Department for Work and Pensions
Will Quince Excerpts(4 years, 10 months ago)
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The Parliamentary Under-Secretary of State for Work and Pensions (Will Quince)
It is a pleasure to respond to a vital discussion of how the Department for Work and Pensions supports the 22 million people who rely on our services.
We have heard a huge number of valuable contributions, including those of the hon. Member for Wirral South (Alison McGovern)—whom I congratulate on opening the debate—and my hon. Friend the Member for Copeland (Trudy Harrison), the hon. Member for Oldham East and Saddleworth (Debbie Abrahams), my hon. Friend the Member for Truro and Falmouth (Sarah Newton), the hon. Member for Ellesmere Port and Neston (Justin Madders), my hon. Friend the Member for Middlesbrough South and East Cleveland (Mr Clarke), the hon. Member for Glasgow Central (Alison Thewliss), my hon. Friend the Member for Brentwood and Ongar (Alex Burghart), the hon. Member for High Peak (Ruth George), and my hon. Friend the Member for Bexhill and Battle (Huw Merriman). Later in my speech, I will respond to some of the key points that have been raised.
I have been in my post for three months, and over that time my key focus has been on supporting the most vulnerable in our society. No one in the Government wants to see poverty rising, and, while the latest “Households below average income” statistics, from 2017-18, do not reflect the £1.7 billion-a-year cash boost for our welfare system that was announced in the Budget, the Secretary of State and I recognise that there is more to do.
We know that children in households in which no one works are about five times more likely to be in poverty than those in households in which all adults work. We are committed to helping lone parents into jobs that are flexible in relation to their caring responsibilities, and more than 1.2 million are now in work. To help parents into work, the Government spend £6 billion on childcare each year. We are able to do that because we have doubled the number of free childcare hours to 30 a week for nearly 400,000 working parents of three and four-year-olds; introduced tax-free childcare which is worth up to £2,000 per child per year; and made changes in the flexible support fund to help people to pay up-front childcare costs. However, we recognise that we need to continue our work in this area. That is why the Secretary of State and I have publicly committed ourselves to tackling poverty, and child poverty in particular.
As we get closer to the spending review discussions, my ministerial colleagues and I are reviewing our bids, in collaboration with other Departments, to ensure that those who can work do work, and that those who cannot are supported. I can confirm that there are no plans to extend, or maintain, the benefit freeze after March 2020.
Alex Burghart
I thank the Minister for the commitments that he has just made. Will he also tell us what more the Government can do to ensure that vulnerable claimants can have access to universal credit?
Will Quince
My hon. Friend has made a very good point. We know that about 20% of people seek help when claiming universal credit. That is why we introduced the Help to Claim service, working with Citizens Advice and Citizens Advice Scotland. However, I am acutely aware that a number of vulnerable groups in my portfolio—care leavers, prison leavers, survivors of domestic abuse, and those who are homeless or sleeping rough—need extra support, and the Secretary of State and I are carefully considering a number of further options ahead of potential spending review bids.
John Redwood (Wokingham) (Con)
Will the Minister also confirm that it is now always worthwhile to go to work and that people are better off in work, contrary to what we have just heard?
Will Quince
My right hon. Friend is right. By removing the cliff edges, universal credit ensures that work always pays. That was not the case under the previous legacy system.
DWP Ministers always listen and act on feedback. That is why we recently announced that we will end three-year sanctions, initiate programmes to investigate how we can help those in work to progress, work with the Social Metrics Commission on a measurement of poverty, and no longer regularly review those on PIP who have reached state pension age. In addition, I continue to work closely with charities, stakeholders and Members on both sides of the House, using real-life experiences to shape improvements in the Department’s work.
We have worked with the real experts, the stakeholders, including Refuge and Women’s Aid, which have backed training for our work coaches to help victims of domestic abuse so they can better identify, refer and support those in need.
Will Quince
With respect, I will not give way to Members who have not been present for any of the contributions to the debate.
In terms of supporting victims of domestic abuse, we want staff to be able to better identify, refer and support those in need.
We worked with the Ministry of Housing, Communities and Local Government on the commitment to end rough sleeping through the homelessness and rough sleeping strategy and the Ministry of Justice to ensure prison leavers have access to welfare support from day one. Only last week the Secretary of State announced an extension to the UC pilot in HMP Perth and HMP Cornton Vale.
Will Quince
As the hon. Gentleman knows, split payments are available. I know the Scottish Government are looking at split payments by default, and that is an area I am looking at very closely indeed. It comes with huge complexities, as indeed the Scottish Government recognise, and we are working very closely with them. The Secretary of State has done a huge amount of work in this area—we would expect nothing less from a former Home Secretary who has done an awful lot of work around domestic abuse. So this is an area that I am looking at very carefully; I am conscious of it and am very happy to commit to continue to work with the Scottish Government to try to find a solution to what is a very complex issue.
Supporting the most vulnerable in society is at the very heart of our compassionate Conservative Government and my Department does exactly that.
Will Quince
Last year we paid 20 million citizens—more than half of all adults in this country—a huge range of social security entitlements and benefits, from state pension and cold weather payments to universal credit and disability benefits. In total the Department spends £190 billion a year—spending that is equivalent to the GDP of Portugal.
Will Quince
Through our welfare reforms and our reforms to make work pay we have got spending under control while ensuring that we do not trap people on welfare. [Interruption.] Under Labour, 1.4 million people spent most of the last decade trapped on out-of-work benefits, with some receiving more than the average wage. Some 50,000 households were allowed to claim benefits worth over £500 a week or more than £26,000 a year, higher than the average wage at the time. [Interruption.] We are creating a welfare system in which it pays to work, with universal credit simplifying the complex legacy benefits—[Interruption.]
Madam Deputy Speaker (Dame Eleanor Laing)
Order. The Minister is clearly not giving way.
Will Quince
Thank you, Madam Deputy Speaker. The hon. Member for Oldham East and Saddleworth has already had an opportunity to contribute to the debate. She has intervened numerous times and, as I said at the beginning of my speech, far from being frit I will address a number of the key points raised during this debate.
We are creating a welfare system in which it pays to work, with universal credit simplifying the complex legacy benefit system that thwarted opportunities to work through punitive tax rates and a cliff edge for those wanting to do more work and that mired people in debt. We are establishing jobcentres that help people into work, not just to sign on—jobcentres where one-to-one personalised support is provided to a claimant from their work coach, offering advice and access to services to help the vulnerable, and where staff create links with businesses to make it their personal mission to help people not into just a job, but into the right job.
This is not to speak of the huge wider support that this Government offer. Our welfare reforms are assisting the incredible employment statistics we see month on month. The recent labour market figures show the importance of helping people into work, and this Government have created more than 3.6 million more jobs since 2010, helping people out of poverty and creating aspiration and a huge sense of purpose for millions. The employment rate is at a record high, while the unemployment rate has halved since 2010 and has not been lower since the 1970s. As my hon. Friend the Member for Bexhill and Battle rightly said, no Labour Government have ever left office with unemployment lower than when they started, meaning that more people were denied the security of a regular wage. From May to July 1997 to March to May 2010, the unemployment level increased from 2.1 million to 2.5 million. There are now almost 1 million fewer workless households, giving more than 600,000 more children a role model in their home who is in work. The number of children living in workless households increased under Labour, meaning that fewer children were living in a financially stable household with a working role model.
Will Quince
Labour failed to help people into work so that they could provide for their families, with workless households increasing between 1997 and 2010.
Will Quince
The number of young people who are unemployed has almost halved since 2010. Female unemployment is at a record high, and wages are growing at their joint fastest rate in a decade. These are the reasons why our labour market is outperforming many—
Mr Kevan Jones (North Durham) (Lab)
On a point of order, Madam Deputy Speaker. Call me old fashioned, but I thought the purpose of the Minister coming to the Dispatch Box was to reply to the debate. He has now been on his feet for 10 minutes, and all he is doing is reading out his civil service brief. This is becoming a habit among Ministers. He said that he was going to refer to Members in the debate, and I think he should start to do that—
Will Quince
I have taken numerous interventions already, Madam Deputy Speaker, and I stress that the point of a debate is actually being here to take part in it.
These are the reasons that our labour market is outperforming those of many other developed countries. More people have moved into work in the UK since 2010 than in France, Spain, Ireland, the Netherlands, Austria and Norway combined.
Will Quince
We are at record levels of employment and, once fully rolled out, universal credit will support another 200,000 people into work and help those already in work to increase hours. But we do not want people to have just any job; we want them to have good jobs where they are able to progress, and universal credit will enable this while providing an economic benefit of £8 billion a year to our economy and saving the Exchequer more than £3 billion annually.
But this is not “job done”. I know as well as anyone the importance of supporting people into work, particularly among vulnerable groups. That is why we have worked hard to create a safety net that not only supports people when they fall on hard times but gives them a hand up. That is vital. We are spending more than £55 billion this year to support disabled people and those with health conditions. That is more than any Labour Government did. Disability benefit spending will be higher in every year to 2023 than it was in 2010. Under universal credit, disabled claimants who cannot work will receive an average of £100 more each month than under the legacy system. So we are supporting those who have worked their whole lives and paid into our social security, and who now deserve to enjoy their retirement. We created the triple lock on state pensions, which has increased the amount of the basic state pension to almost £1,600 more than it was in 2010. We are further protecting the poorest pensioners through pension credit. This means that in total we spend more than £120 billion on benefits for pensioners in this country. As a result, pensioner poverty is now close to historic lows, which is where we want to keep it.
Will Quince
I will turn now to some of the points made in the debate. The hon. Member for Wirral South talked about the WASPI women. This Government have introduced transitional arrangements costing £1.1 billion. This concession reduced the proposed increase in the state pension age for more than 450,000 men and women, and it means that no woman will see her pension age change by more than 18 months relative to the 1995 Pensions Act timetable. As numerous hon. Members have pointed out, if we were to reverse the state pension changes made under the previous Pensions Act, it would cost more than £200 billion up to 2025-26.
Moving on, the two-child policy ensures that parents in receipt of benefits face the same financial choices when deciding to grow their families. As announced in January, we will no longer be extending the policy for new claims for children born before April 2017. Turning to the benefit freeze, I have already made it clear that we will end the freeze in 2020. As for universal credit, the principle is to have a simpler system, with six benefits rolled into one. When it comes to supporting children, I play a role in the early years ministerial group, which was chaired by the former Leader of the House, my right hon. Friend the Member for South Northamptonshire (Andrea Leadsom). That group is looking at numerous options around cross-departmental work on supporting children.
