

The point about the currency has been made several times now. I campaigned for remain, but in terms of the cost of living, which is obviously key to this debate about poverty and living standards, the hon. Gentleman must surely recognise that our country’s economy is unbalanced and there is significant benefit from a lower pound. We need to export more if we are to have sustainable growth.

Tommy Sheppard Portrait Tommy Sheppard
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The Government are faced with a big challenge, and I think how they manage the necessary deficit in the years ahead will be the measure of this Government. The Prime Minister has talked about just-managing families; we will have to see whether or not we have a Government who, as they have to make the necessary cuts and adjustments to their plans, are prepared to protect the most vulnerable and disadvantaged. It is said that the mark of a civilised society is how it treats the worst-off and the most vulnerable; we will see in next week’s autumn statement whether the Government really believe that.

The Government have a bit of form on this question. Just last week there was a report from a United Nations committee which put the Government in the dock for the way in which their policies affect disabled people in our society. It is not the first such report; there have been many others, yet the reaction from the Government was to dismiss this out of hand in a fairly cavalier manner and say that the criticisms were unfounded. Well, these reports cannot all be wrong, and we need a better approach from the Government to these reports if disabled people in our community are going to feel with any confidence that their concerns are taken seriously.

I do not have a lot of time, but I want to spend a couple of minutes talking about the cuts to employment and support allowance. Perhaps over 500,000 people will be affected by them, including over 60,000 in Scotland and over 1,300 in my constituency. It has been said that the cut of £30 a week in this benefit, bringing it into line with jobseeker’s allowance, is being introduced to make sure that there are no incentives to be on the higher rate. Not a single one of us in this Chamber could live on £109 a week, but let us take the Government argument at face value. It is not an incentive, and the argument that it is fails to recognise the very real costs that people in this category have as a result of their illness or disability.

Over 1,300 of my constituents will be affected by this, as I have said, and I want to read into the record the testimony of two of them. The first is Dean Reilly, a single father of three children. Four years ago he was diagnosed with multiple sclerosis and had to leave his job at British Gas. Dean is currently in the work-related activity group of ESA and gets the £30 a week. He tells me in his correspondence that this money means he has more security, independence and confidence. It helps to mitigate some of the extra costs he incurs because of his health condition, and it helps to compensate for the fact that his condition prevents him from being able to function normally. One of the symptoms of his condition is that he often suffers from fatigue which can develop without warning. If this happens when he is out of the house, he has either to rely on friends or to pick up a taxi, which can be very expensive.

Dean also uses oxygen therapy to help to alleviate the symptoms of his condition and he attends the MS therapy centre in Leith twice a week and makes the suggested donation of £13 on each visit. That is what he spends his £30 a week on, and he believes that were he not to get it, his quality of life would be significantly affected. In fact, it could be even worse. Dean works a few hours a week, as he is allowed to, at the local Nike shop. He feels that if he was not getting this extra money and support, he would not be able to continue that employment, so would face a double whammy in terms of loss of income.

The second person I want to mention is Lauren Stonebanks. She wrote a long letter to me, but I will only read out a couple of the points it makes. She says the money

“helps with increased bills because I find it so hard to leave the house. Most people spend a chunk of time at work or school or university but I’m often stuck in my own house using my own gas and electricity. It also gets used on a takeaway or very, very convenient food if I am too exhausted from fighting my illness to cook. Other times it might cover a taxi if I need to get home as quickly as possible because I’ve become too unwell to be outside the house.”

She also says:

“In my personal experience, losing this money won’t incentivise me to return to work. It will demoralise me and make me feel like I’m completely worthless. £30 a week is nothing to MPs but everything to someone as ill as me…I already struggle with finances because of my condition. Financial insecurity and welfare reform wreak havoc on my mental wellbeing.”

The Minister will probably say that existing claimants like Lauren will not be affected by this change, but most of the people receiving this benefit are not doing so on a permanent basis. The whole purpose of it is to get them back into employment so that they can stand on their own two feet. If this change goes through, many people will take employment, and if it does not work out for them because of their condition, they will have to go back on ESA, at which point they will lose money.

For anyone who has a mental health condition or who suffers from stress and anxiety, making it difficult for them to go to work, what sort of additional pressure will be put upon them when they have to ask themselves, “If I take this job and it doesn’t work out, I could lose a third of my income and be much worse off?” That is a horrible position in which to put people, and I appeal to Members on both sides of the House to come together and support the motions today and tomorrow, and to ask the Government to reconsider, to postpone the changes, to stop digging and to have a think and change their mind.

State Pension Age

Tommy Sheppard Excerpts
Wednesday 2nd March 2016

(8 years, 2 months ago)

Commons Chamber
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Iain Duncan Smith Portrait Mr Duncan Smith
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I agree with my hon. Friend. My door is always open and I am always ready to see somebody, even if they then change their mind. I have found the tweet that the shadow Secretary of State sent this morning—strangely, not after he had seen the statement, but only after he had seen the newspapers. It states:

“Pensions Minister scraps retirement for all but the rich and those lucky enough to have a good private pension!!!”

How ridiculous is that? This is the announcement of a statutory review that his party agreed with in 2014. He really needs to apologise.

Tommy Sheppard Portrait Tommy Sheppard (Edinburgh East) (SNP)
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The Secretary of State and all of us here are fortunate to have satisfying, well-paid jobs, but many of our countrymen and women work just to survive. Will the review look at whether it should always be the presumption that living longer means working longer, or might we look at alternative ways of funding the basic state pension so that people are able to benefit and live fulfilled lives in retirement as a result of better healthcare and the fact that we are living longer?

Iain Duncan Smith Portrait Mr Duncan Smith
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Again, that is a wholly legitimate question for the hon. Gentleman to raise. As I said to his party’s spokesman, that matter is within scope for the reviewer, if he wishes to raise it. The reviewer and his team will have to decide how to get the balance right. It is certainly within scope for the hon. Gentleman and his party to ask the reviewer to look at that balance and to see whether some of the presumptions are necessary, and I urge him to do so.