Will Quince
I will come to the points made by the hon. Lady.
The hon. Member for Oldham East and Saddleworth raised several points. The Government are spending £55 billion a year on benefits to support sick and disabled people. In 2019-20, our spending on main disability benefits is £9 billion higher than in 2010, and main disability benefits are exempt from the benefits freeze. On universal credit, as I have pointed out already, around 1 million disabled households will receive an average of around £100 more a month.
I agree with my hon. Friend the Member for Truro and Falmouth, who is no longer in her place, and she will know that we are working with employers through our Disability Confident scheme, giving them the tools and advice to support staff with a disability or long-term health condition. Over 12,000 employers have now signed up. The Minister for Disabled People, Health and Work, my hon. Friend the hon. Member for North Swindon (Justin Tomlinson), will pick up her suggestions. I thank her for the work she did when she was in the Department.
The hon. and learned Member for Edinburgh South West (Joanna Cherry) made an intervention in relation to the Scottish child payment. I understand that the Scottish Government have laid out their plans to introduce an additional £10 a week for eligible children in Scotland, and I should say that we welcome the overall commitment to tackle poverty, but we note the challenge and look forward to understanding the impact of the payment in detail. We will continue to work with the Scottish Government on the impact and introduction of that payment.
Turning to the remarks from the hon. Member for Airdrie and Shotts (Neil Gray), the pensions dashboard is a digital interface that will allow individuals to see their pension savings online in one place to assist with their retirement planning, and I welcome the cross-party collaboration on that. On the pensions Bill, we intend to bring forward legislation when parliamentary time allows.
We are a Government determined to help the most vulnerable, to support them into work, to support them to stay in work, and to support them when they cannot work. We will continue to do that through all the support that the Department offers, and we will continue to assess and adjust that support by listening, learning and improving. I have met and visited several stakeholders, valuing and taking on their expert views, so we are always listening to colleagues, stakeholders and, most importantly, our constituents, whom we are here to serve and support.
Question deferred (Standing Order No. 54).
Oral Answers to Questions
Will Quince Excerpts(4 years, 10 months ago)
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Emma Dent Coad (Kensington) (Lab)
The Parliamentary Under-Secretary of State for Work and Pensions (Will Quince)
Tackling poverty will always be a priority for this Government, and I take these numbers extremely seriously. In the latest low income statistics, child poverty increased in three of the four measures. The evidence shows that work is the best route out of poverty, and there are 667,000 fewer children in workless households compared with 2010.
Emma Dent Coad
Summer holidays are fast approaching, and far too many families will be struggling to feed their children. The Childhood Trust states that two thirds of London children living in poverty—that will be 2,000 in Kensington—could go hungry without access to charitable donations. While the Mayor’s Fund for London supports hungry children across the capital, what is the Minister doing, long term, to tackle the causes of child poverty, including in-work poverty?
Will Quince
As I have said, the latest statistics show that full-time work substantially reduces the chance of poverty. The absolute poverty rate of a child where both parents work full-time is only 4% compared with 44% where one or more parents are in part-time work. We are supporting people into full-time work where possible—for example, by offering 30 hours of free childcare to parents of three and four-year-olds. Over three quarters of the growth in employment since 2010 has been in full-time work.
Mr Philip Hollobone (Kettering) (Con)
In our country in 2019, what proportion of children live in poverty?
Will Quince
Without knowing the exact figure, it is too many. My role within the Department, and the role of the Department itself, is to address that. My hon. Friend will know too well that the best route out of poverty is work. That is why our focus is on universal credit. Universal credit is working in terms of getting more people into work, and more people are staying in work.
Chris Bryant (Rhondda) (Lab)
The best way out of poverty is probably properly paid work. The real problem for many of my constituents and their children is the fact that they have very low levels of savings, so when somebody loses their job, perhaps because a company closes, the real danger is that when they go on to universal credit they have to wait for five weeks for a payment and have nothing to fall back on. I really do beg the Government to reconsider the issue of the five weeks. The worst possible thing of all is saying, “You can borrow some money”, because suddenly a family ends up in debt, and that is when the children end up not having food unless it comes from a food bank.
Will Quince
I recognise the passion with which the hon. Gentleman raises his point, but, in terms of the five-week wait, nobody has to wait for their first payment of universal credit, as 100% of their indicative advance is available on day one. It is interest-free, repayable over 12 months—and, as the Secretary of State has said, that will in future be moving to 16 months. That is available and about 60% of people are currently taking it up.
Mike Amesbury (Weaver Vale) (Lab)
Given that the majority of families affected by the two-child limit are working, why did the Department for Work and Pensions make the following statement in response to the recent report by the Child Poverty Action Group and the Church of England:
“This policy helps to ensure fairness by asking parents receiving benefits to face the same financial choices as those in work”?
Could the Minister clear up this confusion for the House?
Will Quince
The policy to provide support for a maximum of two children helps to ensure fairness by asking parents receiving benefits to face the same financial choices as those in work. Safeguards are in place and we have made changes this year to make the policy fairer. Tackling poverty remains a priority. We are spending over £95 billion a year on welfare and providing free school meals to more than 1 million children.
Mary Robinson (Cheadle) (Con)
The Parliamentary Under-Secretary of State for Work and Pensions (Will Quince)
There are a range of reasons why people make use of food banks. The key for the DWP is to ensure that welfare claimants are able to access funds in a timely manner. That is why advances are available, so that no one has to wait five weeks for their first universal credit payment.
Diana Johnson
Even before universal credit was rolled out in Hull, the use of the Hull food bank was very high because we have widescale in-work poverty, and a third of the children in Hull are living in poverty. The Trussell Trust has said that nearly half of all food bank referrals are due to a delay in benefits being paid when universal credit is rolled out, which happened in Hull before Christmas. Does the Minister now accept that, and what is he going to do about it?
Will Quince
I thank the hon. Lady for her question. We continue to provide a strong safety net through the welfare system for those who need extra support and, as I have said, people use food banks for many and varied reasons. We review research carried out by organisations, including the Trussell Trust, to add to our understanding of food bank use. I intend to work far more closely with the Trussell Trust and other food bank providers, including other stakeholders in this area. I want food bank providers and jobcentres to work far more closely together so that we can better understand the issues and then put in place the interventions to make the situation better.
Mr Jim Cunningham (Coventry South) (Lab)
A few weeks ago, I and a colleague of mine visited a major food bank in Coventry. One of the lessons we learned from the food bank in Coventry—it has nine outlets throughout Coventry and Warwickshire—is that universal credit is forcing people to use food banks. What is the Minister going to do to sort out the problem that people have who are forced to use food banks? Surely we should have another look at universal credit and abolish it, because it is not working.
Will Quince
I am sorry to hear the hon. Gentleman’s example. If I get a chance to visit his local food bank, I will certainly do so, but I have to stress that no claimant needs to wait more than five weeks to receive their first regular universal credit payment. We have listened to feedback on how we can support our claimants and made improvements, such as extending advances, removing waiting days and introducing housing benefit run-on. I will continue to work with the Trussell Trust and others to improve our system in any way we can.
Heidi Allen (South Cambridgeshire) (Ind)
I am afraid to say to the Minister that the advance payment is missing the point. The biggest driver of people going to food banks is the five-week wait. Because of the benefit freeze, the basic amount people have to live on, particularly the very vulnerable, is not enough. We cannot then expect them to live on less by taking away their advance payment, which is a debt. There is a simple way to deal with this. Some 60% of claimants are already taking advance payment, which tells us they cannot wait. The money is already going out of the DWP’s door. Make it a grant. It should not be repayable for the most vulnerable people in society.
Will Quince
I respect the hon. Lady’s knowledge in this area on the Select Committee, but I would say that advances are not loans from a separate fund; they are the claimant’s benefit paid early, which is then recovered over an agreed period. So they are in place to ensure that those in genuine need are able to receive financial support and are not reliant on illegal or high-cost lenders. But if a claimant considers they are facing financial hardship because of the amount that is being deducted from their universal credit award, they can ask the Department to consider reducing their deductions. As of October this year, the maximum deduction goes down from 40% to 30%.
Mr Bob Seely (Isle of Wight) (Con)
Vicky Foxcroft (Lewisham, Deptford) (Lab)
The Parliamentary Under-Secretary of State for Work and Pensions (Will Quince)
Welfare reforms were designed to ensure a fair balance between public spending and supporting vulnerable people to meet their housing costs. LHA rates are not intended to meet all rents in all areas. However, the Secretary of State and I have committed to end the freeze to LHA in March 2020.
Vicky Foxcroft
Local housing allowance is supposed to cover the lowest 30% of market rents, but research by Shelter found that that is not possible in 97% of England. For example, in south-east London, local housing allowance will cover only the bottom 10% of rents. We have a housing crisis across the country and local housing allowance is not fit for purpose. Does the Minister agree that it must be raised to reflect the true cost of renting?
Will Quince
I thank the hon. Lady for her question. As I said, LHA rates are not intended to meet all rents in all areas. Housing benefit claimants have to make the same decisions about where to live as people who do not receive benefit. In 2019-20, targeted affordability funding has been used to increase over 80% of rates in London. Nevertheless, we recognise that this is an issue. The Secretary of State and I are alive to it and we are looking at several options ahead of a spending review bid.
James Gray (North Wiltshire) (Con)
Does the Minister recognise that recent changes to the tax treatment of the private rented sector, particularly the buy-to-let sector, will mean an increase in rents across the board? That will have a very real read-across to the local housing allowance. Will he give some assessment of what allowance he will make for that increase?
Will Quince
That is, of course, a question for the Treasury. Any rise or potential rise in LHA rates has to go hand in hand with addressing supply. I urge my hon. Friend to address that issue with my counterparts in the Ministry of Housing, Communities and Local Government, and, indeed, the Chancellor and Chief Secretary to the Treasury.
Dr David Drew (Stroud) (Lab/Co-op)
I welcome what the Minister said the other day about reviewing how local housing allowance areas need to be redefined. Does he accept that, because Stroud is in the same area as Gloucester, we are now losing a significant number of people from the private sector because they cannot afford to top up? Will he therefore look at this as a matter of urgency?
Will Quince
I thank the hon. Gentleman for his question. He is right that the broad market rental areas have some anomalies. I have officials looking into this. It is a huge and complex piece of work, given that there are approximately 900 of those areas. It is therefore not something that can be done quickly, but I recognise the issue and I am working on it.
Joanna Cherry (Edinburgh South West) (SNP)
Nic Dakin (Scunthorpe) (Lab)
The Parliamentary Under-Secretary of State for Work and Pensions (Will Quince)
Universal credit ensures that support goes to those who need it most by simplifying the previously complicated legacy system, allowing 700,000 more people to receive approximately £2.4 billion in unclaimed benefits. Since 1 April this year, the Citizens Advice and Citizens Advice Scotland Help to Claim service has been in place, providing free, confidential and impartial support to help people, including those who are vulnerable, to make a universal credit claim.
Peter Aldous
I acknowledge the work that the Minister and the Secretary of State have done to improve universal credit, though concern remains that the five-week wait for the first payment is presenting a serious challenge to many people. To address this, will he accept the recommendation of the Bright Blue think-tank for one-off, up-front helping hand payments?
Will Quince
Those moving to universal credit will get more than 25% of their award through two weeks of additional housing benefit and, as of next year, jobseeker’s allowance, employment and support allowance and income support. Advances are available to cover the interim period, but we recognise the concerns about the payments in arrears and would welcome further ideas.
Nigel Huddleston
Vulnerable universal credit claimants often need to travel, sometimes long distances, to regular hospital appointments. What can the Minister do to help give these people the financial security they need to attend those regular and important appointments?
Will Quince
Universal credit claimants may be able to claim a refund for the cost of travelling to a hospital for treatment through the NHS healthcare travel costs scheme. To claim travel costs, claimants should take travel receipts, as well as their appointment letter or card and proof they are receiving a qualifying benefit, to a nominated cashiers office, which will be located in the hospital or clinic that treats the claimant. I should advise my hon. Friend that costs can be claimed back up to three months after an appointment.
Nic Dakin
The requirement for explicit consent built into universal credit makes it difficult for organisations such as Macmillan to support claimants as they did those on legacy benefits. When will the Government meet their commitment to review this requirement with the Social Security Advisory Committee, how will they engage stakeholders and when do they expect to report their findings?
Will Quince
The hon. Gentleman raises a very good point—it concerns me too. We have agreed to work collaboratively with the Social Security Advisory Committee to consider how current practices could be enhanced, and to publish a report on our joint conclusions.
Janet Daby (Lewisham East) (Lab)
A constituent of mine, Claudette, lives with her son, who is disabled, in private rented accommodation. She is in receipt of universal credit, but she did not receive her April rent payment, and the Department is refusing to investigate. Prior to that and ever since, universal credit has covered her rent. Will the Minister meet me to review this case, as my constituent fears eviction?
Will Quince
I thank the hon. Lady for raising that individual issue. I would like her to raise Claudette’s case with me. My door is always open, as I know are those of other Ministers in the Department, and of course I would be delighted to meet her.
Ruth George (High Peak) (Lab)
At the last oral questions, I raised the case of single parent Alicia in my constituency, who had seen fraudsters claim universal credit for her. The Minister promised to investigate but still has not. In the meantime, we have seen hundreds more cases across Greater Manchester, including that of my constituent Sarah, who has now, in spite of reporting the fraud, been asked to attend an interview under caution and been further victimised by the Department. Will the Secretary of State please make sure that victims of fraud and crime are not further victimised by her Department?
Will Quince
We take fraud incredibly seriously, and I believe that the matter in question is being investigated. If the hon. Lady has further cases, she can refer them to me or the Minister for Employment, and we will look at them very carefully.
Margaret Greenwood (Wirral West) (Lab)
The pilot of the Government’s ill-conceived managed migration of universal credit is meant to start this month, but the Government have been very slow in coming forward with details. Is this because the level of payment to severely disabled people who lost out when they transferred to universal credit was found to be unlawful by the High Court?
Will Quince
The Minister for Disabled People, Health and Work has been very clear on this. We are still considering it and will come back to the House in due course.
Margaret Greenwood
The Government have repeatedly responded to criticisms of social security cuts—and have done so today—by claiming that they are targeting those who need support the most. How does that accord with spending nearly £200,000 on legal battles with severely disabled people and single mothers who have lost out under universal credit?
Will Quince
Let me gently point out to the hon. Lady that we are spending more than £6 billion a year on the main disability benefits.
Jamie Stone (Caithness, Sutherland and Easter Ross) (LD)
Gillian Keegan (Chichester) (Con)
Can my hon. Friend tell me whether poverty has risen or fallen since 2010?
The Parliamentary Under-Secretary of State for Work and Pensions (Will Quince)
I thank my hon. Friend for that question. The Government remain committed to tackling poverty so that we can make a lasting difference to long-term outcomes. I am pleased to say that the Government have lifted 400,000 people out of absolute poverty since 2010, and income inequality has fallen.
Mr Jim Cunningham (Coventry South) (Lab)
Local Housing Allowance: Nottingham
Will Quince Excerpts(4 years, 10 months ago)
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The Parliamentary Under-Secretary of State for Work and Pensions (Will Quince)
I thank the hon. Member for Nottingham South (Lilian Greenwood) for securing this debate. I have not yet had an opportunity to visit Nottingham in my role but I look forward to doing so, hopefully over the summer.
Since taking up my post two months ago, I have been keen to engage with as many people as possible, including key stakeholders such as Shelter, Crisis, Homeless Link and the Joseph Rowntree Foundation, to understand housing issues from all perspectives. Like the hon. Lady, I have a keen and long-standing interest in housing and ensuring that people have a safe, decent and affordable place to live that meets the needs of the household, and I would like to start by confirming that we have committed to end the freeze on local housing allowance in March 2020.
Reform of housing support was a central part of this Government’s plan to create a welfare system that both supports the most vulnerable and is fair to taxpayers. To help ensure a fair balance between these two elements, LHA rates are not intended to meet rents in all areas. The intention behind the welfare reform programme is that the same considerations and choices faced by people not in receipt of benefits should be faced by those claiming benefits, and the LHA policy is designed to achieve this.
Between 2000 and 2010, housing benefit expenditure had risen by over half in real terms, reaching £25 billion in today’s prices. If left unreformed, by 2014-15 housing benefit would have reached £29 billion. That was not sustainable.
The measure to freeze LHA rates for four years from April 2016 built on reforms introduced in the previous Parliament, which saved £6 billion in total by 2015-16. Savings from freezing LHA rates are estimated to be around £655 million for Great Britain over the four-year period of the measure. Our reforms provide greater fairness and are part of our wider goal to move people from welfare and into work.
However, we have recognised that some places have seen big increases in rents, so we have made provision to further help people in those areas. That is why we have used a proportion of the savings from the freeze to create more targeted affordability funding, which is used to reduce the gap between frozen LHA rates and the 30th percentile.
Initially, targeted affordability funding was based on 30% of the savings from the freeze, but at autumn Budget 2017 we invested an additional £125 million in targeted affordability funding for the final two years of the freeze—2018-19 and 2019-20. This was based on 50% of the savings rather than 30%.
This additional funding enabled us to increase 213 LHA rates—there are 960 in total—by 3% last year, in 2018-19. This year, a total of £210 million has been made available, the highest amount of targeted affordability funding since its introduction in 2014, enabling us to increase 361 LHA rates by 3%. As a result, it is estimated that this year 500,000 households will benefit from an increase of around £250 per year.
In addition to this targeted affordability funding the Government have provided over £1 billion in discretionary housing payments to local authorities since 2011. Discretionary housing payments allow local authorities to protect the most vulnerable claimants and support households affected by different welfare reforms, including the freeze to LHA rates.
In Nottingham specifically, two of the five LHA rates in the broad market rental area were eligible for targeted affordability funding this year: the three-bedroom and four-bedroom LHA rates, both of which have been increased by 3%.
Lilian Greenwood
I thank the Minister for taking an intervention. As he rightly says, the levels for three and four-bedroom properties have been increased. I set out the levels of increase: for example, for a four-bedroom house, it has been increased by £4.55, but that still leaves a shortfall of £1,452 over the year for someone in that position renting that four-bedroom house. The Minister has quoted the rates but the shortfall that people are being asked to make up is huge. Is he really saying that that is the sort of money someone should have to find from their other benefits, whether child benefit or disability benefits? Is that really right?
Will Quince
I thank the hon. Lady for her question. That is exactly why we have introduced the targeted affordability funding and we have made available discretionary housing payments, but it is also why more broadly, as I explained in the urgent question last week, I am looking at this in some detail, as I did before being a Minister as part of the all-party group for ending homelessness.
As I said, the three-bedroom and four-bedroom LHA rates in Nottingham have both been increased by 3%. The remaining rates in Nottingham did not fall within the criteria of those rates that had diverged the most from local rents and therefore were not eligible for targeted affordability funding this year, and so remain frozen. As I have said, the Government have committed to end the freeze to LHA rates in March 2020 alongside the freeze on other working-age benefits.
Before I go on, I am aware that the hon. Lady mentioned a few other points which I would like to cover: homelessness, housing supply and “no DSS”. I did a huge amount of work, alongside the hon. Member for Bermondsey and Old Southwark (Neil Coyle), on the causes of homelessness and rough sleeping as co-chair of the all-party group for ending homelessness. Those causes are understood to be both complex and multifaceted. In order to fully evaluate these factors, we have commissioned a feasibility study and a rapid evidence review of the causes of homelessness in partnership with the Ministry of Housing, Communities and Local Government. This report has now been finalised and we are working on the next steps.
As I said earlier, we want everyone to have security in their homes and a roof over their head, and that is why we have committed over £1.2 billion to tackle homelessness and rough sleeping. We published a strategy to end rough sleeping by 2027 and halve it by 2022, and that is backed by £100 million of initial funding. And we have changed the law so that councils can place families in private rented accommodation so they get a suitable place sooner. Last year, statutory homelessness acceptances fell, and we are going to build on this; and the Homelessness Reduction Act 2017 will mean that more people get the help they need sooner.
The hon. Lady rightly touched on landlords not letting to those in receipt of benefits, also known under the old term of “no DSS”. This is a hugely important issue, and in February, the Under-Secretary of State for Housing, Communities and Local Government, my hon. Friend the Member for South Derbyshire (Mrs Wheeler), announced a Government campaign to end “no DSS” practices. We recently had a No. 10 roundtable on this very issue with a number of key stakeholders, and we are working with those stakeholders to find a satisfactory resolution.
Everyone deserves a safe and secure home, regardless of whether they are in receipt of benefits. Blanket bans do not take account of the individual and their circumstances, which is why we strongly discourage them. We would encourage landlords and agents to consider all potential and existing tenants in receipt of housing benefit and universal credit on an individual basis. We have already seen some positive changes from property sites that have committed to remove “no DSS” wording adverts from across their platforms, and lenders have changed their policies to remove mortgage restrictions that would prevent landlords from renting to tenants in receipt of housing support. Metro Bank is one of the latest to remove such restrictions, and I hope others will follow, but work is ongoing and we will continue to bring the sector together to tackle these practices.
Jim Shannon
It would annoy us greatly to find that rental landlords were discriminating against people because they were in receipt of benefits or were DSS applicants. Does the Minister agree that if there is discrimination, which clearly many of us in this House think there would be, under discrimination laws it would be illegal to do that? Also, what action would the Minister, in co-operation with colleagues of course, take to make sure that did not happen?
Will Quince
The hon. Gentleman makes a good point. Although that might be discrimination in terms of the terminology we would use, it might not fall under the legal definition of it. As a result, we believe that the best way of tackling this issue is to work with key stakeholders such as landlords and mortgage lenders, as well as with those who provide insurance, because we know that there is a particular issue in that regard. We had a successful roundtable at No. 10 recently, where I genuinely believe we had a good cross-section of all the key players from across the board. We are starting to see progress in this area, and I am sure that by taking this collaborative approach, with the Government working with business, key stakeholders and the charitable and voluntary sector, we will truly get a grip on this issue and tackle it. We do not want to see anyone who is in receipt of benefits being discriminated against in this way.
Alex Norris
I am grateful to the Minister for allowing an intervention before he moves on. I am going to test your patience, Mr Deputy Speaker, but I know that the Minister’s dogs were successful in the dog of the year competition not so long ago, as were my own, and I just want to raise a point about pets. Has he had a chance to consider the fact that another hidden way of excluding people in an overheated rental market is to adopt a no-pets policy? The Opposition have said that we want to get rid of that policy in tenancies, and I wonder whether the Minister has considered that as well.
Will Quince
The hon. Gentleman is a dog owner, and I am as well. I would not be without our Charlie, and I think that my two daughters would rather throw me out than the dog. In answer to his question, this is an action issue for the Ministry of Housing, Communities and Local Government, but I can assure him that I am working closely across the board with my counterparts in that Department, and I have a meeting with them tomorrow at which I shall raise that very issue.
The hon. Member for Nottingham South also touched on the question of supply, which follows neatly on from the hon. Gentleman’s point. As I have said, I work very closely indeed on this with my counterparts at the Ministry of Housing, Communities and Local Government, and I am sure that the hon. Lady would expect nothing less. Any changes to LHA rates must go hand in hand with how we look at supply, which is why it is essential that we have those meetings. I have them regularly, and I shall have one tomorrow. It will come as no surprise to her that I will continue to push my colleagues in the Department to look at how we can increase the supply of council, social and affordable housing. She mentioned Matt Downie of Crisis, but she missed the three letters that he now has the end of his name. I understand that he was recently awarded an MBE by Her Majesty the Queen, and I would like to send my congratulations to Matt, who is a huge asset to that organisation.
As a Government, we are proud of the progress we have made on our welfare reforms. We now have a record-breaking labour market, with over 3.6 million more people in work across the UK than in 2010 and with unemployment at its lowest rate since the 1970s, having fallen by more than half since 2010. This Government will continue to reform the welfare system so that it promotes work as the most effective route out of poverty. That is fairer to those who receive it and to the taxpayer who pays for it. Work is the pillar of a strong economy and a strong society. We believe that work should always pay, and we need a welfare system that helps people into work, supports those who need help and is fair to everyone who pays for it.
Lilian Greenwood
I hear what the Minister says, but he must be as concerned as I am that so many of the people who are now in poverty are also in work. In addressing the issue that we are talking about today, why is it right to force those who are least able to pay for the cost of welfare reform to do so, rather than looking at placing a control on rents as a way of controlling expenditure on welfare payments and protecting those who are most vulnerable from the impact of having to reduce expenditure?
Will Quince
I do not entirely recognise the picture that the hon. Lady paints. There have been huge positive changes for some of the lowest paid in our country. The national living wage has risen to £8.21, increasing a full-time worker’s pay by more than £2,750 since 2016. Our tax changes will make basic rate taxpayers more than £1,200 better off than they were in 2010, and we have doubled the free childcare available to working parents of three and four-year-olds to 30 hours per week, saving them up to £5,000 per child.
I was about to mention universal credit. Universal credit replaces the outdated and complex benefit system of the past, which too often stifled people’s potential, creating cliff edges at 16, 24 and 30 hours and punitive effective tax rates of more than 90% for some. The system was punishing claimants for doing the right thing. In the autumn Budget last year, we listened to concerns about universal credit delivery and funding, and announced a £4.5 billion cash boost to universal credit to ensure that vulnerable claimants and families would be supported in the transition to universal credit and that millions would keep more of what they earned. We announced a package of additional support worth £1 billion for all those being moved on to universal credit. This includes a two-week continuation of legacy benefits, a 12-month exemption period from the minimum income floor, a reduction in the deductions cap and an extension of the advances repayment period.
In conclusion, this Government remain committed to a strong safety net for those who need it. That is why we continue to spend more than £90 billion a year on welfare benefits for people of working age—
Lilian Greenwood
I would not like the Minister to finish without ensuring that I have understood what he is saying. He said earlier that the freeze on local housing allowance rates would end in April next year. Can I check whether LHA rates will also be restored to at least the 30th percentile of local rents, or whether they will just be allowed to rise from the level that they are now? Given that he has said that the freeze will end in April 2020, what additional help will he provide for those who are struggling to pay their rent now?
Will Quince
I thank the hon. Lady for her further intervention, just as I was reaching the end of my conclusion. I will comment on what she has just said in a moment. The Government continue to spend more than £90 billion a year on welfare benefits for people of working age, and the freeze to LHA rates and working-age benefits will end in March 2020. In answer to the further questions she rightly asked, that is a decision for the Secretary of State, and I will be working closely with her on that in the coming days, weeks and months.
Question put and agreed to.
Local Housing Allowance: Supreme Court Ruling
Will Quince Excerpts(4 years, 11 months ago)
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Urgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
Each Urgent Question requires a Government Minister to give a response on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
Marsha De Cordova (Battersea) (Lab)
(Urgent Question): To ask the Secretary of State for Work and Pensions to make a statement on yesterday’s Supreme Court ruling in the case of Samuels v. Birmingham City Council and the impact it will have on the Department’s setting of local housing allowance rates.
The Parliamentary Under-Secretary of State for Work and Pensions (Will Quince)
The ruling was not against the Department; it was a case against Birmingham City Council. I will look at the judgment carefully. The Court decided that the local authority had used the wrong test when deciding whether accommodation is affordable. The assessment is needed when deciding whether someone has made themselves intentionally homeless.
The decision is primarily one for local authorities to consider with regard to how they deal with applications for unintentional homelessness. However, I will undertake to consider the implications fully with my Department. LHA rates are not intended to meet full rental costs in all areas. The intention behind the welfare reform programme is that the same considerations and choices faced by people not in receipt of benefits should also face those claiming benefits. The LHA policy is designed to make the system fairer for all to achieve that.
The Government recognise, however, that the impact of freezing LHA rates may have different effects across the country, with rents in some areas increasing at different rates. In view of that, a proportion of the savings from the freeze to LHA rates is used to create targeted affordability funding. That funding is being used to increase those LHA rates that have diverged the most from local rents.
Marsha De Cordova
I am grateful to Mr Speaker for granting the urgent question.
Yesterday, the Supreme Court ruled on the case of Samuels v. Birmingham City Council, a case in which a single mother with four children was found “intentionally homeless” for not using her subsistence social security to pay the shortfall between her local housing allowance and her rent. Since 2016, the Government have frozen LHA, while private rents have continued to rise. That has meant that housing benefits no longer cover the cost of renting in the private sector.
Research by Shelter has found that for a two-bedroom home, even for the cheapest third of rents, LHA rates do not cover rental costs in 97% of areas in England. In the case that the Supreme Court ruled on yesterday, Ms Samuels was expected to use her social security to find an additional £150 a month to top up her local housing allowance to cover her rent. That put Ms Samuels in an impossible situation, essentially forcing her to choose between housing her family and feeding them. That is happening in the context of local authorities being forced to spend £1 billion a year on emergency and temporary accommodation, with the costs of preventing homelessness being pushed from national to local government.
The Government cannot continue to expect the poorest people in our society to find a way of paying for what the Government refuse to. The judgment sets a precedent. Will the Minister make a clear statement on the Supreme Court’s judgment and tell the House how the Government intend to respond? When will the Secretary of State reset LHA rates in response to the judgment? Finally, will the Minister tell us what assessment the Government have made of the hardship caused by the freeze in LHA rates?
Will Quince
The hon. Lady is right that LHA rates were frozen in the summer Budget in 2015 and have therefore been frozen since 2016. That was about getting our welfare bill under control. It was about ensuring that we provided the support necessary for those who needed it and fairness for those who pay for it, and making sure that our welfare system is sustainable in the long term. I can tell the hon. Lady that the freeze will end in March 2020. In all cases, the targeted affordability fund is available. We also have discretionary housing payments, and £1 billion has been made available since 2011.
Ultimately, it is a supply issue. LHA rates are one thing and supply is another. We need to look at successive Governments that have not built enough affordable—by which I mean council and social—housing. Nevertheless, the hon. Lady will be aware that I did a lot of work in this area before taking up my ministerial post. She would therefore expect me to undertake further work in post, and there will be more to come.
Alex Chalk (Cheltenham) (Con)
Rents in Cheltenham are relatively high. Does the Minister agree that bringing more housing on stream is critical to bringing down those rents? Does he join me in welcoming the £3 million that went to Cheltenham via the housing infrastructure fund to make what would otherwise be unviable developments viable, bringing vital housing on stream?
Will Quince
My hon. Friend is right that we are taking action to build the homes that our country needs. The LHA rate is an issue in so many cases because of supply and demand. Demand massively outstrips supply in certain areas, so I am pleased by the action that Cheltenham is taking with his support.
Neil Gray (Airdrie and Shotts) (SNP)
I pay tribute to Ms Samuels, who brought her case as far as the Supreme Court. Hopefully her struggle will result in change so that others do not have to go through this.
This case should be a wake-up call for many local authorities in how they process homelessness applications, while acknowledging that Scotland has much stronger homelessness legislation. Local authorities have been left in a very difficult situation because of this Government’s policies, which drive cases like that of Ms Samuels. Local housing allowance rates have been frozen at 2015 levels by this Government. Why will that freeze continue into next year? The Minister simply cannot say that this is about not wanting to subsidise the private rented sector, because the Government are actively doing that by not building social housing.
In the four years to 2018, Scotland delivered 50% more affordable housing units per head of population and—this is the important one—five times more social rented properties per head of population, and more in total, than England. The Scottish Government are also spending £12 million on discretionary housing payments to mitigate the Government’s freeze on benefits such as local housing allowance and £50 million to mitigate the bedroom tax.
A perfect storm has led to so many of us having cases like that of Ms Samuels at our surgeries—punitive, arbitrary and punishing cuts to social security, including housing benefit, coupled with rent increases and a devastating under-supply of social housing. When will the Government wake up to the crisis they are causing?
Will Quince
Despite the freeze in Scotland, we have seen LHA rates rise. One rate rose in 2017-18, three rates rose in 2018-19 and 16 rates rose in 2019-20. The hon. Gentleman knows me well enough to know that I am looking at various options in this area ahead of potential spending review bids. The freeze comes to an end next year, and I look forward to working with him.
James Duddridge (Rochford and Southend East) (Con)
It is a great pleasure to see the Minister in his place, which will give great reassurance to my right hon. Friend the Member for Uxbridge and South Ruislip (Boris Johnson) that it is possible to leave the Government and rejoin at a more senior level in short order.
My hon. Friend the Member for Cheltenham (Alex Chalk) hit the nail on the head. It is all about the supply of private sector housing. What discussions has the Minister had with the Minister for Housing on increasing the supply of housing and, in particular, building above shops? Whether in Birmingham, Colchester, Cheltenham or Southend, this has to be part of the solution.
Will Quince
I thank my hon. Friend for his kind words and his question. He is right that supply is a key element. Raising LHA rates would be one thing, but it will not have the impact we need if we do not build the housing that is desperately needed.
I am working closely with my counterpart at the Ministry of Housing, Communities and Local Government, and we are looking at supply ahead of potential spending review bids. We will be holding regular meetings to discuss these matters further.
Lilian Greenwood (Nottingham South) (Lab)
The local housing allowance freeze is causing real hardship not just in Birmingham but across the country, and I will be raising the impact on Nottingham citizens in my Adjournment debate next Monday. Does the Minister not understand that the Government’s commitment to eradicating homelessness will continue to ring very hollow while his Department continues to pursue many of the very policies that created the problem in the first place?
Will Quince
I look forward to the Adjournment debate on Monday evening, when we will discuss these matters in more detail. We want everyone to have security in their home and a roof over their head, which is why we have committed over £1.2 billion to tackle homelessness and rough sleeping. We have published a strategy to end rough sleeping by 2027 and to halve it by 2022, backed by £100 million of initial funding, and we have changed the law so that councils can place families in private rented accommodation so that they get a suitable place sooner. Statutory homelessness acceptances fell last year.
Christine Jardine (Edinburgh West) (LD)
The Minister says that the Government’s aim is to get support to the people who need it and to make the system sustainable, but surely what this case underlines is that we have a welfare system that is broken and that the Government’s attempts to fix it are failing. We need the welfare system repaired and we need action to tackle cases like this, along with the record numbers using food banks and a welfare system that is not doing what the Minister states is its aim.
Will Quince
I am afraid that I do not recognise the picture that the hon. Lady paints. We are spending record amounts on our welfare system—over £95 billion a year for those of working age.
Richard Burden (Birmingham, Northfield) (Lab)
Does the Minister agree that this Supreme Court judgment not only highlights the huge gap between local housing allowance rates and the reality of rents in the private sector, but shines a light on the much bigger crisis of homelessness, which today is a massive part of my caseload and, I think, that of other hon. Members? It is a crisis that in Birmingham, the month after the case went to the Supreme Court, saw 12,000 households on the council waiting list including the homeless and 2,500 households in temporary accommodation. Does he accept that this will not be tackled until the Government recognise the need to invest in social housing on the scale required and adopt social security policies that tackle poverty rather than exacerbate it and compound the homelessness problem, and that unfreezing the LHA cap would be a first step in that?
Finally, does he recognise that the message here for Birmingham City Council and other local authorities is that they must always keep focused on the people, not simply on the procedures?
Will Quince
The hon. Gentleman should not underestimate my determination—I chaired the all-party group on ending homelessness—to absolutely deliver on our commitments to halve and then end rough sleeping. I recognise what he says about LHA rates, but that is not the case across the country. Rates are an issue in some parts of the country but not in others, which is why I am looking at this very carefully. I have been working with my counterparts in the Ministry of Housing, Communities and Local Government, as he suggests, because supply is also an issue.
Dr David Drew (Stroud) (Lab/Co-op)
The local housing allowance causes us real problems in Stroud, because we are in the same area as Gloucester, where rents are much lower. That is nothing to do with this Minister, let alone this Government or previous, successive Governments; it was a Labour Government who grouped those areas together. Will he at least take a look at the impact on those groupings where rents are higher in some areas and lower in others?
Will Quince
The hon. Gentleman raises a good point. Those groupings are based on broad rental market areas, and in some parts of the country they pose an issue. A number of Members from across the House have raised this issue with me and I am looking at it.
Alan Brown (Kilmarnock and Loudoun) (SNP)
Under this Government we have seen the introduction of the bedroom tax and universal credit, both of which are causing rent arrears, and the Minister has actually admitted that UC delays are leading to an increase in prostitution. He says that the reason for the freeze in LHA rates, which is now making people homeless, is to stop the private rented sector being subsidised, yet another Government policy is leading to increased numbers of properties in the private rented sector. The right to buy has resulted in 75,618 sales and over 21,890 new starts since 2012, leading to a further imbalance between public and private sector housing. When will this Government get a joined-up, just social policy?
Will Quince
First, I want to correct the record. I did not make those comments at the Work and Pensions Committee yesterday, and if the hon. Gentleman checks the record he will see that that is the case. Since the freeze, LHA rates have been adjusted through targeted affordability funding, as I mentioned earlier. In addition, over £1 billion has been made available since 2011 in discretionary housing payments. I have made it clear that the freeze ends in March 2020 and, ahead of a spending review bid, I am looking at numerous options.
Family Law
Will Quince Excerpts(4 years, 11 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
The Parliamentary Under-Secretary of State for Work and Pensions (Will Quince)
I beg to move,
That the draft Child Support (Miscellaneous Amendments) Regulations 2019, which were laid before this House on 9 May, be approved.
These regulations amend child maintenance legislation to enable the delivery of the child maintenance compliance and arrears strategy.
We all know that, when parents work well together, their children fare better. A reformed child maintenance scheme based on that principle was launched in 2012 and administered by the Child Maintenance Service. This scheme was designed to encourage parents to work together following separation and, where possible, to make a private family-based arrangement for the child. Where parents are not able to do this, the statutory scheme is there as a fall-back option. I am pleased to say that, following staged implementation, the service is working well and largely avoiding the problems that beset the previous statutory child maintenance schemes. As the reformed scheme has been implemented, we have listened to the issues that hon. Members and external stakeholders have raised. This valuable input has informed our new child maintenance compliance and arrears strategy.
Last November, this House approved regulations tackling a number of those issues, closing down loopholes, introducing tough new sanctions for those who evade their responsibilities and dealing with the historic arrears that built up under the Child Support Agency. This second set of regulations supporting the compliance and arrears strategy builds on those made last November. It includes provisions to make deductions from benefit fairer, to address uncollectable debt and to improve information-gathering processes, alongside amendments to the calculation and fees regulations so that they better reflect the intent of the 2012 reforms.
Let me turn first to the changes to powers to make deductions from benefits. All parents have an obligation to support their children regardless of their financial circumstances. Parents on benefits are liable to pay the flat rate of maintenance of £7 per week. If they do not pay voluntarily, we can take deductions directly from their benefit payment, plus a collection fee of £1.40. There are different rules surrounding what may be taken for ongoing maintenance and what may be taken for arrears.
The Child Maintenance Service can currently make weekly deductions of £8.40—a flat rate of maintenance at £7, plus a £1.40 collection fee—towards ongoing maintenance from certain benefits, and £1.20 towards arrears from a smaller number of benefits. In some cases, a total of £9.60 a week can be deducted. I want to make this policy fairer for all parents involved.
The regulations enable deductions towards arrears to be made from the same benefits from which the Child Maintenance Service can deduct ongoing maintenance. They also ensure that the service can deduct a maximum of £8.40 a week in all cases. They will stop deductions towards arrears and ongoing maintenance being taken at the same time, with arrears deductions being taken only after ongoing liability has been satisfied. This removes all current inconsistencies and means that arrears of child maintenance can be cleared at a faster rate.
I am also proposing specific changes to deductions from universal credit. The Child Maintenance Service can already deduct £8.40 towards ongoing maintenance from universal credit, if the paying parent has no income from employment. The new regulations will allow the Child Maintenance Service to do the same where the paying parent has earnings in line with other benefits. This will only apply in cases where the paying parent is liable to pay only the flat rate—that is, based on earnings of £100 a week or less. This change means there will be a more efficient and consistent approach to clients on UC with similar financial circumstances.
Let me turn to the proposals regarding protected trust deeds. A protected trust deed is an arrangement in Scots law between a debtor and their creditors. In Scots law, child maintenance arrears that are covered by the deed cannot be collected once a parent enters into its terms. Although dividends may be received towards arrears while the deed is in operation, once it expires any arrears covered by the deed are legally uncollectable. At present, any child maintenance arrears are still held on child maintenance computer systems, even though they are no longer enforceable. The regulations will extend our write-off powers to cover arrears within the terms of a protected trust deed, once that deed has expired. This change keeps our legislation in line with that in Scotland and provides clarity to parents about the status of these arrears. It also stops the Child Maintenance Service holding information about uncollectable arrears indefinitely at a cost to the taxpayer.
There are occasions when child maintenance agents need to access premises to gather information, using powers of entry—whether to trace a parent, to recover child maintenance arrears or to ensure that the child maintenance calculation is as accurate as possible. We do this in a limited number of cases and when other measures to collect this information have failed. In line with the Protection of Freedoms Act 2012, we propose an additional safeguard to protect the public from unnecessary intrusion. The regulations require an inspector to apply for a judicial warrant where they are refused or expect to be refused access to premises, or where they cannot contact the occupier. Although the Child Maintenance Service cannot use its powers of entry to access a wholly private dwelling, this change would reassure the public that independent judicial consideration has been given to any request for inspection. I expect only about 20 judicial warrants to be sought per year, and the occupiers of these premises will have all the usual rights of appeal via magistrates courts in England and Wales, or sheriff courts in Scotland.
I am also proposing changes to the manner in which the Child Maintenance Service requests information from certain organisations. Mortgage lenders and occupational pension providers can be a valuable source of information where there is a need to trace a parent, to calculate a maintenance liability or to decide on the best enforcement power to use. To collect this information currently, the Child Maintenance Service has to arrange for one of our inspectors to visit. Repeat visits are often needed when the information is not readily available, and that can be costly and time-consuming. The regulations add mortgage lenders and occupational pension providers to the list of persons who are legally required to provide the service with information; that information is provided in writing, on request.
When calculating child maintenance, the Child Maintenance Service aims to produce a fair reflection of what the paying parent can afford. This is usually based on the taxable income figure provided by Her Majesty’s Revenue and Customs. The income figure given to the Child Maintenance Service by HMRC is currently provided after any deductions for pension contributions, but before non-taxable allowable expenses are disregarded. Parents need to notify the service to get those non-taxable expenses disregarded from their income figure. I propose a change in the legislation to make it clear in law that the income figure used to calculate maintenance must be used after allowable expenses have been disregarded.
The regulations also include a small technical change to collection fees, which were introduced in 2014 and were aimed at encouraging collaboration. They accrue alongside ongoing maintenance and, as with maintenance liability, accumulate when left unpaid. Collection of these outstanding fees can be enforced as though they were unpaid child maintenance. The regulatory changes that I am proposing clarify this policy intent and will provide the courts with a clear direction on fees when a liability order is sought.
Mr Jim Cunningham (Coventry South) (Lab)
Who decides on the level of fee—the court or the Department?
Will Quince
The fees and charges—20% for the paying parent and 4% for the receiving parent—are set by the Child Maintenance Service.
The regulations build on the success of the child maintenance reforms, further developing collection measures and information-gathering powers, helping to make child maintenance fairer for all parents and ensuring that we fully deliver on the commitments in the compliance and arrears strategy. I commend the regulations to the House.
Will Quince
First, let me thank all hon. Members for their comments and the good-natured and constructive approach they have taken. With your permission, Madam Deputy Speaker, I would like to take this opportunity to briefly respond to a number of the points raised.
The hon. Members for Weaver Vale (Mike Amesbury) and for Lanark and Hamilton East (Angela Crawley) asked about universal credit. In October, the maximum deduction for universal credit will go down from 40% to 30%. I will, of course, continue to monitor this policy in the way that I monitor all policies in my role.
The hon. Member for Lanark and Hamilton East asked about the family test. We conducted a family test, which concluded that there would be no adverse impact on family formation, family life or couple separation as a result of the proposals. As the Minister with responsibility for the family test, I think Members would expect no less. The family test was presented to the Social Security Advisory Committee as part of its scrutiny of the deductions from benefits provisions.
The hon. Lady talked about charges and the fairness thereof. It is important to say that charges account for about 10.5% of the costs of running the service. It is important that we operate a service that is fair to both the paying parent and the receiving parent. Most importantly, it must be fair to the children, who are the ultimate beneficiaries.
My hon. Friend the Member for Hazel Grove (Mr Wragg) raised a couple of points. Knowing what a determined campaigner and champion for the good folk of Hazel Grove he is, it would be churlish of me not to say that I would be happy to meet him to discuss this issue further. To set his expectations, there are no plans to change the 25% threshold. Nevertheless, I would be interested to hear his thoughts and any particular case that he would like to raise. I will come on to talk about enforcement, which he also raised.
My hon. Friend asked about deductions on earnings from people outside the PAYE system. If a parent is employed, we can make deductions of up to a maximum of 40% of their net income. For the self-employed, it is a bit more complicated, but we have a wide range of enforcement powers we can use, such as making deductions direct from a parent’s bank account—including, since December 2018, from joint and business accounts, which was a significant step.
The Opposition spokesman raised a point about when UC deductions will change and when that change will be implemented. We are aiming to start UC deductions from earnings when this package of changes is introduced and UC has been rolled out. He also asked whether a deduction from a parent’s benefit will affect their relationship with the child. That is a very important point. We will —I will, certainly—very carefully monitor the implementation of this policy, and also deductions of benefits. Any deduction from a parent’s benefit requires consideration of the welfare of any child—he would expect nothing less—and if we concluded that a deduction from benefit would negatively affect the child or children, it would not be taken. I hope that reassures the hon. Gentleman.
The hon. Gentleman asked about parents who are put on direct pay, and questioned whether the CMS does anything when payments are not made. The CMS still provides support for direct pay clients, so it is just not true to suggest that that support is not available. Those who do not receive their maintenance in full and on time should contact the CMS straight away, so that the case can be moved to the collect and pay service to enforce payments and any arrears.
It is important to say that, at the start of any case and at each annual review, parents are notified of what to do if their arrangements break down. The CMS sends text messages—SMS messages—to all direct pay parents three months after they have set up their arrangements to remind them to contact the CMS if their arrangement is not working for any reason. Information is available online, and is also provided by the CMS and Child Maintenance Options. It is important to say that, since March 2017, there have been sustained increases in the number of direct pay arrangements moving to collect and pay, although it is also important to note that this has levelled off in the past two quarters.
The Opposition spokesman also asked how many parents have made representations for their debt to be collected. At present, only a small proportion of cases have got to this stage in the process, so we are yet to publish data on that. That is a question he may want to ask me a little bit further down the line.
Last November, the House passed regulations to close loopholes, update the child maintenance calculation, deal with historical debt and bring in tough new sanctions for those who persistently evade their responsibilities. This second package of regulations builds on the first. The changes will make deductions from benefit fairer, tackle unenforceable debt, improve our information-gathering processes, and update calculation and fees regulations. I commend this statutory instrument to the House.
Question put and agreed to.
Oral Answers to Questions
Will Quince Excerpts(4 years, 12 months ago)
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Paul Masterton (East Renfrewshire) (Con)
The Parliamentary Under-Secretary of State for Work and Pensions (Will Quince)
As announced in August last year, housing costs for all claimants in supported housing, including universal credit claimants, will continue to be met through housing benefit. Maintaining housing benefit for all supported housing reflects the particular needs of these vulnerable groups.
Paul Masterton
I welcome the Minister to his new role. However, is he aware of an issue with the Universal Credit Regulations 2013, which refer only to English county councils as relevant bodies? Supported accommodation provided by Scottish local authorities is not covered, even though those living in identical circumstances in accommodation in England will be covered and so will still be subject to housing benefit. Will he meet me to discuss the matter?
Will Quince
I thank my hon. Friend for his question. He is a passionate campaigner, and I recognise that that is a specific constituency issue. There is no difference in how English lower-tier local authorities and Scottish local authorities are treated within the regulations. Amendments to the regulations were introduced in 2014 to extend the protection to other supported housing, which was not previously included and was most likely to be affected by the welfare reforms. However, I would be happy to meet my hon. Friend to discuss this complex issue further.
John Cryer (Leyton and Wanstead) (Lab)
Contrary to what the Minister just said, I have had a small group of constituency cases in which the Department for Work and Pensions does not seem able to decide whether people in supported accommodation should continue on housing benefit or whether their housing costs should be paid through universal credit. Will he repeat his clarification to make the situation absolutely certain, because the DWP does not seem able to decide in its own cases?
Will Quince
I thank the hon. Gentleman for his question. I am happy to look at those individual cases. He can write to me, or I would be happy to meet him.
Jamie Stone (Caithness, Sutherland and Easter Ross) (LD)
Mr Speaker, I could probably ask this question on the back of any question on the Order Paper. Broadband connectivity is very poor in parts of my constituency, which surely flies in the face of the Government’s best efforts to ensure that people who deserve benefits get them and that people who want to get back to work have that opportunity. What do the Government intend to do about the problem to help my constituents?
Will Quince
The question is a good one, and we will always look at alternative forms of communication.
Ruth Cadbury (Brentford and Isleworth) (Lab)
Too many young people who are sofa-surfing or, worse, sleeping rough are doing so because of problems due to universal credit delays and sanctions. When will the Government do an assessment of the impact of these delays and sanctions on vulnerable young people?
Will Quince
That is why, in recent Budgets, we have put an additional £1.7 billion into the universal credit system.
Sir Desmond Swayne (New Forest West) (Con)
The Parliamentary Under-Secretary of State for Work and Pensions (Will Quince)
This Government have introduced a £1,000 bursary for those starting an apprenticeship, the care leaver covenant and extended paid internship opportunities across the Government. I will build on the good work of my predecessor and meet employers to see how we can further improve job opportunities for care leavers.
Sir Desmond Swayne
Of what does the Minister’s work with Barnardo’s consist?
Will Quince
I thank my right hon. Friend for that question. He is a passionate campaigner and supporter of Barnardo’s. The Department and Barnardo’s are developing a small work experience pilot for care leavers in a number of Barnardo’s high street shops. More broadly, the Government aim to use the care leaver covenant to secure 1,000 employment opportunities by September 2021.
Melanie Onn (Great Grimsby) (Lab)
Why is the youth obligation failing our young people so badly? More people on the youth obligation are falling out of benefits altogether. They are unable to maintain stability and are unable to go on to seek work.
Will Quince
I thank the hon. Lady for her question, but I gently point out that youth unemployment has halved under this Government.
Giles Watling (Clacton) (Con)
Mark Menzies (Fylde) (Con)
The Parliamentary Under-Secretary of State for Work and Pensions (Will Quince)
The Government know that getting ex-offenders into work is a crucial part of rehabilitation. DWP prison work coaches and jobcentre work coaches provide tailored support to ex-offenders. The DWP works collaboratively with Ministry of Justice on its education and employment strategy, creating a system where prisoners are on a path to employment as soon as they enter prison.
Mark Menzies
People from all walks of life have to undergo work capability assessments, but ex-offenders have complex needs and often institutionalised experiences. What measures is my hon. Friend taking to ensure that the assessors themselves are taking the appropriate measures?
Will Quince
My hon. Friend raises a good point. Healthcare professionals are subject to a rigorous recruitment process, followed by a comprehensive training programme in disability assessment for physical and mental health conditions, and have to be approved by the Department. They are then required to complete a programme of continuing professional development.
Ellie Reeves (Lewisham West and Penge) (Lab)
Reoffending rates among those who have served a sentence of less than 12 months are a staggering 64%. The Ministry of Justice has signalled a clear intent to move away from this model of sentencing. What discussions have Ministers had with the Ministry of Justice about ensuring that community-based sentences have substantive support around employment to ensure that reoffending is curbed and sentences deliver meaningful rehabilitation and workplace opportunities?
Will Quince
I thank the hon. Lady for her question. Being relatively new in post, I have not had those conversations as yet, but I do work very closely with my counterpart at the Ministry of Justice and will be having such conversations.
Mr Speaker
We look forward to an update in due course and we are grateful to the hon. Gentleman.
David T. C. Davies (Monmouth) (Con)
The Parliamentary Under-Secretary of State for Work and Pensions (Will Quince)
I thank my hon. Friend for his question, and I absolutely agree with him. He may know that I campaigned with the hon. Member for Swansea East (Carolyn Harris) before taking up my post. I am personally committed to this, the Department is committed to this, the Prime Minister is committed to this and we will deliver it.
Wes Streeting (Ilford North) (Lab)
Food Poverty: Scotland
Will Quince Excerpts(5 years ago)
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The Parliamentary Under-Secretary of State for Work and Pensions (Will Quince)
Thank you for your kind words, Mr Deputy Speaker.
I thank the hon. Member for Coatbridge, Chryston and Bellshill (Hugh Gaffney) for securing this debate on this important issue. He is a passionate campaigner on this issue, and he knows me well enough to know that I share his passion for reducing poverty, food insecurity and disadvantage.
I must confess that I have not yet, in the handful of weeks in which I have been in this post, had the opportunity to visit Scotland. I hope to correct that at the earliest available opportunity, perhaps even alongside the hon. Gentleman or a number of the other representatives from Scotland who are here. I am absolutely keen, new in post, to get out and about as much as possible, meeting DWP staff, charities, claimants, vulnerable groups, and, of course, Members of this House to gain a better understanding across the country of what is working well, what is working not so well, and, in the case of the latter, identifying what steps and interventions we need to put in place to tackle all forms of poverty and disadvantage.
I share the concern that has been expressed about what the latest statistics tell us about poverty levels in Scotland and in the UK as a whole. It is absolutely right that any Government are held properly to account for the effectiveness of their policies in tackling poverty and disadvantage. Underpinning this Government’s commitment to tackling all forms of poverty is our firm conviction that delivering a sustainable long-term solution means building a strong economy and having in place a benefits system that works with the tax system and the labour market to support employment and higher pay. We believe that this is the best way to achieve better long-term outcomes, particularly for disadvantaged children. We are proud, as a Government, of the progress we have made. We now have a record-breaking labour market with over 3.6 million more people in work across the UK compared with 2010. Unemployment is at its lowest rate since the 1970s, having fallen by more than half since 2010.
We are also delivering on our promise to get more people into work in Scotland. Since 2010, employment in Scotland has risen by about 250,000, with unemployment down by 126,000. In fact, Scotland has a lower rate of unemployment, at 3.3%, than the UK national average of 3.9%. Wages are now outstripping inflation—in fact, they are rising at the joint fastest rate in a decade—and about three quarters of the growth in employment since 2010 has been in full-time work, which evidence shows substantially reduces the risk of poverty.
Dr Cameron
I thank the Minister for the excellent points that he is making. No debate on this subject would be comprehensive without referring to the fact that people with disability are affected more than anyone else in relation to poverty. What more can be done to get people with disability into work and to make sure that they do not fall foul of the benefits system, and certainly do not have to struggle with the benefits system for access to support that they deserve and that the most vulnerable people in society should have?
Will Quince
The hon. Lady is absolutely right that we do not want anybody, particularly those with a disability, to struggle in accessing our welfare system. I can assure her that I will be working very closely alongside my hon. Friend the Minister for Disabled People, Health and Work to ensure that our welfare system does deliver in that regard.
Chris Stephens
As a member of the Work and Pensions Committee, I welcome the Minister to his post. We look forward to questioning him in his current role. If, as he has said, the economy is so strong and wages are so great at the moment, that surely tells us that food prices, and fuel prices, are rising higher than wages. Is that the case, or is he suggesting that food poverty exists for another reason?
Will Quince
I thank the hon. Gentleman for his intervention. I look forward to appearing before the Work and Pensions Committee in due course, and I hope that our relationship will be robust and, no doubt, critically constructive. He raises some good points. I have already set aside time to meet the Scottish National party’s spokesman on these issues, and I also look forward to sitting down with the hon. Gentleman to look at them.
A working-age adult living in a household where every adult is working is about six times less likely to be in relative poverty than one living in a household where nobody works. A child living in a household where every adult is working is about five times less likely to be in relative poverty than a child in a household where nobody works. There is only a 7% chance of a child being in relative poverty if both parents work full time, compared with 66% for two-parent families with only part-time work. We will continue to reform our welfare system, so that it promotes work as the most effective route out of poverty and is fairer to those who receive it and to the taxpayers who pay for it.
Universal credit is, of course, at the heart of these reforms and will help tackle poverty by helping an extra 200,000 people into work. It is a modern benefit with one monthly payment that adjusts to earnings, avoiding the cliff edges associated with the legacy benefits that it replaces. It will also be £2 billion a year more generous than the previous system. A number of Members across the House have raised concerns, and as a Government we have responded to those concerns by making changes to remove waiting days and make bigger advance payments available. In the last Budget, we announced a £4.5 billion cash boost, which will make a huge difference to the lives of working families and provide extra support for people moving on to universal credit.
Chris Stephens
I thank the Minister for that, but the problem with the advance payment is that it is very much seen as a loan. Is the Department, as it previously indicated to the Work and Pensions Committee, looking at whether the advance payment could become the first payment, which could relieve the reliance on food banks and deal with food poverty?
Will Quince
I thank the hon. Gentleman for his further intervention. As I said, we have made improvements to the initial UC assessment period, including the removal of waiting days and advances of up to 100% of the indicative first payment. It is important to say that the advances are 100% interest-free, and people have to pay them back over 12 months; as of 2021, it will be over 16 months. However, he makes a fair point. We need to ensure that claimants are working with their coaches and are absolutely clear about what they are taking on. It is not a loan; it is an advance. We have to ensure that work coaches are advising appropriately and ensuring that options are available to the claimant. They do not have to take it all in one go, for example; they can take a small amount as per their needs at the time. I am willing to discuss that with him in further detail.
I mentioned the concerns that were raised and the changes that were made in the last Budget. In particular, we have put an extra £1.7 billion a year into work allowances, increasing the amount that hard-working families can earn before the taper is applied. That is an extra £630 a year for 2.4 million families, many of them in Scotland.
We are also working in partnership with Citizens Advice Scotland to provide a consistent UK-wide service and assist claimants to successfully make their universal credit claim. The Citizens Advice Help to Claim service offers tailored, practical support to help people make their claim and receive their first full payment on time. That service is available online, over the telephone and face to face through local Citizens Advice services. We are also working closely with the Scottish Government to help them achieve their goals on UC flexibilities. For example, UC Scottish choices are now available to all claimants in Scotland on full service who are not in receipt of a DWP alternative arrangement plan.
No one in the Government wants to see poverty increasing or reported increases in food bank use. The recent poverty statistics are, of course, disappointing. However, child poverty in Scotland has remained the same or decreased across all four of the main measures in the three years to 2017-18, compared with the three years to 2009-10. The statistics published in March this year represent a year—2017-18—when some families struggled to keep pace with rising costs, including a higher level of inflation, which the hon. Member for Glasgow South West (Chris Stephens) referred to, but since then there has been a year of real wage growth. Earnings have outpaced inflation for 13 months in a row, with real wages growing 1.6% on the year. The statistics do not reflect the substantial additional funding for our welfare system announced in the last financial year, which are only just beginning to take effect.
Increasing the rate of employment is not, however, the limit of our ambition. The Government have gone much further than previous Governments to support working people and have set out their ambition in the Chancellor’s spring statement to end low pay across the UK. UC works alongside other policies introduced by this Government to promote full-time employment as a way out of poverty and towards financial independence. In particular, it offers smooth incentives for people to increase their hours, and we are confident that as UC reaches more working families we will see more working full time.
Our national living wage, which is among the highest in the world, is expected to benefit more than 1.7 million people; and the increase to £8.21 from April this year will increase a full-time worker’s annual pay by more than £2,750 since 2016.
Alison Thewliss
The Minister makes a point about the living wage, but it is not a real living wage as defined by the Living Wage Foundation. Also, it is not available to people under the age of 25. Why does he think that a 16, 17, 18, 19, 20, 21, 22, 23 or 24-year-old in the same job as a 25-year-old is not entitled to the same wage?
Will Quince
I thank the hon. Lady for her question. She has long campaigned on this issue. The national living wage that we have introduced will make a huge difference, but, referring to the wider point of poverty, I want to be clear that it is not just a Department for Work and Pensions issue. As part of my role, I want to work across the Government with my counterparts in other Departments—the Department for Environment, Food and Rural Affairs, the Ministry of Housing, Communities and Local Government, the Treasury and the Department of Health and Social Care—to tackle poverty in all its forms. We all have a part to play. I hear what she has to say, and I am happy to meet her at a later stage to discuss that issue at more length.
Hugh Gaffney
The Minister says that he will end low pay and increase the living wage. Will he end zero-hours contracts?
Will Quince
I thank the hon. Gentleman for his question. The answer is no, because zero-hours contracts work for a large number of people. I have spoken to people in my constituency who find huge benefit in zero-hours contracts. They give them the flexibility that they need in the work place.
Our tax changes will make basic rate taxpayers more than £1,200 better off from April, compared with 2010. Taken together, the most recent changes mean that a single person on the national living wage will, from April, take home over £13,700 a year—£4,500 more than in 2009-10. The Government remain committed to providing a strong safety net for those who need it. This is why we continue to spend more than £95 billion a year on welfare benefits for people of working age. I would say gently to the hon. Gentleman and other Opposition Members that the Scottish Government can tackle poverty in all its forms through its devolved skills, education, health and employment programmes such as those introduced to support disadvantaged pupils within the education system. The UK Government have also taken similar steps to support the most vulnerable by providing free school meals and our healthy start vouchers. We are also investing up to £26 million in school breakfast clubs and £9 million to provide meals and activities for thousands of disadvantaged children during the summer holidays.
We have also heard from the hon. Gentleman about the impact of food insecurity on health. The UK Government are taking action. For example, chapter 2 of the childhood obesity strategy announces a bold ambition to halve childhood obesity and significantly reduce the gap in obesity between children from the most and least deprived areas by 2030. I will ensure that my counterpart in the Department of Health and Social Care is aware of some of the wider issues that have been raised in this debate. The Government also want to build a better understanding of food insecurity.
Jim Shannon
I recently met a representative of a lobby group that, along with Sainsbury’s, is carrying out a project in a number of communities that involves schools, better eating and more careful eating. It is intended to address obesity and to involve young people of five to 15 in activities during the summer months. A great many people out there are doing great things, and sometimes we need to recognise them.
Will Quince
The hon. Gentleman is right: we should learn from things that are being done really well across the country and seek to share that best practice. I join him in thanking the organisations that make such a big difference.
Will Quince
One moment.
As I said, the Government also want to build a better understanding of household food needs, to ensure that we are targeting support at those who need it most. That is why we have worked with the Scottish Government, food insecurity experts and the Office for National Statistics to introduce a new set of food security questions in the family resources survey, starting from April 2019. In future, we will be able to monitor the prevalence and severity of household food insecurity across the UK, and for specific groups, better to understand the drivers of food insecurity and identify which groups are most at risk.
The hon. Member for Coatbridge, Chryston and Bellshill also spoke about the recent trends in food bank use. I reassure the House that I am very much alive to the issue. I have already had an introductory conversation with the chief executive of the Trussell Trust, and I plan to visit a number of food banks to understand more about the experiences of food bank users. I echo comments made by hon. Members thanking volunteers across our country and those who donate to food banks.
Will Quince
I want to finish on food banks. My Department is also exploring whether, building on existing good practice, working more closely with food banks can help us to identify and better support any customers who may, for a variety of reasons, not be receiving the full formal support to which they are entitled.
I want to come back on two comments made during this debate. The hon. Member for Glasgow Central (Alison Thewliss) asked about those with no recourse to public funds. I hear her point. Those people and how they are supported is a matter for the Home Office, but I will take her point away and have that conversation with my Home Office counterpart.
The hon. Member for Strangford (Jim Shannon) mentioned pensioner poverty. The percentage of pensioners living in poverty has fallen dramatically over several decades. Relative poverty among pensioners has halved since 1990. The Government will be spending £121.5 billion on benefits for pensioners this year, including £97 billion on the state pension. We are absolutely committed to the triple lock for the rest of this Parliament.
In conclusion, I would like to reaffirm our view that the long-term approach that we are taking is the right one if we are to deliver lasting change. However, we are not complacent: this is an area of real focus for me and the Department. I look forward to working with colleagues from across the House, the devolved Administrations and charities to tackle poverty in all its forms.
Question put and agreed to.
Oral Answers to Questions
Will Quince Excerpts(5 years, 1 month ago)
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Justin Tomlinson
We are always reviewing that process and we work very closely with stakeholders, with their wealth of experience, to make sure that we continue to deliver improvements.
Will Quince (Colchester) (Con)
The Secretary of State for Work and Pensions (Amber Rudd)
Domestic abuse is a devastating crime and my Department will always do what it can to support victims of domestic abuse. Departmental training and awareness is now better than ever, but I can confirm that, by the summer of this year, we will ensure that we have domestic abuse specialists in every jobcentre to help everybody who needs it.
Will Quince
What steps are the Government taking to increase the provision and quality of supported housing for such vulnerable people?
Amber Rudd
I thank my hon. Friend for raising this issue. Of course, supported housing is essential for vulnerable groups, including those fleeing domestic abuse, which is why we announced in August last year that we will maintain funding for all supported housing and housing benefit. I am going to work closely with the Secretary of State for Housing, Communities and Local Government, the Chancellor and local authorities to ensure that quality and value for money are always available in supported housing provision for domestic abuse victims.
Department for Education
Will Quince Excerpts(5 years, 2 months ago)
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Will Quince (Colchester) (Con)
It is a pleasure to follow the hon. Member for Colne Valley (Thelma Walker), who speaks with a huge amount of authority on this issue. I congratulate the hon. Member for Hackney South and Shoreditch (Meg Hillier) on securing this debate, and it was a pleasure to support her application.
I should declare an interest, albeit not a pecuniary interest. My wife is a primary schoolteacher, and as comfy as the sofa is, I prefer the bed. I also have a seven-year-old in a local primary school and a young daughter who will start primary school next year, so I suppose that I have a vested interest.
Like many of my constituents, as a parent I completely understand the importance of education. When I speak to constituents, education is often their second largest priority—second only to our NHS. As a Conservative, I completely support equality of opportunity, which stems from education. Education is at the very heart of it. To that end, I am delighted that 1.9 million more children than in 2010 are being taught in good and outstanding schools—this has increased from 66% to 84%.
This is a debate in anticipation of the Government’s spending review, and although it is not only about money, money is inevitably an important factor. Let me start with the bits that I very much support and welcome. I welcome the introduction of the national funding formula, which is supported by a not insignificant £1.3 billion across 2018-19 and 2019-20. I welcome the fact that the Government protected the schools budget up to 2016, when other Departments faced cuts in the early coalition years. I welcome the fact that the core school funding budget will rise from £41 billion in 2017-18 to £42 billion this year and £43.5 billion in 2019-20.
One of the most enjoyable parts of being an MP is attending assemblies, which I do regularly on Friday mornings, and listening to not only teachers and headteachers but parents, governors and, indeed, pupils, to hear what they think and how they talk about our role here and how it impacts on them. I suppose this is a good juncture to pay tribute to all the teachers and the amazing schools we have in Colchester. Having met those teachers, headteachers, governors and parents, I find that we are asking our schools to do more than ever before and that is putting unbelievable pressure on teachers—I see that at home, but I also understand it from having spoken to teachers from across the schools in the constituency.
Schools are facing unprecedented cost pressures, and I wish to touch on a few of them because the context of the pressures schools are under is important when we talk about additional funding in education budgets. These cost pressures include providing support and intervention for children with specific learning difficulties; mental health issues; employer pension contributions; the national living wage; academies and multi-academy trusts potentially having less bargaining power than local authorities used to in terms of economies of scale; the costs that came with the general data protection rule; the rising cost of utilities; the apprenticeship levy; the growing cost of appeals; the costs of changing to multi-academy trusts; staff development; staff recruitment; and of course the teachers’ pay award. I have just touched on a few of the many rising cost pressures on schools.
In the short time available, I wish to touch on further education, which I genuinely believe is verging on crisis. For 16 and 17-year-olds, funding has been frozen at £4,000 per student since 2013, and for 18-year-olds, it has been frozen at £3,300 since 2014. As I just mentioned, colleges and sixth forms are not immune to all those different cost rises and more, and the Government have imposed a range of new requirements. Costs have risen sharply and the budget has not risen to reflect that. That is not good for students; it is damaging our international competitiveness; and it harms social mobility.
The Secretary of State is no longer in his place, but the Minister for Apprenticeships and Skills is. They will know, because I have lobbied them both on this issue on numerous occasions, that I believe that schools have already maximised the efficiency savings that were available to them. A toolkit was helpfully provided by the Department, and schools have used it and gone even further. I genuinely believe that there is no more fat left to trim, and I do not want our headteachers focusing on how they can further squeeze their budgets; I want them focusing on educational attainment and improving outcomes for students in all our schools.
So I do have some asks. I know the Minister has heard them before, but I do not apologise for repeating them. We do need an increase in the revenue budget and in the high-needs budget. The rate for 16 to 19-year-old pupils must increase. The national funding formula needs to be rolled out and implemented in full as soon as possible. Funding settlements should be for a minimum of three years. We cannot expect schools to produce three-year budgets but not give them that certainty and consistency in their funding. We have to increase the capital budget for our schools.
Sir Geoffrey Clifton-Brown
Does my hon. Friend think it odd that the NHS has a budget for 10 years, local government has a budget for three years and yet schools have a budget for only one year?
Will Quince
I thank my hon. Friend for that intervention. He reads my mind, because I was just about to say that we need a long-term plan for education and schools, in the same way that we have one for our NHS. This is absolutely the right thing to do, because teachers and headteachers need that certainty and consistency. We also need to ensure that mental and physical health services are adequately resourced.
I genuinely believe that we are on the precipice. The vast majority of any school budget—anywhere between 80% and 90%—is spent on people. They are the asset in our education system. If there is no more fat to trim, the only place left to go is to reduce staff, and that will have a detrimental impact on pupils’ attainment and, indeed, outcomes across the board. There are already schools in Colchester that are letting support staff go and not filling vacancies. My fear is that if that continues, we will start to see a decline in results.
I wholeheartedly believe that education is at the heart of equality of opportunity. I believe in social mobility, and education is its key enabler. Education is an investment in our people. I will continue to lobby for additional funding for education and ask that the education budget is increased in all the areas I have mentioned ahead of the next spending review.
Oral Answers to Questions
Will Quince Excerpts(5 years, 2 months ago)
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James Cleverly (Braintree) (Con)
Will Quince (Colchester) (Con)
The Parliamentary Under-Secretary of State for Work and Pensions (Justin Tomlinson)
Building on recent announcements, I have just held two roundtables with care leavers and care leaver charities. The next step is to meet employers to explore how we can further improve job opportunities for care leavers.
Justin Tomlinson
I pay tribute to my hon. Friend, who has championed this area for a number of years, particularly during his time under the former Mayor of London as his youth ambassador. We recognise that the key is to build a personalised and positive relationship between the work coach and the care leaver. We have been working very closely with the Children’s Society and Barnardo’s to improve both the guidance and the training for all our frontline work coaches.
Will Quince
Care leavers are one of the groups at highest risk of homelessness. What support does the Department offer to help care leavers and vulnerable claimants to secure housing?
Justin Tomlinson
Last Thursday, my hon. Friend held a powerful debate in Westminster Hall covering some of this area. The Government take the issue very seriously. We are providing additional funding for 47 local authorities that have the highest numbers of care leavers at risk of rough sleeping. That funding will allow them to appoint specialist personnel advisers to provide additional support to small caseloads of those at risk. I am also keen to look at opportunities to open up the jobcentres to care leavers six months before their 18th birthday in order to look at all the different opportunities and support available to them.
Amber Rudd
I share the hon. Lady’s indignation. We have apologised to Mr Smith and his ESA payment has been repaid and reinstated in full. I will take a personal interest in ensuring that, where errors were made, they are corrected.
Will Quince (Colchester) (Con)
Under our benefits system, serious or terminally ill students have to abandon their courses to claim benefits. It is wrong for us to be telling students to give up on the hope of getting better and to abandon their courses just to claim benefits. We have to put this right.
Amber Rudd
I thank my hon. Friend for his campaign. I share his view that we need to take action. We are developing policy and I will make sure that he is the first to know what action we do take.